1

CPA Review School of the Philippines

Manila

GENERAL PRINCIPLES OF TAXATION Dela Cruz/De Vera/Lopez/Llamado

1. The principal purpose of taxation is

a. To encourage the growth of home industries through the proper use of tax exemptions and tax
incentives
b. To implement the police power of the state
c. The reduce excessive inequalities of wealth
d. To raise revenues for governmental needs

2. The aspects of taxation are

a. Legislative in character
b. Executive in character
c. Shared by the legislative and executive departments
d. Judicial in character

3. Taxation as distinguished from police power and power of eminent domain

a. Property is taken to promote the general welfare
b. Maybe exercised only by the government
c. Operates upon the whole citizenry
d. There is generally no limit as to the amount that may be imposed

4. Which of the inherent powers maybe exercised even by public service corporations and public entities
a. Power of taxation
b. Police power
c. Power of eminent domain
d. A and C

5. Which of the following statements is correct?

a. The president is authorized to increase national internal revenue tax rates
b. One of the natures of taxation is the reciprocal duties of protection and support between the state
and subjects thereof
c. Every sovereign government has the inherent power to tax
d. Income tax is an indirect tax

6. This is an inherent limitation on the power of taxation

a. Rule on uniformity and equity in taxation
b. Due process of law and equal protection of the laws
c. Non-impairment of the jurisdiction of the Supreme Court in tax cases
d. Tax must be for public purpose

7. This is a constitutional limitation on the power of taxation

a. Tax laws must be applied within the territorial jurisdiction of the state
b. Exemption of government agencies and instrumentalities from taxation
c. No appropriation of public money for religious purposes
d. Power to tax cannot be delegated to private persons or entities

8. They exist independent of the constitution being fundamental powers of the state, except
a. Power of taxation
b. Police power
c. Power of eminent domain
d. People power

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9. The power to acquire private property upon payment of just compensation for pu lic purpose
a. Power of taxation
b. Police power
c. Power of eminent domain
d. Power of recall

10. The power to regulate liberty and property to promote the general welfare
a. Police power
b. Power of taxation
c. Power of eminent domain
d. Super power

from persons and property to defray the

11. The power to demand proportionate
contributions expenses of the government
a. Power of
taxation b.-
Police power
c. Power of eminent domain
d. National power

12. Basic Principles of a sound tax system, except

a. Fiscal adequacy
b. Equality or theoretical justice
c. Administrative feasibility
d. Intellectual sensitivity

13. The tax imposed should be proportionate to the taxpayer's ability to pay
a. Fiscal adequacy
b. Equality or theoretical justice
c. Administrative feasibility
d. Economic consistency

14. The sources of revenue as a whole, should be sufficient to meet the demands of public expenditures
a. Fiscal adequacy
b. Equality or theoretical justice
c. Administrative feasibility
d. Revenue generation

15. The tax laws must be capable of convenient, just and effective administration
a. Fiscal adequacy
b. Equality or theoretical justice
c. Administrative feasibility
d. Internal acceptability

16. Our National Internal Revenue Laws are

a. Political in nature
b. Penal in nature
c. Criminal in nature
d. Civil in nature

of taxation is regarded as supreme,

17. Subject to inherent and constitutional limitations, the power ​
plenary, unlimited and comprehensive
a. Basis of taxation
b. Situs of taxation
c. Scope taxation
d. Theory of taxation

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18. ​Statement 1 — The point on which a tax is originally imposed is impact of taxation
Statement 2 — Police power is superior to the non-impairment clause of the constitution Statement
3 — As a rule, taxes are subject to set-off or compensation Statement 4 — As a rule, provisions on
the validity of tax exemptions are resolved liberally
in favor of the taxpayer
Statement 1​ ​ Statement 2​ ​ Statement 3​ ​ Statement 4
a. True False False False
b. True True False True
c. True True False False
d. False True False False

19. The levying or imposition of tax, and the collection of the tax are processes which constitute the
taxation system
a. Basis of taxation
b. Aspects of taxation
c. Nature of taxation
d. Theory of taxation

20. The process or means by which the sovereign, through its law-making body raises income to defray the
expenses of the government
a. Toll
b. License fee
c. Taxation
d. Assessment

21 Enforced proportional contributions from persons and property levied by the state by virtue of its
sovereignty for the support of the government and for all public needs
a. Toll
b. License fee
c. Taxes
d. Assessment

22. Persons or things belonging to the same class shall be taxed at the same rate
a. Simplicity in taxation
b. Reciprocity in taxation
c. Equality in taxation
d. Uniformity in taxation

23. The tax should be proportional to the relative value of the property to be taxed
a. Simplicity in taxation
b. Reciprocity in taxation
c. Equality in taxation
d. Uniformity in taxation

24. The following are the nature of taxation, except

a. Inherent in sovereignty
b. Essentially legislative in character
c. Subject to inherent and constitutional limitations
d. Subject to approval by the people

25. It literally means "place of taxation"; the country that has the power and jurisdiction to levy and
collect the tax
a. Basis of taxation
b. Situs of taxation
c. Scope of taxation
d. Theory of taxation

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26. The existence of the government is a necessity and that the state has the right to compel all
individuals and property within its limits to contribute
a. Basis of taxation
b. Situs of taxation
c. Scope of taxation
d. Theory of taxation

27. The reciprocal duties of support and protection between the people and the government
a. Basis of taxation
b. Situs of taxation
c. Scope of taxation
d. Theory of taxation

28. A tax must be imposed for public purposes. Which of the following is not a public purpose
a. National defense
b. Public education
c. Improvement of the sugar and coconut industries
d. Improvement of a subdivision road

29. Which is not an essential characteristic of a tax?

a. It is unlimited as to amount
b. It is payable in money
c. It is proportionate in character
d. It is an enforced contribution

30. Special assessment is an enforced proportional contribution from owners of land especially benefited
by the public improvement. Which one of the following is not considered as one of its characteristics?
a. It is levied on land
b. It is based on the government's need of money to support its legitimate objectives
c. It is not a personal liability of the persons assessed
d. It is based solely on the benefit derived by the owners of the land

31. It is the privilege of not being imposed a financial obligation to which others are subject
a. Tax incentive
b. Tax exemption
c. Tax amnesty
d. Tax credit

32. As to scope of ​the legislative power ​to tax, which is not correct?
a. Where there are no constitutional restrictions, and provided the subjects are within the territorial
jurisdiction of the state, Congress has unlimited discretion as to the persons, property or occupations to
be taxed.
b. In the absence of any constitutional prohibition, the House of Representatives has the right to levy a
tax of any amount it sees fit.
c. The discretion of Congress in imposing taxes extends to the mode, method or kind of tax, if not
restricted by the constitution.
d. The sole arbiter of the purpose for which taxes shall be levied is CIR, provided the purpose is public
but the courts may review the levy of the tax to determine whether or not the purpose is public.

33. Which of the following is a nature of taxation?

a. The power is ​exercised by legislative ​action
b. It is essentially ​an administrative function
c. It is generally payable in money
d. Without it the state can continue to exist

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34. Which of the following is not a determinant of the place of taxation?

a. Source of the income
b. Citizenship of the taxpayer
c. Residence of the taxpayer
d. Amount of tax to be imposed

35. An escape from taxation where the tax burden is transferred by the one on whom the tax is imposed or
assessed to another
a. Shifting
b. Exemption
c. Transformation
d. Capitalization

36. An escape from taxation where the producer or manufacturer pays the tax and endeavors to recoup such
payment by improving his process of production thereby turning out his units of products at a lower cost
a. Shifting
b. Exemption
c. Transformation
d. Capitalization

37. An escape from taxation where there is a reduction in the price of the taxed object equal to the capitalized
value of future taxes which the taxpayer expects to be called upon to pay
a. Shifting
b. Exemption
c. Transformation
d. Capitalization

38. The use of illegal or fraudulent means to avoid or defeat the payment of tax
a. Shifting
b. Exemption
c. Avoidance
d. Evasion

39. The use of legal or permissible means to minimize or avoid taxes

a. Shifting
b. Exemption
c. Avoidance
d. Evasion

40. Synonymous to tax evasion

a. Tax dodging
b. Tax minimization
c. Tax exemption
d. Tax invasion

41. Synonymous to tax avoidance

a. Tax dodging
b. Tax minimization
c. Tax exemption
d. Tax evasion

42. ​In every case ​of doubt, tax statutes are construed
a. Strictly against the government and the taxpayer
b. Liberally in favor of the government and the taxpayer
er
c. Strictly against the government and liberally in favor of the taxpay​
r
d. Liberally in favor of the government and strictly against the taxpaye​

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43. In every case of doubt, tax exemptions are construed
a. Strictly against the government and the taxpayer
b. Liberally in favor of the government and the taxpayer
c. Strictly against the government and liberally in favor of the taxpayer
d. Liberally in favor of the government and strictly against the taxpayer

44. In case of conflict between the Tax Code and the Philippine Accounting Standar s (PAS)
a. PAS shall prevail over the Tax Code
b. Tax Code shall prevail over PAS
c. PAS and Tax Code shall be both disregarded
d. The taxpayer may choose between the PAS or the Tax Code

45. Tax of a fixed amount imposed upon all persons residing within a specified territory without regard to
their property or occupation they may be engaged in
a. Personal, poll or capitation
b. Property
c. Excise
d. Regressive

its value or on some other reasonable

46. Tax imposed on personal or real property in
proportion to method of apportionment
a. Personal, poll or capitation
b. Property
c. Excise
d. Regressive

47. Tax imposed upon the performance of an act, the enjoyment of privilege or the ngaging in an
occupation.
a. Personal, poll or capitation
b. Property
c. Excise
d. Regressive

it
48. Tax which is demanded from the person whom the law intends or desires to pay ​
a. Direct
b. Indirect
c. Excise
d. Percentage

tion and intention that he shall indemnify

49. Tax which is demanded from one person in the expecta​ himself at
the expense of another
a. Direct
b. Indirect
c. Property
d. Income

ber or by some standard of weight or

50. Tax which imposes a specific sum by the head or num​ measurement and
ent other than a listing or classification of the
which requires no assessm​ objects to be taxed
a. Specific
b. Ad-valorem
c. Excise
d. Income

roperty with respect to which the tax is

51. Tax of a fixed proportion of the amount or value of the p​ assessed
a. Specific c. ​Excise
b. Ad-valorem d. Percentage
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52. Tax based on a fixed percentage of the amount of property, income or other basis to be taxed
a. Proportional c. Regressive
b. Progressive d. Indirect

53. Tax where the rate decreases as the tax base increases
a. Proportional
b. Progressive
c. Regressive
d. Indirect

54. Tax where the rate increases as the tax base increases
a. Proportional
b. Progressive
c. Regressive
d. Indirect

55. Which of the following statements is not correct?

a. Tax burdens shall neither be imposed nor presumed to be imposed beyond what the statute expressly
and clearly states because tax statutes should be construed strictly against the government.
b. Tax exemptions, tax amnesty, tax condonations and their equivalent provisions are not presumed
and, when granted, are strictly construed against the taxpayer because such provisions are highly
disfavored by the government.
c. Exemptions from taxation are highly disfavored in law and he who claims tax exemption must be
able to justify his claim or right.
d. The Bureau of Internal Revenue has the duty and the exclusive power of enacting, implementing and
interpreting tax laws.

56. The strongest of all inherent powers of the state because without it, the government can neither
survive nor dispense any of its other powers and functions effectively.
a. Police Power
b. Power of Eminent Domain
c. Power of Taxation
d. Power of Recall

57. This power is superior to the non-impairment clause and is broader in application because it is a
power to make and implement the laws.
a. Power of Taxation
b.. Power of Recall
c. Power of Eminent Domain
d. Police Power

58. Which of the following statements is not correct?

a. An inherent limitation of taxation may be disregarded by the application of a constitutional limitation.
b. Income tax liabilities shall be paid by the inhabitants even if foreign invaders occupy our country
, these taxes
c. Taxes may be imposed retroactively by law, but unless so expressed by such law​ must only
be imposed prospectively.
d. Tax laws are either political or penal in nature.

of Taxation?
59. Which of the following is not a constitutional limitation on the Power ​
ue process of law.
a. No person shall be deprived of life, liberty or property without d​
b. No person shall be denied the equal protection of the law.
c. No person shall be imprisoned for debt or non-payment of tax.
oncurrence of a majority of all
d. No law granting any tax exemption shall be passed without the c​ the
members of Congress.

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60. The distinction of a tax from permit or license fee is that a tax is:
a. Imposed for regulation.
b. One which involves an exercise of police power.
c. One in which there is generally no limit on the amount that may be imposed.
d. Limited to the cost of regulation.

61. Police power as distinguished from the power of eminent domain:

a. Just compensation is received by the owner of the property.
b. May be exercised by private individuals.
c. May regulate both liberty and property
d. Property is taken by the government for public purpose.

62. A tax wherein both the incidence of or the liability for the payment of the tax as well as the burden of
the tax falls on the same person.
a. Direct tax
b. Value added tax
c. Indirect tax
d. Percentage tax

63. Which one of the following is not a characteristic or element of a tax?

a. It is an enforced contribution.
b. It is legislative in character.
c. It is based on the ability to pay.
d. It is payable in money or in kind.

64. Tax as distinguished from license fees:

a. Limited to cover cost of regulation.
b. A regulatory measure.
c. Non-payment does not necessarily render the business illegal
d. Imposed in the exercise of police power

65. The power to impose taxes is exercised by

a. The President
b. The Supreme Court
c. Bureau of Internal Revenue
d. Congress

66. One of the characteristics of internal revenue laws is that they are:
a. Criminal in nature;
b. Penal in nature;
c. Political in nature;
d. Generally prospective in application.

67. Which of the following is not an example of excise tax:

a. Transfer tax;
b. Sales tax;
c. Real property tax;
d. Income tax.

68. The following are similarities of the inherent power of taxation, eminent domain, and police
power, except one:
a. Are necessary attributes of sovereignty;
b. Superior to the non-impairment clause of the constitution
c. Compensation/benefit is received;
d. Are legislative in character.

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69. Which of the following is not a scheme of shifting the incidence of taxation?
a. The manufacturer transfers the tax to the consumer by adding the tax to the selling price of the goods
sold;
b. The purchaser asks for a discount or refuses to buy at regular prices unless it is reduced by the
amount equal to the tax he will pay;
c Changing the terms of the sale like FOB shipping point in the Philippines to FOB destination
abroad, so that the title passes abroad instead of in the Philippines;
d. The manufacturer transfers the sales tax to the distributor, then in turn to the wholesaler, in turn to the
retailer and finally to the consumer.

70. Which of the following statements is not correct?

a. Taxes may be imposed to raise revenues or to provide disincentives to certain activities within the
state;
b. The state can have the power of taxation even if the Constitution does not expressly give it the power
to tax;
c. For the exercise of the power of taxation, the state can tax anything at any time;
d. The provisions of taxation in the Philippine Constitution are grants of power enabling the state to
impose taxes.

71. License fee as distinguished from tax:

a. Non-payment does not necessary render the business illegal;
b. A revenue raising measure;
c. Imposed in the exercise of taxing power
d. Limited to cover cost of regulation

72. Value-added tax is an example of:

a. Graduated tax;
b. Progressive tax;
c. Regressive tax;
d. Proportional tax.

73. Which tax principle is described in the statement 'The more income earned by the taxpayer, the more tax
he has to pay.
a. Fiscal adequacy
b. Theoretical justice
c. Administrative feasibility
d. Inherent in sovereignty

74. The most superior and least limitable among the fundamental powers of the state:
a. Power of recall
b. Police power
c. Power of taxation
d. Power of eminent domain

75. One of the characteristics of a tax is that:

a. It is generally based on contract;
b. It is generally payable in money;
c. It is generally assignable;
d. It is generally subject to compensation.

76. The following are ​the characteristics of our internal revenue laws except:
a. Political in nature;
b. Civil in nature;
c. Generally prospective in application
d. May operate retrospectively if congress so provides

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77. Which of the following statements is wrong? A revenue bill:

a. Must originate from the House of Representatives and on which same bill the Senate may
propose amendments;
b. May originate from the Senate and on which same bill the House of Representatives may
propose amendments;
c. May have a House version and a Senate version approved separately, and then consolidated, with both
houses approving the consolidation version.
d. May be recommended by the President to Congress.

78. Which of the following has no power to impose taxes?

a. Provinces
b. Cities
c. Barangays
d. Barrios

79. Tax as distinguished from special assessment:

a. not a personal liability of the person assessed
b. based wholly on benefits
c. exceptional as to time and place
d. based on necessity and is to raise revenues

80. Under this basic principle of a sound tax system, the Government should not incur a deficit:
a. Theoretical justice
b. Administrative feasibility
c. Fiscal Adequacy
d. Uniformity in taxation

81. Which of the following may not raise money for the government?
a. Power of taxation
b. Police power
c. Eminent domain
d. License fees

82. No person shall be imprisoned for non-payment of this:

a. Excise tax
b. Value added tax
c. Income tax
d. Poll tax

83. This is a demand of ownership:

a. License fee
b. Tax
c. Toll
d. Customs duties

84. Income tax is generally regarded as

a. an excise tax
b. a tax on persons
c. a property tax
d. tax on profits

legally refusing to pay the tax?

85. Which of the following is not acceptable for ​
x has prescribed
a. That the right of the state to collect the ta​
the tax
b. That there is no jurisdiction to collect ​
nstitutional
c. That the tax law was declared as unco​
d. That there is no ​benefit derived from the
​
tax
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86. A law granting tax exemption requires the concurrence of

a. Majority vote of members of Congress
b. 2/3 vote of members of Congress
c. 3/4 vote of members of Congress
d. unanimous vote of members of Congress

87. No person shall be imprisoned for debt or non-payment of poll tax. This is a (an)
a. Inherent limitation
b. Constitutional limitation
c. International limitation
d. Territorial limitation

88. The Department of Finance thru its officers entered into a contract with foreign investors, granting
them exemption from all forms of taxes to encourage investments in the Philippines. The contract is
a. Void, unless the President ratifies
b. Void, because the power to grant tax exemption is vested in Congress
c. Valid, if the President has authorized the officers to enter into such contract
d. Valid, because the purpose is to promote public welfare

89. Tax as distinguished from debt

a. no imprisonment for non-payment
b. may be paid in kind
c. based on contract
d. based on law

90. Congress can impose a tax at any amount and at anytime shows that
a. Taxation is an inherent power of the estate
b. Taxation is essentially a legislative power
c. Taxation is a very broad power of the state
d. Taxation is based on taxpayers' ability to pay

91. The amount required is dictated by the needs of the government in:
a. License fee
b. Tax
c. Toll
d. Debts

92. A charge imposed on land for special benefits derived resulting from public improvements
a. Tax
b. Toll
c. License
d. Special assessment

93. Which of the following are National Internal Revenue Taxes?

I. Income tax
II. Estate tax
III. Donor's tax
IV. Value Added tax
V. Other Percentage Tax VI.
Excise tax
VII. Documentary stamp tax
a. I, II, III, IV
b. I, II, III, IV, V
c. I, II, III, IV, V, VI
d. I; II, III, IV, V, VI, VII
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94. The three fundamental powers of the state are

I. Inherent in the state and may be exercised by the state without need of any constitutional grant
IL Not only necessary but indispensable
a. True, true
b. True, false
c. False, true
d. False, false

95. The three fundamental powers of the state are

I. Methods by which the state interfere with private rights II.
Exercised primarily by the legislature
a. True, true
b. True, false
c. False, true
d. False, false

96. I. Police power regulates both liberty and property while the power of eminent domain and the
power of taxation affect only property rights
II. Police power and the power of taxation may be exercised only by the government while the power
of eminent domain may be exercised by some private entities.
a. True, true
b. True, false
c. False, true
d. False, false

97. I. The property taken in police poWer is destroyed while the property taken under the power of
eminent domain and power of taxation are not destroyed.
II. In power of taxation, the compensation received is the protection afforded to the citizens; in police
power the compensation received is the altruistic feeling that somehow you contributed to the
promotion of the general welfare; in power of eminent domain, the compensation received is the just
compensation paid for the property taken.
a. True, true
b. True, false
c. False, true
d. False, false

98. I. The point on which a tax is originally imposed is impact of taxation.

II. The point on which a tax burden finally rests or settles down is incidence of taxation
a. True, true
b. True, false
c. False, true
d. False, false

99. I. Police power is superior to the non-impairment clause of the constitution

II. Power of taxation is superior to the non-impairment clause of the constitution
a. True, true
b. True, false
c. False, true
d. False, false

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100. I. No person shall be imprisoned for debt or non-payment of tax.

II. Tax laws are civil and penal in nature because there are penalties provided in case of
violation.
a. True, true
b. True, false
c. False, true
d. False, false

101. I. Tax may be collected in an unlimited amount.

II. License fee may be collected in an unlimited amount
a. True, true
b. True, false
c. False, true
d. False, false

102. I. Tax is imposed to raise revenue

II. License fee is imposed to raise revenue
a. True, true
b. True, false
c. False, true
d. False, false

103. I. Tax is a demand of sovereignty II.

Toll is a demand of sovereignty
a. True, true
b. True, false
c. False, true
d. False, false

104. I. Tax is imposed on persons, property and property rights.

II. Special assessment is imposed on persons, property and property rights
a. True, true
b. True, false
c. False, true
d. False, false

105. I. Collection of tax is a legislative act

II. Imposition of tax is an administrative act
a. True, true
b. True, false
c. False, true
d. False, false

106. I. A state has the power to tax even if not granted by the constitution
tion
II. A state cannot exercise police power if not granted by the constitu​
a. True, true
b. True, false
c. False, true
d. False, false

tax.
107. I. There can only be a tax if there is a law imposing the ​ II.
The power to tax may include the power to destroy
c. False, true
d. False, false

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108. I. Due process of law in taxation under the constitution is a grant of power II.
Provisions in the Philippine constitution on taxation are grants of power
a. True, true
b. True, false
c. False, true
d. False, false

109. I. In the Philippines, there may be double taxation.

II. Taxation may be used to implement the police power of the state
a. True, true
b. True, false
c. False, true
d. False, false

110. I. License fee is a charge imposed under police power. II.

Special assessment is levied on lands only.
a. True, true
b. True, false
c. False, true
d. False, false

111. I. Tax is imposed regardless of public improvement.

II. Special assessment is imposed regardless of public improvements
a. True, true
b. True, false
c. False, true
d. False, false

112. 1. Tax avoidance is the use by the taxpayer of legal or fraudulent means to avoid or
defeat taxes.
II. Tax evasion is the use by the taxpayer of illegal or fraudulent means to avoid or
defeat taxes.
a. True, true
b. True, false
c. False, true
d. False, false

113. I. One of the essential characteristics of a tax is it is unlimited in amount II. A

tax is generally unlimited because it is based on the needs of the state
a. True, true
b. True, false
c. False, true
d. False, false

ssential to the existence of every

114. I. The power of taxation is inherent in sovereignty being e​
the state can still exercise ​
government. Hence, even if not mentioned in the Constitution ​ the power and
is essentially a legislative function.
ation power falls to Congress as
II. Even in the absence of any constitutional provision, tax​ part of the
general power of law-making.
a. True, true
b. True, false
c. False, true
d. False, false

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115. I. The President has the power to veto a revenue bill even if such bill was already approved by
Congress.
II. The President is superior to Congress as he/she can veto any bill even if already approved
by Congress.

a. True, true
b. True, false
c. False, true
d. False, false

116. A system of taxation where the amount of revenue from indirect taxes are more than the direct
taxes is
a. Progressive system
b. Regressive system
c. Proportional system
d. Schedular system

117. Congress passed a law which granted tax amnesty to those who have not paid their income taxes
in 2010 but did not provide for the refund to those who paid. Is the law valid?
a. No, this will encourage taxpayers not to pay their taxes
b. Yes, Congress has the sole discretion of determining whom to tax
c. No, the grant of amnesty is the sole prerogative of the President
d. Yes, Congress provided for a valid classification.

118. Congress passed a law imposing taxes on income earned out of a particular activity that was not
previously taxed. The law, however, taxed incomes already earned within the fiscal year when the law
took effect. Is the law valid?
a. No, because laws are intended to be prospective, not retroactive.
b. No, the law is arbitrary in that it taxes income that has already been spent.
c. Yes, since tax laws are the lifeblood of the nation.
d. Yes, tax laws are an exception; they can be given retroactive effect.

119. Money collected from taxation shall not be paid to any religious dignitary EXCEPT when
a. The religious dignitary is assigned to the Philippine Army.
b. It is paid by a local government unit.
c. The payment is passed in audit by the COA.
d. It is part of a lawmaker's pork barrel.

120. Which theory in taxation states that without taxes, a government would be paralyzed for lack of
power to activate and operate it, resulting in its destruction?
a. Power to destroy theory
b. Lifeblood theory
c. Sumptuary theory
d. Power of love theory

121. Double taxation in its general sense means taxing the same subject twice during the same
taxing period. In this sense, double taxation
a. Violates substantive due process
b. Does not violate substantive due process
c. Violates the right to equal protection
d. Does not violate the right o equal protection

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122. The actual effort exerted by the government to effect the exaction of what is due from the
taxpayer is known as
a. Assessment
b. Levy
c. Payment
d. Collection

123. 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

124. An example of a tax where the concept of progressivity finds application is the
a. Income tax on individuals
b. Excise tax on petroleum products
c. Value-added tax on certain articles
d. Amusement tax on boxing exhibitions

125. The power to tax is the power to destroy. Is this always so?
a. No. The Executive Branch may decide not to enforce a tax law which it believes to be
confiscatory.
b. Yes. The tax collectors should enforce a tax law even if it results to the destruction of the
property rights of the taxpayer.
c. Yes. The tax laws should always be enforced because without taxes the very existence of the
State is endangered.
d. No. The Supreme Court may nullify a tax law, hence, property rights are not affected.

THE END

Tax 80-01