Exam Drill Problems

8/20/2019 Exam Drill Problems

http://slidepdf.com/reader/full/exam-drill-problems 1/10

Exam Drill Problems:

1. The primary purpose of taxation is:

a. To enforce contribution from its subject for private purpose

b. To raise revenue for the government

c. To achieve economic and social stability

d.

To regulate the conduct of business or professionb

2. This theory underscores that taxes are indispensable to the existence of the state.

a. Doctrine of equitable recoupment c. The benet received theory

b. The lifeblood doctrine d. The olmes Doctrine

b

!. "elect the correct statement.

a. The benet received theory explains that the government is obliged to serve the people

since it is beneting from the tax collection from its subjects

b. The lifeblood theory underscores that taxation is the most superior po#er of the state

c. The police po#er of the state is superior to the non$impairment clause of the %onstitution

.

d. The po#er of taxation is superior to the non$impairment clause of the %onstitution

c

&. The income e'ect of taxation is exhibited in

a. (or#ard shifting of tax c. )ercentage taxes

b. *alue added tax d. Transformation

d

+. That tax la#s should be certain and consider the taxpayer,s ability to pay denotes

a. (iscal adequacy c. Theoretical justice

b. -dministrative feasibility d. %ompatibility #ith economic objectives

c

. /hat is the theory of taxation0

a. ecessity c. reciprocal duties of support and protection

b. %onstitutionality d. public purpose

c

. /hat is the basis of taxation0

a. %onstitutionality c. necessity

b. public purpose d. reciprocal duties of support and protectionc

3. /hich of the follo#ing inappropriately describe the nature of taxation0

a. inherent in sovereignty c. subject to inherent and constitutional

limitation

b. essentially a legislative function d. generally for public purpose

a



4. 5. (or#ard "hifting #ill result in increase prices

55. Tax evasion is also 6no#n as tax dodging

a. 5 is correct c. 5 and 55 are correct

b. 55 is correct d. 5 and 55 are not correct

c

17. /hen tax is recovered by the manufacturer or producer by nding out means of

improvement in production so as savings #ould compensate for taxes8 this is 6no#n as0

a. %apitali9ation c. bac6#ard shifting

b. on#ard shifting d. transformation

d

11. The point in #hich tax is levied is called0

a. 5mpact of taxation c. 5ncidence of taxation

b. "itus of taxation d. -ssessment

a

12. /hen the impact and incidence of taxation are merged into the statutory taxpayer8 the

tax is called0

a. personal tax c. indirect tax

b. direct tax d. national tax

c

1!. The follo#ing are inherent limitation on the po#er to tax. /hich is the exception0

a. Territoriality of taxes c. )ublic purpose

b. egislative in character d. on$appropriation for religious purpose

d

1&. /hich of the follo#ing is an administrative act in taxation0

a. %ollection of taxes c. Determination of the subject of the tax

b. (ixing the rate of the tax d. Determination of the purpose of the tax

a

1+. "elect the correct statement.

a. The substitution e'ect ma6es people economically e'icient since the impact of the tax is

spread for#ard to the consumers.

b. ;nly taxation and eminent domain presupposes a form compensation #hen exercised by

the government since police po#er merely involves conscation.c. -ny tax la#s #hich violate the principles of a sound tax system renders itself

unconstitutional.

d. Taxation means the apportionment of the costs of the government among those #ho are

beneted from its existence.

d

1. "elect the correct statement.



-. "ince taxation presupposes an equivalent form of compensation8 there should be a direct

and proximate advantage received by any taxpayer before he could be required to pay tax.

<. %ompensation under police po#er is the intangible feeling of contribution to the general

#elfare of the people.

a. - c. <oth - and <

b.< d. either - nor <d

1. )ublic improvement is a requisite to the exercise of #hich po#er of the state0

a. )olice po#er c. =minent domain

b. Taxation d. =minent domain and taxation

d

13. )ublic utility entities may in some circumstance exercise the po#er of eminent domain.

/hich of the follo#ing is not a public utility0

a. =lectric cooperatives c. Telecommunication business

b. /ater cooperatives d. >anufacturing business

d

14. 5. )olice po#er and the po#er of taxation are exercised primarily by the legislature but

not eminent domain

55. Taxation and eminent domain interferes #ith private right and property but not #ith

police po#er

a. 5 is true c. 5 and 55 are true

b. 55 is true d. 5 and 55 are not true

d

27. "elect the incorrect statement.

a. the po#er of eminent domain may be exercised by private entities

b. by police po#er8 the property ta6en is destroyed

c. by eminent domain8 the property ta6en is destroyed

d. eminent domain and taxation a'ects only property rights

a

21. The inherent po#ers of the state are similar in the follo#ing respect8 except0

a. inherent to the existence of the state

b. exercisable #ithout the need for an express constitutional grant

c. all a'ects property rights

d. exercised primarily by the legislature

c

22. The follo#ing statement correctly states the di'erences among the inherent po#ers of

the state8 except0

a. the property ta6en under eminent domain and taxation are preserved but that of police

po#er is destroyed

b. eminent domain do not require constitutional grant but taxation being formidable does in

order to limit its exercise by the legislature



c. police po#er and taxation is exercised only by the government but eminent domain may

be exercised by private entities

d. )olice po#er regulates both property and liberty? eminent domain and taxation a'ects

only property rights

b

2!. "elect the incorrect "tatement.

a. since just compensation is involved8 eminent domain raises money for the government

b. once a government is established8 taxation is exercisable

c. the most important of the po#er is taxation

d. police po#er is more superior than the non$impairment clause of the %onstitution

a

2&. "elect the correct statement

a. the provision on taxation in the )hilippine %onstitution are grant of po#er

b. the po#er to tax includes the po#er to destroy

c. #hen taxation is used as a tool for general and economic #elfare this is called scal

purpose

d. sumptuary purpose of taxation is to raise funds for the government

b

2+. /hich is not a legislative act0

a. -ssessment of the tax c. determination of the subject of the tax

b. setting the amount of the tax d. determining the purpose of the tax

a

2. /hich of the follo#ing is not an inherent limitation of the po#er to tax0

a. tax should be levied for public purpose

b. taxation is limited to its territorial jurisdiction

c. tax la#s shall be uniform and equitable

d. exemption of government agencies and instrumentalities

2. /hich of the follo#ing is not a constitutional limitation of the po#er to tax0

a. non$impairment of obligation or contracts

b. due process and equal protection of the la#

c. non$appropriation for religious purposes

d. non$delegation of the taxing po#er

d

23. -greement among nation to lessen tax burden of their respective subject is called:a. @eciprocity c. territoriality

b. international comity d. tax minimi9ation

b

24. 5. o one shall be imprisoned for non$payment of tax.

55. Double taxation is not prohibited by the %onstitution.





a

!7. The constitutional exemption of religious or charitable institution refers only to:

a. real property tax c. real property tax and income tax

b.

income tax d. business taxa

!1. /hen a legislative body taxes persons and property8 rights and privilege under the same

taxable category at the same rate8 this is referred to as compliance #ith the constitutional

limitation of:

a. =quity c. due process

b. Aniformity d. equal protection clause

b

!2. /hen a certain tax imposed base tax burden on the ability of the subject to pay the tax8

this is construed as complying #ith the inherent limitation of taxation #hich is:

a. =quity c. due process

b. Aniformity d. none

a

!!. The constitutional requirement for non$provision of any tax$exempt legislation #ithout

the concurrence of the majority of all the members of %ongress is intended to prevent:

a. legislation of burdensome or oppressive tax la#s

b. to ensure that the government #ill no incur a decit

c. ensure approval of all tax bills prior to becoming tax la#s

d. unethical lobbying in the la#ma6ing body

d

!&. 5. Taxation is the rule? exemption is the exception.

55. Taxation may be used to implement the police po#er of the state.



!+. "elect the incorrect statement.

a. the po#er to tax includes the po#er to exempt

b. exemption are construed against the taxpayer and in favor of the government

c. tax statutes are construed against the government in case of doubt

d. taxes should be collected only for public improvement

a

!. This refer to the privilege or immunity from a tax burden of #hich others are subjected

to:

a. =xclusion c. tax holiday

b. Deduction d. reciprocity

a



!. >r. "orots6i8 is a professional practitioner as a management adviser. 5n addition8 he held

various properties and currently engaged in diverse business operations. -s a result8 he

has )1834+8777.77 in personal tax aside from his basic tax of )+.77. 5f >r. "orots6i

intentionally disregard to pay his total personal tax8 #hich of the follo#ing is correct0

a. >r. "orots6i can be imprisoned for non$payment of the )+.77 personal tax.

b.

>r. "orots6i cannot be imprisoned for non$payment of the personal tax because he is aprofessional #herein his imprisonment could cause economic loss to the country.

c. 5f >r. "orots6i pays only the )+.77 personal tax8 he cannot be imprisoned.

d. on$payment of the additional tax could cause imprisonment.

d

!3. D=( "hipping ines operates a Beet of sheep from >etro >anila to Cambonga. D=( #as

exempted from payments of the franchise tax but in return it has to transport government

mails and other government correspondence to and from >etro >anila and Camboanga.

"ubsequently8 a ne# la# #as passed removing such exemptions and requiring D=( to pay

the franchise tax. /hich of the follo#ing is correct0

a. The tax la# is valid since the po#er of taxation is broad.

b. The ne# la# is invalid being unconstitutional.

c. The ne# la# is invalid since exemption8 once given8 can,t be revo6e if it prejudice the

taxpayer.

d. The ne# la# is valid since tax is dictated by the needs of the government.

a

!4. /olf has many tax evasion cases. (or most8 he #as found guilty by the courts. /hich of

the follo#ing can be his sanctions0

-. %apital punishment <. 5mprisonment %. %onscation of his properties

a. -8<? % c. <? %

b. -? % d. % only

a

&7. ;#l has a )+87778777.77 tax evasion case #ith the <5@. <5@ rendered him an assessment

but his appeal failed to meet the deadline due to his undue hesitation to ans#er for the

notice of assessment. -s a result8 the assessment became nal and demandable. /hich of

the follo#ing is correct0

a. ;#l should be allo#ed an extension since the amount of the tax is highly material so as

his right for equal protection of the la# #ill not be denied

b. Due process is not violated so long as the consideration is to be given by the <5@.

c. Due process is not violated.

d. ;#l should demand for compromise so as he #ill be overburdened.

b&1. The tax imposed upon the performance of an act8 the enjoyment of a privilege or

engaging in a profession is 6no#n as0

a. 5ncome tax c. =xcise tax

b. icense d. Transfer tax

c



&2. /hen the determination of the amount of the tax requires an assessment of the value of

the subject of tax8 this type of tax is 6no#n as0

a. proportional tax c. ad valorem tax

b. specic tax d. progressive tax

c

&!. Tax as to graduation or rate include the follo#ing8 except0

a. )rogressive c. pro$rata

b. )roportional d. regressive

c

&&. - tax base and tax rate of an imposition is sho#n as follo#s:

5ncome Tax @ate

) 187778777.77 27

3778777.77 !7

778777.77 &7

This taxation scheme ma6es use of a0

a. progressive rate c. digressive rate

b. proportional rate d. regressive rate

a

&+. /hich of the follo#ing is a local tax0

a. value added tax c. other percentage taxes

b. documentary stamp tax d. real property tax

d

&. 5. -s a rule8 taxes are not assignable.

55. Debt earns interest only #hen stipulated or #hen there is legal delay.



c

&. "elect the incorrect statement.

a. Tax may be unlimited in amount.

b. icense ma6e the business illegal #hen not paid #hile taxes do not.

c. "pecial assessment is not the liability of the person o#ning the property.

d. "pecial assessment can be imposed on building and other real right attaching pertaining

to land.

d

&3. 5. ;ne of the essential characteristic of tax is its being unlimited in amount.

55. The "tate has complete discretion on the amount of license to be imposed after

distinguishing bet#een useful and non$useful activity.



b



&4. /hich of the follo#ing is correct regarding the tax table for individual taxable income for

residents and citi9ens0

a. the table sho#s purely progressive tax rates

b. the tax table is a combination of proportional and progressive tax rates

c.

lo# income earners are subject to proportional rate #hile high income earners aresubject to both proportional and progressive tax rates

d. none of the above

b

+7. /hich of the follo#ing is not a local tax0

a. %ommunity tax c. Tax on ban6s and other nancial institutions

b. Documentary stamp tax d. <usiness taxes8 fees and charges

b

+1. - license that is imposed for revenue purposes is 6no#n as0

a. - license tax c. )rofessional tax

b. "in tax d. >ixed tax

a

+2. "elect the incorrect statement.

-. Tax is a demand of sovereignty just as toll is a demand of o#nership

<. o one shall be imprisoned for non$payment of debt or poll tax

a. - c. - and < are true

b. < d. either - nor <

c

+!. Distinguishing bet#een tax and debt8 #hich is assignable0 /hich cannot be set$o'0

a. Tax? debt c. Tax8 tax

b. Debt? tax d. Debt8 debt

b

+&. "elect the correct statement.

a. The doctrine of estoppel operates against the taxpayer8 not against the government.

b. on$compensation or set$o' violates the principle of administrative feasibility.

c. Taxes are al#ays imprescriptible.

d. The principle of strictissimi juris simply states that exemption is the rule8 taxation is the

exemption.

a

++. /hich of the follo#ing is a po#er of the %ommissioner of 5nternal @evenue0

a. -ssessment and collection of taxes

b. =nforcement of all forfeitures8 penalties and nes

c. 5nterpretation of the provisions of the 5@%

d. Eiving e'ects to and administering the supervisory and police po#ers conferred by the

5@% and other la#s



+. /hich of the follo#ing po#ers of the %ommissioner of 5nternal @evenue cannot be

delegated0

a. The examination of tax return and tax due thereon

b. To refund or credit tax liabilities in certain cases

c. The po#er to compromise or abate any tax liability involving basic deciency tax of

)+778777 and minor criminal violationsd. The po#er to reverse a ruling of rst impression

b

+. The follo#ing are the limitation on the taxing po#er of the state. /hich of the follo#ing

inherent limitation of taxation is also categori9ed as a constitutional limitation0

-. Territoriality of taxation

<. =xemption of the government

%. )ublic purpose of taxation

D. on$impairment of contracts

=. on$delegation of the po#er to tax

a. - and < c. % and =

b. < and % d. D and =

+3. /hich of the follo#ing forms of escapes to taxation #ill more li6ely to result in direct loss

of revenue to the government0

a. "hifting c. transformation

b. %apitali9ation d. tax exemption

+4. /hen exemption from a tax imposition is silent or not clearly stated8 #hich statement is

true0

a. Taxation applies since exemptions are construed against the government.

b. =xemption still applies since this is exemption by omission.

c. Taxation applies since exemptions are to be construed against the taxpayer.

d. =xemption applies since obligation arising from la# cannot be presumed and hence

construed against the government.

7. /hen the provisions of tax la#s are silent as to the taxability of an item8 #hich is true0

a. Taxation applies since taxation is the rule8 exemption is the exception.

b. =xemption applies since vague tax la#s are construed against the government.

c. Taxation applies in accordance #ith the ifeblood doctrine.

d. =xemption applies since obligation arising from la# is presumed? ignorance of the la# is

not an excuse.

1. /hich statement is correct0 -. Tax assessment are presumed to be correct and done in good faith.

<. Tax la#s should not operate retrospectively.

%. @efund of taxes should earn interest since as a principle8 no one shall be enriched at the

expense of another? the state should be the model of good faith among its constituents.

a. -8 < and % c. - only

b. - and < d. < and %



2. "elect the incorrect statement regarding tax amnesty and condonation.

a. 5n tax amnesty8 violators are required to pay a portion of the tax assessed.

b. /hen the remaining unpaid portion of the tax is condoned8 the taxpayer cannot as6 for

refund for the balance already paid.

c. Tax amnesty operates as a general pardon and is al#ays not available.

d.

Tax condonation operates on the #hole balance of the assessed tax and not only to theunpaid portion.

Exam Drill Problems

Documents

Transcript of Exam Drill Problems