Domondon’s MCQs 1. Among the nature of taxation is that it is an inherent power being an attribute of sovereignty. Which among the following is not among its manifestation as such inherent power? Ans: B – There should be no improper delegation of the power to tax. Because it is a manifestation of the nature of taxation being a legislative power. 2. Consider the ff. statements: I. The power of taxation involves the promulgation of rules. II. The state has the power to impose taxes even without a constitutional grant. III. Taxes are based upon the lifeblood theory. IV. There should be no improper delegation of the power to tax. Choose the correct answer from among the following choices: Ans: D – Statements II and III are both manifestations of the inherent nature of taxation. Because they are manifestations of the legislative nature of taxation. 3. Taxes are assessed for the purpose of generating revenues to be used for publice needs. Taxation itself is the power by which the State raises revenue to defray the expenses of government. A jurist said that a tax is what we pay for civilization. Justify your answer briefly. Ans: D – Taxes are levied by the legislative branch of government. Because it is part of the nature of taxation that it is legislative in character because tax laws are rules, and the constitution has allocated to the legislative department the enactment of laws. 4. Marshal said that the power to tax involves the power to destroy while Holmes maintains that the power to tax is not the power to destroy. Which among the following statements does not reconcile the two seemingly inconsistent opinions? Ans: B – The power to tax could not be the subject of compensation and set-off. Because this is an illustration of the lifeblood doctrine. 5. Statement 1. Symbiotic relation is the reason why the government could impose taxes on the incomes of resident citizens derived from sources outside the Philippines. Statement 2. Jurisdiction is the reason why citizens must provide support to the state so the latter could continue to give protection. Ans: B – Both of the statements are false. Statement 1 refers to jurisdiction while statement 2 refers to the symbiotic relation. 6. Your 2 classmates are engaged in a discussion as to what are included in the inherent limitations on the power of taxation. They decided to make you their referee in order to enlighten them on which of the following is generally not included among the inherent limitations. What should you choose from among the following? Ans: A – Double taxation. Because it is a constitutional limitation for it violates the equal protection clause. 7. An annual tax of P500.00 was imposed upon all residents of the Philippines, who are above 21 years of age, with gross annual income of P250,000.00, whether or
not they send their children to public schools, for the purpose of raising funds in order to improve public school buildings. The tax is: Ans: C – For public purpose. 8. A tax does not meet the public purpose limitation if it: Ans: C – Is for the benefit principally of limited subjects or objects. 9. A group of concerned citizens desire to bring suit in order to question the validity of a tax measure. They seek your advise on who has locus standi to bring such suit. You would tell them that one of the following could not bring such suit. Ans: D – A non-governmental organization. 10. The proposed amendments to the VAT law has spawned a lot of controversy. However, the issue of validity of the imposition of VAT is not one of first impression. Tolentino vs. Secretary of Finance, ruled that the VAT law was valid for various reasons. Which among the following statements is not among the reasons mentioned in the decision for upholding the validity of the VAT law? Ans: B – There was no improper delegation of the legislative authority to tax when Congress imposed the VAT. 11. That there should be no improper delegation of the legislative authority to tax is: Ans: D – Both a constitutional and inherent limitation on the power of taxation. 12. A law was passed by Congress which granted tax amnesty to those who have not paid income taxes for a certain year without at the same time providing for the refund of taxes to those who have already paid them. The law is: Ans: A – Valid because there is a valid classification. 13. Which among the following statements captures the essence of Supreme Court doctrinal rulings on the subject? Ans: D – Certain subjects need not be reflected in the title of a tax bill provided such are germane to the subject matter expressed in the title of the tax bill. 14. A person may be imprisoned for: Ans: C – non-payment of his income tax. 15.