LYCEUM OF APARRI

Aparri, Cagayan

SCHOOL OF BUSINESS ADMINISTRATION

2nd Semester SY 2021-2022

PRELIMS
NAME: _TESSIE MAE O. PAGTAMA _____ Score _______
Subject: Income Taxation Date 2/15/2022

ANSWER SHEET
1 MARKING DUTY 21 0 41 C

2 INTERNATIONAL COMITY 22 1 42 C

3 JUST COMPENSATION 23 0 43 D

4 GENESIS 24 1 44 A
ORGANISATION FOR
ECONOMIC C0-OPERATION
5 AND DEVELOPMET (OECD) 25 1 45 A

6 TERRITORIAL IN OPERATION 26 1 46 D
BASED ON THE PRINCIPLES
7 OF NESSECITY 27 1 47 A

8 INHERENT LIMITATIONS 28 1 48 B

9 PROPRIETARY FUNCTIONS 29 0 49 C

10 TAX FARMING 30 1 50 D

11 TAXES 31 1 51 B

12 INHERANT POWERS 32 1 52 A

13 THEORY OF TAXATION 33 1 53 C

14 TAX CODE 34 1 54 C

15 POLICE POWER 35 0 55 B

16 PRESIDENTIAL POWER 36 D 56 D

17 COUNTERVAILING DUTY 37 B 57 A

18 PRIVILEGE 38 B 58 C

19 ROSETTA STONE 39 A 59 D

20 TAXES 40 D 60 A
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PART 1
WRITE YOUR ANSWERS IN THE ANSWER SHEET. NO ERASURES.
I IDENTIFICATION.
This is generally imposed as additional duty tax on imported articles and/or
1
containers with improper classifications.

2 This is the courteous recognition, friendly agreement, interaction and respect

accorded by one nation to the laws and institutions of another.

3 This means paying the owner of the full monetary equivalent of the property taken
for public use.

4 This is a form of early taxation mentioned in the Bible, which states "But when the
crop comes in, give a fifth of it to Pharaoh. The other four fifths you may keep as
seed for the fields and as food for yourselves, your households and your children."
Genesis Chapter 47, Verse 24.

5 This is an international organization which publishes an analysis of tax systems

of member countries.

6 This is a relationship which implies contractual support or duty of care afforded

by the Government to its citizen residing outside the country.
Based on this, the government has a right to compel all its citizens, residents and
7
property within its territory to contribute money.
These are the natural restrictions to safeguard and ensure that the power of
8 .taxation shall be exercised by the government only for the betterment of the

people whose interest should be served, enhanced and protected.

9 Government entities exercising this are generally subject to tax unless expressly
exempted as provided in their charters or the law creating them.

10 This is the principle of assigning the responsibility for tax revenue collection to
private citizens or groups.

11 These are used to finance constructions and maintenance of roads, health care,
education, security, promotion of science, commerce, industry and others for the
welfare of the general public.
These are indispensable powers necessary for the survival of the state.
12

13 This is the collection of a tax in order to spend it on a specified purpose.

14 This is the difference between the resource (tax) collected from the public and
the amount which can be used by government for its expenditures. For example,
this represents the cost of labor and other expenses incurred in complying with
 tax laws and rules.

Page 3

15 This is the power to protect citizens and provide for safety and welfare of society.

16 They do not possess the inherent power.

17 This may be imposed to offset any foreign subsidy granted to imported goods
to the prejudice of our local industries.

18

19 This is a tax concession issued by Ptolemy V in 196 BC and written in three (3)
languages. It also led to the most famous decipherment in history-the cracking
of hieroglyphics.

20 This is the government's strategy of influencing the macroeconomic

performance of the economy.

II TRUE OR FALSE.
21 Local tax ordinances must be uniformly and equally applied throughout the
country.

22 The amounts of taxes may be increased to curve spending power and.minimize

inflation.

23 Taxation could be described as a power, as a process, or as a means. As a power,

taxation is a way of apportioning the cost of government among those who are
privileged to enjoy its benefits.

24 Sovereign equality dictates that a nation cannot impose taxes on the property of
another country.

25 In the absence of limitations provided by the Constitution, the power to tax is

unlimited, complete (plenary), with wide extent of application (comprehensive)
and with highest degree (supreme).

26 There is no imposition of amount in police power.

27 Tax exemption applies only to government entities that exercise proprietary

functions.

28 The State can still exercise its taxing powers over its citizen, even if he resides
outside the State's taxing authority.

29 The Constitution is the source of the State's taxing power.

30 Under the “benefits-received principle” the government collects taxes from the
 subjects of taxation in order that it may be able to perform its functions and
provide services to them.

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31 No person shall be imprisoned for non payment of income tax.

32 Taxation is a method of apportioning the cost of government among those who

in some measure are privileged to enjoy its benefits and must, therefore, bear
its burdens.

33 Police power exists inseparably with the State. It is essential for the existence
of the government.

34 Appropriation of taxes is considered valid if intended for the common good of

the good of the people without identifying a particular person to be benefited
from it.

35 In the time of Julius Ceasar, a five percent (5%) general sales tax was introduced
(centesima rerum venalium).

III MULTIPLE CHOICE.

36
a Inherent in sovereignty
b Essentially legislative in character
c Subject to inherent and constitutional limitation
d Subject to approval by the people.

37 Taxation co-exists with the four elements of the state which includes all, except
a Government
b Property
c Sovereignty
d Territory

38 Which of the following statements is not correct?

a The government automatically possesses the power to collect taxes from its
inhabitants.
b The government can enforce contribution upon its citizen only when the
Constitution grants it.
c Taxation power exists inseperably with the State
d The State has the supreme power to command and enforce contribution
from people within its jurisdiction.

39 All of the following statements are correct except one:

a Taxation is an absolute power.
b Taxation power is the strongest of al inherent powers of the government.
c Tax laws must not violate Constitutional restrictions.
d Exercise of Taxation power is subject to restrictions.
 Page 5
Which of the following statements is not correct?
40
a Taxes may be imposed to raise revenues or to provide disincentives to
certain activities within the state;
b The state can have the power of taxation even if the Constitution does not
expressly give it the power to tax.
c For the exercise of the power of taxation, the state can tax anything at
any time.
d The provisions of taxation in the Philippine Constitution are grants of
power and not limitations on taxing powers.

41 The power
public to acquire private property upon payment of just compensation for
purpose
:
a Power of taxation
b Police power
c Power of eminent domain
d Power of recall

42 Which of the following statements is/are correct?

i. Taxation is a process.
ii. Enactment of Tax Laws is part of the taxation process.
iii.The Constitution expressly conferred the power of taxation to the President of
the Republic of the Philippines.
iv. Taxation requires voluntary contribution from inhabitants to support the
government.

Choices:
a I, ii,iii and iv
b I,ii, and iii only
c I and ii only.
d I only

43 One of the following is not among the basic justification for taxation.
a Taxation is based on necessity.
b Taxation is the lifeblood of the government.
c Taxation is the bread and butter of the government.
d Taxation is a voluntary contribution for the benefits received.

44 Which of the following is/are natural qualities of Taxation Power?

i. An inherent power
ii. Essentially an executive function
iii. An absolute power
 iv. Territorial in operation

Choices:
a I and iv only
b Ii and iii only
c I and ii only.
d I only

Page 6
The reciprocal duties of support and protection between the people and the
45
government.
a Basis of taxation
b Situs of taxation
c Scope of taxation
d Theory of taxation
Which of the following statements is not correct?
46
a Tax burdens shall neither be imposed nor presumed to be imposed beyond
what the statute expressly and clearly states because tax statutes should be
construed strictly against the government.
b Tax exemptions, tax amnesty tax condonations and their equivalent provisions
are not presumed and, when granted are strictly construed against the
taxpayer because such provisions are highly disfavored by the government.
c Exemptions from taxation are highly disfavored in law and he who claims
tax exemption must be able to justify his claim or right.
d The House of Representatives has the duty and the exclusive power of
constructing and interpreting tax laws.

47 I. In the Philippines, there may be double taxation.

II. Taxation may be used to implement the police power of the state.
a True; True
b True; false
c False; true
d False; false

48
a Power of taxation
b Police power
c Power of eminent domain
d Power of recall

49 Which of the following statements is not correct.

a Collections from taxes are public money.
b Appropriation of taxes for the common good of the people is valid.
c Construction of private roads going to private properties is a valid .
appropriation
d Allocation of taxes for the benefit of greater portion of population is
considered for public purposes.
50 Which of the following statements is not correct?
a Only the national government exercises the inherent power of taxation.
b The power to tax by the local government units is a delegated power
granted by the Constitution and other special laws.
c National legislation is exercised by Congress.
d Interpretation of Tax Laws is done by the Legislative branch of the
government.

Page 7

51 Which statement refers to police power as distinguished from taxation?

a It is restricted by Constitutional provision.
b It is superior to the non-impairment clause of the constitution.
c It involves the taking of property by the Government.
d The amount imposed has no limit.

52 The following restrictions are inherent on the exercise of taxation power, except
a Rule of uniformity
b For public purpose
c Territorial jurisdiction
d International comity

53
as supreme, plenary, unlimited and comprehensive.
a Basis of taxation
b Situs of taxation
c Scope of taxation
d Theory of taxation

54 Which of the following is an incorrect description of taxation?

a Legislative and inherent for the existence of the government.
b Necessary and for public purposes.
c Supreme and absolute power of the State.
d Restricted by Constitutional and inherent limitations.

55
are subject.
a Tax incentive
b Tax exemption
c Tax amnesty
d Tax credit
Taxation as distinguished from police power and power of eminent domain.
56
a Property is taken to promote the general welfare.
b Maybe exercised only by the government.
c Operates upon the whole citizenry.
d There is generally no limit as to the amount that may be imposed.
 Which of the following is a nature of taxation?
57
a The power is granted by legislative action.
b It is essentially an administrative function.
c It is generally payable in money.
d Without it the state can continue to exist.

Page 8

58
government can neither survive nor dispense any of its other powers and
functions effectively.

a Police Power
b Power of Eminent Domain
c Power of Taxation
d Power of Recall

59 I. Due process of law in taxation under the constitution is a grant of power.

II. Provisions in the Philippine constitution on taxation are grants of power.
a True; True
b True; false
c False; true
d False; false

60 I. The property taken in police power is destroyed while the property taken under
the power of eminent domain and power of taxation are not destroyed.
II. In power of taxation, the compensation received is the protection afforded to the
citizens; in police power the compensation received is the altruistic feeling that
somehow you contributed to the promotion of the general welfare; in power of
eminent domain, the compensation received is the just compensation paid for
the property taken.
a False; true
b True; True
c True; false
d False; false
"If you don't step forward,
you're always in the same place."

Honest Quotes

Ninia C. Pauig-Lumauan,CPA, MBA

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