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MULTIPLE CHOICE. Choose the correct answer.

Assign#1 Aug 21, 2017

1. The process by which the sovereign raises income to defray the expenses of the
government is
a. Subsidy c. Taxation
b. Tariff d. Tribute

2. Which of the following has no power of taxation?


a. Provinces c. Barangays
b. Cities d. Barrios

3. One of the following is the primary purpose of taxation


a. Protection of local industries against foreign competition through
imposition of high custom duties on imported goods;
b. Reduction of inequalities in wealth and income by imposing progressively
higher tax rates;
c. To secure revenue for the support of the government
d. Strengthening of anemic enterprises by giving tax exemptions

4. All of the following, except one, are basic principles of the sound tax system
a. Fiscal adequacy c. Administrative feasibility
b. Theoretical justice d. Inherent sovereignty

5. They restrict the exercise of the power of taxation although they are not
embodied in the Constitution
a. Theoretical justice c. Inherent limitations
b. Legislative in character d. Constitutional limitations

6. The amount required is dictated by the needs of the government in


a. license fee c. Toll
b. Tax d. Tariff

7. One of the characteristics of a tax is that


a. It is generally based on contract c. It is generally assignable
b. It is generally payable in money d. Optional

8. No person shall be imprisoned for non-payment of


a. Property tax c. Poll or community tax
b. Excise tax d. Income tax
9. An example of a property tax is
a. additional community tax on income of real properties
b. real estate tax on real properties
c. estate tax on inherited properties
d. Donor's tax on donation of properties

10. Which of the following is not an example of excise tax?


a. VAT c. Real property tax
b. Sales tax d. Income tax

11. A tax that is imposed upon a person who is directly bound to pay it
a. Direct tax c. Excise tax
b. Indirect tax d. Poll tax

12. Forms part of purchase price of the commodity or service and passed on to
customers
a. Direct tax c. Excise tax
b. Indirect tax d. Poll or community tax

13. Tax rate for individual income tax


a. 27% maximum c. 32% maximum
b. 30% maximum d. 12% maximum

14. What is the corporate income tax rate?


a. 27% maximum c. 32% maximum
b. 30% maximum d. 12% maximum

15. What is the rate for value-added tax?


a. 27% maximum c. 32% maximum
b. 30% maximum d. 12% maximum

16. It is otherwise known as tax minimization


a. Tax exemption c. Tax avoidance
b. Tax evasion d. Transformation

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