Christ the King College

Tax 101 – Preliminary Examination

Instructions: Write your answers in yellow paper with your name and section on it.

I. Multiple Choice (10 items)

1. It literally means “place of taxation” the country that has the power and jurisdiction to
levy and collect the tax (Answer: B)
a. Basis of taxation
b. Situs of taxation
c. Scope of taxation
d. Theory of taxation
2. A tax classified as a regressive tax: (Answer: D)
a. Excise tax
b. Value-added tax
c. Real property tax
d. None of the choices
3. Under the Creditable Withholdig Tax System, which of the following statements is
incorrect? (Answer: B)
a. Taxes withheld on certain income payments are intended to equal or at least
approximate the tax due of the payee on said income.
b. The recipient of the income is no longer required to file n income tax return as
prescribed under the Tax Code
c. The payee is required to report the income and pay the difference between the
tax withheld and the tax due thereon.
d. Taxes withheld under this system are creditable in nature.
4. In case of ambiguity, tax laws imposing a tax shall be interpreted (Answer: B)
a. Strictly against the taxpayer
b. Liberally in favor of the taxpayer
c. Liberally in favor of the government
d. None of the choices
5. Number of deputy commissioners in BIR (Answer: B)
a. 3
b. 4
c. 5
d. 6
6. The BIR is under the supervision of (Answer: C)
a. The Bureau of Customs
b. The President
c. The Department of Finance
d. Congress
7. A tax must be imposed for a public purpose. Which of the following is not a public
purpose? (Answer: D)
a. National defense
b. Public education
 c. Improvement of sugar industry
d. None of the choices
8. The following are the similarities among the Fundamental Powers of the State, except:
(Answer: A)
a. They can be abolished by the Constitution.
b. They constitute the three methods by which the State interferes with private
property rights.
c. Each presupposes an equivalent compensation to the inhabitants.
d. The emergence of the State carries with it these fundamental powers.
9. The distinction of a tax from permit or license fee is that a tax is (Answer: C)
a. Imposed for regulation.
b. One which involves exercise of police power.
c. One in which there is generally no limit on the amount that may be imposed.
d. Answer not given.
10. Which statement is wrong? (Answer: C)
a. A tax is a demand of sovereignty.
b. A toll is a demand of ownership.
c. A special assessment is a tax.
d. Customs duty is a tax.