Income Taxation Chap 1 Part 1

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What is the general rule for construing tax laws when they are clear?

Applied in their literal import (correct)

Applied strictly against the taxpayer

Applied ambiguously

Applied liberally in favor of the taxpayer

When there is doubt or ambiguity in a tax law, who is it construed strictly against?

The taxpayer

The tax authority

The judiciary

The Government (correct)

Under what circumstances can a tax law be construed strictly against the taxpayer and liberally in favor of the government?

When the law grants exemption expressly (correct)

When there is clear legislative intent

When there are special taxes affecting specific classes

When a property is held in private ownership

What must a taxpayer do in relation to tax exemptions according to the text?

Establish and prove the exemptions Signup and view all the answers

Which entities are traditional exemptees for tax purposes?

Religious and charitable institutions Signup and view all the answers

In case of ambiguity, what is the general rule for construing tax laws relating to special taxes affecting specific classes?

Liberally in favor of those affected Signup and view all the answers

When can a tax law be construed strictly against the taxpayer in favor of government entities?

In favor of political subdivisions Signup and view all the answers

Who benefits from a liberal interpretation of tax exemption laws?

The government entities Signup and view all the answers

What is the key difference when construing tax laws involving religious institutions?

Liberal interpretation applied to religious institutions Signup and view all the answers

How should taxpayers approach tax exemptions based on personal ownership?

Prove eligibility as per legal requirements Signup and view all the answers

What is the main purpose of taxation?

Raise revenue Signup and view all the answers

What is the limit on the amount of exaction in police power?

Limited to the cost of regulations and issuance of license or surveillance fees Signup and view all the answers

What benefit does a property owner receive in eminent domain cases?

Direct monetary benefit equivalent to the fair market value Signup and view all the answers

How are contracts treated concerning impairment by taxation and other inherent powers?

Contracts MAY be impaired depending on the situation Signup and view all the answers

Who exercises the power of police power according to the text?

Only by the government Signup and view all the answers

What happens to taxes collected in relation to transfer of property rights?

Taxes become part of the public funds Signup and view all the answers

What is the scope of taxation according to the text?

All persons, property and excises Signup and view all the answers

Who can exercise eminent domain powers as per the text?

(1) Government or its subdivisions OR (2) Public service companies or public utilities granted with such power. Signup and view all the answers

What distinguishes police power from eminent domain in terms of benefits received?

No direct benefit; only general benefit of protection for police power while eminent domain provides direct benefit. Signup and view all the answers

What is a significant difference between taxation and police power concerning their impact on individuals?

Taxation raises funds for general welfare, while police power enforces laws for societal regulations. Signup and view all the answers