Professional Documents
Culture Documents
Income Taxation
(2009 Edition)
Chapter 1
1. True
2. False. Taxation covers person, properties, rights and
transactions.
3. False. Person in taxation includes the concept of
partnership, corporation, estate and trust.
4. True
5. False. Taxation as a legislative process is under the
power of the legislative body, the Congress.
6. False. Taxation is the primary source of government
revenue. Usually, the government resorts to borrowing
if taxes collected are not sufficient to defray its
budgetary requirements.
7. True
8. True
9. False. Basically, taxes imposed are based on the ability
of the taxpayer to pay.
10. False. It is the primary obligation of the state to
protect all the constituents regardless of whether they
pay or not their tax liabilities.
1. True
2. True
3. True
4. True
5. True
6. False. The President cannot delegate the power of
taxation, since taxation is not vested in the President.
Taxation is vested in the legislative body.
7. False. Taxation cannot be separated from the state.
The moment a state exists, taxation also exists.
8. False. The making of tax law is undertaken ahead of the
collection of taxes.
9. False. Levying refers to the making of tax laws.
10. False. Only the legislative body, the Congress, can
grant tax exemptions.
1. True
2. False. Tax cases involving more than P1,000,000 is
handled by the Court of Tax Appeals.
3. True
4. False. When the President vetoes certain items in the
bill passed by the Congress, the veto exercise is called
item veto. When the President objects to the whole bill,
it is called pocket veto.
5. False. Tax exemption is non-transferable.
6. False. What is exempted by the Constitution is the
property tax on religious or educational institutions.
Their property, however, is subject to other types of tax.
7. False. The concept of tax exemption is privilege given
to certain types of taxpayer but not to reduce the tax
liability.
8. True
9. False. Late payment of the poll tax is subject to
surcharge or interest.
10. False. The Philippine Constitution does not expressly
prohibit double taxation. However, tax laws that are not
uniform and equitable are unconstitutional.
1. True
2. True
3. False. The principle of fiscal adequacy presupposes that
taxes collected are sufficient to meet the fiscal
requirements of the government.
4. False. Taxation is the lifeblood of the government, but
only the legislative body can exercise taxation. Not all
government units can exercise the power of taxation.
The administrative aspect of taxation has been
delegated by the Legislative to the Executive Branch.
5. False. Collection of taxes through withholding taxes is
a concrete example of the principle of administrative
feasibility.
6. False. The doctrine of escape from taxation is intended
to reduce the amount of tax liability
7. False. Tax on fermented liquor is classified as specific
tax, since it is based on weight (volume) of the product.
8. False. Tax evasion is an unlawful mode of reducing tax
liability. The process of transferring the tax burden from
one taxpayer to another is called tax shifting.
9. True
10. True
1. True
2. True
3. False. Toll is imposed by private entities, either
individual or corporate, to cover maintenance and
operating expenditures.
4. True
5. False. Proportional tax classification is based on a fixed
percentage or rate where the subject of taxation
belongs. Estate tax falls under the graduated
classification.
6. False. Collection is a stage where government agencies
are tasked to demand the tax liabilities. Taxpayers’ act
of meeting their tax liabilities is called payment stage.
7. True
8. False. The concept of equity in taxation is based on the
premise that taxes collected are dependent upon the
ability of the taxpayer to pay.
9. False. The basic premise of international comity is that
all states are treated alike. It is the principle of privity
of relationship that the state continues to impose
taxation on its subjects even outside its territorial
jurisdiction.
10. False. Prospective application means that tax laws are
operative after the approval of the President of the tax
bill.
11. True
12. True
13. True
14. True
15. False. Tax laws can be retroactive if it is the intention
of the Legislative Branch that it will be effective
retroactively. Otherwise, the effect shall be prospective.
Multiple Choice 1-1 Multiple Choice 1-2
Multiple Choice 1-3
1. D 6. B 1. C 6. B 1. A 6. B
2. B 7. C 2. D 7. A 2. C 7. A
3. C 8. A 3. C 8. C 3. B 8. C
4. A 9. B 4. C 9. D 4. B 9. A
5. A 10.C 5. C 10. D 5. C 10. B
1. D 6. C 1. C 6. C 1. D 6. C
2. A 7. A 2. D 7. C 2. A 7. B
3. B 8. B 3. B 8. B 3. A 8. A
4. D 9. A 4. A 9. C 4. B 9. A
5. C 10.C 5. B 10.C 5. B 10. D
1. D 6. B 1. B 6. B
2. A 7. A 2. D 7. C
3. C 8. B 3. A 8. A
4. A 9. C 4. C 9. D
5. D 10.C 5. C 10. B