TAX 111

EXERCISE

1. The following statements correctly described the power of the State to tax, except
a. The State can exercise the power of taxation only if it is expressly mentioned in the
Constitution.
b. It is a power inherent in every sovereign state to impose a charge or burden upon persons,
properties or rights to raise revenues for the use and support of the government and to enable it
to discharge its functions.
c. It is a way of collecting and apportioning the cost of government among those who are
privileged to enjoy its benefits.
d. It passes a legislative undertaking through the enactment of laws by the Congress which will be
implemented by the Executive Branch of the government through its Bureau of Internal Revenue
to raise revenue for the inhabitants in order to pay the necessary expenses of the government.

2. The following are the similarities among the Fundamental Powers of the State, except:
a. The emergence of the State carries with it these fundamental powers.
b. Each presupposes an equivalent compensation to the inhabitants.
c. They can be abolished by the Constitution
d. They constitute the three methods by which the State interferes with private property rights.

3. I. The amount of money raised for the government in the exercise of its power to tax is and
police power is based on the needs of the government.

II. The amount of money raised for the government in the exercise of its power of eminent
domain is based on the cost of processing the transfer of property from private entities and/or
individuals to the government.
a. Only Statement I is true
b. Only Statement II is true
c. Both statements are false
d. Both statements are true

4. Congress enacted a new law, known as the Expanded Value Added Tax Law. An association of
taxpayers questions the constitutionality of this law on the ground that it did not originate
exclusively in the House of Representatives as required by the Constitution, because it is in fact
the result of the consolidation of two distinct bills, one from the House of Representatives and the
other from the Senate. Is the vat law unconstitutional?
a. Yes, because the Senate has no authority to propose or concur any amendments with the
revenue or tax bill proposed by the House of Representatives.
b. Yes, because all appropriation, revenue or tariff bills, bills authorizing increase of public debt,
bills of local application, and private bills, shall originate exclusively in the House of
Representatives.
c. No, because all appropriation, revenue or tariff bills, bills authorizing increase of public debt,
bills of local application, and private bills, shall be initiated by the Senate.
d. No, because it is not the law but the revenue bill which is required by the constitution to
originate exclusively in the House of Representatives and insisting otherwise would
violate the coequality of legislative power of the two houses of Congress and in fact would
make the House superior to the Senate.

5. The city council passed a tax ordinance imposing an occupation tax or profession or occupation
of an "industrial engineer". April is the only person with such an occupation in the city. Which of
the following is correct?
a. The ordinance violates the constitutional rule of equality in taxation.
b. The ordinance is a "class legislation" since it does not subject to occupation tax the other
industrial engineers.
c. April can successfully challenge the validity of the ordinance being discriminatory since he is
the only one adversely affected.
d. The ordinance is a valid exercise of the council's power to enact tax ordinance to raise
revenue under the Local Government Code.