Taxation Reviewer

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Business Law and Taxation Review Class

Name:_____________________________________ Course:_____________________ Date:_____________________ INSTRUCTION: Write the letter of your answer in the box provided. The letter must be written in CAPITAL LETTER.

D1.Which of the following statement 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 and not limitations on taxing powers

D2.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 application
C3.One of the characteristics of our internal revenue laws is that they are: a.Political in nature
b.Penal in nature
c.Generally prospective in operation although the tax statute may nevertheless operate retrospectively provided it is clearly the legislative intent d.Answer not given
C4.In case of conflict between 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 courts
C5.The following are similarities of the inherent power of taxation, eminent domain and police power, except one a.Are necessary attributes of sovereignty
b.Interfere with private rights and property
c.Affects all persons or the public
d.Are legislative in implementation
A6.Tax as distinguished from license fee:
a.Non payment does not necessarily render the business illegal b.A regulatory measure
c.Imposed in the exercise of police power
d.Limited to cover cost of regulation
B7.Which statement refers to police power as distinguished from taxation? a.It can only be imposed on specific property or properties b.The amount imposed depends on whether the activity is useful or not c.It involves the taking of property by the government

d.The amount imposed has no limit
C8.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.Answer not given
C9.Which of the following is not an example of excise tax: a.Transfer tax
b.Sales tax
c.Real property tax
d.Income tax
D10.Value added tax is an example of:
a.Graduated tax
b.Progressive tax
c.Regressive tax
d.Proportional tax
C11.S1: 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.

S2: 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 law-making a.False, False
b.False, True
c.True, True
d.True, False
C12.Which of the following is not a scheme of shifting the incidence of taxation? a.The manufacturer transfers the tax to the customer by adding the tax to the selling price of the goods sold b.The purchaser asks for a discount or refuse 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

A13.The proportional contribution by persons and property levied by the law-making body of the State by virtue of its...
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