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    Chapter 1 - Taxation Banggawan

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    Chapter 1 - Taxation Banggawan

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    Income Taxation

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    19K views18 pages

    Chapter 1 - Taxation Banggawan

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    Elise
    Income Taxation

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    Chapter 1 — Introduction to Taxation CHAPTER 1 INTRODUCTION TO TAXATI Chapter Overview and Objectives This chapter discusses the fundamental principles of taxation. After this chapter, readers must be able to comprehend and demonstrate mastery of the following: 1. Concept of taxation and its necessity for every government Lifeblood doctrine and its implication to taxation Theories of government cost allocation Inherent power of the State Scope of the taxation power Limitations of the taxation power Stages of taxation Concept of situs in taxation . Fundamental principles surrounding taxation 10. Various escapes from taxation 11. Concept of tax amnesty and condon; PEN AARWN WHAT IS TAXATION? Taxation may be defined as a State power, a legislative process, and a mode of government cost distribution. 1. Asastate power ; Taxation is an inherent power of the State to enforce a proportional contribution from its subjects for public purpose. 2 a process : elite is a process of levying taxes by the legislature of the State to enforce proportional contributions from its subjects for public purpose. de of cost distribution : nsation fae ‘mode by which the State allocates its costs or burden to its subjects who are benefited by its spending. ory of Taxation . lh : Mee ey eamaeal provides a vast array of public services including defense, public order and safety, health, education, and social protection among others. 0 Taxation Chapter 1 Introduction to Taxation ry society. Without it, t is ndispensae ed orderly society. How benefits of # cuter unding. The Rovernments ng Benefit received theory / x ci procs! the or system ‘The benefit received theory presupposes that the more beriefit one receives from the government, the more taxes he should pay. Ability to pay theory le in the form of public sery ‘The ability to pay theory presupposes that taxation should also consider the nance the government. This mut taxpayer's ability to pay. Taxpayers should be required to contribute based on id the government is referred to as the their relative capacity to sacrifice for the support of the government. benefits to the peop! provide the funds that ‘between the people ané In short, those who have more should be taxed more even if they benefit less from the government. Those who have less shall contribute less even if they receive ‘more of the benefits from the government. ic services ee eal, 4 ‘Aspects of the Ability to Pay Theory [ People ; 1. Vertical equity Vertical equity proposes that the extent of one's ability to pay is directly proportional tothe level ofhis tax base. For example, A has P200,000 income while B has P400,000. In taxing income, the | ae government should tax B more than A because B has greater income; hence, a greater | Bvery citizen and resident of the State directly or indirectly benefit Sap th ob ure Chapter 1 - Introduction to Taxation Determining the purpose for the levy which must be public use Kind of tax to be imposed ‘Apportionment of the tax between the national and local government Method of ‘Assessment and Ives assessment ion. This stage is referred to as incidence of taxation or the ‘administrative act of taxation. ‘SITUS OF TAXATION ‘Situs is the place of taxation. It is the tax jurisdiction th taxes upon the Tax object. Situs rules serve as frames whether the tax object is within or outside the tax jur authority. thas the power to levy ference im gauging ction of the taxing sources ofrevenue and t share in the national This isa constitional reco local autonomy of local ie agiecalameaatial 4. Business tax situs: Businesses are subject to tax in the place where the business is conducted. — Mlustration cpayer is involved in car dealership abroad and restaurant operation in the Examples of Situs Rules: [STAGES OF THE EXERCISE OF TAXATION POWER 1, Levy or imposition 2, Assessment and collection \ Levy or imposition 4 ject sagan pines ee cen car dealig business exempt because the ire ‘involves the enactment ofa tax law by Congress and i s also referred toas the legislative act in taxation. ngress is composed of two bodies: 1. The Ho 2 Pillows ofReresenaives, and Income tax situs on gervices: Service fees are subject to tax where they are rendered. Mlustration {A foreign corporation leases a residential space to a non-resident Filipino citizen abroad. ‘The rent income will be exempt from Philippine taxation as the leasing service is rendered abroad. Representatives. Each whichis approved by bth the Senate, lowever, have both bots, but tax cannot originate 13 raxation ction © goods: The gor 0” Soles Subege reed with a Chine een se ulated that the s venus prfected by the meeting of yi tain a te contract of sale isin Chi ety taxsits Properties arecaxable In their location. 4, Proper Stratlon ‘Anoverseas pio worker has a reside his absence in the Philip 5: Persons ore taxable in their place of residence, ‘ Imustration ‘Ahmed Lot isa Sudanese “Ahmed will pay personal tax in te Philippines even if he is an alien b residing in the Philippines. jying medicine in the Philippines. (OTHER FUNDAMENTAL DOCTRINES IN TAXATION 1. Marshall Doctrine - “The power to tax involves the powe Power can be used oo frag or powers ndesirable activities or occupation. As st the power to destroy. However, the taxation sed solely for the purp Power does not include the power to ose of raising revenue. (Roxas vs. CTA) 2 Hol Ime's Doctrine - “Taxation power is ‘not the power to de * Taxation power r may be use, i or industries used to buil industries by the grant of axincentives a While the Marshall Doctrine and th tha ie Holme’s Do. Te actualy employed in practice rie ae Chapter 1 - Introduction to Taxation applications of the Holme’s Doctrine include the creation of Ecozones with tax holidays and provision of incentives, such as the Ominibus Investment Codee (€.0. 226) and the Barangay Micro-Business Enterprise (BMBE) Law. 3. Prospectivity of tax laws ‘Tax laws are generally prospective in operation. An ex post facto law or a law that retroacts is pro Exceptionally, income tax laws may operate retrospectively if so intended by Congress under certain justifiable conditions. For example, Congress can levy taxon income earned during periods of foreign occupation even after the war. 4. Non-compensation or set-off ‘Taxes are not subject to automatic set-off or compensation. The taxpayer cannot delay payment of tax to wait for the resolution of a lawsuit involving his pending claim against the government. Tax is not a debt; hence, it is not subject to set-off. This rule is important to allow the government sufficient period to evaluate the validity of the caim. (See Philex Mining Corporation vs CIR, GR. 125704) Exceptions: ‘a. Where the taxpayer's claim has already become due and demandable such as when the government already recognized the same and an appropriation for refund was made 'b. Cases of obvious overpayment of taxes Local taxes 5. Non-assignment of taxes ‘Tax obligations cannot be assigned or transferred to another entity by contract. Contracts executed by the taxpayer to such effect shall not prejudice the right of the government to collect. 6. Imprescriptibility in taxation Prescription is the lapsing of a right due to the passage of time. When one sleep on his right over an unreasonable period of time, he is presumed to be ‘waiving his right. The government's right to collect taxes does not prescribe unless the law itself provides for such prescription. Under the NIRC, tax prescribes if not collected within S years from the date its assessment. In the absence of an assessment, tax prescribes if not collected by judicial action within 3 years from the date the return is required to be filed. However, taxes due from taxpayers who did not file a return or those who filed fraudulent returns do not prescribe 15 Chapter 1 - Introduction to Taxation presentation made be held tru When exemption is claimed, it must be shown indubitably to exist, AF We s against It. A well-founded doubt is fatal to sete only when the terms of the concession are too explicit to a any other construction thatthe proposition can be supported. ( vel, The etror of any g is held that the neglect. ‘Tax exemption cannot arise from vague Inference. Tax exemption must Be taxpayer claiming a tax exemption must point to 2 Specific provision of law conferring on the taxpayer in clay and plain terms, sPemption from a common burden. Any doubt whether atax excrahion exists cxemPived against the taxpayer. (see Digital Telecommunications, In. vs city Government of Batangas, et al) 0 the by public officers do junction agsinst oun TAXATION necessarily defer tax cole Double taxation occurs when the same taxpayer 1S taxed twice by the same tax jurisdiction for the same thing. _Alements of double taxation Hiements of double Srmeciect ae 20049 parsutt collect 35 i ipchored onthe Libload Doc" ’ construction of Tax Laws : * rc pi anon 4 Cn lone theres cearempion-Hence the maxim raxation is the rule ¢ eee on " ee 'b. Same purpose of tax ig when the language of the law is clear and categorical, there Is Same taxing jurisdiction Inne, Thre i only room for application. However, whi 4. Same tax period lawsare vague, the dctrine of strict legal construction is observes ‘Types of Double Taxation Vague tax laws age tat laws are construed against the government and 2, Direct dewlie Someeee taxpayers A vague tax law means no tax law. Obligation ais na This occurs when ll_the element of double taxation exists for both ‘not presumed, The Constitutional requirement of due process req} apes be suffic intl clear and express 4 ‘ Bemus Vague exemption laws Exar come tax of 10% on monthly sales and a 2% income tax on the ann sales (total of monthly sales) b. A 50b tax on bank reserve deficlency and another 19% penalty per day 25 2 ‘consequence of such reserve deficiency 2. Indirect double taxation ‘This occurs when a least one. the secondary elements of double taxation is not common for both impositions. Examples: errr ational government levies business tax on the sales or gross recelPls of rea rvilsthe local government levies business tax upon the same sales or receipts. 16 wv nos Chapter 4 - Introduction to Taxation 51 torma of tax exemptions can be revoked by Congress except hase aed by the constiution and those granted under contrac tener 1p. Those that donot result to loss of government revenue = seeing This is the process of transfering tt taxpayers Tenn t sae weer Forms of shifting * 7 . Fororward shifting -This is the shifting of tax which {low of distribution (Le. from manufacturer to wholesal ow otdist forward shifting is common with essen and services such as food and fuel. burden to other the normal retailers to mmodities How can double on canbe minimized BY any OnE OF a he impact of double (22 the following Backward shying - This the reverse of forward siting, Backwars Baciware vomman with non-Zssential commodities where DaYeTS stax exempt have considérable market power and commodities ‘with mumerous b ogre er eit deduction fr taxes paid abroad) substitute products. Mow pa tax treme ewe (he home count «onward shifeing ~ Ths refers to any tax. shifting in the distribution omy ore that exhibits forward shifing or backward shifting, 4. Entering into treaties oF bilateral agreements Shifting is common with business taxes where taxes imposed on busit c FROM TAXATION Fevenue can be shifted or passed-on to customers. capes from toxatio are the means avallable to the taxpayer to ‘avoid the impact oftaxation, od the impact of taxation. n Capitalization - This pertains to the adjustment ofthe value of an asset caused by changes in taxrates. “For instance, the value of a mining property will correspondingly decrease Categories of Escapes from Taxation i when mining output is subjected to higher taxes. ‘This is a form of A gee oe sree eect backward shifting of tax. ‘evasion, also known as tax dodging, refers to = 3 A Transformation This pertains to the elimination of wastes ‘or losses by aE In the taxpayer to form savings to compel i yy undue understateme = = overstatement of expenses or non-declaration of income. mene a 2 Tax avoidance als. weenele also known a 3 Tax Amnesty that rie or tly caps imization, refers to TKamesty is @ general pardon granted by the goxernment fos suring taxpayersto This may be done by selecting tx opolen legall give them a chance. fo reform and enable them to have a fresh start to be part of a minimizes tax| iB tax Of society with a clean slate. It is an ‘absoluteforgiveness_or_waiver by the government on its right to collect and is retrospective in application. Tax Condonation Tax condonation is forgiveness of certain justifiable grounds. This is alsos referred to as tax remission. 19 exemption, chapter 1 - Introduction to Taxation CHAPTER 1: SELF-TEST EXERCISES piscussion Questions 7 Define taxation, Distinguish the theory and the basis of taxa What are the theories of government costa Differentiate vertical and horizontal equity. -s, but condonation, Apoesty cj iabaies of ty forgiving. past violations, | ; vance ofthe tax; hence, the on? Explain each, nue inthe inherent powers of the State regan taxpayer paring he OVEN Distinguish the tre power the Sate and emmerate the ares amnesty 0c iil Describe the scope of the power of taxation. ne pera cannon OMS 2 ¥ PeSinguish substantive due process from procedural due proces. ine ae concept of equality from the concept of uniformity in taxation Distingwsyerccepayment of debt versus non-payment of tax in terms of teonsequences. - What institutions Which of the cons xcept from real property tax in the Constitution? ronal imitations are also classified as inherent limitations? "e exercise of taxation power. Explain the concept of situs. Distinguish the Marshall Doctrine from the Holme's Doctrine. doctrine of strict construction of tax laws. Explain double taxation, its elements, and its types. Freraice the categories of escapes from taxation? Enumerate and explain each ‘means of escape under each category. 20, Distinguish tax amnesty from tax condonation. Exercise Drills In the space provided for, limitation (C) or inherent indicate (N). Non-assignment of taxes ‘Territoriality of taxation | "Taxes must be for public use Exemption of the property of religious institutions from income tax, indicate whether the statement relates to a Constitutional imitation (I). If it is not a limitation to the taxing power, S| Exemption of the revenues and assets of non-profit, non- stock educational institutions &.__| Non-delegation of the taxing power: dk 7._| Non-appropriation for religious purpose 8. | The requirement of absolute majority in the passage of @ tax exemption law. 3. [ Non-imprisonment for non-payment of tax or debt a Chapter 1 Introduction to Taxation 4. The Mfeblood doctrine requires the government to override 1s OBIMANonS and contracts when necessary 9, 2/3 fall members of Cong ‘Jo. The government should tax required to passa tax exemption law. Choice - Theory: Part 1 multipe point at which taxis levied is aso called whe Rnpactf taxation —_¢, cidence of taxation 2 4. Assessment b. Situs of taxat taxation? Which ofthe fellowing inappropriately describes the nature of ‘2. Inherent in sovereignty b. Essentially a legislative function 2 Subject to inherent and constitution 4. Generally for public purpose Which is correct? Wn condonation isa general pardon granted by the government: £. The BIR has five deputy commissioners. e fhe government can still collect tax in ‘disregard of a constitutional ocause taxes are the lifeblood of the government. a. prc Prcldent.of the Philippines can change tariff oF Imposts ‘without re sity of ealling Congress to pass a law for that purpose tation Taresare the lifeblood ofthe government. 3 . 3 Tartan amode of apportionment of goverment cOsts 14 the people. a tec receipt of benelt Before one could ee be conn |A-The power to tax includes the power to exempt ase power tolicense includes the power tot 6 The 17. Taxation inere Which is rue? Police pow a. Aonly cAandB te sanctioned bythe Constitution b, Bonly i Neither Anor B 4, Allnherent powers presuppose an equivalent i powers presuppose an equivalent form of compensation. 5 rnterational double taxation can be mitigated by any of he folowing exeePE 10 The repeal dy of support between the government and the 2... Providing allowance for tax credit EL Provision of reciprocity provisions in tax laws ¢. Provision of tax exemptions 1 trade blockage against the rest of the Trucor False 1. The Constitutional exem S_Bntering into treaties to form regio 7h Coon ean frags harale,and non-profit cm cee ai 2, hits mses reste a and el property ak ‘ 3. Taution inert sn crane sold be sed erent 6. Which is notan objet of trator? 3 asin suet inerent and Constutonal i a. Persons Transactions key tations. Business 44 Public properties ity connotes 5. Colecton of tars in thence between nations. quirement for due proc nce of a law is violative of the Const 7. That courts cannot issue injunction against i si of ations regarded is justified by a as comprehensive, plenary, unlimited, . the lifeblood doctrine, 2 thea byt ay ey - impreseriptiblity of taxes. d the doctrine of estoPPel ‘Noone shal ‘be imprisoned for non-payment of tax 2 the government's effort to collect taxes 2B acorn ” sribution from the people fo, conte a om cntce roo chapter = Inroduction to Taxation a Te pet mets oxthearer Whe true? = Tenet a only eAande Pole Po b. Bonly Neither Anor B 17. Which provision of the Constitution is double taxation believed to violate? fea Doctrine Eevee’ Tye benefice the Holmes Doct 0, Taxation the 48, Which limitation of taxation is the concept vague tation a, Territoriality Public purpose a Both Aand B G.Neither A nor B 119. Which tax exemption is irrevocable? ‘a. Tax exemption based on contract b. Taxexemption based on the Constitution ¢ Tax exemption based on law 4, Both Aand B a. The power! wr and in favor of perdi 0 gy d. Taxes should be lected only for public improve ‘a. Every person must contribute his share in government costs. 2 min grin ee cen ander ents whe he Pee b. National defense d.None of these provide support. 13. Which doesnot properly describe t a Comprehensive «.Discr Supreme 4. Uni 21, Which is the most incorrect statement regarding taxes? ‘a. Taxes are necessary for the continued existence of the government. bb. The obligation to pay tax does not rest upon the privilege enjoyed by or the protection afforded to the citizen of the government but upon the necessity of ‘money for the support of the State. There should be personal benefit enj required to pay tax. a. Taxes should be collected without unnecessary delay but its collection should not be tainted with arbitrariness. 22. Statement 1: In the selection of the objects of taxation, the courts have no inquire into the wisdom, objectivity, motive, expediency, or necessity of 14, Allofthese are secondary purposes of taxation except a Toreduce social inequality 1 Toprotectoal industries © Toraise revenue forthe support ofthe government 4. To encourage growth oflocal industries joyed from the government before one is. 15, Whats the theory of taxation? Reciprocal duties of support and protection — tax law, b Necessity © Consttutionality 4 Public purpose ‘Statement 2: An imposition can be both a tax and a regulation. Taxes may be levied tion and stabilization of threatened industry. to provide means for rehat Which is correct? a, Statement 1 only b. Statement 2 only 16. A. Taxes should n¢ ot operate retros Taxis generally for public purpene -Both statements d. Neither statement 4 25 ce Taxholday Reciprocity ry presupposes that some seme reaps beamed seer es a te ENE = y theory suggests 2, The ability 1 P Statement they do not have the to pay the: ame rota proweed «Both statements 1 and 2 ment 1 nor 2 27, Statement 1: Taxation isthe rule; exemption is the exception. ‘Statement 2 Taxation may be used to implement the p a liste and I are true b Mlistrue land are not true 28. Which of th eae following powers ofthe Commissioner of Internal Re a The ion ° 4 Theexaminaton ft return andthe determination of tax du Torun or etait in certain cases ‘The power to compromise o abate any taxi ‘i 0750000 an minor criminal voltions verse aru tae ing ofthe Bureau of Internal Revenue When exemption fom a tax imp t = is silent or not clearly si olving Chapter 1 - Introduction to Taxation 30, What is the bs 41, When the provisions of tax laws are sent as tothe taxablity ofan em, which is 432. Which ofthe following statements does not support the principle that tax is not 133. Which is not legally tenable in refusing to pay tax? 34, What is the primary purpose of taxation? rising from law cannot be presumed and snment. 4 ion? wes peciprocal duties of support and protection b a. Necessity true? truet axation applies since taxation i the rule, exemption isthe exceDtion: % Faomption applies since vague tax laws are construed against the government. c. Taxation applies due to the 1d doctrine. & Fesption applies since obligation arising from law is presumed: \gnorance of the law is not an excuse. subject to compensation or set-off? su overnment and the taxpayer are not creditors and debtors of each other. a The Re not in the nature of contract but it grows out of a dUVy wherein Taxpayers are bound to obey even without the personal consent ‘of the taxpayer. Taxes arise from law, not from contracts. {Both tax and debt partake the nature of an obligation. a. Absence of benefit from the government 1. Lack of jurisdiction of the taxing authority ¢._ Prescription of the tax authority's right to collect d. Allofthese a To enforce contribution from its subjects for public purpose b. Toraise revenue ¢. Toachieve economic and social stability 4. To regulate the conduct of business or profession Multiple Choice - Theory: Part2 senrhe Constitutional exemption of religious or charitable institutions refers only to a Real property tak. Property tax and income tax Income tax 4. Business tax 2 by religious Organization pete erpropery tI the assess oy edb such educational insti sally devoted to edcationg| no id by such educational inst actually devoted to educational = i tion? vout the concurrence of a ‘without the ¢ OF & maori ss. fr religious PUrPOSE frre obligations on contracts Shall be passe ious freedom . tation of the power to tax? 5. Which ofthe folowing fst 3 eax should be levied for pul pe jurisdiction. » ited tits ter 2 Tact shal beunform and equitable a | extn of goverment agencies and instrumentals. ein ae inherent imitations to the power of taxation except one, <4. Non-appropriation 7. That al taxable articles or poy Racal bearer perties of the same class shall be taxed at the Uniformity in taxation. 4. None of these imitations of taxation 4 oftaration 3 Exemption of the government s fein {s for public purpose, lon-impairment of contracts E Non-delegation ofthe powerto tax 2B Chapter 1 - Introduction to Taxation Which ofthese are classified as both constitutional and inherent limitations? a. AandB Cand E b. BandC d.DandE +9, The provisions in the Constitution regarding taxation are 2. Grants of the power to tax Limitations to the power to tax 2. Grants and limitations to the power to tax § Limitations against double taxation 10, The Constitutional exemption of non-stock, non-profit educational institutions refers to 1a Real property tax Income tax «Property tax and income tax 4. Business tax 11, Which ofthe following is violative ofthe principle of non delegation? Whig quiring that legislative enactment must exclusively pertain 0 Congress & Rathorizing the President to fix the amount of impost on imported and exported commodities «Authorizing certain private corporation to collect taxes & Atowing the Secretary of Finance and the BIR to issue regulation oF rulings ‘which go beyond the scope of a tax law 12, Which of the fol 2. Payment of salaries to priests or religious mt Forces of the Philippines tb Imposing tax on properties of religious institutions which are not directly and exclusively used for religious purposes Imposition of license for the sale of religious literature & npostizing the President of the Philippines to fx the rates of tariffs oF imposts ng violates Constitutional provisions? ters employed by the Armed 13, tn order to phase-out a huge deficit, the President ofthe Philippine passed a law Offering all taxpayers with previous tax delinquency to Day ‘minimum tax in xchange for relief from tax assessment in the period of delinquency Is this a valid. exercise of taxation power? see ves, because the measure adopted is grounded upon necss. t Yee because the Presidents merely exercising his presidental discreuon- O Nor because the power of taxation is non-delegated. S.No because only the Department of Finance can issue such FIN 1A. Concerned with increasing unemployment rates in the county, the President of the Philippines encouraged the Philippine Senate "o PAS © law granting special tax privileges to foreign investors who will estabis ‘businesses in the country TrolGenate accordingly drafted the bill and passed to Congress for approval. 29 pave tobe filly approveg aon of taxation would leetuse of Representatives 4 a should be uniform and equitaby et other practitioners wh e ordinance. ” eed cover all transplant specialist ace ormity rule would Not be Violate, _ Tey ndustry to taxation WOuld hamper growth 16, withthe country under incessant Shor of sugar, the PI he riding enempions and Ineo to cane cnc time ganing tax exrmpuons to rice Farmers ‘who produce ines. Is the new law valid? fond ofce tere isa valid cassifcation of the taxpayers who i exempted from tax ore important than rice. CNovsince the grant of exemption is construed in favor of taxpayers. ._ No, because theres no uniformity in the grant of tax exemption. 17, Congress passed a law subjecting government-owned and (Gs one te ew val? ce Sn jes, because all government agencies and instrumentalities are subjedt b, Yes, because GOCCS Yes becuse GOGES are not goverment agencies and are as No, because government, treegange doerment genes are exempt. This would pose 2 viol 18, Whit ch of the following is not a constitutional , 2. Now-impairment of obligation or contracts ate tation of the power to tax! ue process and equal protection of the ielaw 30 21, Tax exemption 22. The Japanese government Ni, because G }0CCS are constitutionally exempted from paying taxes. | Chapter 4 - Introduction to Taxation sppropriation for religious purposes legation of police power gress enacted a law requiring foreign banks to withheld Tce ors orci their country. and to remit the same to the exercise of taxation power? the territorial jurisdiction spine government. ‘because foreign banks are within f the pines can enforce tax requirements to subjects of foreign sovereignty even if they are outside the country: Moaas this leads to encroachment of foreign sovereignty: S.No. this is prohibited by the Constitution. 20. Which ofthe following normally pays real OPER vax? Wi tay Bata, a non-profit charitable institution a fatis Crusade movement, a religious institution Jans aly of Pangasinan, a private proprietary education) e209 «Ua property Holdings, a registered property development company are approved by 7 Majority of all members of Congress. EL Solely by the President of the Republic ¢. 2/3ofall members of Congress §. Majority of the representatives constituting a quorum invested P100,000,000 in a Philippine local bankc and ‘tamed P10,000,000 interest, Which is correct? sr he income is exempt on grounds of territoriality. b._ The income is exempt due to international comity. 2 The income is subject to tax on the basis of sovereignty S.-The income fs subject to tax because the income 1S earned within thy Multiple Choice - Theory: Part 3 slative body taxes persons and property, rights and prviIGges. 1X ayy atthe same rate, ths is referred to as compliance c. Due process 4 Equal protection clause a. Equity b. Uniformity 2, Which is not a legislative act? a, Assessment of the tax 'b. Setting the amount of the tax ¢. Determination of the subject of the t id, Determining the purpose of the tax 31 ‘an express Constituti af the following enites wil least likely exercise the px domain? a Electric cooperatves 1h Water cooperatives Telecommunication business {Transportation operators government ned not consider ‘Due process of law 4 Constitutional limitations bs. Justcompensation 4, Licensing of business or profession isan exercise of Eminent domain b Taxation d.allof these 10. elect th coc sateen refers to the power to take public rompensation. a= ted by the requir eaurement of due process? 4.Allof these a 322 ‘chapter 4 - Introduction to Taxation 12, Statement 1: Congress can exercise the power of (xaton even Cons Statement 2: Only the te ‘domain, and ‘Which statement is correct? b, 4, Which power of the Stat affects the least numberof people? b 414, Select the correct statement. a 15, Which of the following is not exercised by the government? . Police power 16, Select the incorrect statement. seisSiace there is compensation, eminent domain raises mon®y for the tb, nee a government is established, taxation is exercisable ‘ §. Police power is more superior than the non-impairment clause of the without snal delegation of the power to tax. lature can exercise the power of taxation, eminent power. ¢. Statements 1 and 2 Statement 1 1d. Neither statement 1 nor 2 Statement 2 Taxation Police power 4. Taxation and police power Eminent domain

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