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General Principles and Concepts of Taxation: Income Taxation 6 Edition (BY: VALENCIA & ROXAS) Suggested Answers
General Principles and Concepts of Taxation: Income Taxation 6 Edition (BY: VALENCIA & ROXAS) Suggested Answers
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Chapter 1: General Principles and Concepts of Taxation
CHAPTER 1
Problem 1 2 TRUE OR FALSE 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. False Equity does not necessarily collection of equal amounts from each taxpayer. False Tax assessment is part of administrative function of principal government unit concerned. False Delegated tax power to the President involves only administrative discretion. False - These powers could not be effectively performed without revenue. Revenue is raised through taxation. True True False Penalty in the form of fines is imposition of amount by the police power. True False Tax exemption is granted to government entities with governmental function unless stated otherwise. False This describes the levying aspect of taxation. False - Just compensation clause is a Constitutional restriction on exercise of Eminent Domain only. True True True True
Problem 1 3 TRUE OR FALSE 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. True True True True False No direct double taxation because the corporation has separate and distinct personality from the stockholders. False For transfer tax purposes, nonresident alien is liable only for properties located within the Philippines False No public funds shall be appropriated for religious purposes. False - All bills even if approved by the 2/3 of the congress should still be signed by the President to become law. False To grant tax-exemption, only majority of all the members of the congress is needed, not two-thirds. True False Taxes collected by the BIR are national taxes. True False the tax evader breaks the law. False Transfers of real property classified as capital asset is subject to capital gain tax of 6%. The revenue and asset must be used directly for educational purposes.
INCOME TAXATION 6th Edition (BY: VALENCIA & ROXAS) SUGGESTED ANSWERS
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Chapter 1: General Principles and Concepts of Taxation
True. False Interpretations made by the executive officers are not conclusive. It can be disregarded by the Courts if found erroneous. False Ex post facto law is not applicable for tax purposes. True False Nonpayment of poll tax. True False Doubts must be resolved in favor of the taxpayer. True False Not applicable to totally unrelated taxes. True False Not transferrable and not assignable. False Null and void, not binding and no effect as law. True True False Tax rulings are not final interpretations of tax laws. The court can change them if found contrary to law. Prob. 1 6 1. C 2. C 3. B 4. A 5. B 6. C 7. A 8. D 9. A 10. C Prob. 1 7 1. A 2. C 3. C 4. C 5. D 6. B 7. B 8. A 9. A 10. B Prob. 1 8 1. C 2. B 3. C 4. C 5. A 6. B 7. D 8. D 9. B 10. B Prob. 1 9 1. C 2. C 3. D 4. D 5. B 6. D 7. B 8. C 9. D 10. B Prob. 1 10 1. D 2. C 3. C 4. B 5. C 6. B 7. C 8. B 9. D 10. C
Prob. 1 5 1. C 2. A 3. B 4. B 5. D 6. C 7. A 8. D 9. D 10. A