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1. All are taxes imposed in NIRC, Except: a. Income tax c. Percentage tax b. VAT d. Travel Tax 2. This is the transfer of tax burden by the person on whom it is imposed by law to another person who shall bear it; a. Tax avoidance c. Value added tax b. Transformation d. Tax shifting 3. Which is not an essential characteristic of tax? a. It is a regular payment b. Its unlimited as to amount c. It is proportionate in character d. It is payable in money 4. A basic principle of taxation, that “Taxes must be based on the taxpayer’s ability to pay” is called a. Ability to pay theory c. Equality in taxation b. Theoritical Justice d. Equity in taxation 5. The basic community tax of 5.00 of an individual is: a. A personal tax c. A national tax b. A direct tax d. An ad valorem tax 6. One of the characteristics of a tax is that: a. It is generally based on contract b. It is generally payable in money c. It is generally assignable; d. None of the above 7. 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 8. Which statement refers to police power as distinguished from taxation?

Sample Exam Questionnaire and Answer in Taxation

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Page 1: Sample Exam Questionnaire and Answer in Taxation

1. All are taxes imposed in NIRC, Except:a. Income tax c. Percentage taxb. VAT d. Travel Tax

2. This is the transfer of tax burden by the person on whom it is imposed by law to another person who shall bear it;a. Tax avoidance c. Value added taxb. Transformation d. Tax shifting

3. Which is not an essential characteristic of tax?a. It is a regular paymentb. Its unlimited as to amountc. It is proportionate in characterd. It is payable in money

4. A basic principle of taxation, that “Taxes must be based on the taxpayer’s ability to pay” is calleda. Ability to pay theory c. Equality in taxationb. Theoritical Justice d. Equity in taxation

5. The basic community tax of 5.00 of an individual is:a. A personal tax c. A national taxb. A direct tax d. An ad valorem tax

6. One of the characteristics of a tax is that:a. It is generally based on contractb. It is generally payable in moneyc. It is generally assignable;d. None of the above

7. Tax as distinguished from license fee:a. non-payment does not necessarily render the business

illegalb. a regulatory measurec. imposed in the exercise of police powerd. limited to cover cost of regulation

8. Which statement refers to police power as distinguished from taxation?a. it can only be imposed on specific properly or propertiesb. the amount imposed depends on whether the activity is

useful or notc. it involves the taking of property by the governmentd. the amount imposed has no limit

9. The distinction of a tax from permit or license fee is that a tax is:a. imposed for regulation

Page 2: Sample Exam Questionnaire and Answer in Taxation

b. one which involves an exercise of police powerc. one in which there is generally no limit on the amount

that may be imposedd. answer not given

10.Which of the following is not an example of excise tax:a. transfer taxb. sales taxc. real property taxd. income tax

11.Value- added tax is an example of:a. graduated taxb. progressive taxc. regressive taxd. proportional tax

12.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 law making.

a. false; falseb. false; truec. true; trued. true; falsee.

13.The proportional contribution by persons and property levied by the law-making body of the State by virtue of its sovereignty for the support of the government and all public needs is referred to as:a. taxesb. special assessmentc. license feed. answer not given

14.Tax of a fixed proportion of the value of the property with respect to which the tax is assessed and requires the intervention of assessors or appraisers to estimate the value of such property before the amount due from each taxpayer can be determined is known as:a. specificb. ad valoremc. special or regulatoryd. answer not given

15.Which of the following has no power of taxation?a. provincesb. cities

Page 3: Sample Exam Questionnaire and Answer in Taxation

c. barangaysd. barrios

16.Which of the following statement is correct?a. an inherent limitation of taxation may be disregarded by the

application of a constitutional limitationb. the property of an educational institution operated by a

religious order is exempt from property tax, but its income is subject to income tax

c. the prohibition of delegation by the state of the power of taxation will still allow the Bureau of Internal Revenue to modify the rules on time for filing of returns and payment of taxes

d. the power of taxation is shared by the legislative and executive departments of government

17.Which of the following has no power of taxation?a. provincesb. citiesc. barangaysd. barrios

18.A tax must be imposed for a public purpose. Which of the following is not a public purpose?a. national defenseb. public educationc. improvement of the sugar industryd. none of the above

19.The basic community tax of P 5.00 of an individual is:a. a personal taxb. a direct taxc. a national taxd. an ad valorem tax

Page 4: Sample Exam Questionnaire and Answer in Taxation

20.In 2009, a person was given by a special law the privilege to operate a public utility (franchise), in consideration of which, he was required by that law to pay a franchise tax. This franchise can be amended by:a. an amendment of that special law onlyb. an amendment of that special law or a law of general

applicationc. an amendment of a revenue regulationd. none of the above.

21.Which statement is wrong? A Revenue bill:a. must originate from the House of Representative and on which

same bill the Senate may propose amendmentsb. may originate from the Senate and on which same bill the

House of Representatives may propose amendmentsc. may have a House version and a Senate version approved

separately, and then consolidated, with both houses approving the consolidated version

d. may be recommended by the President to Congress

22.The state has complete discretion on the amount to be imposed, after distinguishing between a useful and a non-useful activity.a. taxb. license feec. tolld. customs duty

23.A tax on business is:

a. direct taxb. indirect taxc. property taxd. none of the above

24.Which is the correct and best statement? A tax reform at any given time underscores the fact that:a. taxation is an inherent power of the stateb. taxation is essentially a legislative powerc. taxation is a power that is very broadd. the state can and should adopt progressive taxation

25.Which statement is wrong?a. a tax is a demand of sovereignty b. a toll is a demand of ownershipc. a special assessment is a taxd. custom duty is a tax

Page 5: Sample Exam Questionnaire and Answer in Taxation

26.Which statement gives the correct answer? That a feasibility study needs or need not look into the taxes of different political subdivision of government which may be alternative sites of the business is because:a. provinces, cities and municipalities must have uniform taxes

between and among themselvesb. the local taxes of one political subdivision need not be uniform

with the local taxes of another political subdivisionc. businesses that are subject to national business taxes are

exempt from local business taxesd. local business taxes may be credited against national business

taxes

27.A fundamental rule in taxation is that the property of one country may not be taxed by another country. This is known as:a. international lawb. international comity or courtesyc. reciprocityd. international inhibition

28.In this power of the state, the person who is parting with his money/property is presumed to receive a benefit:a. taxation b. police powerc. eminent domaind. none of the above

29.In all, except one, there can be a classification of the subject matter being required to shoulder the burden. Which is the exception?a. tax b. license feec. tolld. eminent domain

30.There can be no tax unless there is a law imposing the tax is consistent with the doctrine or principle of:a. uniformity in taxationb. due process of lawc. non-delegation of the power to taxd. the power of taxation is very broad and the only limitation is

the sense of responsibility of the members of the legislature to their constituents.