Name: Score: 0 / 100 points (0%) 1.General Principles of Income Taxat Multiple Choice Identify the choice that best completes the statement or answers the question. > ___ 1. All of the following are inherent powers of the government, except: “ a. Taxation b. Eminent domain ©. Police power d. Anti-terrorism ANSWER: D POINTS: 0/1 FEEDBACK: 2. Statement 1: Inherent powers arise from a grant of the Constitution, Statement 2: Without the Constitution, the inherent powers of the government cannot be exercised. Only Statement 1 is true. Only Statement 2 is true. Both statements are true. Both statements are not true. aege ANSWER: D POINTS: 0/1 FEEDBACK: inherent powers of the government are primarily in character. a, Executive b. Legislative ©. Judicial d. Quasi-judicial ANSWER: B POINTS: 0/1 FEEDBACK: 4. The Philippine government recently passed RA No. 14023, otherwise known as Bardagulan to Heal as One Act, which penalized, among others, violation of community quarantine rules in light of the prevailing pandemic. This is an example of the exercise of the government of which inherent power? a. Taxation b, Eminent Domain ¢. Police Power d. Coruption ANSWER: C POINTS: 0/1 FEEDBACK: 5. Which of the following inherent powers of the governmemt has the least tangible equivalent compersation? a. Taxation b. Eminent Domaina 6 10, ©. Police Power d. Hydroelectric Power ANSWER: A POINTS: 0/1 FEEDBACK: Eminent domain and police power: a. Are both executive in character. b. Are both paid for in monetary equivalent compensation. ¢. Both legislative in character. d. Both involve the taking of private real property ANSWER: C POINTS: 0/1 FEEDBACK: . Eminent domain: a, Is the power to take public property for public purpose after payment of just compensation. b. Is the power to take private property for private purpose after payment of just compensation. c. Is the power to take public property for private purpose after payment of just compensation. d._ Is the power to take private property for public purpose after payment of just compensation. ANSWER: D POINTS: 0/1 FEEDBACK: Which of the following is an example of the State’s exercise of police power? Collection of taxes on sweetened beverages as enacted by the Congress. Congress's prohibition of illegally copying pirated movies. The government's taking of a privately owned land for the construction of a railway. Conduct of the State of elections for positions in the national government. aegp ANSWER: B POINTS: — 0/1 FEEDBACK: Which of the following doctrine or theory is called the “Doctrine of Symbiotic Relationship”? Benefits-received theory Necessity theory Lifeblood Doctrine Holmes Doctrine aegp ANSWER: A POINTS: 0/1 FEEDBACK: Which of the following theory justifies taxes being a preffered credit? Necessity theory Lifeblood Doctrine Marshall Doctrine Doctrine of Equitable Recoupment aege ANSWER: B POINTS: 0/111. The Marshall doctrine justifies: The use of taxation as an implement of police power. The imposition of taxes in progressive rates. The bias of taxation for the protection of the less fortunate. The power of the government to collect taxes even without the grant of the Constitution. eese ANSWER: A POINTS: 0/1 FEEDBACK: ved theory: oved if the taxpayer can prove that he/she does not benefit from the government, b. Is conclusive upon taxpayers and cannot be disproved ¢. States that the power to tax is the power to destroy. d._ Provides that the judiciary is in charge with the application and interpretation of laws, ANSWER: B POINTS: 0/1 FEEDBACK: 13. All of the folllowing are characteristics of taxation, except a. It is essentially legislative in character. b. Itis payable only in money. ¢. Compliance to taxation is voluntary and optional on the part of the taxpayers. 4d. Constitutional grant or provision is not required for the exercise of this power. ANSWER: C POIN] on FEEDBACK: 14. Tax evasion is: a. Also known as tax avoidance, and is the illegal way of not paying taxes. b. Also known as tax avoidance, and is the legal way of not paying taxes. c. Also known as tax dodging, and is the illegal way of not paying taxes. d. Also known as tax dodging, and is the legal way of not paying taxes. ANSWER: C POINTS: 0/1 FEEDBACK: 15, When the law itself provides for non-payment of taxes, such tax escape is known as: Tax evasion Tax holiday Tax minimization Tax avoidance nese ANSWER: B POINTS: 0/1 FEEDBACK: 16. Withholding is: a, A method of reducing a taxpayer's income, b, A method by which the government collect taxes at the time of its deadline, c. Amethod by which the government collect taxes in advance, dA method of increasing a taxpayer’s income.17. 18. 19. 2. ANSWER: C POINTS: 0/1 FEEDBACK: Statement 1: As a method of collection, withholding helps improve the government's cash flows. Statement 2: Withholding of taxes is implemented pursuant to the principle of a sound tax system known as theoretical justice. a. Only Statement | is true. b. Only Statement 2 is true. ¢. Both statements are true, d. Both statements are not rue. ANSWER: A POINTS: — 0/1 FEEDBACK: Substituted filing of income tax returns is a manifestation of which principle of a sound tax system? Equality Theoretical justice Fiscal adequacy Administrative feasibility aege ANSWER: D POINTS: — 0/1 FEEDBACK: Taxes must be proportionate. This means that: a. The tax to be imposed must be based on the needs of the government. b, The tax to be imposed must be based on the income of the taxpayer. ¢. The tax to be imposed must be based on the ability of the taxpayer to pay. d, The tax to be imposed must be based on the willingness of the taxpayer to pay. ANSWER: C POINTS: 0/1 FEEDBACK: Statement 1: The Constitution prohibits that taxes must be paid in any other form than money. Statement 2: The Bureau of Internal Revenue may accept real property as a way of voluntary compliance of one’s tax obligations. a. Only Statement 1 is true. b. Only Statement 2 is true. ¢. Both statements are true. d. Both statements are not true. ANSWER: D POINTS: — 0/1 FEEDBACK: Which stage of taxation will the legislative department be involved with? a. Levy b. Assessment ©. Collection d. Imprisonment ANSWER: A POIN] or FEEDBACK:a a ___. 22. The House of Representatives is composed of 300 district and party-list representatives. 200 attended the session dated June 5, 2020. On that particular session, House Bill No. 3902, which grants tax exemption for beautiful people, was voted upon, How many votes are required to pass the bill? a, 101 votes b. 134 votes c. 151 votes d. 200 votes ANSWER: C POINTS: 0/1 FEEDBACK: 23. House Bill No. 3902 was transmitted to the Senate and was passed accordingly. The Bill was submitted to President Turtle for his signature on August 1, 2020. On Septermber 5, 2020, the President stated on a media interview that he does not intend to sign the bill into law that is why he is not yet acting on the bill. What is the status of House Bill No. 3902? a, The bill is automatically vetoed upon the lapse of 15 days. b. The bill has automatically lapsed into law after 30 days. c. The bill’s effectivity is suspended until the President of the signature, d. The bill has become effective until the President vetoes it. ANSWER: B. POINTS: 0/1 FEEDBACK: 24, All of the following statements are true regarding the legislative branch of the government, except: a. Ithas the authority to determine the persons liable to pay taxes, the subjects of taxation, and the rate of taxes to be imposed. b, Itlevies taxes, ¢. Itis headed by the Senate President and the Speaker of the Hous: d._Itis the branch of the government in charge with the collection of taxes. ANSWER: D POL on FEEDBACK: 25. When the House and Senate version of a tax bill has differences? a, The President b. The Speaker of the House and the Senate President, jointly c. All the members of the House of Representatives and Senate, jointly d. The Bicameral Conference Committee ifference, what/who will reconcile the ANSWER: D POINTS: 0/1 FEEDBACK: 26. Statement |: A revenue bill must originate from the House of Representatives. Statement 2: A bill granting tax exemption must originate from the Senate. Only Statement 1 is true. Only Statement 2 is true. Both statements are true Both statements are not true. oe es ANSWER: A POINTS: 0/1 FEEDBACK:___. 27. Which of the following is the effect of the principle of international comity in taxation? a. Foreign governments can collect taxes from Filipino citizens, b. Foreign governments can collect taxes from the Philippine government. c. Foreign governments cannot collect taxes from Filipino citizens. d. Foreign governments cannot collect taxes from the Philippine government. ANSWER: D POINT on FEEDBACK: 28. Statement 1: Income of religions from their proprietary activities are exempted from taxes. Statement 2: Due to the separation of Church and State, taxes cannot be used for the establishment of a cathedral. a, Only Statement 1 is true. b. Only Statement 2 is true. ¢, Both statements are true. d. Both statements are not true. ANSWER: B POINTS: 0/1 FEEDBACK: 29, Statement 1: Under the non-establishment clause, the government cannot support any religion. Statement 2: Taxes may be used to establish a park in honor of a saint or a figure. Only Statement | is true. Only Statement 2 is true. Both statements are true. Both statements are not true. aege ANSWER: A POIN’ on FEEDBACK: 30, Statement 1: The power to impose tariff’ is exercised by the President, not by the Congress. Statement 2: The power to tax can never be delegated to local government units. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. 4. Both statements are not true. ANSWER: A POINTS: 0/1 FEEDBACK: 31. Statement 1: Substantive due process provides that there must be notice and hearing before the ‘government acts Statement 2: The equality principle in taxation provides that the tax liabilities of all taxpayers must be equal a, Only Statement 1 is true. b. Only Statement 2 is true, c. Both statements are true. d. Both statements are not true. ANSWER: D POINTS: 0/1 FEEDBACK: 32. Which of the following statements is true?a, There is imprisonment for non-payment of taxes, but there is no imprisonment for non- payment of debt. b. There is no imprisonment for non-payment of taxes, but there payment of debt. ¢. There is imprisonment for both non-payment of taxes and debt. 4d. There is no imprisonment for both non-payment of taxes and debt. imprisonment for non- ANSWER: A POINT! or FEEDBACK: 33. The Chinese government was able to eam income in its rental of spaces to businesses in the Philippines. The Bureau of Internal Revenue is now collecting the Chinese government of its deficiency income taxes. What doctrine or principle should the Chinese government invoke or use to avoid the payment of taxes? a. Tax holiday b. Territoriality principle ¢. International comity dd. Equality and uniformity principle ANSWER: C POINTS: 0/1 FEEDBACK: 34, Statement 1: The Constitution provides that the Congress must enact a regressive system of taxation, Statement ue process in taxation is observed when taxes are enacted to favor the poor. a, Only Statement 1 is true. b. Only Statement 2 is true. c, Both statements are true. 4, Both statements are not true. ANSWER: D POINTS: 0/1 FEEDBACK: 35. Which stage of taxation is being cartied out by the Executive Department? a, Determination b. Levy c. Imposition ._Assessment/Collection ANSWER: D POINTS: 0/1 FEEDBACK: ___ 36. Who heads the Executive Department of the Government? The Senate President The President The Chief Justice The Speaker of the House oe eo ANSWER: B POINTS: 0/1 FEEDBACK: 37. Who heads the Bureau of Internal Revenue? a, The Commissioner of Internal Revenue b. The Deputy Commissioner of Internal Revenuea 38. 4 42. ¢, Revenue Director d. Revenue Officer ANSWER: A POINTS: 0/1 FEEDBACK: Who is the current BIR Commi a. Carlos Dominguez III b. Caesar Dulay ¢. Charito Plaza d. Ramon M. Lopez joner (As of May 2021)? ANSWER: B POINTS: 0/1 FEEDBACK: 1¢ Bureau of Internal Revenue is under which department of the Executive Branch of the government? Department of Agriculture Department of Finance Department of Public Works and Highways Department of CPAs aoge ANSWER: B POINTS: 0/1 FEEDBACK: All of the following are major Divisions of the BIR, except: a. Operations Group b, Legal Group ¢. Inventory Systems Group Resource Management Group ANSWER: C POINTS: 0/1 FEEDBACK: Section 244 of the Tax Code provides that shall promulgate all needful rules and regulations for the effective enforcement of the provisions of NIRC. a, The Commissioner of Internal Revenue b. The Secretary of Finance c, The Commissioner of Internal Revenue, upon recommendation of the Secretary of Finance 4d. The Secretary of Finance, upon recommendation of Commissioner of Internal Revenue ANSWER: D POINTS: 0/1 FEEDBACK: Which of the following issuance is signed by the Secretary of Finance? Revenue Regulations (RR) Revenue Memorandum Orders (RMO) Revenue Memorandum Circular (RMC) BIR Rulings aege ANSWER: A POIN] or FEEDBACK:___. 43. ABIR Ruling may be classified as an of tax laws. a, Judicial interpretation b. Legislative interpretation c. Administrative interpretation 4. Constitutional interpretation ANSWER: C POINTS: 0/1 FEEDBAC! . Statement 1: The CIR has the power to interpret tax laws and decide tax case: Statement 2: The CIR has the power to obtain information and to summon/examine and take testimony of persons. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true. ANSWER: C POINTS: 0/1 FEEDBACK: 45. Which of the following statements is true? a. The National Internal Revenue Code is a codification by our executive department of our taxation laws. b. The Bureau of Internal Revenue does not have a lawmaking power, but it is able to promulgate rules within limits provided by law through Revenue Regulations, ¢. The Tariffs and Customs Code, the Local Government Code, and the Omnibus Investment Code are not sources of tax laws. d. The Congress does not need the concurrence of the Senate in enacting a tax law. ANSWER: B POINTS: 0/1 FEEDBACK: 46. What are the grounds for BIR to terminate the taxable period of a taxpayer? a. that a person is retiring from business subject to tax, or b, is intending to leave the Philippines or remove his property therefrom or to hide or conceal his property, or c. is performing any act tending to obstruct the proceedings for the collection of the tax for the past or current quarter or year or to render the same totally or partly ineffective unless such proceedings are begun immediately. d. Allof the above ANSWER: D POIN o/1 FEEDBACK: 47. For purposes of real property valuation, The CIR can divide the Philippines into; a. Regions b. Zones ©. Areas d. Cohorts ANSWER: B POIN o/1 FEEDBACK: ___. 48. The valuation of the CIR of real properties is called:49. 51 Zonal value Assessed value Fair market value Appraised value eese ANSWER: A POINTS: 0/1 FEEDBACK: ‘The CIR may inquire into bank deposits of the following, except: a. decedent to determine his gross estate b. any taxpayer who has filed an application for compromise of his tax liability by reason of financial incapacity to pay his tax liability a specific taxpayer or taxpayers subject of a request for the supply of tax information from a foreign tax authority pursuant to an international convention or agreement on ‘tax matters to which the Philippines is a signatory d._ any taxpayer who has not signed a waiver of the secrecy of bank deposits but is before the Senate for an impeachment inquiry or with a pending case before the courts for bribery or dereliction of duty ANSWER: D POINTS: — 0/1 FEEDBACK: . When the CIR has received a request from a foreign tax authority of a request for information relating to a specific taxpayer's bank account, the CIR shall confirm receipt of the request within a period of. a, 60 days from the sending of the foreign tax authority of the request. b. 60 days from the receipt of the CIR of the request. c. 90 days from the sending of the foreign tax authority of the request. 4d, 90 days from the receipt of the CIR of the request. ANSWER: B POINTS: 0/1 FEEDBACK: All of the following are criteria used by the CIR to accredit tax agents, except: a, Professional competence b. Moral fitness c, Reputation as a taxpayer 4d. Integrity ANSWER: C POINTS: 0/1 FEEDBACK: Which of the following inherent limitations of the power of taxation is violated by the imposition of tax on the importation of the head of states and other diplomatic or consular representatives of other countries? Territoriality International comity Exemption of government from taxes ‘Non-delegation of power of taxation aegp ANSWER: B. POINTS: 0/1 FEEDBACK:3. Which of the following constitutional rights is mainly violated by a tax law enacted for whereby its proceeds will be used to rehabilitate a private corporation under financial distress? a, Right to due process b. Right to equal protection of the law c. Right to just compensation 4d. Right against self-incrimination ANSWER: A POINTS: 0/1 FEEDBACK: 54. What is the nature of taxation power of local government units such as province, city, municipality and barangay? Inherent power Legislatively delegated power Constitutionally delegated power All of the above aoge ANSWER: C POINTS: 0/1 FEI 55. In this type of tax, non-payment is constitutionally exempted from imprisonment. a, Income tax b. Value added tax , Documentary stamp tax d. Poll tax ANSWER: D POINTS: 0/1 FEEDBACK: 56. Land, building and improvement actually, directly and exclusively used for educational purposes of which educational institutions are exempted from real property tax? a. Nonstock nonprofit educational institutions b, Proprietary educational institutions ¢. Botha andb d. Neither a nor b ANSWER: C POINTS: 0/1 FEEDBACK: 57. Revenues actually, direetly and exclusive used for educational purposes of which educational institutions are exempted from income tax? Nonstock nonprofit educational institutions Proprietary educational institutions Both a and b Neither a nor b aege ANSWER: A POINTS: 0/1 FEEDBACK: 58. Which type of double taxation is expressly prohibited by the 1987 Constitution of the Republic of the Philippines? a. Direet double taxation b. Indirect double taxation c. Bothaandbd. Neither anor b ANSWER: D POINTS: 0/1 FEEDBACK: . Which of the following inherent powers of the state is inferior to constitutional right of non- impairment of obligation of contracts? a. Power of taxation b. Police power c. Power of eminent domain d. None of the above ANSWER: A POINTS: 0/1 FEEDBACK: > 60. Which of the following taxes is properly classified as indirect tax? Real property tax Income tax Value added tax Other percentage tax aege ANSWER: C Por or FEEDBACK: 61. Which of the following taxes is a personal tax or a tax imposed on a person? a. Real property tax b. Community tax c. Amusement tax d. Income tax ANSWER: A POIN] on FEEDBACK: 62. What type of veto may be exercised by the President over tax bills? a, Absolute or Total Veto b. Item Veto c. Bothaandb d. Neither a norb FEEDBACK: 63. Who may be authorized through a law by the Congress to fix within specified limits, and subject to such limitations and restrictions as it may impose, tariff rates, import and export quotas, tonnage and wharfage dues, and other duties or imposts within the framework of the national development program of the Government? a, Bureau of Customs Commissioner b, Secretary of Finance ¢. President of the Republic of the Philippines d. Bureau of Internal Revenue Commissioner ANSWER: C POIN] or FEEDBACK:a ____ 64, Which of the following real properties is subject to real property tax? a, Mosques b. Profit cemetery ¢. Convents 4. Charitable institutions ANSWER: B POINTS: 0/1 FEEDBACK: 65. In which types of taxes are the local government units entitled to just share, as determined by Jaw, and shall be automatically released to them? a, National Internal Revenue Taxes under National Internal Revenue Code b, Customs and Duties under Custom and Tariff Code c. Sin Taxes d. All national taxes ANSWER: D POINTS: 0/1 FEEDBACK: 66. What is the required vote for the passage of a law granting tax exemption? Concurrence of at least 2/3 of all the Members of the Congress Concurrence of at least 3/4 of all the Members of the Congress Concurrence of at least majority of all the Members of the Congress Concurrence of at least 1/3 of all the Members of the Congress aege SWER: C on FEEDBACK: 67. Which of the following agencies of the government may exercise the law-making power of taxation? a, Bureau of Customs b. Bureau of Internal Revenue c. Bothaandb d. Neither a norb ANSWER: D POINTS: 0/1 FEEDBACK: 68. The Congress, by law, is not constitutionally allowed to deprive appellate jurisdiction of which court regarding the constitutionality of a tax law? a. Regional Trial Court b. Court of Tax Appeals ¢. Supreme Court d. Allof the above ANSWER: C POINTS: 0/1 FEEDBACK: ____ 69, Which version of tax bill may be passed into a tax law? a. Version of the House of Representatives b. Version of the Senate ¢. Either a orb d. Neither anor ba 70. 72. 14, 15. FEEDBACK: Which of the following is allowed to be subjected to legal compensation? Taxes Debts Both a and b Neither a nor b aese ANSWER: B POINTS: 0/1 FEEDBACK: This principle means that taxes are what we pay for ac Lifeblood doctrine Necessity theory Doctrine of symbiotic relationship Regalian doctrine aegp ANSWER: C POINTS: — 0/1 FEEDBACK: Which of the following is not an inherent limitation of power of taxation? Equal protection clause International comity Non-delegability of taxation power Exemption from taxation of the government agencies performing purely ministerial functions nese ANSWER: A POINTS: 0/1 FEEDBACK: Under Article VI Section 24 of the 1987 Philippine Constitution, where shall revenue or tariff bills originate exclusively? Senate of the Philippines House of Representatives of the Philippine Offfice of the President Department of Finance oe es ANSWER: B POINTS: 0/1 FEEDBACK: Which of the following is not a basic principle of a sound tax system? a, Theoretical justice b. Lifeblood doctrine c. Administrative feasibility d._ Fiscal adequacy ANSWER: B POINTS: 0/1 FEEDBACK: In case of doubt of statute imposing a tax, how shall the ambiguity be resolved by the court of law? a. It shall be construed strictly against the taxpayers and liberally in favor of the government.a b, It shall be construed in accordance with its letter rather than its spirit ¢. Itshall be construed strictly against the government and liberally in favor of the taxpayers. d. It shall be construed in accordance with its wordings rather than the intention of the lawmakers. ANSWER: C POINTS: 0/1 FEEDBACK: __. 76, What is the nature of tax laws? a. Itis penal in nature. b. Itis criminal in nature. ¢. Itis civil in nature d. Allof the above. ANSWER: C POINTS: 0/1 FEEDBACK: 777. Which of the following statements is incorrect? a. Charitable institutions, churches, and parsonages, or convents appurtenant thereto, mosques, non-profit cemeteries, and all lands, buildings, and improvements, actually, directly and exclusively used for religious, charitable, or educational purposes shall be exempt from income taxation. b. All revenues, and assets of educational institutions used actually, directly, and exclusively for educational purposes shall be exempt from taxes and duties, ¢. BothAand B d. Neither Anor B ANSWER: C POINTS: 0/1 FEEDBACK: 78. Which of the following is classified as a local tax? a. Income tax b. Estate tax ©. Documentary stamp tax d. Professional tax ANSWER: D POINTS: — 0/1 FEEDBACK: 79. Which of the following is a characteristic of tax? a, The amount to be collected is limited to the cost of regulation. b. Itis considered a demand of ownership or proprietorship. ¢. Its efficient cause or juridical tie is contract. d._ It is not subject to legal compensation. ANSWER: D POINTS: 0/1 FEEDBACK: ____ 80. What is the primary purpose of taxation power? To promote the general welfare through regulations. To raise revenues for the expenses of the state. To facilitate the state's need of property for public use, To advocate protection of constitutional right. aege81 82. 84, 85, 86. ANSWER: B POINTS: 0/1 FEEDBACK: Which of the following is not a characteristic of a tax? a, It is a personal liability of the taxpayer. b. Itis payable in money particularly legal tender. ¢. Itis an enforced contribution. 4d. It is imposed outside the state's territory. ANSWER: D POINTS: 0/1 FEEDBACK: It refers to the process of minimizing tax through means which are legal and not prohibited by law. Tax avoidance Tax evasion Tax dodging Any of the above oe eo ANSWER: A POINTS: 0/1 FEEDBACK: . Subject to inherent and constitutional limitations, the following are the general characteristics of power of taxation, except a. Supreme b. Plenary c. Limited d. Comprehensive ANSWER: C POINTS: — 0/1 FEEDBACK: In which inherent power of the state will the affected citizen receive a direct benefit? a. Power of eminent domain b. Police power c. Power of taxation d. None of the above ANSWER: A POINTS: 0/1 FEEDBACK: It refers to a type of tax imposed on the privilege of a person, Excise tax Personal tax Property tax None of the above Bese ANSWER: A POL on FEEDBACK: Under the 1987 Philippine Constitution, which has the power to create its own sources of revenues and to levy taxes, fees, and charges subject to such guidelines and limitations as the Congress may provide?87. 88. 89, m1. Each local government unit Bureau of Internal Revenue Bureau of Customs Department of Finance eese ANSWER: A POINTS: 0/1 FEEDBACK: Which of the following statements is false? a. The rule of taxation shall be uniform and equitable. b. The Congress shall evolve a progressive system of taxation. c. The Senate can neither propose nor concur with amendments on revenue or tariff bills. 4. The President shall the power to veto any particular item or items in a revenue or tariff bill, but the veto shall not affect the item or items to which he does not object. ANSWER: C POINTS: 0/1 FEEDBACK: What is the proper classification of money collected or any tax levied for the Congress for a special purpose? a, It shall be treated as general funds of the Government. b. It shall be treated as a special fund and paid out for such purpose only. . It shall be treated as intelligence fund of the Government. d._ It shall be treated as fund of local government unit. ANSWER: B POINTS: 0/1 FEEDBACK: What is the rationale behind the constitutionally delegated taxation power of local government unit? a, To promote local autonomy b. To advocate national policy c. To encourage separation from national government d. To advocate federalism ANSWER: A POINTS: 0/1 FEEDBACK: This theory means that the state cannot exist without the government. a. Life-blood doctrine b. Necessity theory c. Benefits Protection theory or Doctrine of Symbiotic Relationship 4. Big bang theory ANSWER: B POINTS: 0/1 FEEDBACK: As a general rule, which of the following shall not be given retroactive application? a. Tax laws imposing business tax b. Tax implementing rules and regulations that are remedial in nature ¢. Tax circulars that are intended for internal or administrative purposes of BIR 4. Tax memoranda that are interpretative in nature ANSWER: Aa 92. 94, 95. 96. 97. . Which of the following gov POINTS: 0/1 FEEDBACK: Which of the following is not considered an inherent power of the state? a. Police Power b. Taxation Power ©. Military Power d. Eminent Domain Power ANSWER: C POINTS: 0/1 FEEDBACK: nment agencies may exercise the law-making power of taxation? a. Local government units b, Bureau of Internal Revenue ¢. Bureau of Customs d. Allof the above ANSWER: A POINTS: — 0/1 FEEDBACK: Who has the to veto the Taxation Bills passed by the Congres a. Supreme Court b. President c. Either Aor B d. Neither Anor B ANSWER: B POINTS: 0/1 FEEDBACK: Which government agency has the power to declare a tax law unconstitutional? a. President b, Supreme Court ¢. Commission on Audit d. Commission on Human Rights ANSWER: B POINTS: 0/1 FEEDBACK: Which of the following is not a tax mechanism to minimize the impact of double taxation? Tax shifting Tax levy Tax capitalization Tax transformation aege ANSWER: B POINTS: 0/1 FEEDBACK: Which of the following is an inherent limitation on the power of taxation? a. Uniformity of taxation b. Progressive system of taxation ¢._ International comity d. Free speech ANSWER: C98. 99. POINTS: 0/1 FEEDBACK: Which of the following is not a requisite of valid classification to justify a reasonable discrimination? a, It must be based on substantial distinction. b. It must be germane to the purpose of the law. c. It must be applicable to present conditions only but not future ones. d. It must be applied equally to all persons within the same class. ANSWER: C POINTS: 0/1 FEEDBACK: ‘What is the tax mechanism granted by law to VAT-registered taxpayers regarding their input VAT? a. Tax capitalization b, Tax transformation c. Tax credit d. Tax shifting c or ____ 100. This principle means that only taxpayers directly affected by imposition of tax law shall be allowed to assail its constitutionality. a. Legal standing or Locus Standi b. Ripeness for adjudication c. Lis Mota of the Case d. Issue of Transcendental Importance ANSWER: A POL on FEEDBACK: PiRetake Test