30 Questions
Which statement is not correct regarding the power of taxation?
Taxation power is a discretion of the State and can be exercised without any limitation
What is the scope of taxation power?
Absolute
Which statement is true about the power of taxation and police power?
The power of taxation is broader than police power
Which inherent power is dependent on and provided for in the Philippine Constitution?
All of the above
Which branch of the government exercises the power of taxation?
Legislative branch
What is the limitation of the power of taxation?
The due process clause
What is the primary purpose of taxation?
To distribute the cost or burden of government to the people
Which of the following is NOT a general consideration of the government in distributing the cost or burden of taxation?
Tax is the lifeblood of the country
What is the basis of taxation?
The reciprocal duties of protection and support between the government and its people
What is a manifestation of taxation being an inherent power of the government?
Taxes may be imposed even without a constitutional grant
Which statement is true about a sovereign state's power of taxation?
A sovereign state can have the power of taxation even if the Constitution does not expressly state its power to tax
What is the relationship between the provisions in the Constitution on the power of taxation and the power of taxation itself?
The provisions in the Constitution are limitations on the power of taxation
What is the tax status of the income of an educational institution operated by a religious order?
Subject to income tax
Which power of the government is shared by the legislative and executive departments?
Power of taxation
What is the inherent limitation of the power of taxation?
All government transactions are tax exempt
What is the condition for the State to validly exercise its power of taxation?
The power of taxation must be expressly granted by law or the constitution
Who has the power to levy tax?
The legislative branch
Which of the following is a correct statement about the power of taxation?
It is a plenary and supreme power that can reach over into any jurisdiction
What is the correct statement about the taxation of land where embassies of foreign governments are located?
The land is subject to real estate tax
What is the principle of taxation that requires tax to operate with the same force and effect in every place?
Uniformity of taxation
Which limitation of the power of taxation is exemplified where those with different incomes are made to pay different rates of tax?
Equal protection
What is the theory that explains the exemption of educational institutions from taxation?
The Benefit-Protection Theory
What is the principle of taxation that means individuals should be asked to pay taxes according to their ability to pay?
Equity in taxation
What can be delegated outside the legislative branch?
Computation of the amount of tax to be paid by the taxpayer
How much dividend is subject to income tax?
P0
What is the treatment on the sale of goods and/or services by a VAT-registered seller to registered export enterprises enjoying fiscal incentives under the CREATE Act?
The sale is VAT zero rated.
What is the treatment on the sales by registered non-export enterprises or Domestic Market Enterprises located in Ecozones and Freeport Zones to registered export enterprises and non-RBEs?
The sale is subject to 12% VAT.
What is the treatment on the sale made by registered export enterprise enjoying Income Tax Holiday to another registered export enterprise?
The sale is subject to 12% VAT.
What is the status of the sale of goods and/or services by a VAT-registered seller to registered export enterprises under the CREATE Act?
VAT zero rated.
What is the tax treatment on the sales by registered non-export enterprises or Domestic Market Enterprises located in Ecozones and Freeport Zones to registered export enterprises and non-RBEs?
The sale is subject to 12% VAT.
Test your knowledge of taxation principles and theories with this assessment. It covers key concepts, including the government's considerations for allocating costs and the different theories of taxation. Evaluate your understanding of taxation and identify areas for improvement.
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