Name: Rogelio O. Bernaldez Jr. Instructor: Lorna C.
Caballero
BSOA-4C October 04, 2021
CHAPTER 1: FUNDAMENTAL PRINCIPLES
TAXATION
ASSESSMENT:
PART I. TRUE OR FALSE. Write T if the statement is true, write F if the statement is false.
T 1. Taxation is the process or means by which the sovereign (independent State), through its law
making (the power to tax is considered legislature).
T 2. Primary purpose of taxation is to raise revenue for the support of the government.
T 3. Situs of taxation means “place” of taxation.
T 4. Taxes are raised to cover the cost of governance.
T 5. Tax is generally unlimited because it is based on the needs of the State.
T 6. Tax is to provide funds or property with which to promote the general welfare and protection of its
citizens and to enable it to finance its multifarious activities.
T 7. Taxation in act of levying a tax to apportion the cost of government among those who, in some
measure, are privileged to enjoy its benefits and must therefore bear its burden.
F 8. The President levied tax.
T 9. Only the National Government can levy tax.
F 10. Taxation is not often employed as a devise for regulation, or control by means of which certain
effects for conditions envisioned by the government.
PART II. Enumeration.
1. The three (3) process of tax.
Answer: When you say process, it is an actions or steps taken in order to achieve a particular end,
whilst, tax is a compulsory contribution to state revenue, and levied by the government. From that, it
can be successful contribute the taxes by these three process of tax. However, it is also called
aspects means refer to “stages or phases” that are included in the term taxation. So, here are the
three process of tax are following below:
Levying or imposition of the tax which is a legislative act or function.
Assessment or determination of the correct amount of applicable tax.
Collection of the tax levied which is essentially administrative in character.
Thus, these will provide the focus for making better, done properly, determines prosper outcomes and
have a good source of revenue.
2. Factors to consider in determining the Situs of Taxation.
Answer: The term situs is Latin origin referring to “site or location”. Apparently, situs of taxation
means “place “of taxation. It is the State or political unit which has jurisdiction to impose a particular
tax. Basically, the state where the subject to be taxed has a situs may rightfully levy and collect the
tax. Nonetheless, factor is a fact or influence that contributes to a result or outcome. Technically, here
are the factors to consider in determining the Situs of Taxation below:
1. Subject matter (person, property, or activity)
2. Nature of the tax
3. Citizenship
4. Residence of the taxpayer
5. Source of Income
6. Place of excise, business or corporation being taxed
Thus, situs of taxation is important in determining whether or not a state has the power of tax and I
think these are ways to have tax as well.
3. 5 examples of products to be levied sin tax.
Answer: A sin tax is an excise tax specifically levied on certain goods and services deemed harmful
to society and individuals. Nevertheless, the aim of this is to reduce or eliminate the consumption of
harmful products by making them more expensive to obtain. It also provide a source of revenue for
governments as well. Generally, it can disproportionately hurt lower-income consumers and not good
at all. Knowingly, these are the five (5) examples of products to be levied sin tax are Cigarettes or
Tobacco, Alcohol drinks, Sugar added drinks, Junk foods and Drugs. Thus, sin taxes are
regressive, produce negative externalities, they foist an unfair burden on the rest of society, and
increase health care costs driving up the cost of insurance for everyone.
4. Scope of the power of taxation.
Answer: Scope is the extent of the area that something deals which it is relevant. Nonetheless, the
power of taxation refers to the ability of a government to impose and collects taxes. These are the
Scope of the Power of Taxation below:
a. Comprehensive – as it covers persons, businesses, activities, a professions, rights and
privileges.
b. Unlimited – in the absence of limitations prescribed by law or the constitution, the power to tax
is unlimited and comprehensive. Its force is so searching to the extent that the courts scarcely
venture to declare that it is subject to any restrictions.
c. Plenary – as it is complete; BIR may avail of certain remedies to ensure collection of taxes.
d. Supreme – in so far as the selection of the subject of taxation.
