1001

Multiple Choice
Identify the choice that best completes the statement or answers the question.

____ 1. They exist independent of the constitution being fundamental powers of the state, except
a. Power of taxation c. Power of eminent domain
b. Police Power d. People power
____ 2. 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 recall
____ 3. 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
____ 4. The power to demand proportionate contributions from person and property to defray the expenses of
the government
a. Power of taxation c. Power of eminent domain
b. Police Power d. National power
____ 5. Basic principles of a sound tax system, except
a. Fiscal adequacy c. Administrative feasibility
b. Equality of theoretical justice d. Intellectual sensitivity
____ 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 demand 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. Internal acceptability
____ 9. 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 f the state
c. The reduce excessive inequalities of wealth
d. To raise revenues for governmental needs
____ 10. The aspects of taxation are
a. Legislative in character
b. Executive in character
c. Share by the legislative and executive departments
d. Judicial in character
____ 11. Taxation as distinguished from police power ad power of eminent domain
a. Property is taken to promote 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
____ 12. 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
____ 13. 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
____ 14. Which of the following statements is correct?
a. The President is authorized to increase or decrease national internal revenue tax rates
b. One of the nature 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
____ 15. Persons or things belonging to the same class shall be taxed at the same rate
a. Simplicity in taxation c. Equality in taxation
b. Reciprocity in taxation d. Uniformity in taxation
____ 16. The tax should be proportional to the relative value of the property at the same rate
a. Simplicity in taxation c. Equality in taxation
b. Reciprocity in taxation d. Uniformity in taxation
____ 17. 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
____ 18. It literally means “place of taxation”; the country that has the power and jurisdiction to levy and
collect the tax
a. Basis of taxation c. Scope of taxation
b. Situs of taxation d. Theory of taxation
____ 19. 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 c. Scope of taxation
b. Situs of taxation d. Theory of taxation
____ 20. The reciprocal duties of support and protection between the people and the government
a. Basis of taxation c. Scope of taxation
b. Situs of taxation d. Theory of taxation
____ 21. A tax must be imposed for public purpose. 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
____ 22. Which is not an essential characteristic of a tax?
a. It is unlimited as to amount c. It is proportionate in character
b. It is payable in money d. It is an enforced contribution
____ 23. Special assessment is an enforced proportional contribution from owners of land especially benefited
by 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 governments 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.
____ 24. 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
____ 25. 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
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 if 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.
____ 26. 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.
____ 27. Which of the following is not a determinant of the place of taxation?
a. Source of the income c. Residence of the taxpayer
b. Citizenship of the taxpayer d. Amount of tax to be imposed
____ 28. 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 True
b. True True True False
c. True True False False
d. True False True True
____ 29. Subject to inherent and constitutional limitations, the power of taxation is regarded
as supreme, plenary, unlimited and comprehensive.
a. Basis of taxation c. Scope of taxation
b. Situs of taxation d. Theory of taxation
____ 30. Our National Internal Revenue Laws are
a. Political in nature c. Criminal in nature
b. Penal in nature d. Civil in nature
____ 31. The levying or imposition of tax and the collection of the tax are processes which constitute the
taxation system.
a. Basis of taxation c. Nature of taxation
b. Aspects of taxation d. Theory of taxation
____ 32. The process or means by which the sovereign, through its law-making body, raises
income to defray the expenses of the government.
a. Toll c. Taxation
b. License fee d. Assessment
____ 33. 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 c. Taxes
b. License Fee d. Assessment
____ 34. 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 c. Transformation
b. Exemption d. Capitalization
____ 35. An escape from taxation where the producer or manufacturer pays the tax and endeavors to recoup
himself by improving his process of production thereby turning out his units of products at a lower cost
a. Shifting c. Transformation
b. Exemption d. Capitalization
____ 36. 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 c. Transformation
b. Exemption d. Capitalization
____ 37. The use of illegal or fraudulent means to avoid or defeat the payment of tax
a. Exemption c. Avoidance
b. Shifting d. Evasion
____ 38. The use of legal or permissible means to minimize or avoid taxes
a. Exemption c. Avoidance
b. Shifting d. Evasion
____ 39. Synonymous to tax evasion
a. Tax dodging c. Tax exemption
b. Tax minimization d. Tax evasion
____ 40. Synonymous to tax avoidance
a. Tax dodging c. Tax exemption
b. Tax minimization d. Tax evasion
____ 41. 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
c. Strictly against the government and liberally in favor of the taxpayer
d. Liberally in favor of the government and strictly against the taxpayer
____ 42. 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
____ 43. In case of conflict between the Tax Code and the Philippine Accounting Standards (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.
____ 44. 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
a. Personal, poll or capitation c. Excise
b. Property d. Regressive
____ 45. Tax imposed on personal or real property in proportion to its value or on some other reasonable
method of apportionment
a. Personal, poll or capitation c. Excise
b. Property d. Regressive
____ 46. Tax imposed upon the performance of an act, the enjoyment of privilege or the engaging in an
occupation
a. Personal, poll or capitation c. Excise
b. Property d. Percentage
____ 47. Tax which is demanded from the person whom the law intends or desires to pay it
a. Direct c. Excise
b. Indirect d. Percentage
____ 48. Tax which is demanded from one person in the expectation and intention that he shall indemnify
himself at the expense of another
a. Direct c. Property
b. Indirect d. Income
____ 49. 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
____ 50. Tax of a fixed proportion of the amount or value of the property with respect to which the tax is
assessed
a. Specific c. Excise
b. Ad-valorem d. Percentage
____ 51. 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
____ 52. Tax where the rate decreases as the tax base increases
a. Proportional c. Regressive
b. Progressive d. Indirect
____ 53. Tax where the rate increases as the tax base increases
a. Proportional c. Regressive
b. Progressive d. Indirect
____ 54. 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 conditions 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 BIR has the duty and the exclusive power of enacting, implementing and
interpreting tax laws.
____ 55. 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 Recall
____ 56. 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 c. Power of Eminent Domain
b. Power of Recall d. Police Power
____ 57. 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
c. Taxes may be imposed retroactively by law, but unless so expressed by such law, these
taxes must only be imposed prospectively
d. Tax laws are either political or penal in nature
____ 58. Which of the following is not a constitutional limitation on the Power of Taxation?
a. No person shall be deprived of life, liberty or property without due process of law
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
d. No law granting any tax exemption shall be passed without the concurrence of a
majority of all the members of Congress
____ 59. 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 maybe imposed
d. Limited to the cost of regulation
____ 60. Police power as distinguished from the power of eminent domain
a. Just compensation is received by the owner of the property
b. Maybe exercised by private individuals
c. May regulate both liberty and property
d. Property is taken by the government for public purpose
____ 61. 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 c. Indirect tax
b. Value added tax d. Percentage tax
____ 62. 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
____ 63. 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
____ 64. The power to impose taxes is exercised by
a. The President c. Bureau of Internal Revenue
b. The Supreme Court d. Congress
____ 65. 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
____ 66. Which of the following is not an example of excise tax?
a. Transfer tax c. Real property tax
b. Sales tax d. Income tax
____ 67. 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 is received
d. Are legislative in character
____ 68. 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 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 un turn to the
wholesaler, in turn to the retailer and finally to the consumer
____ 69. 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
____ 70. 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
____ 71. Value-added tax is an example of
a. Graduated tax c. Regressive tax
b. Progressive tax d. Proportional tax
____ 72. 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 c. Administrative feasibility
b. Theoretical justice d. Inherent in sovereignty
____ 73. The most superior and least limitable among the fundamental powers of the state
a. Power of recall c. Power of taxation
b. Police power d. Power of eminent domain
____ 74. One of the characteristics of a tax is that
a. It is generally based on contract c. It is generally assignable
b. It is generally payable in money d. It is generally subject to compensation
____ 75. 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
____ 76. 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 of Congress
____ 77. Which of the following has no power to impose taxes?
a. Provinces c. Barangays
b. Cities d. Barrios
____ 78. 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
____ 79. Under this basic principle of a sound tax system, the Government should not incur a deficit
a. Theoretical justice c. Fiscal adequacy
b. Administrative feasibility d. Uniformity in taxation
____ 80. Which of the following may not raise money for the government?
a. Power of taxation c. Eminent domain
b. Police power d. License Fees
____ 81. No person shall be imprisoned for non-payment of this
a. Excise tax c. Income tax
b. Value added tax d. Poll tax
____ 82. This is a demand of ownership
a. License fee c. Toll
b. Tax d. Customs duties
____ 83. Income tax is generally regarded as
a. an excise tax c. a property tax
b. a tax on persons d. tax on profits
____ 84. Which of the following is not acceptable for legally refusing to pay the tax?
a. That the right of the state to collect the tax has prescribed
b. That there is no jurisdiction to collect the tax
c. That the tax law was declared as unconstitutional
d. That there is no benefit derived from the tax
____ 85. 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
____ 86. No person shall be imprisoned for debt or non-payment of poll tax. This is a (an)
a. Inherent limitation c. International limitation
b. Constitutional limitation d. Territorial limitation
____ 87. 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
____ 88. Tax as distinguished from debt
a. no imprisonment for non-payment c. based on contract
b. may be paid in kind d. based on law
____ 89. Congress can impose a tax at any amount and at any time shows that
a. Taxation is an inherent power of the state
b. Taxation is essentially a legislative power
c. Taxation is a very broad power of the state
d. Taxation is based on taxpayer’s ability to pay
____ 90. The amount required is dictated by the needs of the government in
a. License fee c. Toll
b. Tax d. Debts
____ 91. A charge imposed only and for special benefits derived resulting from public improvements
a. Tax c. License
b. Toll d. Special Assessment
____ 92. 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 c. I,II,III,IV,V,VI
b. I,II,III,IV,V d. I,II,III,IV,V,VI,VII
____ 93. 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.
II. Not only necessary but indispensable
a. True, true c. False, True
b. True, false d. False, False
____ 94. The three fundamental powers of the state are
I. Methods by which the state interferes with private rights
II. Exercised primarily by the legislature
a. True, true c. False, true
b. True, false d. False, false
____ 95. 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 c. False, true
b. True, false d. False, False
____ 96. 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 c. False, true
b. True, false d. False, false
____ 97. 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 c. False, true
b. True, false d. False, false
____ 98. 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 c. False, true
b. True, false d. False, false
____ 99. 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 c. False, True
b. True, false d. False, false
____ 100. I. Tax may be collected in an unlimited amount
II. License fee may be collected in an unlimited amount
a. True, true c. False, True
b. True, False d. False, False
____ 101. I. Tax is imposed to raise revenue
II. License fee is imposed to raise revenue
a. True, true c. False, True
b. True, False d. False, false
____ 102. I. Tax is a demand of sovereignty
II. Toll is a demand of sovereignty
a. True, true c. False, True
b. True, False d. False, False
____ 103. I. Tax is imposed on persons, property and property rights
II. Special assessment is imposed on persons, property and property rights
a. True, true c. False, True
b. True, false d. False, False
____ 104. I. Collection of tax is a legislative act
II. Imposition of tax is an administrative act
a. True, true c. False, True
b. True, False d. False, False
____ 105. I. A state has the power to tax even if not granted by the constitution
II. A state cannot exercise police power if not granted by the constitution
a. True, True c. False, True
b. True, False d. False, False
____ 106. I. There can only be a tax if there is a law imposing the tax
II. The power to tax may include the power to destroy
a. True, true c. False, True
b. True, False d. False, False
____ 107. 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 c. False, true
b. True, false d. False, false
____ 108. 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 c. False, true
b. True, false d. False, false
____ 109. I. License fee is a charge imposed under police power
II. Special assessment is levied on lands only
a. True, true c. False, true
b. True, false d. False, false
____ 110. I. Tax is imposed regardless of public improvement
II. Special assessment is imposed regardless of public improvement
a. True, true c. False, True
b. True, false d. False, False
____ 111. I. 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 c. False, True
b. True, False d. False, False
____ 112. 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 c. False, True
b. True, False d. False, False
____ 113. I. 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
and is essentially a legislative function
II. Even in the absence of any constitutional provision, taxation power falls to Congress as part of the
general power of law-making
a. True, True c. False, True
b. True, False d. False, False
____ 114. I. The President has the power to veto a revenue bill even if 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 c. False, True
b. True, False d. False, False
____ 115. A system of taxation where the amount of revenue from indirect taxes are more than the direct taxes
is
a. Progressive system c. Proportional system
b. Regressive system d. Schedular system
____ 116. 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
____ 117. Which of the inherent powers may be exercised even by public service corporations and public entities
a. Power of taxation c. Power of eminent domain
b. Police power d. A and C
____ 118. The NIRC provides that the Bureau of Internal Revenue shall have a chief and four (4) assistant chiefs
to be known as
a. Secretary and Assistant Secretaries
b. Secretary and Under Secretaries
c. Commissioner and Assistant Commissioner
d. Commissioner and Deputy Commissioners
____ 119. The BIR shall be under the control and supervision of the
a. Court of Tax Appeals c. DILG
b. Supreme Court d. Department of finance
____ 120. The powers and duties of the BIR, except
a. The assessment and collection of all national internal revenue taxes, fees and charges
b. The enforcement of all forfeitures, penalties and fines connected with assessment and
collections of national internal revenue taxes, fees and charges
c. The execution of judgment in all cases decided in its favor by the CTA and the ordinary
courts
d. The issuance of rules and regulations and enactment of revenue bills to ensure that the
State is able to provide for the needs of those under its jurisdiction and car.
____ 121. The power to interpret the provisions of the NIRC and other tax laws shall be under the exclusive and
original jurisdiction of the
a. CIR, subject to review by the Secretary of Finance
b. Secretary of Finance, subject to review by the President
c. CTA, subject to review by the Supreme Court
d. Regular courts, subject to review by the CTA
____ 122. The power to decide disputed assessments, refunds of internal revenue taxes, fees or other charges,
penalties imposed in relation thereto, or other matters arising under the NIRC or other laws or portion
thereof administered by the BIR is vested in the
a. CIR, subject to the exclusive appellate jurisdiction of the CTA
b. Secretary of Finance, subject to review by the President
c. CTA, subject to the exclusive appellate jurisdiction of the Supreme Court
d. Regular Courts, subject to exclusive appellate jurisdiction of the CTA
____ 123. Which among the following powers of the CIR maybe delegated
a. The power to issue rulings of first impression or to reverse, revoke or modify any
existing ruling of the BIR
b. The power to recommend the promulgation of rules and regulations by the Secretary of
Finance
c. The power to assign or reassign internal revenue officers to establishments where
articles subject to excise tax are produced or kept
d. The power to compromise or abate any tax liability involving basic deficiency taxes of
P500,000 or less and minor criminal violations
____ 124. The following are agents and deputies for the collection of National Internal Revenue Taxes, except
a. The commissioner of Customs and his subordinates with respect to the collection of
internal revenue taxes on imported goods
b. The head of appropriate government office and his subordinates with respect to the
collection of energy tax
c. Banks duly accredited by the CIR with respect to receipt of payments of internal
revenue taxes authorized to be made thru banks
d. The city and municipal treasurers with respect to collection of real property tax
____ 125. The power of the CIR to make assessments will not include one of the following, which one is it?
a. Examination of tax returns
b. To conduct inventory taking, surveillance and to prescribe presumptive gross sales and
receipts
c. To inquire into bank deposit accounts of a taxpayer
d. To prescribe real property values
____ 126. Notwithstanding any contrary provision of RA1405 and other general or special laws, the CIR is
authorized to inquire into the bank deposits of
I. A decedent to determine his gross estate
II. Any taxpayer who has filed an application for compromise of his tax liability by reason of
financial incapacity to pay his tax liability
III. Any taxpayer who intends to leave the country
IV. Any taxpayer who is convicted of a crime where the penalty imposed is imprisonment of more than
6 years.
a. I and II c. I and III
b. I, II and III d. I, III and IV
____ 127. 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.
____ 128. Money collected from taxation shall not be paid to any religious dignitary EXCEPT when
a. The religious dignitary is assigned to the c. The payment is passed in audit by the
Philippine army. COA.
b. It is paid by a local government unit. d. It is part of a lawmaker’s pork barrel.
____ 129. 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. Symbiotic theory
____ 130. 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. c. violates the right to equal protection.
b. does not violate substantive due process. d. does not violate the right to equal
protection.
____ 131. The actual effort exerted by the government to effect the exaction of what is due from the taxpayer is
known as
a. Assessment c. Payment
b. Levy d. Collection
____ 132. 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. c. identify who should collect the tax.
b. collect the tax levied under the law. d. determine who should be subject to tax.
____ 133. An example of a tax where the concept of progressivity finds application is the
a. income tax on individuals c. value-added tax on certain articles
b. excise tax on petroleum products d. amusement tax on boxing exhibitions
____ 134. 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 a taxpayer.
c. Yes. 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.
1001
Answer Section

MULTIPLE CHOICE

1. D
2. C
3. A
4. A
5. D
6. B
7. A
8. C
9. D
10. C
11. D
12. D
13. C
14. C
15. D
16. C
17. D
18. B
19. D
20. A
21. D
22. A
23. B
24. B
25. D
26. A
27. D
28. C
29. C
30. D
31. B
32. C
33. C
34. A
35. C
36. D
37. D
38. C
39. A
40. B
41. C
42. D
43. B
44. A
45. B
46. C
47. A
48. B
49. A
50. B
51. A
52. C
53. B
54. D
55. C
56. D
57. D
58. C
59. C
60. C
61. A
62. D
63. C
64. D
65. D
66. C
67. B
68. C
69. D
70. D
71. D
72. B
73. B
74. B
75. A
76. B
77. D
78. D
79. C
80. C
81. D
82. C
83. A
84. D
85. A
86. B
87. B
88. D
89. C
90. B
91. D
92. D
93. A
94. A
95. A
96. A
97. A
98. B
99. D
100. B
101. B
102. B
103. B
104. D
105. B
106. A
107. D
108. A
109. A
110. B
111. C
112. C
113. A
114. B
115. B
116. D
117. C
118. D
119. D
120. D
121. A
122. A
123. D
124. D
125. C
126. A
127. D
128. A
129. B
130. C
131. D
132. B
133. A
134. D