TAX A INCOME TAXATION

ASSIGNMENT 2: TAXES, TAX LAWS AND TAX ADMINISTRATION

A. Instructions: Highlight in yellow the option that corresponds to your answer.

1. As to scope of legislative power to tax, which of the following is correct?

a. The power to tax is supreme, plenary, comprehensive and without any limit because the
existence of the government is a necessity.
b. The discretion of Congress is in imposing taxes extends to the mode, method and kind of tax,
even if the Constitution provides otherwise.
c. Congress has the right to levy a tax of any kind at any amount as it sees fit, even in the absence
of any constitutional provision.
d. The sole arbiter of the purpose for which taxes shall be levied is Congress, provided the
purpose is public and the courts may not review the levy of tax of the tax to determine whether
or not the purpose is public.

2. All of the following, except one, are sources of tax laws -

a. Legislations, tax treaties and tax ordinances
b. Judicial decisions
c. Opinions of authors
d. Administrative rules and regulations

3. In case of ambiguity, tax laws imposing a tax shall be interpreted

a. Strictly against the taxpayer
b. Liberally in favor of the taxpayer
c. Liberally in favor of the government
d. None of the choices

4. In cases of deductions and exemptions, doubts shall be resolved

a. Strictly against the taxpayer
b. Strictly against the government
c. Liberally in favor of the taxpayer
d. None of the above

5. Tax of a fixed amount imposed among all persons residing within a specified territory without regard
to their property or occupation they may be engaged.
a. Personal, poll or capitation tax
b. Property tax
c. Excise Tax
d. Regressive Tax

6. Which is incorrect?
a. A tax system which is dominantly characterized by indirect taxes is referred to as a regressive
tax system.
b. The tax code shall prevail over generally accepted accounting standards/PFRS.
c. Tax treaties can prevail over the Tax Code.
d. Obligation arising from law is not presumed. There should be clear and express constitutional
grant of power before taxation, police power and eminent domain can be exercised.

7. Tax which imposes a specific sum by the head or number or by some standards of weight or
measurement and which requires assessment other than a listing or classification of the objects to
be taxed
a. Ad-valorem
b. Specific
c. Excise
d. Revenue

8. Tax which is a fixed proportion of the amount or value of the property with respect to which tax is
assessed
a. Ad Valorem
b. Specific
c. Excise
d. Revenue

9. Tax based on a fixed percentage of the amount of property, income and other basis to be taxed
a. Progressive
b. Proportional
c. Regressive
d. Indirect

10. Tax where the rate decreases as the tax base increases
a. Progressive
b. Proportional
c. Regressive
d. Indirect
11. Tax where the rate increases as the tax base increases
a. Progressive
b. Proportional
c. Regressive
d. Indirect

12. Tax as distinguished from license fee

a. Non-payment does not necessarily render the business illegal
b. A regulatory measure
c. Imposed in the exercise of police power
d. Limited to cover the cost of regulation

13. Toll as distinguished from tax

a. Demand of sovereignty
b. Imposed by the government only
c. Amount is based on the cost of construction of public improvement used
d. Paid for the support of the government

14. The following are the characteristics of our internal revenue laws except:
a. Political in nature
b. Civil in nature
c. Generally prospective in application
d. May operate retrospectively if congress so provides

15. Which of the following is not acceptable for legally refusing to pay the tax?
a. That the right of the state to collect the tax has prescribed
b. That there is no jurisdiction to collect the tax
c. That the tax law was declared unconstitutional
d. That there is no benefit derived from the tax

B. Essay (5 points): In 3-5 sentences, summarize your understanding on the laws of Philippine
Taxation and how you can apply such law in your life as a Filipino citizen.