Midterm Quiz I.

General Principles of Taxation (25pts)

Part I (10 pts)
1. All are similarities of taxation, police power, and power of eminent
domain, except
a. All are necessary attributes of the Constitution
b. All exist independently of the Constitution
c. All contemplate an equivalent benefit
d. All are superior to the non-impairment clause of the Constitution
2. It refers to a fraudulent act of minimizing taxes.
a. Tax avoidance
b. Tax evasion
c. Tax minimization
d. Multiple taxation
3. A demand of proprietorship
a. Tax
b. Special Assessment
c. Toll
d. License Fee
4. A form of tax escape by a manufacturer or producer who improves
proceeds of production thereby minimizing his unit production cost:
a. Tax avoidance
b. Capitalization
c. Transformation
d. Shifting

his

5. Tax as distinguished from license fee

a. Non-payment does not necessary render the business illegal
b. A regulatory measure
c. Imposed in the exercise of police power
d. Limited to cover cost of regulation
6. Value-added tax is an example of
a. Graduated tax
b. Progressive tax
c. Regressive tax
d. Proportional tax
7. Which of the following statements is wrong? A revenue bill
a. Maybe recommended by the President to Congress
b. May have a House version and a Senate version approved separately and
then consolidated with both houses approving the consolidated version
c. May originate from the Senate and on which same bill the House of
Representatives may propose amendments
d. Must originate from the House of Representatives and on which same
bill the Senate may propose amendments.
8. The following reasons maybe given by a taxpayer in refusing to pay his tax
liability. Which is not acceptable for legally refusing to pay the tax
a. That he has been deprived of due process of law
b. That there is lack territorial jurisdiction
c. That the prescription period for the collection of tax has lapsed
d. That he will derive no benefit from the tax

9. Although the power of taxation is basically legislative in character, it is

not the function of Congress to
a. fix with certainty the amount of taxes
b. collect the tax levied under the law
c. identify who should collect the tax
d. determine who should be subject to the tax
10.Which of the following statements is not correct?
a. Taxes may be imposed to raise revenues or to regulate certain
activities within the state
b. The state can have the power of taxation even if the Constitution
does not expressly give it the power to tax
c. For the exercise of the power of taxation, the state can tax anything
at any time
d. The provisions of taxation in the Philippine Constitution are grants
of power and not limitations on taxing powers
Part II (15pts)
1. Differentiate direct tax from indirect tax. (3pts)
2. Discuss the three types of taxes under the classification of taxes as to
rate or graduation. (4pts)
3. Escapes from taxation are the means available to the taxpayer to limit or
even avoid the impact of taxation. One of which is tax dodging. What is tax
dodging? What is the other term for tax dodging? How can this be
perpetrated? Does it result to loss of potential government revenue?(5pts)
4. The Philippine government taxes foreign incomes of domestic corporations
and resident citizen while a foreign government also taxes the same income.
The case above is an example of double taxation. Is it direct or indirect?
Explain.(3pts)