Kyah A comp.
1. ONE OF THE CHARACTERISTICS OF INTERNAL REVENUE TAX IS THAT THEY ARE -
A) CRIMINAL IN NATURE
B) PENAL IN NATURE
C) POLITICAL IN NATURE
D) GENERALLY PROSPECTIVE IN APPLICATION
2. IN CASE OF CONFLICT BETWEEN THE TAX LAWS AND GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP)
A) BOTH TAX LAWS AND GAAP SHALL BE ENFORCED
B) GAAP SHALL PREVAIL OVER TAX LAWS
C) TAX LAWS SHALL PREVAIL OVER GAAP
D) THE ISSUE SHALL BE RESOLVED BY THE COURT
3. WHICH OF THE FOLLOWING HAS NO POWER OF TAXATION?
A) PROVINCES
B) CITIES
C) BARANGAYS
D) BARRIOS
4. THE POWER OF TAXATION CAN ONLY BE EXERCISED BY THE LAWMAKING BODY
A) SUBJECT TO CONSTITUTIONAL AND INHERENT LIMITATIONS
B) EQUALITY OR THEORETICAL JUSTICE
C) LEGISLATIVE IN CHARACTER
D) INHERENT IN SOVEREIGNTY
5. THE PRESIDENT OF THE PHILIPPINES AND THE PRIME MINISTER OF JAPAN ENTERED INTO AN EXECUTIVE AGREEMENT
IN RESPECT OF A LOAN FACILITY TO THE PHILIPPINES FROM JAPAN WHEREBY IT WAS STIPULATED THAT INTEREST ON
LOANS GRANTED BY PRIVATE JAPANESE FINANCIAL INSTITUTIONS IN THE PHILIPPINES SHALL NOT BE SUBJECT TO
PHILIPPINE INCOME TAXES. WHAT BASIC CHARACTERISTIC OF TAXATION HAS BEEN VIOLATED BY THIS AGREEMENT?
A) INHERENT LIMITATION
B) THEORETICAL JUSTICE
C) LEGISLATIVE IN CHARACTER
D) ADMINISTRATIVE FEASIBILITY
6. STATEMENT 1: THE POWER OF TAXATION IS INHERENT IN SOVEREIGNTY BEING ESSENTIAL TO THE EXISTENCE OF
EVERY GOVERNMENT. HENCE, EVEN IF NOT MENTIONED IN THE CONSTITUTION, THE STATE CAN STILL EXERCISE THE
POWER.
STATEMENT 2: IT IS ESSENTIALLY A LEGISLATIVE FUNCTION. EVEN IN THE ABSENCE OF ANY CONSTITUTIONAL
PROVISION, TAXATION POWER FALLS TO CONGRESS AS PART OF THE GENERAL POWER OF LAWMAKING.
A) FALSE, FALSE
B) FALSE, TRUE
C) TRUE, TRUE
D) TRUE, FALSE
7. WHICH OF THE FOLLOWING STATEMENTS IS NOT CORRECT?
A) TAXES MAY BE IMPOSED TO RAISE REVENUE 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 NECESSARILY GIVE IT THE
POWER TO TAX
Kyah A comp.
C) FOR THE EXERCISE OF THE POWER OF TAXATION, THE STATE CAN TAX ANYTHING AT ANY TIME
D) THE POWER OF TAXATION IN THE PHILIPPINE CONSTITUTION ARE GRANTS OF POWER AND NOT LIMITATIONS ON
TAXING POWERS
8. ONE OF THE FOLLOWING IS NOT AN INHERENT LIMITATION ON THE EXERCISE OF THE POWER OF TAXATION
A) INTERNATIONAL COMITY
B) DOUBLE TAXATION
C) NON-DELEGATION OF THE LEGISLATIVE POWER TO TAX
D) TERRITORIALITY
9. THE CITY COUNCIL PASSED AN ORDINANCE IMPOSING AN OCCUPATION TAX ON AN AIRCONDITIONING TECHNICIAN.
CONDE IS THE ONLY PERSON WITH SUCH OCCUPATION IN THE CITY. HE CHALLENGED THE VALIDITY OF THE ORDINANCE
AS BEING DISCRIMINATORY SINCE HE IS THE ONLY ONE ADVERSELY AFFECTED.
A) THE CONTENTION OF CONDE IS TENABLE
B) THE ORDINANCE IS UNCONSTITUTIONAL BECAUSE CONDE IS DENIED OF HIS RIGHT TO EQUAL PROTECTION OF LAW
C) THE CONTENTION OF CONDE IS NOT JUSTIFIED BECAUSE THE RULE ON UNIFORMITY IS NOT VIOLATED CONSIDERING
THAT THE ORDINANCE WOULD ALSO IMPOSE ON ALL AIRCONDITIONING TECHNICIAN WHO MAY COME WITHIN THE
JURISDICTION OF THE CITY
D) THE ISSUE ON VALIDITY OR INVALIDITY OF THE ORDINANCE SHOULD BE SET ASIDE
10. STATEMENT 1: THE CONSTITUTIONAL EXEMPTION ON INCOME TAXES, PROPERTY TAXES AND CUSTOMS DUTIES IS
ALLOWED ON NON-STOCK, NON-PROFIT EDUCATIONAL INSTITUTIONS ONLY.
STATEMENT 2: A BUILDING BEING LEASED BY ITS OWNER TO A PRIVATE EDUCATIONAL INSTITUTION FOR USE AS
CLASSROOMS IS EXEMPT FROM PROPERTY TAX
STATEMENT 3: INCOME OF A NON-STOCK, NON-PROFIT EDUCATIONAL INSTITUTION RUN BY THE ARCHDIOCESE IS
EXMEPT FROM TAX PROVIDED THAT INCOMES ARE ACTUALLY, DIRECTLY AND EXCLUSIVELY USED FOR EDUCATIONAL
PURPOSES
WHICH OF THE STATEMENTS ARE CORRECT?
A) STATEMENT 1 ONLY
B) STATEMENTS 1 AND 2
C) STATEMENT 2 ONLY
D) ALL OF THEM
