Income taxation by valencia chapter 1 (general principles)

1

INCOME TAXATION 5th Edition (BY: VALENCIA & ROXAS)
SUGGESTED ANSWERS

Chapter 1: General Principles
and Concepts of Taxation

CHAPTER 1

GENERAL PRINCIPLES AND CONCEPTS OF TAXATION
Problem 1 – 1 TRUE OR FALSE
1. False – Without money provided by tax power, the other inherent powers cannot
function well.
2. True
3. True
4. True
5. True
6. True
7. False – Taxation power is subject to inherent and Constitutional limitations.
8. False – Taxation power is not absolute because it is subject to limitations.
9. 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 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 government
unit exercises this power.
7. True
8. False - Benefits from taxation may be or may not be experienced.
9. 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 1 – 3 TRUE OR FALSE
1. True
2. True
3. True
4. True
5. False – prospective effect
6. True
7. True
8. False – national taxes
9. True
10. True


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 be resolved liberally in favor of the taxpayer.
True
True
False – null and void

Prob. 1 – 4
1. A
2. C
3. C
4. A
5. B
6. B
7. A
8. C
9. C
10. C

Prob. 1 – 5
1. C
2. A
3. D
4. B
5. B
6. A
7. C
8. B
9. B
10. C
11. C
12. C
13. A

Prob. 1 – 6
1. D
2. D
3. D
4. D
5. D
6. D
7. D
8. C
9. A
10. C
11. D
12. D

Prob. 1 – 7
1. B
2. C
3. D
4. D
5. D
6. B
7. B
8. C
9. C
10. B
11. B
12. B
13. A
14. A
15. D

Prob. 1 – 8
1. A
2. D
3. D
4. A
5. A
6. C
7. B
8. C
9. B
10. A
11. B
12. C

13. A
14. D

Prob. 1 – 9
1. A
2. B
3. C
4. D
5. C
6. C
7. D
8. C
9. C
10. C
11. C
12. B
13. D
14. D
15. C
16. C
17. C