Fundamental Principles of Taxation Exam Latest Test Questions With Verified Solutions
D - correct answer Taxation as distinguished from police power and power of eminent domain.
A. Property is taken to promote the general welfare.
B. Maybe exercised only by the government.
C. Operates upon the whole citizenry.
D. There is generally no limit as to the amount that may be imposed.
D - correct answer The following are constitutional limitations, except
A. No imprisonment for non-payment of poll tax.
B. Non-impairment of the obligation of contracts.
C. Rule of uniformity and equity in taxation.
D. Exemption from income tax of charitable institutions, cemeteries, churches, personage, or
convents appurtenant thereto, as well as all lands, buildings, and improvements actually,
directly and exclusively used for religious, charitable, and educational purposes.
C - correct answer Which of the following statements is correct?
A. The President is authorized to increase or decrease national internal revenue tax rates.
B. One of the nature of taxation is the reciprocal duties of protection and support between the
state and subjects thereof.
C. Every sovereign government has the inherent power to tax.
D. Income tax in an indirect tax.
D - correct answer A tax must be imposed for public purpose. Which of the following is not a
public purpose?
A. National defense
B. Public education
C. Improvement of the sugar and coconut industries.
D. Improvement of a subdivision road.
A - correct answer Which is not an essential characteristic of a tax?
A. It is unlimited as to amount.
B. It is payable in money.
C. It is proportionate in character.
, Fundamental Principles of Taxation Exam Latest Test Questions With Verified Solutions
D. It is an enforced contribution.
B - correct answer Special assessment is an enforced proportional contribution from owners of
land especially benefited by public improvement. Which one of the following is not considered
as one of its characteristics?
A. It is levied on land.
B. It is based on the government's need of money to support its legitimate objectives.
C. It is not a personal liability of the persons assessed.
D. It is based solely on the benefit derived by the owners of the land.
B - correct answer It is the privilege of not being imposed a financial obligation to which others
are subject.
A. Tax incentive
B. Tax exemption
C. Tax amnesty
D. Tax credit
D - correct answer As to scope of the legislative power to tax, which is not correct?
A. Where there are no constitutional restrictions, and provided the subjects are within the
territorial jurisdiction of the state,
Congress has unlimited discretion as to the persons, property or occupations to be taxed.
B. In the absence of any constitutional prohibition, Congress has the right to levy a tax of any
amount it sees fit.
C. The discretion of Congress in imposing taxes extends to the mode, method or kind of tax,
unless restricted by the constitution.
D. The sole arbiter of the purpose or which taxes shall be levied is Congress, provided the
purpose is public and the courts may
not review the levy of the tax to determine whether or not the purpose is public.
A - correct answer Which of the following is a nature of taxation?
A. The power is granted by legislative action.
B. It is essentially an administrative function.
C. It is generally payable in money.
D - correct answer Taxation as distinguished from police power and power of eminent domain.
A. Property is taken to promote the general welfare.
B. Maybe exercised only by the government.
C. Operates upon the whole citizenry.
D. There is generally no limit as to the amount that may be imposed.
D - correct answer The following are constitutional limitations, except
A. No imprisonment for non-payment of poll tax.
B. Non-impairment of the obligation of contracts.
C. Rule of uniformity and equity in taxation.
D. Exemption from income tax of charitable institutions, cemeteries, churches, personage, or
convents appurtenant thereto, as well as all lands, buildings, and improvements actually,
directly and exclusively used for religious, charitable, and educational purposes.
C - correct answer Which of the following statements is correct?
A. The President is authorized to increase or decrease national internal revenue tax rates.
B. One of the nature of taxation is the reciprocal duties of protection and support between the
state and subjects thereof.
C. Every sovereign government has the inherent power to tax.
D. Income tax in an indirect tax.
D - correct answer A tax must be imposed for public purpose. Which of the following is not a
public purpose?
A. National defense
B. Public education
C. Improvement of the sugar and coconut industries.
D. Improvement of a subdivision road.
A - correct answer Which is not an essential characteristic of a tax?
A. It is unlimited as to amount.
B. It is payable in money.
C. It is proportionate in character.
, Fundamental Principles of Taxation Exam Latest Test Questions With Verified Solutions
D. It is an enforced contribution.
B - correct answer Special assessment is an enforced proportional contribution from owners of
land especially benefited by public improvement. Which one of the following is not considered
as one of its characteristics?
A. It is levied on land.
B. It is based on the government's need of money to support its legitimate objectives.
C. It is not a personal liability of the persons assessed.
D. It is based solely on the benefit derived by the owners of the land.
B - correct answer It is the privilege of not being imposed a financial obligation to which others
are subject.
A. Tax incentive
B. Tax exemption
C. Tax amnesty
D. Tax credit
D - correct answer As to scope of the legislative power to tax, which is not correct?
A. Where there are no constitutional restrictions, and provided the subjects are within the
territorial jurisdiction of the state,
Congress has unlimited discretion as to the persons, property or occupations to be taxed.
B. In the absence of any constitutional prohibition, Congress has the right to levy a tax of any
amount it sees fit.
C. The discretion of Congress in imposing taxes extends to the mode, method or kind of tax,
unless restricted by the constitution.
D. The sole arbiter of the purpose or which taxes shall be levied is Congress, provided the
purpose is public and the courts may
not review the levy of the tax to determine whether or not the purpose is public.
A - correct answer Which of the following is a nature of taxation?
A. The power is granted by legislative action.
B. It is essentially an administrative function.
C. It is generally payable in money.
