Download HQ01 - General Principles of Taxation PDF

TitleHQ01 - General Principles of Taxation
TagsEminent Domain Taxes Taxation In The United States Double Taxation Taxpayer
File Size183.6 KB
Total Pages14
Table of Contents
                            NORTHERN CPA REVIEW
                        
Document Text Contents
Page 1

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Page 8

Northern CPAR: Taxation – Fundamental Principles of Taxation
a. I is correct c. I and II are correct
b. II is correct d. I and II are not correct

10. When tax is recovered by the manufacturer or producer by finding out means of
improvement in production so as savings would compensate for taxes, this is known as?
a. Capitalization c. backward shifting
b. onward shifting d. transformation

11. The point in which tax is levied is called?
a. Impact of taxation c. Incidence of taxation
b. Situs of taxation d. Assessment

12. When the impact and incidence of taxation are merged into the statutory taxpayer, the tax
is called?
a. personal tax c. indirect tax
b. direct tax d. national tax

13. The following are inherent limitation on the power to tax. Which is the exception?
a. Territoriality of taxes c. Public purpose
b. Legislative in character d. Non-appropriation for religious purpose

14. Which of the following is an administrative act in taxation?
a. Collection of taxes c. Determination of the subject of the tax
b. Fixing the rate of the tax d. Determination of the purpose of the tax

15. Select the correct statement.
a. The substitution effect makes people economically efficient since the impact of the tax

is spread forward to the consumers.
b. Only taxation and eminent domain presupposes a form compensation when exercised by

the government since police power merely involves confiscation.
c. Any tax laws which violate the principles of a sound tax system renders itself

unconstitutional.
d. Taxation means the apportionment of the costs of the government among those who are

benefited from its existence.

16. Select the correct statement.
A. Since taxation presupposes an equivalent form of compensation, there should be a direct

and proximate advantage received by any taxpayer before he could be required to pay
tax.

B. Compensation under police power is the intangible feeling of contribution to the general
welfare of the people.

a. A c. Both A and B
b. B d. Neither A nor B

17. Public improvement is a requisite to the exercise of which power of the state?
a. Police power c. Eminent domain
b. Taxation d. Eminent domain and taxation

18. Public utility entities may in some circumstance exercise the power of eminent domain.
Which of the following is not a public utility?
a. Electric cooperatives c. Telecommunication business
b. Water cooperatives d. Manufacturing business

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NCPAR…driven for real excellence! TAX by Rex B. Banggawan, CPA, MBA TAX – 5th Batch – HQ01

Page 13

Northern CPAR: Taxation – Fundamental Principles of Taxation
b. Debt; tax d. Debt, debt

54. Select the correct statement.
a. The doctrine of estoppel operates against the taxpayer, not against the government.
b. Non-compensation or set-off violates the principle of administrative feasibility.
c. Taxes are always imprescriptible.
d. The principle of strictissimi juris simply states that exemption is the rule, taxation is

the exemption.

55. Which of the following is a power of the Commissioner of Internal Revenue?
a. Assessment and collection of taxes
b. Enforcement of all forfeitures, penalties and fines
c. Interpretation of the provisions of the NIRC
d. Giving effects to and administering the supervisory and police powers conferred by the

NIRC and other laws

56. Which of the following powers of the Commissioner of Internal Revenue cannot be
delegated?
a. The examination of tax return and tax due thereon
b. To refund or credit tax liabilities in certain cases
c. The power to compromise or abate any tax liability involving basic deficiency tax of

P500,000 and minor criminal violations
d. The power to reverse a ruling of first impression

57. The following are the limitation on the taxing power of the state. Which of the following
inherent limitation of taxation is also categorized as a constitutional limitation?
A. Territoriality of taxation
B. Exemption of the government
C. Public purpose of taxation
D. Non-impairment of contracts
E. Non-delegation of the power to tax
a. A and B c. C and E
b. B and C d. D and E

58. Which of the following forms of escapes to taxation will more likely to result in direct loss
of revenue to the government?
a. Shifting c. transformation
b. Capitalization d. tax exemption

59. When exemption from a tax imposition is silent or not clearly stated, which statement is
true?
a. Taxation applies since exemptions are construed against the government.
b. Exemption still applies since this is exemption by omission.
c. Taxation applies since exemptions are to be construed against the taxpayer.
d. Exemption applies since obligation arising from law cannot be presumed and hence

construed against the government.

60. When the provisions of tax laws are silent as to the taxability of an item, which is true?
a. Taxation applies since taxation is the rule, exemption is the exception.
b. Exemption applies since vague tax laws are construed against the government.
c. Taxation applies in accordance with the Lifeblood doctrine.

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NCPAR…driven for real excellence! TAX by Rex B. Banggawan, CPA, MBA TAX – 5th Batch – HQ01

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