Tax MC

1. Among the nature if taxation are the following. Which one is not?

a. It is inherent in sovereignty
b. The citizenry benefits from it
c. The government solely benefits from it
d. It is a means by which the government raises income
2. The following are authorized to administer oaths and take testimony. Who is not?
a.BIR Service Chief
b. BIR Commissione
c.BIR Deputy Comissioner
d.BIR rank-and-file employees

3. All of the following except one are inherent limitations of taxation. Which is not?

a.Taxes may be levied only for public purposes
b.Governmental agencies are exempt from taxation.
c. The state may tax persons and properties a]under its jurisdiction.
d. the property of another State may not be taxed by other States.
4. When the BIR and taxpayers are unable to agree as to the correct application of tax statutes to
specific situations,
a. taxpayers decision prevails
b. court decision prevails
c. BIR decision prevails
d. all of the above
5. in case of conflict between tax laws and generally accepted accounting principles(GAAP)
a. GAAP shall prevail over tax laws
b. tax laws shall prevail over GAAP
c.the issue shall be resolved by the courts
d.both tax laws and GAAP shall enforced.

6.which is not a valid definition of income?
a. income is a fund at one distinct point of time
b.income is the return form capital invested
c.income means cash or cash equivalents unless otherwise specified
d.income means all wealth which flows into the taxpayer other than a mere return of capital
7.which statement refers to police powers as distinguish from taxation?
a.the amount imposed has no limit
b.it can only be imposed on specific property and properties
c.it involves the taking of property by the government
d.the amount imposed depends on whether the activity is useful or not.
8.tax as distinguished from license fee
a.a regulatory measure
b.limited to cover cost of regulation
c.imposed in the exercise of police power
d.non-payment does not necessarily render the business illegal
9.the following are sources of tax laws. Which is not a source?
a.barangay resolution
b.supreme court decision
c.treaties or international agreements
d.revenue regulations by the department of finance
10.one of the characteristics of internal revenues laws is that they are
a.penal in nature
b.criminal in nature
c.politial in nature
d.generally prospective in application
11.which is not an example of excise tax?
a.value-added tax
b.transfer tax
c.real poperty tax
d.income tax
12.taxation is means by which the national government attempts to
a.shift wealth from rich to poor
b.encourage full employment
c.maintain price stability
d. all of the above
13.it is a tax of a fixed proportion of the value of the property with the respect to which the tax is
assessed and requires the intervention of assessors and appraisers to estimate the value of such
property.
A.specific
b.ad valoremm
c.special or regulatory
d.none of the above
14.it is a proportional contributions by persons and property levied by the lawmaking body of the State
by virtue of its sovereignty for the support of the government and all public needs.
a.taxes
b.license fee
c. special assessment
d.none of the above
15. one characteristics of a tax is that
a.it is generally assignable.

b. it is generally based on contract
c.it is generally payable in money
d.none of the above
16. the following statements are correct except one. Which one?
a. for the exercise of the power of taxation, the State can tax anything at any time
b.the provisions of taxation in the Philippines Constitution are grants of power and not limitations in
taxing powers
c.taxes may be imposed to raise revenues or to provide disincentives to certain activities within the
state.
d.the state can have the power of taxation even if the Constitution does not expressly give it the power
to tax.
17.percentage tax is an example of
a.graduated tax
b.regressive tax
c.progressive tax
d.proportional tax.
18. which statement is false?Income tax
a. is always a direct tax
b.is always based on gross amount
c.is a tax on persons income, emoluments or profits
d.is a tax on all yearly profits arising from property professions, trade and business,
19.one of the following is not among the basic principles of a sound tax system. Which one is it
a.fiscal adequacy
b.collection of tax
c. theoretical justice
d.admnistrative feasibility
20.the following are national internal revenues taxes. Which one is not?
a. excise tax
b.import duty
c.value added tax
d.documentary stamp tax
21.provincial, city,municipal and barangay ordinances may imposed taxes subject to limitatons by the
local government code. The following ,except one are existing taxes thereunder. Which is it?
a. professional tax
b.community tax
c.travel tax
d.real property tax
22.as to object , taxes may be classified according to the following exceot one. Which is the exceptions?
a.excise
b.specific
c.property
d.personal, poll or capitation
23.all of the following are similarities of the iinherent power taxation, eeinet domain and police powers.
Which is not?
a. affect all persons or the public
b.are legislative in implementation
c.are necessary attributes of sovereignty
d. interefere with private rights and property
24.situsf taxation is the place of taxation.which of the statemenst is not true about situs?
a.subject matter is a must to determine situs
b.situs of persons is the residence of taxpayer
c.citizenship,in determining the situss, is not a factor to consider

d.none of the above
25.the distinction of a tax from permit or license fee is that a tax us
a. imposed for regulation
b.one which involves an exercise of police power
c.one in which there is a generally no limit on the amount that may be imposed
d.none of the above

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1. Among the nature if taxation are the following. Which one is not?

a.Taxes may be levied only for public purposes

b.Governmental agencies are exempt from taxation.

d. the property of another State may not be taxed by other States.

a. taxpayers decision prevails

b. court decision prevails

c. BIR decision prevails

d. all of the above

a. GAAP shall prevail over tax laws

b. tax laws shall prevail over GAAP

c.the issue shall be resolved by the courts

d.both tax laws and GAAP shall enforced.

a. income is a fund at one distinct point of time

b.income is the return form capital invested

c.income means cash or cash equivalents unless otherwise specified

7.which statement refers to police powers as distinguish from taxation?

a.the amount imposed has no limit

b.it can only be imposed on specific property and properties

c.it involves the taking of property by the government

d.the amount imposed depends on whether the activity is useful or not.

8.tax as distinguished from license fee

a.a regulatory measure

b.limited to cover cost of regulation

c.imposed in the exercise of police power

d.non-payment does not necessarily render the business illegal

9.the following are sources of tax laws. Which is not a source?

b.supreme court decision

c.treaties or international agreements

d.revenue regulations by the department of finance

10.one of the characteristics of internal revenues laws is that they are

11.which is not an example of excise tax?

c.real poperty tax

12.taxation is means by which the national government attempts to

a.shift wealth from rich to poor

b.encourage full employment

c.maintain price stability

d. all of the above

d.none of the above

d.none of the above

15. one characteristics of a tax is that

a.it is generally assignable.

c.it is generally payable in money

d.none of the above

17.percentage tax is an example of

18. which statement is false?Income tax

a. is always a direct tax

b.is always based on gross amount

c.is a tax on persons income, emoluments or profits

c.value added tax

d.documentary stamp tax

d.real property tax

d.personal, poll or capitation

a. affect all persons or the public

b.are legislative in implementation

c.are necessary attributes of sovereignty

d. interefere with private rights and property

a.subject matter is a must to determine situs

b.situs of persons is the residence of taxpayer