1.

The state can enforce contributions upon its citizens in the form of taxes even without a
provision in the constitution authorizing it
2. No law granting any law exmeptin shall be passed without the concurrence of one third of the
members of the congress
3. Under the constitution, churchers are exempted from payment of income taxes.
4. No person shall be prisoned for non-payment of income tax.
5. The power of the legislative in taxation is limited only in the interpretation and application of
tax laws.
6. The power to value property for purposes of taxation is legislative in character.
7. Protection is the basic consideration that justifies tax situs
8. Uniformity implies equality of burden and not equality in amount
9. The due process clause in the constitution applies only to taxation
10. A tax evader sidesteps the law while a tax avoider breaks it
11. Nonpayment of tax makes the business illegal
12. Capitalization is a method to escape from taxation wherevy the price of the based object is
reduced due to the value of future taxes which the purchaser expects to be called upon to pay
13. The adverse effects of double taxation may be mitigated by tax credits and deductions
14. Taxation is the rule while exemption is the exception
15. Double taxation is expressly prohibited by the constitution
16. Government entities exercising proprietary functions are taxable unless expressly exempt
17. In police power, there is transfer of that right to property whether it be ownership of a leaser
right
18. Benefits from taxation have to be experienced to justify the legitimacy of collection of taxes
from the people
19. Veto power is the power of congres to reject a bill
20. Police power may be exercised by public service companies on public utilities
21. The constitution prohibits the imposition of license fee on the sale of bibles not for profit in a
non-stock non-profit religious corporation
22. Toll and penalty may be imposed by private entities and individuals
23. Tax laws are critical in nature as they imposed penalties for non-payment of taxes
24. Special assessment is an imposition based on necessity
25. Debt may be set off while tax cannot be the subject of set off

1. Which of the following statements is correct?

a. The power to tax is absolute
b. The power to grant exemption is implied from power to tax
c. The power to tax is based on actual and direct benefit
d. The power to tax is granted by the constitution
2. Which of the following could not be considered as a purpose of taxation
a. To distribute the wealth of the nation among the poor
b. To protect local industries from foreign competition
c. To raise revenue for the government
d. To regulate inflation
3. The following except one are basic principles of a sound tax system:
 a. It must be progressive
b. It should be capable of being effectively enforced
c. It should be exercised to promote public welfare
d. Sources of revenue must be sufficient to meet government expenditures and other
public needs
4. Bureau of Internal Revenue is under what branch of the government?
a. Judiciary
b. Legislative branch
c. Executive
d. Congress
5. Which one of the characteristics of justifies that payment of tax is not discretionary on the
part of the taxpayer
a. It is proportionate in character
b. It is an enforced contribution
c. It is generally payable in money
d. It is levued on persons or property
6. Which of the following is a constitutional limitation on the power of taxation
a. Exemption of government agencies from taxation
b. Limitation of territorial jurisdiction
c. Exemptions of mosques from property tax
d. Prohibition against imprisonment for nonpayment of income tax
7. Regressive taxation system is
a. The same with regressive rate of tax
b. Not observed in the philippines because it means that the tax rate increases as tax
decreases
c. A situation where indirect taxpayers are more than direct taxpayers
d. Imposed to affect adversely the high income sector of the population
8. Which of the following is not a measure to enhance administrative feasibility of taxation
system?
a. Witholding taxes at source
b. Quarterly filing and payment of income tax on business income
c. Accreditation of banks to collect taxes
d. Collection of taxes proportionate to ability of tax payers to pay
9. Although the power of taxation is legislative in character , it is not the function of congress to:
a. Identify who should collect the tex
b. Fix with certainty the amount of taxes
c. Determine who should be subject to tax
d. Collect the tax levied under the law
10. It refers to a tax fixed proportions of the value of the propoerty with respect to which the tax
is assessed
a. Progressive
b. Ad valorem
c. Specific
d. Privelege
11. The distinction of a tax from permit or a license fee is that a tax is;
a. One which involve an exercise of police power
b. Imposed regulation
c. One in which there is generally no limit on the amount that may be imposed
d. Based wholly on benefit
12. Which of the following is not considered as one of the characteristics of special assessment?
a. It is levied on land
b. It is based on the governments needs of money to support its legitimate objectives
c. It not personal liability
d. It is based solely on the benefit derived by the owners of the land
13. One of the following is a distinction between tax and license fee
a. Tax can be assigned while license fee cannot be assigned
b. Tax is not subject to set-off whereas license fee is subject to set-off
c. Tax is normall paid after the commencement of the business while license fee is paid
before commencement of the business
d. Tax is based on law while a license fee is based on contract
14. It refers to the point in which the tax burden finally rests or settles down
a. Incidence
b. Shifting
c. Exemption
d. Impact
15. It means that all taxable articles or properties of the same class shall be taxed at the same rate
a. Progressibity
b. Equity
c. Uniformity
d. Equality

President Aquino enacted a law imposing a tax on the sale of certain articles. Mr. Renan is a
seller of those goods but refuses to pay the tax because he knows that government officials
would just use the taxes collected for their own personal benefit. BIR wants to assess Mr.
Renan for non-payment of tax. Is the BIR justified to make an assessment against Mr. Renan?
Explain answer.

- Firstly, Mr. Renan should pay his taxes even if some of the government officials would
just use the taxes for their own benefit, since Mr. Renan is doing his business transactions within
the territory of the Philippines. Moreover, tax is an enforced contribution, therefore, he should
pay his taxes. If he failed to do so, the Philippine government can penalize him by filing a criminal
or civil case against him. Furthermore, the BIR is justified to make an assessment against Mr.
Renan, since the constitution states that one of the main power and function of the BIR is to asses
and collect all national internal revenue, fees and charges so it is legal/justifiable for the BIR to
asses and Mr. Renan.