1 INCOME TAXATION 5th Edition (BY: VALENCIA & ROXAS) SUGGESTED ANSWERS Chapter 1: General Principles and Concepts of Taxation CHAPTER GENERAL PRINCIPLES AND CONCEPTS OF TAXATION Problem – TRUE OR FALSE False – Without money provided by tax power, the other inherent powers cannot function well True True True True True False – Taxation power is subject to inherent and Constitutional limitations False – Taxation power is not absolute because it is subject to limitations True 10 False – penalty is an example of imposition of amount for police power 11 True 12 False – governmental function unless stated otherwise 13 False – government agencies engaged in proprietory functions are subject tax unless stated otherwise 14 True Problem – TRUE OR FALSE False – Concurrence of the majority of congress False – Churches are required to pay income taxes in cases of sale of real property and business engagement False – No public funds shall be appropriated for religious purpose False - All bills even if approved by the 2/3 of the congress should still be signed by the President to become law False – No person shall be imprisoned for nonpayment of poll tax False – Taxation power is essentially legislative function; hence not every government unit exercises this power True False - Benefits from taxation may be or may not be experienced True 10 False – Judicial review 11 False – “Ex post facto” law is not applicable for tax purposes 12 True 13 False – A tax evader breaks the law while the tax avoider sidesteps it 14 False – Neither transferable/assignable 15 True Problem – TRUE OR FALSE True True True True False – prospective effect True True False – national taxes True 10 True INCOME TAXATION 5th Edition (BY: VALENCIA & ROXAS) SUGGESTED ANSWERS Chapter 1: General Principles and Concepts of Taxation 11 12 13 14 15 True False – Doubts must be resolved liberally in favor of the taxpayer True True False – null and void Prob – A C C A B B A C C 10 C Prob – C A D B B A C B B 10 C 11 C 12 C 13 A Prob – D D D D D D D C A 10 C 11 D 12 D Prob – B C D D D B B C C 10 B 11 B 12 B 13 A 14 A 15 D Prob – A D D A A C B C B 10 A 11 B 12 C 13 A 14 D Prob – A B C D C C D C C 10 C 11 C 12 B 13 D 14 D 15 C 16 C 17 C ... 10 C Prob – C A D B B A C B B 10 C 11 C 12 C 13 A Prob – D D D D D D D C A 10 C 11 D 12 D Prob – B C D D D B B C C 10 B 11 B 12 B 13 A 14 A 15 D Prob – A D D A A C B C B 10 A 11 B 12 C 13 A 14 ...2 INCOME TAXATION 5th Edition (BY: VALENCIA & ROXAS) SUGGESTED ANSWERS Chapter 1: General Principles and Concepts of Taxation 11 12 13 14 15 True False – Doubts must... 15 D Prob – A D D A A C B C B 10 A 11 B 12 C 13 A 14 D Prob – A B C D C C D C C 10 C 11 C 12 B 13 D 14 D 15 C 16 C 17 C