Tax Treaties and Reciprocal Tax Treatments Quiz
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Questions and Answers

What is the primary element of double taxation?

  • Same type of tax
  • Same purpose of tax
  • Same taxing jurisdiction
  • Same object (correct)
  • Which category of escapes from taxation may lead to a loss of government revenue?

  • Tax avoidance
  • Tax evasion (correct)
  • Reciprocal tax treatment
  • Entering into treaties
  • What is the goal of tax avoidance?

  • Illegally reduce or avoid tax payment (correct)
  • Ensure reciprocal tax treatment
  • Comply strictly with tax laws
  • Reduce tax rates for residents
  • Why is direct double taxation discouraged?

    <p>It is oppressive and burdensome to taxpayers</p> Signup and view all the answers

    Which element is essential for reciprocal tax treatment to be implemented between countries?

    <p>Same treatment for Filipino nonresidents</p> Signup and view all the answers

    What is the main purpose of entering into treaties or bilateral agreements regarding taxation?

    <p>To stipulate lower tax rates for residents engaging in taxable transactions</p> Signup and view all the answers

    What is tax exemption most commonly known as?

    <p>Tax holiday</p> Signup and view all the answers

    Which type of tax exemptions cannot be revoked by Congress?

    <p>Those granted by the Constitution</p> Signup and view all the answers

    In the context of double taxation, what is shifting referring to?

    <p>Transferring tax burden to other taxpayers</p> Signup and view all the answers

    What is the term used for the forgiveness of tax obligations based on justifiable grounds?

    <p>Tax condonation</p> Signup and view all the answers

    What does tax condonation apply to, according to the text?

    <p>Unpaid balances of tax for a taxpayer</p> Signup and view all the answers

    In what scenario is forward shifting of taxes common according to the text?

    <p>Business revenue taxes being passed on to customers</p> Signup and view all the answers

    What principle ensures that taxpayers should be treated equally both in terms of rights conferred and obligations imposed?

    <p>Equal protection of the law</p> Signup and view all the answers

    Which doctrine states that properties actually devoted for religious, charitable, or educational activities are exempt from real property tax?

    <p>Doctrine of use</p> Signup and view all the answers

    In regards to double taxation, what does the text imply when it mentions that 'Congress cannot exempt sellers of “balot” while subjecting sellers of “penoy” to tax since they are essentially the same goods?'

    <p>Reciprocal tax treatment</p> Signup and view all the answers

    Which principle dictates that taxes should not impair obligations from contracts by the exercise of taxation power?

    <p>Non-impairment of obligation and contract</p> Signup and view all the answers

    What type of taxation principle states that taxpayers under dissimilar circumstances should not be taxed the same?

    <p>Uniformity is relative equality</p> Signup and view all the answers

    Which entities are exempt from property taxes if they are actually, directly, and exclusively used for charitable, religious, and educational purposes?

    <p>Religious or charitable entities</p> Signup and view all the answers

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