Philippine Christian University

Sampaloc 1, Dasmarinas City, Cavite

College of Business and Technology

Name: _______________________________________Course/Year__________Date:___________

INCOME TAXATION (1ST Quiz)

Multiple Choice: Choose the best possible answer.

____1. Which of the following may not raise money for the government?
a. Power of taxation
b. Police power
c. Power of eminent domain
d. Privatization of government’s capital assets

____2. The imposition of amount under this inherent power has no limit.
a. Taxation c. Police power
b. Power of eminent domain d. None of the choices.

____3. Which of the following is not one of the canons of a sound tax system?
a. Quantifiability c. Certainty
b. Equality d. Convenience

____4. The following are common to the inherent power of taxation, power of eminent domain
and police power, except for which of the following?
a. They are necessary attributes of sovereignty.
b. They interfere with private rights and property.
c. They affect all persons or the public.
d. They are legislative in implementation.

_____5. As distinguished from the other inherent powers, what is the purpose of taxation?
a. Support of the government c. Public purpose
b. Promote general welfare d. None of the choices

_____6. The process or means by which the sovereign, through its lawmaking body, raises
income to defray the necessary expenses of government.
a. Power of taxation c. Police power
b. Power of eminent domain d. None of the choices

_____7. 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.
a. Power of taxation c. Police power
b. Power of eminent domain d. None of the choices

_____8. The power of the State to enact such laws in relation to persons and property as may
promote public health, public morals, public safety and general welfare of the people
a. Power of taxation c. Police power
b. Power of eminent domain d. None of the choices

_____9. The principal (primary) purpose of taxation is to raise revenue for governmental needs.
a. Revenue purpose c. Sumptuary purpose
b. Compensatory purpose d. Regulatory purpose

_____10. One of the following is not a compensatory purpose of taxation.

a. To reduce excessive inequalities of wealth.
b. To maintain high level of employment.
c. To control inflation
d. To implement the police power of the State to promote the general welfare.

_____11. The power of taxation proceeds upon what theory

a. Government is a necessity theory
b. Benefits received theory
c. Ability to pay
d. Severance test

_____12. That taxation is based on the principle of reciprocal duties of protection and support
between the State and its inhabitants.
a. Government is a necessity theory
b. Benefits received theory
c. Ability to pay
d. Lifeblood theory

______13. One of the following is not a manifestation of lifeblood theory.

a. Imposition of tax even in the absence of constitutional grant.
b. Right to select objects and subjects of taxation.
c. No injunction to enjoin tax collection
d. Equal protection of law

______14. The government’s ability to serve the people depends on taxation. Since taxes are
collected, for their benefit, taxes may be imposed even in the absence of constitutional
grants and collection of taxes cannot be stopped.
a. Government is a necessity theory c. Ability to pay
b. Benefits received theory d. Lifeblood theory

_____15. Which of the following is not a characteristic of the State’s power to tax?
 a. It is inherent in sovereignty.
b. It is legislative in character.
c. It is based on the ability to pay.
d. It is subject to constitutional and inherent limitations.

______16. A process where tax is imposed through legislative act.

a. Levying c. Assessment
b. Collection d. Forfeiture

______17. The actual effort exerted by the government to effect the exaction of what is due from
the taxpayer is known as:
a. assessment c. payment
b. levy d. collection

_____18. Although the power of taxation is basically legislative in character, it is NOT the
function of Congress to:
a. fix with certainty the amount of taxes
b. collect the tax levied under the law.
c. identify who should collect the tax.
d. determine who should be subject to the tax.

_____19. These are part and parcel of the power of taxation and originate from the very nature of
taxation.
a. Inherent limitations c. Basic principles of sound tax system
b. Constitutional limitations d. None of the choices.

______20. This is an inherent limitation on the power of taxation that affect the inhabitants of
the State as a community and not merely as individuals.
a. Public purpose c. Territorial jurisdiction
b. International comity d. Double taxation

______21. One of the following is not a public purpose.

a. National defense c. Building churches common to all religions
b. Improving sugar industry d. Retirement benefits of public officials

______22. A tax does not meet the public purpose limitation if it:
a. is for the welfare of the nation or greater portion of the population.
b. affects the areas as a community rather than as a individuals.
c. is for the benefit principally of limited subjects or objects.
d. is designed to support the services of government for some of its recognized objects.

______23. It means courteous and friendly agreement and interaction between nations, hence,
the property of a foreign state or government may not be taxed by another.
a. Public purpose c. Territorial jurisdiction
b International comity d. Double taxation
______24. The place or authority that has the right to impose and collect taxes.
a. Situs of taxation c. Scope of taxation
b. Sources of taxable income d. None of the choices

______25. Which of the following is NOT a remedy against multiplicity of situs?

a. Provision of exemptions
b. Allowances of deduction or tax credit for foreign taxes
c. Treaties with other states.
d. None of the choices.

______26. A system of taxation that places emphasis on direct rather than indirect taxation, with
ability to pay as the principal criterion.
a. Regressive tax system c. Global tax system
b. Progressive tax system d. Schedular tax system

______27. That there should be no improper delegation of the legislative authority to tax is:
a. a principle of a sound tax system.
b. a constitutional limitation on the power of taxation.
c. an inherent limitation on the power of taxation.
d. both a constitutional and inherent limitation on the power of taxation.

______28. Government agencies performing governmental functions are exempt from tax unless
expressly taxed while those performing proprietary functions are subject to tax unless
expressly exempted.
a. Territorial jurisdiction c. Non-delegation of the power to tax
b. Double taxation d. Exemption from taxation of government entities

______29. Which of the following is not an element of double taxation?

a. Two taxes c. Same year
b. Same subject matter d. Same amount

______30. This concept requires that apportionment of the tax burden be more or less just in the
light of the taxpayer’s ability to shoulder the tax burden and , if warranted, on the basis of
the benefits he receives from the government.
a. substantive due process c. rule of equity in taxation
b. right to equal protection d. progressive system

END