16. A.
Taxes should not operate retrospectively;
B. Tax is generally for public purpose. Which is true? Neither A nor B
17. Which provision of the constitution is double taxation believed to violate? Either A or C
18. Which limitation of taxation is the concept of “situs of taxation” based? Territoriality
19. Which tax exemption is irrevocable? Both and B
20. Which statement is incorrect? Only those who are able to pay tax can enjoy the privileges and
protection of the government
21. Which is the most incorrect statement regarding taxes? There should be personal benefit
enjoyed from the government before one is required to pay tax
22. Statement 1: In the selection of the objects of taxation, the courts have no power to inquire into the
wisdom, objectivity, motive, expediency, or necessity of a tax law;
Statement 2: An imposition can be both a tax and a regulation. Taxes may be levied to provide
means for rehabilitation and stabilization of threatened industry.
Which is correct? Both statements
23. Which of the following acts in taxation is administrative by nature? Levy or distraint of
taxpayer’s property for tax delinquency.
24. This refers to the privilege or immunity from a tax burden which others are subject to- Tax
holiday
25. Statement 1: The benefit received theory presupposes that some taxpayer within the territorial
jurisdiction of the Philippines will be exempted from paying tax so long as they do not receive benefits
from the government;
Statement 2: The ability to pay theory suggests that some taxpayers may be exempted from tax
provided they do not have ability to pay the same- Only statement 2
26. Which is not a legislative act? Assessment of the tax
27. Statement 1: Taxation is the rule; exemption is the exception;
Statement 2: Taxation may be used to implement the police power of the state-
I and II are true
28. Which of the following powers of the commissioner of internal revenue cannot be delegated?
The power to reverse a ruling of the bureau of internal revenue
29. When exemption from a tax imposition is silent or not clearly stated, which is true?
Taxation applies since exemptions are constructed against the taxpayer
30. What is the basis of taxation? Reciprocal duties of support and protection
31. When the provisions of tax law are silent as to the taxability of an item, which is true?
Taxation applies due to the lifeblood doctrine
32. Which of the following statements does not support the principle that tax is not subject to
compensation or set-off? Absence of benefit from the government
33. Which is not legally tenable in refusing to pay tax? Absence of benefit from the government
34. What is primary purpose of taxation? To raise revenue
35. The constitutional exemption of religious or charitable institutions refers only to- Real property tax
36. The agreement among nations to lessen tax burden of their respective subjects is called International
Comity
