Name: Daisy A.

Tañote Date: August 23, 2021

Course/Year: BSA-2A Subject: AEC 8

Unit 1 – Fundamental Powers of the State, Basic Principles of Taxation Powers and Authority of the
Commissioner of Internal Revenue

Assignment 1: Theory

Modified True or False: Write “T” if the statement is correct and if the statement is incorrect, underline
the word or phrase that makes the statement false. STRICTLY NO ERASURES ALLOWED.

_T__1. Taxation is the act of levying a tax. It is the process by which the sovereign raises revenue to
defray the necessary expenses of the government.

_T__2. Power of eminent domain is the power of the state or those to whom the power has been
delegated to take private property for public use upon paying the owners a just compensation to be
ascertained according to law.

_T__3. For police power the amount to be imposed depends on whether the activity is useful or not.

___4. Power of eminent domain may raise money for the government.

___5. In police power of the state the person who is parting with his property is presumed to receive a
benefit.

___6. Equality in taxation means, “Taxes must be based on the taxpayer’s ability”

_T__7. Under fiscal adequacy, a basic principle of a sound tax system, the government should not incur
deficit.

___8. Administrative feasibility is met when Congress evolves a progressive system of taxation as
mandated in the constitution.

_T__9. Based on the ability to pay is not a characteristic of the State’s power to tax.

_T__10. The power of taxation is inherent in sovereignty, hence even if not mentioned in the
constitution, the State can still exercise the power.

_T__11. For the exercise of the power of taxation, the State can tax anything at any time.

_T__12. The provisions of taxation in the Philippine Constitution are grants of power and not limitations
on the taxing power.

___13. Taxation is essentially a legislative function, hence even in the absence of any constitutional
provisions, taxation power falls on Congress as part of the general poser of law making.

_T__14. Taxes may be imposed to raise revenue or to provide incentives for certain activities within the
State.
___15. Power of eminent domain may be exercised by public service companies and public utilities.

___16. Levying or imposition of tax is essentially administrative in character.

_T__17. A tax reform at any given time underscores the fact that taxation is a power that is very broad.

_T__18. Taxation are the lifeblood of the government and their prompt and certain availability are
imperious (expecting obedience) need.

_T__19. The basis of taxation is the reciprocal duties of protection and support between the State and
its inhabitants.

___20. To implement the police power of the State to promote the general welfare is a compensatory
purpose of taxation.

_T__21. The principal purpose of taxation is to raise revenue for government needs.

___22. The power of taxation is comprehensive, plenary, unlimited and supreme and therefore, not
subject to inherent and constitutional limitations.

_T__23. Police power is the power of the state to enact laws in relation to persons and property as may
promote public health, public safety, public morals and general welfare of the people.

___24. To be exercised to promote public welfare, is a basic principle of a sound tax system.

___25. Theoretical justice means that tax laws must be capable of convenient, just and effective
administration.

_T__26. Inherent limitations are part and parcel of the power of taxation and originate from the very
nature of taxation.

_T__27. A tax imposed on the improvement of sugar industry satisfies the public purpose limitation.

___28. International law is the fundamental rule in taxation stating that the property of one country
may not be taxed by another country.

___29. Our constitution prohibits double taxation.

_T__30. No person shall be imprisoned for non-payment of poll tax.

___31. A revenue bill must originate from the House of Representative and on the same bill the Senate
may propose amendments.

___32. A fixed license fee on the sale of bibles and other religious literature is a violation of non-
infringement of religious freedom.

___33. Taking of property without due process of law is a violation of inherent limitations.
_T__34. The President shall have the power to veto any particular item or items in an appropriation,
revenue, or tariff bill, but the veto shall not affect the item or items to which he does not object.

___35. Sources of taxable income is the place or authority that has the right to impose and collect taxes.

_T__36. Government agencies performing governmental functions are exempt from tax unless expressly
taxed while those performing proprietary functions are subject to tax unless expressly exempted.

_T__37. Debt as distinguished from tax is that debt may be paid in kind.

___38. Income tax and transfer taxes are examples of direct tax.

___39. Tax on business is a property tax.

_T__40. Regular payment is an essential characteristic of tax.

___41. Community tax is a national tax.

___42. License fee is a demand of ownership.

___43. Tax avoidance is not a legal way of not paying tax.

_T__44. Revenue comprises all kinds of funds including taxes.

___45. Toll is based on the cost of construction of public improvement used.

_T__46. Real property tax is not an example of excise tax.

_T__47. In case of deductions and exemptions on income tax returns, doubts shall be resolved strictly
against the taxpayer.

_T__48. One of the characteristic s of tax is that it is generally payable in money.

_T__49. A kind of tax where rate increases as the tax base increases is known as progressive tax.

_T__50. Penalty is designed to regulate conduct.