1.

I. The lifeblood doctrine is a well-settled principle in taxation jurisprudence, which states that
taxes are the lifeblood of the government and that the government cannot exist without them.
II. The government has the power to tax any income, whether derived from property or from
labor, and that this power is essential to the existence of the government.
III. The government has the power to tax even the necessaries of life, such as food and clothing,
as long as the tax is not confiscatory.
IV. The government has the power to tax even foreign corporations doing business in the
Philippines, as long as they are not engaged in diplomatic or consular functions.
A. True, False, True, False
B. False, False, False, False
C. False, True, False, True
D. True, True, True, True

2.
I. While taxation may incidentally serve other purposes, such as regulation, promotion of
economic growth, or social justice, its primary purpose is to raise revenue.
II. The government’s main objective in exercising its power to tax is to promote general
welfare.
III. The power to tax is the power to destroy, and it is not to be lightly exercised. But it is a
power which the government must have in order to promote the general welfare.
IV. Taxation is an inherent power of the government
A. Only one statement is wrong
B. Two statements are wrong
C. Three statements are wrong
D. None of the statements are wrong

3.
A. The government may use the proceeds of taxation to fund social welfare programs.
B. The power to tax is a power to destroy.
C. The government may use the proceeds of taxation to provide for the general welfare,
including the promotion of social justice.
D. The power to tax is not a power to destroy

A. Only one statement is wrong

B. Two statements are wrong
C. Three statements are wrong
D. None of the statements are wrong

4. Which of the following statements is correct about the relationship between the police power
of the state and the non-impairment clause of the Constitution?
A. The police power of the State is superior to the non-impairment clause.
B. The non-impairment clause is superior to the police power of the State.
 C. The police power of the State and the non-impairment clause are equal.
D. The relationship between the police power of the State and the non-impairment clause is
complex and depends on the specific facts of each case.
5. Why is the theory of taxation considered a necessity under Philippine jurisprudence?
A. Because it is required by international law.
B. Because it is essential for the government to fulfill its functions and provide public
services to its citizens.
C. Because it is mandated by the Constitution that taxes shall be imposed.
D. Because it is necessary to promote social justice and reduce economic inequality.

6. What is the basis of taxation?

A. The ability-to-pay theory.
B. The benefit theory.
C. The reciprocal duty of protection and support.
D. The horizontal equity theory.

7. Which of the following is an example of how the government provides protection and
support to its citizens?
A. Providing a strong military to defend the country from foreign threats.
B. Enforcing laws to protect citizens from crime and violence.
C. Providing education and healthcare to its citizens.
D. All of the above.

8. Which of the following statements accurately describes the nature of taxation?

A. Taxation is an optional power of the government, subject to the discretion of the executive
branch.
B. Taxation is primarily a judicial function, subject to the interpretation and application of
the courts.
C. Taxation is inherent in sovereignty, a legislative function, and subject to inherent and
constitutional limitations.
D. Taxation is a purely administrative function, subject to the discretion of the tax
authorities.

9. What is meant by the term "impact of taxation" according to the nature of taxation?
A. The amount of revenue generated by a particular tax.
B. The point in which the tax is levied.
C. The rate at which the tax is imposed.
D. The type of tax imposed.

10. What type of tax is being imposed?

A. Indirect tax
B. Direct tax
C. Progressive tax
D. Regressive tax

11. What is the administrative act in this situation?

 A. Imposition of taxes
B. Assessment of taxes
C. Collection of taxes
D. Refund of taxes

12. What is the compensation of the policy under the police power ?
A. The payment of just compensation to local businesses for their loss of profits.
B. The intangible feeling of contribution to the general welfare of the people.
C. The payment of a fee by citizens for reusable bags.
D. The payment of a fine by citizens who violate the policy.

13. What is the correct statement regarding the relationship between taxation and direct benefit
from the government?
A. Taxation is only justifiable if citizens receive a direct benefit from the government.
B. Taxation is only justifiable if citizens receive a proximate benefit from the government.
C. Taxation is justifiable even if citizens do not receive a direct benefit from the government.
D. Taxation is justifiable only if citizens receive a direct and proximate benefit from the
government.

14. What is the best argument in this case?

A. Eminent domain can be used even if the taking of private property is not for a public use
or purpose.
B. Eminent domain can only be used for public improvements that benefit the general public.
C. Eminent domain can only be used for public improvements that directly benefit the local
community.
D. Eminent domain cannot be used for private sports stadiums.

15. If you were the lawyer for the electric cooperative, what is the basis of your argument?
A. Public utility entities may exercise eminent domain, while manufacturing businesses may
not.
B. Manufacturing businesses may exercise eminent domain, while public utility entities may
not.
C. Both public utility entities and manufacturing businesses may exercise eminent domain.
D. Neither public utility entities nor manufacturing businesses may exercise eminent domain.

16. What is the correct statement regarding the exercise of police power, the power of taxation,
and eminent domain in this case?
A. The legislature is the only entity that can exercise police power, the power of taxation, and
eminent domain.
B. The local government can exercise police power and the power of taxation, but not
eminent domain.
C. The local government can exercise police power, the power of taxation, and eminent
domain.
D. The local government can exercise eminent domain, but not police power or the power of
taxation.
17. Identify which statement is accurate with regards to the effect of taxation, eminent domain,
and police power on private rights?

A. The police power does not interfere with private rights, but taxation and eminent domain
do.
B. Taxation and eminent domain do not interfere with private rights, but the police power
does.
C. The police power, taxation, and eminent domain can all interfere with private rights.
D. The police power and taxation can interfere with private rights, but eminent domain
cannot.

18.
I. All inherent powers of the state primarily affect property rights.
II. The inherent powers of the state are not similar in any way.
III. The inherent powers of the state are similar in that they are exercisable without
constitutional grant and primarily exercised by the legislature, but they can have different
impacts on property rights.
IV. The inherent powers of the state are not exercisable without constitutional grant.

A. Only one statement is wrong

B. Two statements are wrong
C. Three statements are wrong
D. None of the statements are wrong

19.
I. Both eminent domain and taxation require constitutional grant.
II. Only eminent domain requires constitutional grant.
III. Only taxation requires constitutional grant.
IV. Neither eminent domain nor taxation require constitutional grant.
A. Only one statement is correct
B. Two statements are correct
C. Three statements are correct
D. None of the statements are correct

20. What is the primary purpose of just compensation in eminent domain cases?

A. To ensure that the government can acquire property at a reduced cost.

B. To raise money for the government through the sale or lease of acquired property.
C. To ensure that property owners are fairly compensated for their loss.
D. To provide an incentive for property owners to sell their property to the government
voluntarily.

21. How do allowable deductions from tax bases relate to the ability to pay theory of taxation?
A. Allowable deductions increase the tax burden on individuals with higher incomes.
B. Allowable deductions decrease the tax burden on individuals with lower incomes.
C. Allowable deductions are unrelated to the ability to pay theory of taxation.
 D. Allowable deductions are used to encourage individuals to consume more goods and
services.

22. What is the primary goal of the government in implementing a tax policy that allows for
deductions for expenses related to renewable energy investments?
A. To increase overall tax revenue for the government.
B. To provide a tax break for individuals and businesses with higher incomes.
C. To encourage investment in renewable energy sources and reduce reliance on fossil fuels.
D. To reduce the overall tax burden on individuals and businesses.

23. What is the purpose of the government's proposed tax on fast food?
A. Fiscal purpose
B. Social purpose
C. Economic purpose
D. Political purpose

24. Which of the following is the most likely social purpose of this tax?
A. To raise revenue for the government
B. To discourage unhealthy behaviors
C. To promote social welfare
D. To reduce economic inequality

25. What is the purpose of the city government's proposed tax on ride-sharing services?
A. Fiscal purpose
B. Social purpose
C. Economic purpose
D. Environmental purpose

26. Which of the following is correct about the assessment of taxes?

A. It is always carried out by a tax authority or agency.
B. It is not included in the legislative act.
C. It involves calculating the amount of tax owed by a taxpayer based on their income,
property value, or other relevant factors.
D. It is only relevant for income taxes.

27. What are the limitations to the use of taxation to implement the police power of the state?
A. Taxes must be levied for a public purpose and they must be related to the exercise of the
police power.
B. Taxes may be used to discriminate against certain groups or individuals.
C. Taxes must be levied without regard to the taxpayer's ability to pay.
D. Taxes may be used to regulate speech and expression.

28. Which of the following is a limitation on the use of taxation to implement the police power
of the state?
A. Taxes must be levied for a public purpose.
B. Taxes must be related to the exercise of the police power.
 C. Taxes shall be uniform and equitable.
D. Exemption of government agencies and instrumentalities.

29. Which of the following best describes the relationship between taxation and exemptions?
A. Taxation and exemptions are equally important tools for raising revenue for governments.
B. Exemptions are the primary means of raising revenue for governments, with taxation
used only in exceptional circumstances.
C. Taxation is the primary means of raising revenue for governments, with exemptions
granted only in specific circumstances.
D. Taxation and exemptions are unrelated concepts in the context of government revenue.

30. What is the primary reason for levying higher excise taxes on sin products such as tobacco
and alcohol?
A. To raise revenue for the government
B. To discourage consumption and promote public health
C. To influence economic activity
D. To promote social welfare

31. What is the legal basis for the importers' challenge to the constitutionality of the law?
A. The Philippine Constitution, which prohibits delegation of legislative power.
B. The principle of international comity, which requires that taxes be reasonable and non-
discriminatory.
C. The importers' constitutional right to due process and equal protection of the law.
D. The necessity and urgency of the situation, which justifies delegation of legislative power.

32. What is the legal basis for the tax treaty between the Philippines and Japan?
A. The Philippine Constitution, which requires the government to promote economic cooperation
with other countries.
B. The principle of international comity, which allows nations to lessen the tax burden of their
respective subjects.
C. The Japanese Constitution, which requires the government to enter into tax treaties with other
countries.
D. The necessity and urgency of the situation, which justifies the reduction of taxes.

33. Is the Philippine government's imposition of a tax on ABC Inc.'s income constitutional?
A. Yes, as long as the tax is reasonable and uniform.
B. No, because double taxation is prohibited by the Philippine Constitution.
C. Yes, because the Philippine Constitution does not prohibit double taxation.
D. No, because double taxation violates ABC Inc.'s constitutional rights.

34. Is the Philippine government's imposition of excise tax and VAT on imported cars
constitutional?
A. Yes, because direct double taxation is not prohibited by the Philippine Constitution.
B. No, because direct double taxation violates the principle of uniformity and equality in
taxation.
C. Yes, because excise tax and VAT are imposed for different purposes and at different stages of
production and distribution.
D. No, because direct double taxation violates XYZ Corp.'s constitutional right to due process
and equal protection of the law.

35. Under what conditions may the government provide financial assistance to religious
organizations?

A. The government may provide financial assistance to religious organizations for any purpose,
as long as the funds are not used for religious activities or institutions.
B. The government may provide financial assistance to religious organizations for any purpose,
as long as the funds are used for religious activities or institutions.
C. The government may provide financial assistance to religious organizations subject to certain
requirements such as a secular purpose, neutrality, and non-advancement of religion.
D. The government may not provide financial assistance to religious organizations under any
circumstances.

36. Is the religious organization exempt from property tax under the Constitution?
A. Yes, because religious and charitable institutions are exempt from all forms of taxation.
B. No, because the constitutional exemption of religious and charitable institutions only refers to
income tax.
C. Yes, because the religious organization uses the land for religious activities and charitable
purposes, which makes it eligible for the constitutional exemption from property tax.
D. No, because the local government has the power to assess property taxes on all real property
within its jurisdiction.

37. Which of the following statements is true regarding the proposed tax law?
A. The tax violates the constitutional requirement of uniformity because individuals and property
are not the same thing.
B. The tax complies with the constitutional requirement of uniformity because it is assessed at
the same rate for both individuals and property.
C. The tax violates the constitutional requirement of uniformity because it is not based on
income.
D. The tax complies with the constitutional requirement of uniformity because it is only being
levied on residents of the Philippines.

38. Which of the following statements is true regarding the proposed tax-exempt legislation?
A. The legislation complies with the constitutional requirement for non-provision of any tax
exempt legislation without the concurrence of the majority of all the members of Congress.
B. The legislation violates the constitutional requirement for non-provision of any tax exempt
legislation without the concurrence of the majority of all the members of Congress.
C. The legislation is ethical because it promotes economic growth and job creation.
D. The legislation is unethical because it only benefits a few wealthy individuals and
corporations.
39. Which of the following statements is true regarding the power to tax and the power to
exempt?
A. The power to tax does not include the power to exempt.
B. The power to tax includes the power to exempt, but only in certain circumstances.
C. The power to tax includes the power to exempt, but only if the exemption is approved by a
simple majority of Congress.
D. The power to tax includes the power to exempt, but only if the exemption is approved by the
required majority of Congress.

40. Which of the following statements is true regarding a tax holiday?

A. A tax holiday is a tax exemption that applies only to individuals.
B. A tax holiday is a tax exemption that applies only to corporations.
C. A tax holiday is a privilege or immunity from a tax burden that others are subjected to.
D. A tax holiday is a requirement for all businesses to pay taxes.