Republic of the Philippines

BATANGAS STATE UNIVERSITY

College of Engineering, Architecture, Fine Arts and Computing Sciences
Gov. Pablo Borbon Campus II, Alangilan, Batangas City Philippines 4200
www.batstate-u.edu.ph Telefax (043)300-4404 locs. 106 -118

TAXATION AND LAND REFORM

PRE-LIMS EXAMINATION

Name ____________________________________________ Date___________________

I. True or False. Write T if the statement is true and F if it is false. No erasures

_______________1. Taxes are the lifeblood of the government.
_______________2. Revenues derived from taxes are intended secondarily to finance the government
and its activities and are thus exempt from execution.
_______________3. Taxation is the dispensable and evitable price for civilized society.
_______________4. Taxes being the lifeblood of the government, their prompt and certain availability
can wait.
_______________5. The power to tax is an inherent prerogative has to be availed of to assure the
performance of vital state functions.
_______________6. An inequitable tax measure however maybe declared void because of the
constitutional provision requiring taxation to be equitable.
________________7. The power to tax is an attribute of sovereignty. It is the weakest of all the powers of
the government.
_______________8.Equitable means fair, just, reasonable and proportionate to one’s ability to pay.
________________9. The Tariff and Customs Code has provided for what has been termed as the rigid
tariff clause authorizing the President to modify import duties.
_______________10.The rule of uniformity of taxation need for perfect uniformity or perfect equality.
_______________11. No law impairing the obligation of contracts shall be passed.
_______________12. No person shall not be imprisoned for debt or non-payment of a poll tax.
_______________13. The Congress shall evolve a regressive system of taxation.
________________14. Each local government unit shall have the power to create its own sources of
revenues and to levy taxes, fees and charges consistent with the basic policy of local autonomy.
_______________15. The President shall have the power to veto any particular item or items in an
appropriation, revenue or tariff bill.

II. Identification. Identify the following statements. Write your answer on the space provided before each
number.
_________________1. What is the vote requirement of the Congress to pass a law granting tax
exemptions?
___________________2.It is an act of imposition by the legislature such as by the enactment of the law.
___________________3. It is the act of compliance by the taxpayer including such options, schemes or
remedies as maybe legally open or available to him.
__________________4. Tax based upon the value of the articles subject to tax.
__________________5. It is an act or demand on proprietorship or ownership.
___________________6. It is imposed for the regulation of lawful business or occupation in the exercise
of police power the amount of which is invariably limited to cover the expenses of issuing the license and
the cost of the necessary surveillance, inspection or supervision by the government.
___________________7. It means that the sources of revenue should be sufficient to meet the expanding
expenditures of the government.
___________________8. It means that the tax burden should be proportionate to the taxpayer’s ability to
pay.
___________________9. It means that the tax must be plain and clear to the taxpayer and should be
capable of effective enforcement by government officials.
___________________10. It means that the taxpayer may not be deprived of life, liberty or property
without due process of law?
____________________11. The taxpayer shall be treated alike under like circumstances and conditions
in the privileges conferred and liabilities imposed.
____________________12. It means that taxable articles or kinds of property of the same class shall be
taxed at the same rate.
___________________13. This term means primarily and not solely.
___________________14. It is the test whether or not the property is taxable.
____________________15. It is levied on persons who are residents within the territory of the taxing
authority without regard to their property, business or occupation.

III. Enumeration. Enumerate the following items stated below.

ASPECTS OF TAXATION
1.
2.
3.
INHERENT LIMITATIONS OF TAXATION
4.
5.
6.
7.
PRINCIPLES OF A SOUND TAX SYSTEM (BASED ON ADAM SMITH’S CANON OF TAXATION)
8.
9.
10.
CLASSIFICATION OF TAXES ACCORDING TO SUBJECT MATTER
11.
12.
13.
CLASSIFICATION OF TAXES ACCORDING TO GRADUATION
14.
15.
16.
17.
INHERENT POWERS OF THE GOVERNMENT
18.
19.
20.

IV. ESSAY.
1. Distinguish tax evasion from tax avoidance? (5pts)

2. Determine the situs on persons, property and business transactions? (10 pts)

3. The Roman Catholic Church owns a 2-hectare lot in a town in Tarlac province. The southern side and
middle part are occupied by the Church and a convent, the eastern side by a school run by the Church
itself, the southeastern side by some commercial establishments, while the rest of the property, in
particular the northwestern side, is idle or unoccupied? May the Church claim tax exemption on the entire
land? Decide with reasons.(10pts)

4. Distinguish a direct tax from an indirect tax? Give examples. (5pts)

5. Distinguish tax from license fee? (5pts)

6. A.) XYZ Colleges is a non-stock corporation, non-profit educational institution run by the Archdiocese
of Batangas city. It collected and received the ff: a. tuition fee, b. dormitory fees, c. rentals from canteen
concessionaires, d. interest from money-market placements of tuition fees, e. donation of a lot and
building by school alumni. Which of these abovecited income and donation would not be exempt from
taxation? Explain briefly (10pts)

B. Suppose that XYZ Colleges is a proprietary educational institution owned by the Archbishop’s family,
rather than the Archdiocese, which of the abovecited income and donation would be exempt from
taxation. Explain briefly. (10 pts)

Prepared by:
___________________________
Mr. Meynard H. Magsino