PRELIM EXAM IN OFFICE AD 9

Direction (Items 1-30): Choose the letter of the correct answer among the four choices provided.

1. The power to tax is a __________ power.

a. legislative b. executive c. judiciary d. none of the above
2. The power of taxation is inherent in ___________ as an incident or attribute thereof.
a. government b. sovereignty c. people d. congress
3. It means that tax laws should be capable of convenient, just and effective administration or enforcement
at a reasonable cost.
a. Fiscal adequacy b. Theoretical justice c. Administrative feasibility d. AOTA
4. The term “excise tax” is synonymous to ____________
a. privilege tax b. income tax c. estate tax d. donors’ tax
5. The following are the definition of double taxation except;
a. taxing twice b. for the same purpose c. in the same year d. AOTA
6. The following are examples of intangible personal property except;
a. credits b. bank deposits c. bonds d. AOTA
7. There are certain aspects of the taxing process that are not legislative, except
a. the power to value property b. the power to assess and collect the taxes
c. the power to impose tax d. AOTA
8. The following are the definition of double taxation except;
a. taxing twice b. for the same purpose c. in the same year d. AOTA
9. Taxation demands enforced _____________.
a. contribution b. donations c. actions d. fees
10. A tax is generally payable in ___________.
a. kind b. money c. salary d. gold
11. The power of taxation proceeds upon the theory that the __________cannot continue without means to
pay its expenses.
a. people b. congress c. government d. Philippines
12. In tax cases, as in other cases, the _____________ is the tribunal of last resort or final appeal.
a. Congress b. Supreme Court c. Senate d. Court of Appeals
13. Practically, all business taxes are ____________.
a. Direct b. Indirect c. Statutory d. Imposed
14. Which of the following statements are true about tax?
a. It is a privilege b. It is an obligation c. It is a burden d. It is an appeal
15. Which of the following are exempted from paying taxes?
a. Government employees b. Government positions
c. Government agencies d. None of the above
16. Which of the following statements is true about double taxation?
a. It’s constitutional b. It’s a burden c. It’s unconstitutional d. It’s enforced
17. Which of the following is a not true?
a. The power of taxation is legislative b. Congress can delegate the power of taxation
c. Local government can levy taxes d. A tax is a liability or obligation
18. Which of the following describes tax exemption?
a. It’s a burden b. It’s a privilege c. It’s an honor d. It is an excuse
19. How many factors does tax evasion have?
a. two b. three c. four d. five
20. How many basic forms does escape from taxation have?
a. six b. seven c. eight d. nine
21. He is the subject of the tax.
a. tax payer b. obligator c. borrower d. seller
22. Which is not prohibited?
 a. not paying taxes b. avoidance on double taxation
c. avoidance schemes d. using taxes for personal use
23. Which is true about indirect taxes?
a. It is shiftable b. It does not iclude businesses c. Form of tax avoidance d. AOTA
24. A tax exemption maybe based on _____________.
a. statues b. obligations c. contracts d. AOTA
25. What is the other term for Tax Avoidance?
a. tax exemption b. obligator c. tax planning d. none of the above
26. Happy; Glad - Tax Evasion ;
a. tax exemption b. tax dodging c. tax planning d. none of the above
27. Strictissimi juris means ____________
a. By the most strict right of law b. By the most strict right of people

c. By the most strict right of Governement d. none of the above

28. Tax; Tax payer – Tax levy ; ___________
a. Governement b. Executive c. Legislative d. Judiciary
29. Situs of taxation; _______________
a. Place of Taxation b. Amount of Tax c. Tax Exemption d. None of the mentioned
30. The primary purpose of taxation is for the governement to provide _________ and ________.
a. Welfare & Protection b. Funds & Contribution
c. Support & Attention d. Funds & Support

Direction (Items 31-50): Choose the letter of the correct answer among the two choices provided in the box.

A. TRUE B. FALSE
31. Taxation demands enforced contribution.
32. A tax is generally payable in money.
33. A tax can be a voluntary payment or donation.
34. The power of taxation proceeds upon the theory that the government cannot continue without means to
pay its expenses.
35. The power to tax carries with it the power not to exempt anyone.
36. Taxes may be increased in periods of prosperity.
37. The obligation to pay the tax on property is not absolute.
38. National internal revenue taxes are imposed by the national government.
39. Practically, all business taxes are indirect.
40. A progressive tax is different from a progressive system of taxation.
41. Onward shifting is considered as a special form of backward shifting.
42. Tax capitalization means the reduction in the price of the taxed object equal to the capitlaized
value of future taxes which the purchaser expects to be called upon to pay.
43. The power of the congress to exmpt from taxation is unlimited.
44. A taxpayer cannot decrease the amount of his taxes.
45. Tax avoidance schemes are not prohibited.
46. The sovereign state is free to select the subjects of taxation and to grant exemption therefrom.
47. Impersonal exemption are those granted directly in favor of a certain class or property.
 48.
48.
48.
48.
Total exemption occurs when certain persons, property, or transactions are exempted, expressly or
impliedly, from all taxes.
49. Equity is a ground for tax exemption.
50. Implied exemption occurs when a tax is based on certain classes of persons, properties, or
transactions without mentioning the other classes.

17. B 34. A
1. A 18. B 35. B
2. B 19. B 36. A
3. C 20. A 37. B
4. A 21. A 38. A
5. D 22. C 39. A
6. D 23. A 40. A
7. C 24. C 41. B
8. D 25. C 42. A
9. A 26. B 43. B
10. B 27. A 44. B
11. C 28. C 45. A
12. B 29. A 46. A
13. B 30. A 47. A
14. B 31. A 48. A
15. C 32. A 49. B
16. C 33. B 50. A