BTL 11: INCOME TAXATION
EXAM Q & A
INCOME TAXATION
QUIZ NO.
1
1. These statements are presented to you for evaluation:
Statement I – A person granted tax amnesty shall be immune from civil, criminal and
administrative penalties arising from the failure to pay the tax during the period covered by
the amnesty.
Statement II – Revenue or tax laws are not political in nature.
In your evaluation of the foregoing statements:
a. Both statements are true.
b. Both statements are false.
c. Only Statement I is true.
d. Only Statement II is true.
Answer: a
2. The Government issued bonds to finance its infrastructure projects. The terms of the bond
issue provide that interest income of 6% per annum on the bonds shall be tax-exempt if
the bonds were to be held up to the end of five years. Induced by the tax exemption, Mr.
Suave purchased bonds worth P10,000,000.00. Subsequently and before the maturity date
(end of five years) of the bonds, Congress passed a law revoking the tax exemption on the
interest income on the bonds. The law passed by Congress is invalid because it violates
the:
a. due process clause.
b. non-impairment clause.
c. uniformity clause.
d. equal protection clause.
Answer: b
, BTL 11: INCOME TAXATION
EXAM Q & A
3. A tax law should not provide for arbitrary and oppressive methods of assessing and
collecting a tax and that the taxpayer must be afforded the opportunity to be heard before
judgment depriving him of his property is rendered. This is referred to in the Constitution
as the:
a. due process clause.
b. equal protection clause.
c. non-impairment clause.
d. non-interference clause.
Answer: a
4. It refers to the power of the State to raise revenues to defray the expenses of the
Government.
a. Taxation.
b. Eminent domain.
c. Police power.
d. Legislative power.
Answer: a
5. ABC Educational Foundation, Inc., a non-stock non-profit educational institution,
constructed a building on its lot. Half of the building is used for its classrooms, while the
other half is leased to McRonald Restaurant. From which of the following taxes is ABC
exempt?
a. Income tax on tuition fees.
b. Income tax on the rent income.
, BTL 11: INCOME TAXATION
EXAM Q & A
c. Real property tax on the whole lot and building.
d. Building permit fee for the construction of the building.
Answer: a
6. These statements are presented to you for evaluation:
Statement I – There is a constitutional prohibition against the government taxing itself.
Statement II – The property of a foreign state may be taxed by another state.
In your evaluation of the foregoing statements:
a. Both statements are true.
b. Both statements are false.
c. Only Statement I is true.
d. Only Statement II is
true Answer: b
7. These statements are presented to you for evaluation:
Statement I – Tax exemptions are to be strictly construed against the taxpayer and in favor
of the government.
Statement II – Laws granting tax exemptions require the vote of the majority all the
members of Congress.
In your evaluation of the foregoing statements:
a. Both statements are true.
b. Both statements are false.
c. Only Statement I is true.
d. Only Statement II is true.
Answer: a
8. Tax laws should be capable of convenient, just and efficient administration. This is known
as:
a. Administrative feasibility.
EXAM Q & A
INCOME TAXATION
QUIZ NO.
1
1. These statements are presented to you for evaluation:
Statement I – A person granted tax amnesty shall be immune from civil, criminal and
administrative penalties arising from the failure to pay the tax during the period covered by
the amnesty.
Statement II – Revenue or tax laws are not political in nature.
In your evaluation of the foregoing statements:
a. Both statements are true.
b. Both statements are false.
c. Only Statement I is true.
d. Only Statement II is true.
Answer: a
2. The Government issued bonds to finance its infrastructure projects. The terms of the bond
issue provide that interest income of 6% per annum on the bonds shall be tax-exempt if
the bonds were to be held up to the end of five years. Induced by the tax exemption, Mr.
Suave purchased bonds worth P10,000,000.00. Subsequently and before the maturity date
(end of five years) of the bonds, Congress passed a law revoking the tax exemption on the
interest income on the bonds. The law passed by Congress is invalid because it violates
the:
a. due process clause.
b. non-impairment clause.
c. uniformity clause.
d. equal protection clause.
Answer: b
, BTL 11: INCOME TAXATION
EXAM Q & A
3. A tax law should not provide for arbitrary and oppressive methods of assessing and
collecting a tax and that the taxpayer must be afforded the opportunity to be heard before
judgment depriving him of his property is rendered. This is referred to in the Constitution
as the:
a. due process clause.
b. equal protection clause.
c. non-impairment clause.
d. non-interference clause.
Answer: a
4. It refers to the power of the State to raise revenues to defray the expenses of the
Government.
a. Taxation.
b. Eminent domain.
c. Police power.
d. Legislative power.
Answer: a
5. ABC Educational Foundation, Inc., a non-stock non-profit educational institution,
constructed a building on its lot. Half of the building is used for its classrooms, while the
other half is leased to McRonald Restaurant. From which of the following taxes is ABC
exempt?
a. Income tax on tuition fees.
b. Income tax on the rent income.
, BTL 11: INCOME TAXATION
EXAM Q & A
c. Real property tax on the whole lot and building.
d. Building permit fee for the construction of the building.
Answer: a
6. These statements are presented to you for evaluation:
Statement I – There is a constitutional prohibition against the government taxing itself.
Statement II – The property of a foreign state may be taxed by another state.
In your evaluation of the foregoing statements:
a. Both statements are true.
b. Both statements are false.
c. Only Statement I is true.
d. Only Statement II is
true Answer: b
7. These statements are presented to you for evaluation:
Statement I – Tax exemptions are to be strictly construed against the taxpayer and in favor
of the government.
Statement II – Laws granting tax exemptions require the vote of the majority all the
members of Congress.
In your evaluation of the foregoing statements:
a. Both statements are true.
b. Both statements are false.
c. Only Statement I is true.
d. Only Statement II is true.
Answer: a
8. Tax laws should be capable of convenient, just and efficient administration. This is known
as:
a. Administrative feasibility.
