Taxation 1 – Income Taxation
Second Term, S.Y. 2021-2022
MIDTERM EXAM
Multiple Choice
1. Which is not a source of tax law?
a. CHED regulations
b. BIR rulings
c. Judicial decisions
d. Constitutions
2. When tax is collected upon someone who is effectively reimbursed by another, the tax is
regarded as
a. Direct
b. Indirect
c. Personal
d. Illegal
3. All are ad valorem taxes, except one. Select the exemption.
a. Poll tax
b. Estate Tax
c. Real Property Tax
d. Capital gains on real property capital assets
4. Taxation power can be used to destroy
a. As a revenue measure
b. Even if the tax is invalid
c. As an implement of police power
d. When the State is in dire need of funds
5. Which is not a characteristic of tax?
a. It is an enforced contribution.
b. It is generally payable in money
c. It is subject to assignment
d. It is levied by the law-making body of the State having jurisdiction.
6. Tax as to source is classified as
a. Fiscal or regulatory
b. Direct or indirect tax
c. National or local tax
d. Specific or ad valorem tax
7. Which of the following is a local tax?
a. Value added tax
b. Real property tax
c. Documentary stamp tax
d. Other percentage taxes
8. Tax as to purpose is classified as
a. Fiscal or regulatory
b. Direct or indirect tax
c. National or local tax
Taxation 1 – Income Taxation
Second Term, S.Y. 2021-2022
d. Specific or ad valorem tax
9. Tax as to incidence is classified as
a. Fiscal or regulatory
b. Direct or indirect tax
c. National or local tax
d. Specific or ad valorem tax
10. Which is not a nature of tax?
a. Enforced proportional contribution
b. Enforced within the territorial jurisdiction of the taxing authority
c. Levied by the lawmaking body
d. Generally payable in kind
11. Taxes that cannot be shifted by the statutory taxpayer are referred to as
a. Direct taxes
b. Indirect taxes
c. Business taxes
d. Personal taxes
12. Tax classifications as to object do not include
a. Poll tax
b. Property tax
c. Regulatory tax
d. Excise Tax
13. Which is a local tax?
a. Donor’s tax
b. Professional tax
c. Poll tax
d. Excise Tax
14. As to subject matter, taxes do not include
a. Property tax
b. Regulatory tax
c. Poll tax
d. Excise tax
15. Mr. de la Cruz has a tax obligation to the government amounting to P80,000. Since he is
leaving the country, he entered into a contract with Mr. Garcia wherein Mr. B shall pay the
P80,000 tax in his behalf. On due date, Mr. Garcia failed to pay the tax. The BIR sent a letter
of demand to Mr. de la Cruz which he refused to pay.
Which of the following is correct?
a. The government cannot enforce collection charges against Mr. de la Cruz since he has
validity transferred his obligation to Mr. Garcia under a contract
b. The government can no longer run after Mr. de la Cruz because he is already outside
the Philippine territory
c. The government should wait until Mr. B becomes solvent again.
d. The government should force Mr. A to pay because taxes are non-assignable
Taxation 1 – Income Taxation
Second Term, S.Y. 2021-2022
16. Tax rulings are issued by the
a. Secretary of Finance
b. Supreme Court
c. Court of Tax Appeals
d. Commissioner of Internal Revenue
17. Which is not a source of tax law?
a. Judicial decisions
b. Revenue regulations
c. Opinions of tax experts
d. Tax treaties and ordinances
18. Which of the following is the BIR not empowered to do?
a. Assess national taxes
b. Collect income, business and transfer taxes
c. Assess and collect local taxes
d. Enforce forfeiture, penalties and fines
19. Which of the following may tax exemption come from?
a. Contract
b. Constitution
c. Law
d. All of these
20. The BIR is under the supervision of
a. The Bureau of Customs
b. The President
c. The Department of Finance
d. Congress
