SUBJECT: TAX 1 (QUIZ ON LIMITATIONS OF TAXATION) 1 Compiled and Encoded by: Kristine Quibod

A. GIVE THE ARTICLE AND SECTION + FILL IN THE BLANKS (Do you know your Constitution?) Section 5, Article 3 Section 2, Article 2 1.) Free exercise of religious worship is superior to taxation. 2.) International comity in taxation.

Section 5, Article 10 3.) Taxation power of local government units. Section 4(4), Article 14 Section 29(2) Article 6 Section 28(2) Article 6 Section 5(2b) Article 8 Section 28(4) Article 6 8.) 4.) Grants, endowments, donations or contributions to educational institutions used for educational purposes exempted from tax. 5.) No public money appropriated for religious purposes. 6.) Taxation power of the president. 7.) Legality of any tax law, toll or assessment may be passed upon the Supreme Court. Tax laws to be ratified by 9.) majority of the members of Congress refers to 10.) Granting of tax exemption Section 28(1) Article 6 Section 24, Article 6 Section 27(2) Article 6 Section 28(3) Article 6 Section 29(3) Article 6 Section 4(3) Article 14 Section 10 Article 3 11.) Congress shal evolve a 12.) Progressive system of taxation. 13.) Revenue and tariff bills shall originate in the 14.) House of Representatives but the 15.) Senate may propose or concur with the amendments. 16.) taxes may be subject to presidential veto. 17.) Real property tax exemption on properties are those used for 18.) religious 19. Charitable and 20.) educational purposes. 21.) Tax levied for special purpose treated as special fund. 22.) Revenues and assets of non-stock, non-profit, educational institutions exempted from taxes. 23.) When obligations in a contract is disturbed by operation of a taxing statute the 24.) non-impairment clause is violated. Section 11 Article 12 Section 28(1) Article 6 25.) Public utilities 26.) Franchise is subject to amendment, alteration or repeal by congress. 27.) There is 28.) uniformity in taxation when it operates with the same force and effect in every place where the subject is found and there is 29.) equity in taxation when it is based on ability to pay. 30.) The law is so arbitrary that the taking of property is without 31.) Due process. 32.) Non-imprisonment for non payment of 33.) poll tax. 34.) 35.) _______________ is subject to reasonable classification and to be a valid classification must rest on substantial distinction.

Section 1 Article 3 Section 20 Article 3 Section 1, Article 3 B. FILL IN THE BLANKS Taxation

1.) It is defined as the power by which the sovereign raises revenue.

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SUBJECT: TAX 1 (QUIZ ON LIMITATIONS OF TAXATION) 2 Compiled and Encoded by: Kristine Quibod
Taxes Life blood Personal Sovereignty Police Power Theory of necessity Reciprocal benefit principle Personal Benefit Court The power to tax Essentially involves the Power to destroy Supreme Court Application Interpretation Levying or imposition of tax Collection of tax 16.) Fiscal adequacy Theoretical justice 17.) This principle is essential in order to avoid budgetary deficits and so as to minimize foreign and local borrowings. 18.) A good tax system must be based on taxpayers ability to pay. 15.) The Stages or aspects of taxation. 11.) The rule that Chief Justice Marshall of the US Supreme Court laid down in the case of McCulloch vs Maryland. 12.) Because of the constitutional restraints on the taxing power that violates fundamental rights, it is equally correct to postulate that the power to tax while _________________ this court sits. 13.) The courts power of taxation is limited only to the 13.) _________ and 14.) _________ of the law. 14.) 8.) The theory that the State demands and receives taxes from its subjects so that it may be able to perform its functions and that citizens be able to live in an organized society. 9.) A person cannot object or resist the payment of taxes solely because no _____ to him can be pointed out as arising from the tax. 10.) The purpose of the tax is exclusively within the discretion of the legislature but the ________ may determine whether the purpose is public or not. 2.) They are enforced proportional contribution from persons and property levied by the State. 3.) Taxes are important because they are _________ of the government and should be collected without unnecessary hindrance. 4.) Taxes are _________ to the taxpayer such that a corporations tax delinquency cannot be enforced against its stockholders. 5.) The power to tax is an attribute of ____________. 6.) Taxation may be used as an implement of _______________ in order to promote general welfare. 7.) The theory that the government cannot continue without the means to pay its expenses and that it has the right to compel its citizens to contribute.

Administrative Feasibility 19.) This principle requires that taxes should be capable of being effectively enforced. Special Assessment License 20.) It is levied only on land and based wholly on benefit unlike a tax which is imposed on persons, property and excises. 21.) An exaction at may be both a tax as well as regulatory fee.

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SUBJECT: TAX 1 (QUIZ ON LIMITATIONS OF TAXATION) 3 Compiled and Encoded by: Kristine Quibod
Subsidy Customs duties Personal Direct Indirect Revenue Progressive Due process ___________ Public purpose Non-delegation of legislative power 32.) This limitation that tax is purely legislative. ________________ International Comity Territorial Jurisdiction Majority of the members of Congress Legislature Non-stock, non-profit educational institutions 38.) This institution is exempted from all taxes and duties as its assets and revenues are used for such purpose. Property tax Religious Charitable Educational purpose Prohibition against infringement of religious freedom 43.) This limitation is not violated when a priest is employed in the Army and paid wages for his services. 39.) The scope of exemption of churches and charitable institutions. 40.) To be exempt above, it must be used for what purposes. 41.) 42.) 36.) The required vote for tax exemption statutes. 37.) It has the power to define, prescribe, and apportion the jurisdiction of courts. 33.) The reason why the Armed Forces of the Philippines is exempted from taxation. 34.) The principle that a property of a foreign government cannot be taxed by another State. 35.) The limitation that taxation is good only in the States border. 22.) A legislative grant of money in aid of a private enterprise deemed to promote the public welfare. 23.) Taxes charged upon commodities on their being imported in or exported from a country. 24.) Also known as capitation or poll taxes of a fixed amount upon persons without regard to the amount of their property or occupation or business theyre engaged. 25.) Taxes wherein both the incidence as well as the impact of burden falls on the same person. 26.) Taxes that can be shifted or passed on to another. 27.) These are taxes levied for the general or ordinary purposes of the government. 28.) these are taxes whereby the rate or amount of tax increases as the amount of the income or earnings to be taxed increases. 29.) This is violated when a tax is for a private purpose. 30.) The taking is based under the authority of a valid law. 31.) The term synonymous to governmental purpose.

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SUBJECT: TAX 1 (QUIZ ON LIMITATIONS OF TAXATION) 4 Compiled and Encoded by: Kristine Quibod
____________________44.) This limitation is violated when license fees are imposed on the distribution of religious articles which are not for profit by a religious organization. Prohibition against the impairment of obligations and contracts Equal protection Supreme Court Constitutional Inherent Progressive System Necessity theory The power to tax does not involve the power to destroy Persons Property Property Rights Taxes are not debt because they are enforced contribution 56.) The principle that taxes are not subject to set-off or compensation Eminent Domain 57.) it is the taking of property for public use upon just payment. 52.) The contrary statement laid by Justice Holmes in the case of Panhandle Oil Co. Vs. Mississippi. 53.) These are the objects of taxation. 54.) 55.) 45.) This limitation does not allow that a tax exemption based on a contract and granted by law to be revoked by a later law now taxing said activity. 46.) This is violated when the classification is not valid and reasonable. 47.) It has the power to review all cases on the legality of a tax. 48.) Limitations on the power of taxation are classified into 49.) 50.) A tax system where you have more direct taxes than indirect taxes. 51.) The taxation theory that without revenue raised from taxation, no government will survive.

Special Assessment 58.) It is levied on land, not a personal liability but based on benefits. Penalty Tariff System Toll 59.) Sanction imposed as punishment for violation of law. 60.) The system of imposing taxes on the importation or exportation of articles. 61.) It is imposed as a demand of proprietorship.

Theoretical Justice 62.) The taxation theory that the tax be in proportion to the revenue or income one is enjoying under the protection of the state. Fiscal Adequacy Theoretical Justice Administrative 63.) Known as the canons of a sound tax system 64.)

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SUBJECT: TAX 1 (QUIZ ON LIMITATIONS OF TAXATION) 5 Compiled and Encoded by: Kristine Quibod
Feasibility 65.)

Prospective application 66.) The rule in the application and operation of tax laws. Retroactive application 67.) This rule is not favored unless it is not harsh and oppressive. National Municipal/Local 68.) The classification of taxes as to scope and authority imposing them. 69.)

Non-impairment Clause 70.) The immunity from taxation is revocable unless protected by this constitutional provision. _____________ Uniformity and Equity in taxation Direct ____________ Regressive System 72.) it means that all taxable articles of the same class shall be taxed at the same rate. 73.) The classifications of taxes as to persons burdened. 74.) The three known systems of taxation 75.) 71.) it is the principle that GOCCs are taxable.

Progressive System 76.) Initiative and Referendum 77.) It is the process where citizens can now exercise the power of taxation. Police power 78.) A margin fee is a form of currency exchange restriction designed to discourage imports and encourage exports, hence an exercise of ____________.

C.

TRUE OR FALSE

FALSE FALSE FALSE FALSE TRUE FALSE TRUE TRUE FALSE FALSE TRUE

1.) Taxation is a delegated power by which the sovereign to raise revenue. 2.) Local government units have no inherent power of taxation since only the constitution can grant it. 3.) Taxation is not political nor it is criminal, hence the ex-post facto rule is applicable. 4.) One can refuse to pay a tax out of which he would not enjoy any benefit. 5.) The phases of taxation are levy, assessment, collection and payment. 6.) Administrative Feasibility is for taxpayers to pay taxes promptly. 7.) Revenue regulations cannot provide for penalties unless authorized by law. 8.) Taxes levied under a tax law before it was repealed may still be collected after the repeal. 9.) The legislature us subject to judicial limitations in the power to tax. 10.) Tax laws can be nullified because they will impoverish the tax payers. 11.) Capitation tax is imposed on persons.

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SUBJECT: TAX 1 (QUIZ ON LIMITATIONS OF TAXATION) 6 Compiled and Encoded by: Kristine Quibod
FALSE TRUE FALSE FALSE TRUE FALSE TRUE FALSE FALSE TRUE FALSE FALSE TRUE FALSE FALSE FALSE FALSE FALSE FALSE TRUE FALSE TRUE FALSE TRUE TRUE TRUE FALSE FALSE TRUE 12.) Direct tax is imposed upon producers like the tax on alcohol products. 13.) Licenses for regulation are based on police power while licenses for revenue are taxes. 14.) A burden or charge may not be both for revenue and for regulation. 15.) When an exaction carries two purposes, it is null and void. 16.) An exemption from taxes does not include exemption from special assessment. 17.) A tax arises from contracts while penalty arises from law or contracts. 18.) Taxation is exercise with caution to minimize injury to the proprietary rights of a tax payer. 19.) The concept of power to destroy and double taxation are not judicially allowed. 20.) Due process is violated when a tax is levied for the benefit of the sugar industry. 21.) Due process is violated when a tax refund is denied to a tax law judicially declared invalid. 22.) The equal treatment of those belonging to different classes does not violate the equal protection clause. 23.) Equality and uniformity allows all taxable articles of the same class taxed at different rates. 24.) Equitable taxation is an embodiment of equality, uniformity and due process. 25.) A tax increasing the burden of one party in a contract impairs the obligation of contracts. 26.) Property tax exemption in the constitution is limited to educational and religious purposes. 27.) Using public streets for religious procession violates article 6, Section 29(2) of the Constitution. 28.) Non-imprisonment of debt is a defense one could raise in not paying a tax. 29.) Providing health care to the poor is not a public purpose as the benefits are to the individuals. 30.) The courts will determine if a tax is for a public purpose. 31.) Tax levied for the coconut industry is not a private purpose. 32.) Only the constitution can grant taxing powers to local government units. 33.) Congress has the power to determine the agencies in charge of the enforcement of tax laws. 34.) The situs of taxation is the purpose of taxation. 35.) A state can render no protection has no right to levy tax. 36.) Government agencies exercising sovereign functions are exempted from taxation. 37.) Violations of the inherent limitations on the power to tax are also unconstitutional. 38.) A Progressive system of taxation and the local governments power to tax are self executor constitutional provisions. 39.) Tax exemption is irrevocable while a tax on franchise is revocable. 40.) Tax exemption cannot be granted on the basis of equity.

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SUBJECT: TAX 1 (QUIZ ON LIMITATIONS OF TAXATION) 7 Compiled and Encoded by: Kristine Quibod
TRUE TRUE TRUE FALSE FALSE TRUE FALSE TRUE FALSE TRUE TRUE FALSE TRUE FALSE FALSE FALSE TRUE TRUE FALSE TRUE FALSE FALSE TRUE FALSE TRUE FALSE TRUE FALSE 41.) Tax exemption is granted to diminish the burdens of multiple taxation. 42.) Tax amnesty, tax exemption, tax exclusion, and tax deduction are construed strictly. 43.) Tax laws must be given a reasonable construction as to consider legislative intent. 44.) Filing of tax returns is mandatory and tax payers representative filing the tax return invalidates the filing. 45.) Revenue officers are to make an assessment within 3 years, non-compliance therein is not fatal being a directory provision. 46.) Retroactive in operation is allowed if there is legislative intent. 47.) In case of remission of taxes, those who have previously paid can claim for refund of such payments. 48.) Amendment, revocation or repeal of rules and regulations, rulings or circulars cannot be given retroactive application even they are prejudicial to the tax payer. 49.) Taking advantage of tax exemptions is illegal. 50.) Tax opinions and rulings rendered by BIR need not be published as they are not laws. 51.) Tax amnesty is a condonation of tax liability. 52.) Motor vehicle registration fees are regulatory fees. 53.)Taxation by local governments may be granted by legislation. 54.) A classification statute requires strict construction. 55.) Uniformity in taxation can be achieved by imposing the same amount of tax on all taxpayers. 56.) Tax exemption granted to a corporation may apply to its stockholders. 57.) The taxpayer who shouldered the burden of indirect tax cannot claim a refund of the tax erroneously shifted to him. 58.) Tax credit and tax exemption may be used to seek relief from double taxation. 59.) Taxation is delegated by the sovereign to the legislature. 60.) An inherent power requires no constitutional or statutory authority. 61.) Only those who actually pays taxes can enjoy protection. 62.) The government is bound to give specific service or commodity to one who pays taxes. 63.) Fiscal Adequacy is the ability for taxes to expand and contract to the needs of government. 64.) Theoretical justice means that taxes should be for a public purpose. 65.) A tax law is not prospective when retroactivity is the legislative intent. 66.) Being an enforced contribution, taxes cannot be refunded. 67.) Courts cannot control the motive of the legislature on the expediency of a levy/tax. 68.) Taxation prevails over eminent domain and police power in relation to the non-impairment clause.

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SUBJECT: TAX 1 (QUIZ ON LIMITATIONS OF TAXATION) 8 Compiled and Encoded by: Kristine Quibod
TRUE FALSE FALSE FALSE TRUE TRUE TRUE FALSE TRUE FALSE FALSE TRUE TRUE TRUE FALSE FALSE TRUE FALSE FALSE TRUE TRUE FALSE FALSE TRUE TRUE FALSE TRUE FALSE FALSE 69.) Excise tax is imposed upon an enjoyment of a privilege. 70.) Tax refunds granted cannot be subject of compensation or set-off with a tax deficiency. 71.) Non-payment of taxes makes the business illegal. 72.) The designation of a fee as a license or tax is determined by the legislature. 73.) If the primary objective in imposing the levy is to regulate, it is not tax. 74.) A toll is imposed based on the cost of construction and maintenance. 75.) A license fee may be raised to a level of destruction in cases of non-useful ventures. 76.) Direct double taxation is illegal but not indirect double taxation. 77.) If the tax is oppressive or unjust, it may be questioned on constitutional grounds. 78.)Due process is violated when an income tax is imposed on foreign income of resident Filipinos. 79.) Equal protection and uniformity of taxation does not prohibit discrimination or class legislation. 80.) Inequality which results in the singling out one particular class for taxation or exemption is valid. 81.) Exemption from a tax is allowed so long as it is reasonable and not arbitrary. 82.) Tax exemption revoked by a later law does not violate the non-impairment clause. 83.) The test of the property tax exemption in the constitution is the ownership of the property. 84.) Public money cannot be appropriated for religion as freedom of religion is superior to taxation. 85.) Exemption from taxes on non-stock, non-profit educational institutions cover only direct taxes. 86.) A treaty granting tax relief on reciprocity requires congressional ratification. 87.) Public purpose is not anymore determined by the legislature being inherent in the taxing power. 88.) Incidental benefits that may redound to private parties will not invalidate a tax. 89.) The power of taxation cannot be delegated unless permitted by the constitution. 90.) Congress has no power to impose additional limitations on the power to tax. 91.) Territorial jurisdiction allows taxes to be imposed on those living outside the territory. 92.) A person subject to territorial and personal jurisdiction is subject to multiple situs. 93.) Tax laws have no extra-territorial operation unless the state exercises personal jurisdiction. 94.) Operating a public transport system like the LRT/MRT by GOCCs is exempted from taxation. 95.) Due process, equal protection, uniformity and equality in taxation are mandatory and self-executory which does not require legislation. 96.) The rule of strict construction against exemption does not make exemption inherent in the power to tax. 97.) Tax exemption do not require the rules on equal protection.

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SUBJECT: TAX 1 (QUIZ ON LIMITATIONS OF TAXATION) 9 Compiled and Encoded by: Kristine Quibod
FALSE FALSE TRUE FALSE FALSE TRUE TRUE FALSE FALSE TRUE FALSE TRUE TRUE TRUE FALSE FALSE FALSE TRUE 98.) Tax exemption is granted to lessen the burdens of the inhabitants of the state. 99.) Tax exemption granted by the constitution is revocable. 100.) Tax exemption granted on the principal purpose may include those incidental to the purpose. 101.) Paying the tax through the banking system is mandatory. 102.) Directory provisions of tax laws are intended for the security of the tax payers where compliance is required. 103.) When there is doubt, tax laws are liberally construed in favor of the tax payer. 104.) Taxes are asserted before the repeal of the law may still be collected unless the repeal is made retroactive. 105.) Revenue regulations can increase or decrease the requirements of the tax law. 106.) Taxation is a method of arbitrary exaction. 107.) Relinquishment of tax powers is strictly construed. 108) Government shall be stopped from collecting taxes if the revenues will just go to corruption. 109.) A regulatory measure may have a revenue purpose. 110.) The senate cannot enact a revenue measure if no such bill exists in the House of Representatives. 111.) Tax laws remain effective even when the government is toppled with a military group. 112.) A citizen of country residing in another sovereign and earning there cannot be taxable by the country of which he is a citizen. 113.) A tax law denying the taxpayer a fair opportunity to question the legality of any tax, impost, assessment, etc, before a competent tribunal is still as long as it is for a public purpose. 114.) Police power is the authority of the police force to apprehend and arrest criminals. 115.) Liability for the tax is different from the burden of tax.

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