Gen Principles of Taxation Reviewer Exam 2023 Questions
and Answers with complete solution
The process by which the sovereign raises income to defray the expenses of the
government is called
Taxation
One of the characteristics of internal revenue taxes is that they are:
A. Criminal in nature
B. Penal in nature
C. Political in nature
D. Generally prospective in application
D. Generally prospective in application
In case of conflict between tax laws and generally accepted accounting principles
A. Both tax laws and GAAP shall be enforced
B. GAAP shall prevail over tax laws
C. Tax laws shall prevail over GAAP
D. The issue shall be resolved by court
C. Tax laws shall prevail over GAAP
Which of the following has no power of taxation?
A. Provinces
B. Cities
C. Barangays
D. Barrios
D. Barrios
Schedular system of income taxation means
A. All types of income are added together to arrive at gross income
B. Separate graduated rates are imposed on different types of income
C. Capital gains are excluded in determining gross income
D. Compensation income and business/professional income are added together in
arriving at gross income
B. Separate graduated rates are imposed on different types of income
Which of the following statements is true?
A. Opinions of legal luminaries are sources of tax laws.
B. The constitution brants exemption from all kinds of taxes to religious and charitable
institutions.
C. Because the power to tax is unlimited, comprehensive, plenary and supreme, the
power to tax can reach over into any jurisdiction to seize upon person or property.
D. The benefits-protection theory is the source of the doctrine of symbiotic relationship.
D. The benefits-protection theory is the source of the doctrine of symbiotic relationship
, One of the following is a primary purpose of taxation
A. Protection of local industries against foreign competition through imposition of high
customs duties on imported goods.
B. Reduction of inequalities in wealth and income by imposing progressively higher tax
rates
C. To secure revenue for the support of the government
D. Strengthening of anemic enterprises by giving tax exemptions
C. To secure revenue for the support of the government
Which of the following is not a secondary purpose of taxation?
A. To serve as key instrument of social control.
B. To effect a more equitable distribution of wealth among people
C. To achieve social and economic stability
D. To raise revenue to defray the necessary expenses of the government.
D. To raise revenue to defray the necessary expenses of the government
Which is the best answer? A tax reform at any given time underscores the fact that
A. Taxation is an inherent power of the state.
B. Taxation is essentially a legislative power.
C. Taxation is a power that is very broad.
D. The state can and should adopt progressive taxation
C. Taxation is a power that is very broad.
The legislative body can impose a tax at any amount underscores the legal truism that
taxation is
A. An inherent power of the tax
B. A very broad power of the state
C. Essentially a legislative power
D. For public purpose
B. A very broad power of the state
All of the following, except one, are canons of a sound tax system
A. Fiscal adequacy
B. Theoretical justice
C. Administrative feasibility
D. Inherent sovereignty
D. Inherent sovereignty
Under this basic principle of sound tax system, the government should not incur a deficit
A. Theoretical justice
B. Administrative feasibility
C. Fiscal adequacy
D. None of the above
C. Fiscal adequacy
and Answers with complete solution
The process by which the sovereign raises income to defray the expenses of the
government is called
Taxation
One of the characteristics of internal revenue taxes is that they are:
A. Criminal in nature
B. Penal in nature
C. Political in nature
D. Generally prospective in application
D. Generally prospective in application
In case of conflict between tax laws and generally accepted accounting principles
A. Both tax laws and GAAP shall be enforced
B. GAAP shall prevail over tax laws
C. Tax laws shall prevail over GAAP
D. The issue shall be resolved by court
C. Tax laws shall prevail over GAAP
Which of the following has no power of taxation?
A. Provinces
B. Cities
C. Barangays
D. Barrios
D. Barrios
Schedular system of income taxation means
A. All types of income are added together to arrive at gross income
B. Separate graduated rates are imposed on different types of income
C. Capital gains are excluded in determining gross income
D. Compensation income and business/professional income are added together in
arriving at gross income
B. Separate graduated rates are imposed on different types of income
Which of the following statements is true?
A. Opinions of legal luminaries are sources of tax laws.
B. The constitution brants exemption from all kinds of taxes to religious and charitable
institutions.
C. Because the power to tax is unlimited, comprehensive, plenary and supreme, the
power to tax can reach over into any jurisdiction to seize upon person or property.
D. The benefits-protection theory is the source of the doctrine of symbiotic relationship.
D. The benefits-protection theory is the source of the doctrine of symbiotic relationship
, One of the following is a primary purpose of taxation
A. Protection of local industries against foreign competition through imposition of high
customs duties on imported goods.
B. Reduction of inequalities in wealth and income by imposing progressively higher tax
rates
C. To secure revenue for the support of the government
D. Strengthening of anemic enterprises by giving tax exemptions
C. To secure revenue for the support of the government
Which of the following is not a secondary purpose of taxation?
A. To serve as key instrument of social control.
B. To effect a more equitable distribution of wealth among people
C. To achieve social and economic stability
D. To raise revenue to defray the necessary expenses of the government.
D. To raise revenue to defray the necessary expenses of the government
Which is the best answer? A tax reform at any given time underscores the fact that
A. Taxation is an inherent power of the state.
B. Taxation is essentially a legislative power.
C. Taxation is a power that is very broad.
D. The state can and should adopt progressive taxation
C. Taxation is a power that is very broad.
The legislative body can impose a tax at any amount underscores the legal truism that
taxation is
A. An inherent power of the tax
B. A very broad power of the state
C. Essentially a legislative power
D. For public purpose
B. A very broad power of the state
All of the following, except one, are canons of a sound tax system
A. Fiscal adequacy
B. Theoretical justice
C. Administrative feasibility
D. Inherent sovereignty
D. Inherent sovereignty
Under this basic principle of sound tax system, the government should not incur a deficit
A. Theoretical justice
B. Administrative feasibility
C. Fiscal adequacy
D. None of the above
C. Fiscal adequacy
