1. Which of the following is a nature of taxation?
a. The power is exercised by legislative action c. It is generally payable in money
b. It is essentially an administrative function d. The state can exist without it
2. The power to impose taxes is exercised by the
a. President c. BIR
b. Supreme Court d. Congress
2. Which of the following statements is incorrect?
a. Income tax is a direct tax.
b. Our National Internal Revenue Laws are civil in nature.
c. The scope of taxation states that the power of taxation is supreme, plenary, unlimited, and
comprehensive.
d. The exercise of the power to tax is not subject to any limitations or restrictions.
3. The power to acquire private property upon payment of just compensation for public purpose
a. Power of taxation c. Power of eminent domain
b. Police power d. Power of love
4. The power to regulate liberty and property to promote the general welfare
a. Police power c. Power of eminent domain
b. Power of taxation d. Super power rangers
5. 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 c. Power of Taxation
b. Power of Eminent Domain d. Power of Greystone
6. The tax imposed should be proportionate to the taxpayer’s ability to pay
a. Fiscal adequacy c. Administrative feasibility
b. Equality or theoretical justice d. Economic consistency
7. The sources of revenue as a whole, should be sufficient to meet the demands of public expenditures
a. Fiscal adequacy c. Administrative feasibility
b. Equality or theoretical justice d. Revenue generation
8. The tax laws must be capable of convenient, just and effective administration
a. Fiscal adequacy c. Administrative feasibility
b. Equality or theoretical justice d. Psychological compatability
9. It is the privilege of not being imposed a financial obligation to which others are subject
a. Tax incentive c. Tax amnesty
b. Tax exemption d. Tax credit
10. The use of illegal or fraudulent means to avoid or defeat the payment of tax
a. Shifting c. Avoidance
b. Exemption d. Evasion
11. The use of legal or permissible means to minimize or avoid taxes
a. Shifting c. Avoidance
b. Exemption d. Evasion
12. Synonymous to tax evasion
a. Tax dodging c. Tax exemption
b. Tax minimization d. Tax shield
13. Synonymous to tax avoidance
a. Tax dodging c. Tax exemption
b. Tax minimization d. Tax evasion
14. In 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
c. Strictly against the government and liberally in favor of the taxpayer
d. Liberally in favor of the government and strictly against the taxpayer
15. Tax which is demanded from the person whom the law intends or desires to pay it
a. Direct b. Indirect c. Excise d. Income
16. Tax which imposes a specific sum by the head or number or by some standard of weight or
measurement, and which requires no assessment other than a listing or classification of the objects
to be taxed
a. Specific c. Excise
b. Ad-valorem d. Income
17. Tax where the rate increases as the tax base increases
a. Proportional c. Regressive
b. Progressive d.Indirect
18. Income tax is generally regarded as
a. an excise tax c. a property tax
b. a tax on persons d. tax on profits
19. A law granting tax exemption requires the concurrence of
a. majority vote of all members of Congress
b. 2/3 vote of members of Congress
c. ¾ vote of members of Congress
d. unanimous vote of members of Congress
20. 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 c. Sumptuary theory
b. Lifeblood theory d. No money, no honey theory
21. Which one of the following is not a characteristic or element of a tax?
a. It is an enforced contribution. c. It is based on the ability to pay.
b. It is legislative in character. d. It is payable in money or in kind.
22. One of the characteristics of internal revenue laws is that they are:
a. Criminal in nature c. Political in nature
b. Penal in nature d. Generally, prospective in application
23. Income tax is generally regarded as
a. an excise tax c. a property tax
b. a tax on persons d. tax on profits
24. This is not an inherent limitation on the power of taxation:
a. Double taxation, though not prohibited, is disfavored. c. Public purpose of taxation
b. Equality and uniformity in taxation d. Territoriality
25. No person shall be imprisoned for debt or non-payment of a poll tax. This is a (an)
a. Inherent limitation c. International limitation
b. Constitutional limitation d. Territorial limitation
