CONTROL NO.

: ______ Date:
______

CPA228 – INCOME taxation

PRELIM long quiz

Instructions: CHOOSE THE BEST ANSWER. Encircle the letter of your choice.
ERASURES/ALTERATIONS means wrong.

1. The process by which the sovereign raises income to defray the expenses of the
government is called

A. tariff.
B. tribute.
C. subsidy.
D. taxation.
E. none of the above.

2. One of the characteristics of internal revenue tax is that they are

A. penal in nature.
B. political in nature.
C. criminal in nature.
D. generally prospective in application.
E. none of the above.

3. A citizen of the Philippines who works abroad and whose employment requires him to
be physically present abroad most of the time during the taxable year is

A. exempt from the income tax.

B. taxable income from without the Philippines.
C. taxable on income from within the Philippines.
D. taxable on income within and without the Philippines.
E. none of the above.

4. A citizen of a foreign country is considered a non-resident alien engaged in business in

the Philippines if he stayed inside the Philippines

A. for 183 days.

B. for less than 183 days.
C. for less than 180 days.
D. for more than 180 days.
E. none of the above.
5. A demand of proprietorship:
 A. Tax
B. Toll
C. License fee
D. Special Assessment
E. None of the above

6. Which of the following has no power of taxation?

A. Cities
B. Barrios
C. Barangays
D. Provinces
E. None of the above

7. A citizen of the Philippines who works and derives income from abroad is a resident
citizen if he stayed outside the Philippines

A. for 183 days.

B. for less than 180 days.
C. for less than 183 days.
D. for more than 180 days.
E. none of the above.

8. All of the following, except one, are taxable on income within only.

A. Resident alien
B. Resident citizen
C. Nonresident alien
D. Nonresident citizen
E. None of the above

9. An example of a tax where the concept of progressivity finds application is the

A. income tax on individual.

B. excise tax on petroleum product.
C. value added tax on certain articles.
D. amusement tax on boxing exhibitions.
E. none of the above.

10. A non-resident alien is taxable on all income derived from sources

A. within the Philippines.

B. without the Philippines.
C. within and without the Philippines.
D. partly within and partly without the Philippines.
E. none of the above.
11. A resident citizen is taxable on all income derived from sources
 A. within the Philippine only.
B. without the Philippines only.
C. within and without the Philippines.
D. partly within and partly without the Philippines.
E. none of the above.

12. A tax imposed based on the number

A. income tax
B. specific tax
C. customs duties
D. ad valorem tax
E. none of the above

13. X is a mining operator. His mineral lands are not covered by any lease contract. The
tax X has to pay based on the actual value of the gross output or mineral products
extracted is

A. Royalties.
B. mining tax.
C. specific tax.
D. ad valorem tax.
E. none of the above.

14. Imposed based on religious obligation:

A. Tax
B. Toll
C. Tithe
D. Tribute
E. None of the above

15. In the absence of inherent and constitutional limitation, the power of tax is:

A. broad and penal.

B. unlimited and plenary.
C. unlimited and political.
D. comprehensive, unlimited and plenary.
E. none of the above.

16. In the absence of inherent and constitutional limitation, the power of tax is:

A. Unlimited
B. Regulatory
C. Comprehensive
D. Both A and C
17. It is also known as tax dodging
 A. tax evasion.
B. tax avoidance.
C. tax exemption.
D. transformation.
E. none of the above.

18. It refers to a fraudulent act of minimizing taxes.

A. Tax evasion
B. Tax avoidance
C. Double Taxation
D. Tax minimization
E. None of the above

19. Levied on lands:

A. Tax
B. Toll
C. License Fee
D. Special assessment
E. None of the above

20. License fee as distinguished from tax:

A. A revenue raising measure.

B. Limited to cover the cost of regulation.
C. Imposed in the exercise of taxing power.
D. Non-payment does not necessary render the business illegal.
E. None of the above.

21. 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 necessary render the business illegal.
E. None of the above.

22. Taxation is an inherent power because

A. of protection and benefit theory.

B. it is the life blood of the government.
C. it co-exists with the existence of the state.
D. it is exercised for the general welfare of the people.
E. none of the above.
23. Tax imposed by the national government and is effective within the entire jurisdiction
thereof.

A. Local tax
B. General tax
C. National tax
D. Proportional tax
E. None of the above

24. Tax that is imposed solely or specific purpose irrespective of whether revenue is
actually raised or not.

A. Specific tax
B. Revenue tax
C. Regulatory tax
D. Ad valorem tax
E. None of the above

25. The amount required is dictated by the needs of the government in:

A. Tax
B. Toll
C. License fee
D. All of the above
E. None of the above

26. The basic community tax of an individual is

A. direct tax.
B. national tax.
C. personal tax.
D. ad valorem tax.
E. none of the above.

27. The City of Binan, claiming that it can impose taxes under the Local Government
Code, imposed a tax on banks (in addition to the percentage tax on bank imposed in
the National Internal Revenue Code). The banks within the City of Binan objected for
the various reasons given below. Which would justify the objection of the banks?

A. Uniformity in taxation
B. The rule on double taxation
C. The power of taxation cannot be delegated
D. All of the above
E. None of the above
28. The following are the similarities of the inherent power of taxation, eminent domain,
and police power, except one
A. Affect all person or the public
B. Interfere with private property
C. Are legislative in implementation
D. Are necessary attribute of sovereignty
E. None of the above

29. The grant of immunity to particular persons or corporation or to persons or

corporations of a particular class from a tax which persons and corporations generally
within the same taxing district are obliged to pay.

A. Tax evasion
B. Tax amnesty
C. Tax avoidance
D. Tax exemption
E. None of the above

30. The only tax where non-payment of which will not result to imprisonment:
Question 1Select one:
A. Excise tax
B. Donor’s Tax
C. Personal Tax
D. Property Tax
E. None of the above

31. The place or authority that has the right to impose and collect taxes.

A. Territoriality
B. Transformation
C. Situs of taxation
D. International comity
E. None of the above

32. Value-added tax is an example of:

A. Regressive Tax
B. Graduated Tax
C. Progressive Tax
D. Proportional Tax
E. None of the above
33. The theory which most justifies the necessity of taxation.

A. Lifeblood theory
B. Ability to pay theory
C. Revenue purposes theory
D. Protection and benefits theory
E. None of the above

34. The power of the state or those to whom the power has been delegated to take private
property for public use upon paying to the owner a just compensation.

A. Police power
B. People power
C. Power of taxation
D. Power of eminent domain
E. None of the above

35. There can be no tax unless there is a law imposing the tax is consistent with the
doctrine or principle of:

A. Due process of law

B. Uniformity in taxation
C. Non-delegation of the power to tax
D. 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.

36. Which in theory of 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
B. Lifeblood theory
C. Sumptuary theory
D. Symbiotic doctrine
E. None of the above

37. Which of the following is a non-resident alien?

A. An alien who has acquired residence in the Philippines.

B. An alien who lives in the Philippines with a definite intention as to his stay.
C. An alien who comes to the Philippines for a definite purpose which in its nature
may be promptly accomplish.
D. An alien who comes to the Philippines for a definite purpose which in its nature
would require an extended stay.
E. None of the above.
38. Which of the following is not an essential characteristics of tax?

A. It is payable in money
B. It is a regular payment
C. It is unlimited as to amount
D. It is proportionate in character
E. None of the above

39. Which of the following is wrong?

A. Custom duty is a tax

B. A special assessment is a tax
C. A tax is demand of sovereignty
D. A toll is a demand of ownership
E. None of the above

40. Which of the following statement is false?

A. A law that imposes a tax on movie goers in a city where the revenues will be used
to improve flood control infrastructure in the low areas in the city is constitutional.
B. A law imposes a tax on sugar mills and centrals where the revenue collected will
be used to improve the sugar industry is a tax for public purpose and the law is
constitutional.
C. A law that gives tax privileges to manufacturers in defined industrial areas, which
are not enjoyed by other manufacturer elsewhere, is not discriminatory and is
constitutional.
D. All of the above.
E. None of the above.

41. Which of the following statement is not correct?

A. The power of taxation is shared by the legislative and executive department of

government.
B. An inherent limitation of taxation may be disregarded by the application of
constitutional limitation.
C. The property of an educational institution operated by a religious order is exempt
from property tax, but its income is subject to income tax.
D. 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.
E. None of the above.
42. Which of the following statement is not correct?

A. An alien individual, whether a resident or not of the Philippines, is taxable only on

income derived from sources within the Philippines.
B. A non-resident citizen who is not engaged in business in the Philippines is treated
as a non-resident alien who is not engaged in business in the Philippines.
C. An individual citizen of the Philippines who is working and deriving income from
abroad as an overseas contract worker is taxable only on income from sources
within the Philippines.
D. A seaman who is a citizen of the Philippines and who receives compensation for
services rendered abroad as a member of the complement of a vessel engaged
exclusively in international trade shall be treated as a non-resident citizen.
E. None of the above.

43. Which statement refers to police power as distinguished from taxation?

A. The amount imposed has no limit.

B. It involves the taking of property by the government.
C. It can only be imposed on specific property or properties.
D. The amount imposed depends on whether the activity is useful or not.
E. None of the above.

44. Who is not a Philippine income taxpayer?

A. A resident of the Philippines with income from within the Philippines only.
B. A non-citizen of the Philippines with income from within the Philippines only.
C. A non-resident citizen of the Philippines with income from outside the Philippines.
D. A resident citizen of the Philippines with income from within and outside the
Philippines.
E. None of the above.

45. Which of the following is not one of the canons of a sound tax system?

A. Equality
B. Certainty
C. Convenience
D. Quantifiability
E. None of the above.

46. The requirement of equality or theoretical justice is complied with if the tax is

A. specific.
B. regressive.
C. progressive.
D. ad valorem.
E. none of the above.

47. The power of taxation can only be exercised by the lawmaking body.
 A. Inherent in sovereignty
B. Legislative in character
C. Equality or theoretical justice
D. Subject to constitutional and inherent limitations
E. None of the above

48. One of the following is not inherent limitations on the exercise of the power of
Taxation.

A. Territoriality
B. Double taxation
C. International comity
D. Non-delegation of the legislative power to tax
E. None of the above

49. Treating the persons who are similarity situated in the same manner.

A. Due process of law

B. Equality of taxation
C. Uniformity of taxation
D. Non-delegation of legislative power
E. None of the above

50. BONUS. 11 POINTS.

A. Yes, please.
B. No, thank you.

GOOD LUCK & GOD BLESS