7/30/2019 Chapt-1 Gen. Principles
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INCOME TAXATION 2007-2008 4TH Edition (BY: VALENCIA &
ROXAS)SUGGESTED ANSWERS
Chapter 1: General Principlesand Concepts of Taxation
CHAPTER 1GENERAL PRINCIPLES AND CONCEPTS OF TAXATION
Problem 1 1 TRUE OR FALSE
1. False As an inherent power, the constitution is not the
source of the States taxationpower.
2. True3. True4. True5. True6. False Taxation is subject to
Constitutional and inherent limitations.7. False Taxation power is
not absolute because it is subject to limitations.8. True9. False
Police power imposes amount to recover cost and expenses of
regulation.
10. True11. False Tax exemption is primarily granted to
governmental entities that exercise
governmental functions.12. False Government entities that
exercise proprietory functions are subject to tax.13. True14. False
Eminent domain
Problem 1 2 TRUE OR FALSE
1. False Concurrence of the majority of congress.2. False
Churches are required to pay income taxes in cases of sale of real
property
and business engagement.3. False No public funds shall be
appropriated for religious purpose.4. False - All bills even if
approved by the 2/3 of the congress should still be signed by
the President to become law.
5. False No person shall be imprisoned for nonpayment of poll
tax.6. False Taxation power is essentially legislative function;
hence not every governmentunit exercises this power.
7. True8. False - Benefits from taxation may be or may not be
experienced.9. True10. False Judicial review11. False Ex post facto
law is not applicable for tax purposes.12. True13. False A tax
evader breaks the law while the tax avoider sidesteps it.14. False
Neither transferable/assignable
Problem 1 3 TRUE OR FALSE
1. True2. True
3. True4. True5. False prospective effect6. True7. True8. False
national taxes9. True10. True11. True
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7/30/2019 Chapt-1 Gen. Principles
2/2
INCOME TAXATION 2007-2008 4TH Edition (BY: VALENCIA &
ROXAS)SUGGESTED ANSWERS
Chapter 1: General Principlesand Concepts of Taxation
12. False Doubts must be resolved liberally in favor of the
taxpayer.
13. True14. True15. False null and void
Prob. 1 4 Prob. 1 5 Prob. 1 6 Prob. 1 7 Prob. 1 8 Prob. 1 9
1. A 1. C 1. D 1. B 1. A 1. A2. C 2. A 2. D 2. C 2. D 2. B3. C
3. D 3. D 3. D 3. D 3. C4. A 4. B 4. D 4. C 4. A 4. B5. B 5. B 5. A
5. D 5. A 5. B6. B 6. A 6. D 6. B 6. D 6. C7. A 7. C 7. C 7. B 7. B
7. D8. C 8. B 8. C 8. C 8. C 8. C9. C 9. B 9. A 9. C 9. B 9. C10. B
10. A 10. C 10. B 10. A 10. C
11. C 11. D 11. B 11. B 11. C12. D 12. D 12. B 12. C 12. B13. A
13. A 13. A 13. D
14. A 14. D 14. D15. D 15. B
16. C17. C
Prob. 1-9 No. 13 should be stated as Tax Law is derived
from.
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