Multiple Choice C1-C4 Taxation Exam with complete solution

Multiple Choice C1-C4 Taxation Exam with complete
solution
1. Which of the Following defines the country's tax Policy?
a. Philippine Constitution
b. National Internal Revenue Law
c. Pari Materia Principle
d. Tax Transformation
B. National Internal Revenue Law
2. Taxation co-exist with the four elements of the state which includes all, except:
a. Government
b. Property
c. Sovereignty
d. Territory
B. Property
3. Which of the following statements is not correct?
a. The government automatically possesses the power to collect taxes from its
inhabitants
b. The government can enforce contribution upon its citizen only when the Constitution
grants it.
c. Taxation power exists inseparably with the state.
d. The state has the supreme power to command and enforce contribution from people
with its jurisdiction
b. The government can enforce contribution upon its citizen only when the Constitution
grants it.
4. Which of the following statements is/are correct?
i. Taxation is a process.
ii. Enactment of Tax Laws is part of the taxation process
iii. The Constitution expressly conferred to the power of Taxation to the President of the
Philippines.
iv. Taxation requires voluntary contribution from inhabitant to support the government.
a. i, ii, iii, and iv
b. i, ii and iii only
c. i and ii only
d. i only
c. i and ii only
5. Which of the following is/are natural qualities of Taxation Power?
i. An inherent power
ii. Essentially an executive function
iii. An absolute Power
iv. Territorial in operation
a. i and iv only
b. ii and iii only
c. i and ii only
d. i only

, a. i and iv only
6. Which of the following statement is not correct?
a. Only the national government exercises the inherent power of taxation.
b. The power to tax by the local government units is a delegated power granted by the
Constitution and other special laws
c. National legislation is exercised by the Congress
d. Interpretation of Tax Laws is done by the Legislative branch of the government
d. Interpretation of Tax Laws is done by the Legislative branch of the government
7. Which of the following statements is not correct?
a. Collections from taxes are public money
b. Appropriation of taxes for the common good of the people is valid
c. Construction of private road from the taxes is a valid appropriation
d. Allocation of taxes for the benefit of greater portion of population is considered for
public purposes
c. Construction of private road from the taxes is a valid appropriation
8. All of the following statements are correct except one
a. Taxation power is an absolute power
b. Taxation power is the strongest of all inherent portion of the government
c. Tax laws must not violate Constitutional restrictions.
d. Exercise of Taxation power is subject to restrictions
a. Taxation power is an absolute power
9. One of the following is not among the basic justification for taxation
a. Taxation is based on necessity
b. Taxation is the lifeblood of the government
c. Taxation is the bread and butter of the government
d. Taxation is a voluntary contribution for the benefits received.
d. Taxation is a voluntary contribution for the benefits received.
10. Which of the following could be an object of taxation?
i. Person
ii. Tangible property
iii. Intangible property
iv. Rights
a. i and ii
b. i, ii and iii
c. i and iv
d. i ii , iii and iv
d. i ii , iii and iv
11. These refer to the rules or orders having force of law issued by the executive branch
of the government to ensure uniform application of the tax law
a. Revenue regulations
b. BIR rulings
c. Memorandum Orders
d. Local Tax ordinances
a. Revenue regulations
12. Tax administration is a system involving enforcement of taxes through the use of
a. Tax legislation