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TAX 311 - INCOME TAXATION
Standalone assessment
Prelim
Submissions
Here are your latest answers:
Question 1
All of the following, EXCEPT one, are basic principles of a sound taxation system:
Response: Inherent in sovereignty
Score:
1 out of 1
Yes
Question 2
Federico, a Filipino citizen, migrated to the United States some six years ago and got a permanent resident status or green card. He should pay his Philippine income taxes
on
Response: the gains derived from the sale in the New York Stock Exchange of shares of stock in PLDT, a Philippine corporation.
Score:
1 out of 1
Yes
Question 3
Which of the following is not among the administrative powers of the Bureau of Internal Revenue?
Response: Render court decision concerning tax dispute
Score:
1 out of 1
Yes
Question 4
How broad is the power of the legislature to impose taxes?
Answer 1: The legislature has limited discretion as to the persons, property or occupations to be taxed, where there are no constitutional restrictions, provided the property is
within the territorial jurisdiction of the state.
Answer 2: The legislature has the right to finally determine the amount or rate of tax, in the absence of any constitutional prohibitions and it may levy a tax of any amount as
it sees fit.
Response: Answers 1 and 2 are true.
Score:
1 out of 1
Yes
Question 5
Consider the following statements:
I. No law granting any tax exemption shall be passed without the concurrence of a majority of all the members of the Congress
II. Tax avoidance refers to the exploitation by the taxpayer of legally permissible alternative tax rates or methods of assessing taxable property or income in order to reduce
or avoid tax liability.
Response: Statement I True Statement II True
Score:
1 out of 1
Yes
Question 6
Statement 1: The constitution is the source of the State's taxing power.
Statement 2: The police power of the government may be exercised through taxation
Response: Only statement 2 is correct
Score:
1 out of 1
Yes
Question 7
The following are agents and deputies for the collection of National Internal Revenue Taxes, except:
Response: The city and municipal treasurers with respect to collection of real property tax.
Score:
1 out of 1
Yes
Question 8
Double taxation in its general sense means taxing the same subject twice during the same taxing period. In this sense, double taxation
Response: violates the right to equal protection.
Score:
1 out of 1
Yes
Question 9
Which statement is correct? In case of an assessment of a tax:
Response: A protest should be filed by the taxpayer, otherwise the assessment becomes final and cannot be questioned anymore in court.
Score:
1 out of 1
Yes
Question 10
The Commissioner of Internal Revenue is granted certain powers under the Tax Code. Which of the following is not a power granted to the Commissioner under the Code?
Response: Enact tax laws and make amendments
Score:
1 out of 1
Yes
Question 11
Which statement is wrong?
Response: The power of taxation may be exercised by the government, its political subdivisions, and public utilities.
Score:
1 out of 1
Yes
Question 12
What is the effect on the tax liability of a taxpayer who does not protest an assessment for deficiency taxes?
Response: The BIR could already enforce the collection of the taxpayer's liability if it could secure authority from the CTA.
Score:
0 out of 1
No
Question 13
The tax assessment is being asked to be cancelled because there is question as to its validity or legality
Response: Disputed assessment
Score:
1 out of 1
Yes
Question 14
The power of the Bureau of Internal Revenue to make assessments will not include one of the following:
Response: To inquire into bank deposit accounts of a taxpayer
Score:
1 out of 1
Yes
Question 15
A contract whereby the taxpayer and the government by reciprocal concessions avoid a litigation or put an end already commenced
Response: Compromise
Score:
1 out of 1
Yes
Question 16
Which of the following is not an element of direct double taxation?
Response: Two taxes
Score:
1 out of 1
Yes
Question 17
Which is not correct?
Response: The provisions of taxation in the Philippine Constitution are grants of power enabling the state to impose taxes.
Score:
1 out of 1
Yes
Question 18
Which theory in taxation states that without taxes, a government would be paralyzed for lack of power to activate and operate it, resulting in its destruction?
Response: Lifeblood theory
Score:
1 out of 1
Yes
Question 19
Jeopardy assessment is a valid ground to compromise a tax liability.
Response: Because of doubt as to the validity of the assessment
Score:
1 out of 1
Yes
Question 20
The power to regulate liberty and property to promote the general welfare
Response: Police Power
Score:
1 out of 1
Yes
Question 21
The following statements correctly described the power of the State to tax, except
Response: The state can exercise the power of taxation only if it is expressly mentioned in the Constitution.
Score:
1 out of 1
Yes
Question 22
Which is governed by gross income taxation.
Response: Non-resident foreign corporation
Score:
1 out of 1
Yes
Question 23
Which of the following is correct?
Response: Assessment of Tax liability
Score:
1 out of 1
Yes
Question 24
The following are the similarities among the Fundamental Powers of the State, except
Response: They can be abolished by the Constitution.
Score:
1 out of 1
Yes
Question 25
The power to acquire private property upon payment of just compensation for public purpose
Response: Power of eminent domain
Score:
1 out of 1
Yes
Question 26
Although the power of taxation is basically legislative in character, it is NOT the function of Congress to
Response: collect the tax levied under the law.
Score:
1 out of 1
Yes
Question 27
A contract whereby the taxpayer and the government by reciprocal concessions avoid a litigation or put an end already commenced
Response: Compromise
Score:
1 out of 1
Yes
Question 28
Which among the following concepts of taxation is the basis for the situs of income taxation?
Response: Symbiotic relation in taxation
Score:
1 out of 1
Yes
Question 29
Which of the following statements is correct?
Response: Assessment and Collection are administrative functions
Score:
1 out of 1
Yes
Question 30
The power to tax is the power to destroy. Is this always so?
Response: No. The Supreme Court may nullify a tax law, hence, property rights are not affected.
Score:
1 out of 1
Yes
Question 31
Which of the following statements is correct?
I. A tax cannot be imposed without clear and express words for that purpose.
II. The provisions of a taxing act are not to extended by implication.
III. If the law is repealed, taxes assessed before repeal of the law may no longer be collected.
Response: I and II only
Score:
1 out of 1
Yes
Question 32
A taxpayer filed her income tax return for 2000 on April 15, 2001 and paid the tax of P12,000. Upon audit of the BIR, an assessment notice was issued on May 2, 2003
requiring the taxpayer to pay a deficiency tax of P50,000 not later than July 15, 2003. The taxpayer may:
Response: request for an extension of time to pay the deficiency income tax.
Score:
1 out of 1
Yes
Question 33
Which of the following is not within the scope of authority of the BIR Commissioner?
Response: To exercise the levying function of Taxation
Score:
1 out of 1
Yes
Question 34
Any internal revenue taxes which has been assessed within the prescribed period may be collected by distraint or levy or by proceedings in court:
Response: Within 5 years following the assessment
Score:
1 out of 1
Yes
Question 35
The following are the requisites for the exercise of the remedy of distraint and levy, except
Response: The tax due should be at least P1,000
Score:
1 out of 1
Yes
Question 36
It has the executive supervision and control over tax administration
Response: Bureau of Internal Revenues
Score:
1 out of 1
Yes
Question 37
No action shall be taken by the BIR on the taxpayer’s disputed issues until the taxpayer has paid the deficiency taxes
Response: attributable to the undisputed issues in the assessment notice.
Score:
1 out of 1
Yes
Question 38
Who among the following is a non-resident alien?
Response: An alien who comes to the Philippines for a definite purpose which in its nature may be promptly accomplished;
Score:
1 out of 1
Yes
Question 39
Which of the following statements is correct?
I. Taxes are pecuniary in nature
II. It co-exist with the existence of the State
III. Imposed on persons and property beyond the territorial jurisdiction of the State
Response: I and II only
Score:
1 out of 1
Yes
Question 40
The actual effort exerted by the government to effect the exaction of what is due from the taxpayer is known as
Response: collection
Score:
1 out of 1
Yes
Question 41
Debt as distinguished from tax.
Response: May be paid in kind
Score:
1 out of 1
Yes
Question 42
The distinction of a tax from permit or license fee is that a tax is:
Response: One in which there is generally no limit on the amount that may be imposed
Score:
1 out of 1
Yes
Question 43
The following instances allow the BIR Commissioner to inquire or examine the bank deposits of taxpayers, except
Response: When the taxpayer fails the lifestyle check test and shows unexplained wealth
Score:
1 out of 1
Yes
Question 44
Which of the following statement is correct?
Response: The BIR has the authority to prescribe additional procedural/documentary requirements for taxpayers
Score:
1 out of 1
Yes
Question 45
From the date of the last entry in each book, book of accounts and other accounting records should be preserved by the taxpayer for a period of at least
Response: 3 years
Score:
1 out of 1
Yes
Question 46
Where does taxing power of the provinces, municipalities and cities precede from?
Response: Constitutional grant
Score:
1 out of 1
Yes
Question 47
Statement 1: The Constitution cannot take away the inherent powers of the State but may only prescribe its limitations
Statement 2: No laws are necessary to confer the inherent powers of the State upon any government exercising sovereignty
Response: Both statements are incorrect
Score:
1 out of 1
Yes
Question 48
An example of a tax where the concept of progressivity finds application is the
Response: income tax on individuals.
Score:
1 out of 1
Yes
Question 49
All of the following are legislative aspect of taxation except
Response: Valuation of property of taxation
Score:
1 out of 1
Yes
Question 50
Statement 1: Taxation and Police Power may be exercised simultaneously
Statement 2: In the exercise if taxation, the State can tax anything at anytime and at any amount
Response: Both statements are correct
Score:
1 out of 1
Yes
