PRINCIPLES OF TAXATION

ASSIGNMENT No. 1

MODIFIED TRUE OR FALSE. Write TRUE if the statement is correct. If

FALSE, explain why false.

1) The existence of the Constitution is necessary for the exercise

of the inherent powers of Sovereign State.

2) Taxation is the government’s legitimate means of interfering with

private properties of its subjects.

3) The benefits from taxation have to be experienced to justify the

legitimacy

4) Taxation is the primary source of government revenue. Hence, all

government funds come from taxes.

5) Sovereign equality dictates that a nation cannot impose taxes on

the property of another country.

6) The State can still exercise its taxing powers over its citizen,
even he resides outside the taxing State’s territory.

7) All government entities regardless of their functions are

exempted from taxes because it would be impractical for the
government to be taxing itself.

8) Revenues derived from taxes cannot be used for the exclusive use
of private persons.

9) Local tax ordinances must be uniformly and equally throughout the

country.

10) Taxation could be described as a power, as a process, or as a

means. As a power, taxation is a way of apportioning the cost of
government among those who are privileged to enjoy its benefits.

11) The state can enforce contributions upon its citizens in the form
of taxes even without a Constitutional Grant

12) Appropriation of taxes is considered valid if intended for the

common good of the people without identifying a particular person
to be benefited from it.

13) Taxation is inseparable in the existence of a nation.

14) Taxation is considered as the lifeblood of the government and
every government unit must exercise this power

15) The amount of taxes may be increased to curve spending power and
minimize inflation

16) The Constitution is the source if the State’s taxing power.

***Nothing follows***