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11.Enumerate the four (4) inherent limitations on taxation. Explain each item
briefly. (4%)
13.What is the nature of the taxing power of the provinces, municipalities and
cities? How will the local government units be able to exercise their taxing
powers? (2007 Bar)
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14.Enumerate the 3 stages or aspects of taxation. Explain each. 5% (2006 Bar)
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18.Congress enacts a law imposing a 5% tax on the gross receipts of common
carriers. The law does not define the term gross receipts. Express
Transport, Inc., a bus company plying the Manila- Baguio route, has time
deposits with ABC Bank. In 2005, Express Transport earned P1 Million
interest, after deducting the 20% final withholding tax from its time deposits
with the bank. The BIR wants to collect a 5% gross receipts tax on the
interest income of Express Transport without deducting the 20% final
withholding tax. Is the BIR correct? Explain. 5% (2006 Bar)
19.The Police Power , the Power to Tax and the Power of Eminent Domain are
inherent powers of government. May a tax be validly imposed in the
exercise of the police power and not of the power to tax? If your answer is
in the affirmative, give an example. (1991 Bar)
20.If the taxpayer has a tax liability, and he has a claim against the government,
can these be subject to compensation? (1996 Bar rephrased)
21.Is double taxation a valid defense against the legality of a tax measure?
(1997 Bar)
22.When an item of income is taxed in the Philippines and the same income is
taxed in another country, is there a case of double taxation? (1997 Bar)
23.What are the usual methods of avoiding the occurence of double taxation?
(1997 Bar)
24.X, a lessor of a property, pays real estate tax on the premises, a real estate
dealers tax based on rental receipts and income tax on the rentals. X
claims that this is double taxation. Decide. (1996 Bar)
25.Why is tax exemption strictly construed against the taxpayer? (1996 Bar)
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26.When may a taxpayers suit be allowed? (1996 Bar)
27.The President of the Philippines and the Prime Minister of Japan entered
into an executive agreement in respect of a loan facility to the Philippines
from Japan whereby it was stipulated that interest on loans granted by
private Japanese financial institutions to private financial institutions in the
Philippines shall not be subject to Philippine income taxes. Is this tax
exemption valid? Explain. (1992 Bar)
28.An Executive Order was issued pursuant to law, granting tax and duty
incentives only to businesses and residents within the secured area of the
Subic Economic Special Zone, and denying said incentives to those who live
within the Zone but outside such secure area. Is the constitutional right to
equal protection of the law violated by the Executive Order? Explain.
(2000 Bar)
29.The City of Makati, in order to solve the traffic problem it its business
districts, decided to impose a tax, to be paid by the driver, on all private cars
entering the city during peak hours from 8:00 a.m. to 9:00 a.m. from
Mondays to Fridays, but exempts those cars carrying more than two
occupants, excluding the driver. Is the ordinance valid? Explain. (2003
Bar)
30.X Corporation was the recipient in 1990 of two tax exemptions both from
congress, one law exempting the companys bond issues from taxes and the
other exempting the company from taxes in the operation of its public
utilities. The two laws extending the tax exemptions were revoked by
Congress before their expiry dates. Were the revocations constitutional?
31.Taxes are assessed for the purpose of generating revenue to be used for
public needs. Taxation itself is the power by which the state raises revenue
to defray the expenses of government. A jurist said that a tax is what we pay
for civilization. In our jurisdiction, which of the following statements may
be erroneous:
1) Taxes are pecuniary in nature.
2) Taxes are enforced contributions.
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3) Taxes are imposed on persons and property within the territorial
jurisdiction of a State.
4) Taxes are levied by the executive branch of the government.
5) Taxes are assessed according to a reasonable rule of apportionment.
(2004 Bar)