BAC 2 QUIZ 4

• Whenever there is a conflict between the Tax Code and the Civil Code, the Tax Code shall prevail over the latter - True
• The objectives of regulatory purpose are to regulate inflation, achieve economic and social stability and serve as key instrument for social control - True
• The "doctrine of escape from taxation" permits the taxpayer to minimize payment of tax by lawful means - True
• Police power as well as taxation power are the strongest among the inherent powers of the government - False
• The principle of theoretical justice is based on the philosophy that sources of revenue of the government should be sufficient to meet the demand of the public expenditures regardless of business condition - False
• Equal protection of law means that the tax laws shall give emphasis on the ability to pay principle of taxation whereby more direct rather than indirect taxes are imposed - False
• When a Sovereign State is born, it exists with indispensable powers necessary for its survival which is known as constitutional powers - False
• Only the national government exercises the inherent power of taxation of the state whereas the local government units do not possess the inherent power - True
• Local tax ordinances must be uniformly and equally applied throughout the country. - False
• To avoid injustice and unfairness, doubts as to whether double taxation has been imposed should be resolved in favor of the taxpayer - True
• The fiscal policy of the government is based on the rule that receipts or revenue should be equal to annual government expenditures - True
• Taxes are the primary source of government funds to finance its expenditures and projects - True
• It must be remembered that a tax law is of no legal force when it violates the Constitution - True
• The principles of fiscal adequacy and theoretical justice represent tax administration while that of administrative feasibility represents the nature of the government's tax policy - False
• This is the courteous recognition, friendly agreement, interaction and respect accorded by one nation to the laws and institutions of another known as international comity - True
• The Revenue Regulations are issued by the Department of Finance to cover the implementing guidelines pertaining to the Tax Code - False
• The Supreme Court has the exclusive power of constructing and interpreting tax laws - True
• Taxation is the "lifeblood" or the "bread and butter" of the government and every citizen must pay his taxes - True
• The power to make laws can be delegated to other branches of the government. false
• Philippine Internal Revenue laws are generally civil in nature. true
• The four elements of the State are people, territory, sovereignty, and taxes. false
• The Department of Finance is principally responsible for the fiscal policies and general management of the Philippine Government's financial resources. true
• This is the courteous recognition, friendly agreement, interaction and respect accorded by one nation to the laws and institutions of another known as international comity. - True
• Inherent limitations are provisions of the fundamental law of the land that restricts the supreme, plenary, unlimited and comprehensive power to tax by the State. False
• Examples of police power include the preservation of natural resources, imprisonment of convicted criminals, and regulation of various professionals. true
• Applications of administrative feasibility include assigning authorized banks to collect taxes, quarterly filing and payment of income taxes, and electronic filing of tax returns. true
• Direct taxes are not transferable, and the liability for the payment of tax falls on one person without the burden being shifted or passed to another. True
• A "poll tax" is a tax imposed on a person as a resident within a territory of the taxing authority without regard to his property, business, or occupation - true
• Local tax ordinances do not need to be uniformly and equally applied throughout the country - true
• The annual registration fee is P500 for every separate or distinct establishment or place of business, including facility types where sales transactions occur - true
• "Just compensation" means paying the owner the full monetary equivalent of the property taken for public use - True