INCOME TAX QUIZ-1

c. To reduce excessive inequalities of wealth

1) The State, having sovereignty can enforce
d. To raise revenue for governmental needs.
contributions (tax) upon its citizens even without a
specific provision in the Constitution authorizing it.
6) The official action of an officer authorized by law in
Which of the following will justify the foregoing
ascertaining the amount of tax due under the law
statement? [Statement 1: It is so because the State
from a taxpayer is
has the supreme power to command and enforce
a. Assessment
obedience to its will from the people within its
jurisdiction.] [Statement 2: Any provision in the b. Delinquency
Constitution regarding taxation does not create c. Deficiency
rights for the sovereign power to tax but it merely d. Micronutrient Deficiency
constitutes limitations upon the supremacy of tax
power.] 7) Which of the following is not correct?
a. Only statement 1 is correct a. Only national government exercises the
b. Only statement 2 is correct inherent power of taxation.
c. Both statements are correct b. Local government units could exercise the
d. Both statements are incorrect power of taxation through legislated delegation.
c. National legislation is exercised by Congress.
2) The following statements correctly described the d. Interpretation of Tax Laws is done by the
power of the State to tax, except* Legislative branch of the government.
a. It is a power inherent in every sovereign state to
impose a charge or burden upon persons, 8) One of the following is not a characteristic or an
properties or rights to raise revenues for the use element of tax.
and support of the government and to enable it a. It is levied by the legislature.
to discharge its functions. b. It is payable in money or in kind
b. The State can exercise the power of taxation c. It is proportionate in character
only if it is expressly mentioned in the d. It is an enforced contribution
Constitution.
c. It passes a legislative undertaking through the 9) The following constitute double taxation, except
enactment of law by the Congress which will be one.
implemented by the Executive Branch of the a. Both taxes are imposed in the same amount.
government through its Bureau of Internal b. Both taxes are levied for the same purpose.
Revenue to raise revenue for the inhabitants in c. Both taxes are imposed by the same taxing
order to pay the necessary expenses of the authority.
government. d. Both taxes are imposed upon the same person.
d. It is a way of collecting and apportioning the
cost of government among those who are 10) [Statement 1: Inherent limitations are the natural
privileged to enjoy its benefits. restrictions to safeguard and ensure that the power
of taxation shall be exercised by the government
only for the betterment of the people whose interest
3) The existence of the government is a necessity and
should be served, enhanced and protected.]
the state has the right to compel all individuals and
[Statement 2: Constitutional limitations are
property within its limits to contribute.
provisions of the fundamental law of the land that
a. Basis of taxation
restrict the supreme, plenary, unlimited and
b. Situs of taxation
comprehensive exercise by the state of the inherent
c. Scope of taxation
power to tax.]
d. Theory of taxation a. Only statement 1 is correct
b. Only statement 2 is correct
4) The reciprocal duties of support and protection c. Both statements are correct
between the people and the government. *
d. Both statements are incorrect
a. Basis of taxation
11) Which of the following is incorrect description of
b. Situs of taxation
taxation?
c. Scope of taxation a. Legislative and inherent for the existence of the
d. Theory of taxation government
5) The principal purpose of taxation is: b. Necessary and for public purpose
a. To encourage the growth of home industries
c. Supreme and absolute power of the State
through the proper use of tax incentives.
d. The strongest of all inherent powers of the State
b. To implement the police power of the state.
12) Which limitation on the power of taxation inherently d. Answer not given.
implied that the State's primary concern is for the
common good of the people? 20) The use of illegal or fraudulent means to avoid or
a. Equality in taxation defeat the payment of tax
b. Equal protection of law a. Exemption
c. Due process of law b. Shifting
d. For public purpose c. Avoidance
d. Evasion
13) These are the restrictions imposed by the
Constitution.
a. Inherent limitations
b. Constitutional limitations
c. Basic principles of sound tax system
d. None of the choices

14) 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 law
b. Reciprocity
c. International comity
d. International inhibition

15) No person shall be imprisoned for non-payment of

this.
a. Property tax
b. Excise tax
c. Poll tax
d. Income tax

16) It literally means "place of taxation" the country that

has the power and jurisdiction to levy and collect the
tax.
a. Basis of taxation
b. Situs of taxation
c. Scope of taxation
d. Theory of taxation

17) Tax which is demanded from the persons whom the

law intends to or desires to pay it.
a. Direct
b. Indirect
c. Excise
d. Income

18) JJ is a mining operator. The tax he has to pay is

based on the actual value of the gross output or
mineral products extracted is
a. Mining tax
b. Royalties
c. Rental
d. Ad valorem tax

19) The distinction of a tax from permit or license fee is

that a tax is
a. Imposed for regulation
b. One which involves exercise of police power
c. One in which there is generally no limit on the
amount that may be imposed