71. Which of the following statements is not correct?

A. Taxes may be imposed to raise revenues or to provide disincentives to certain activities within
the state;

B. The state can have the power of taxation even if the Constitution does not expressly give it the
power to tax.

C. For the exercise of the power of taxation, the state can tax anything at any time.

D. The provisions of taxation in the Philippine Constitution are grants of power and not
limitations on taxing powers.

72. License fee as distinguished from tax:

A. Non-payment does not necessary render the business illegal.

B. A revenue raising measure

C. Imposed in the exercise of taxing power.

D. Limited to cover cost of regulation.

73. Value-added tax is an example of:

A. Graduated tax C. Regressive tax

B. Progressive tax D. Proportional tax

74. Which tax principle is described in the statement “ the more income earned by the taxpayer,

the more tax he has to pay.”

A. Fiscal Adequacy C. Administrative feasibility

B. Theoretical justice D. Inherent in sovereignty

75. The most superior and least limitable among the fundamental powers of the state:

A. Power of recall C. Power of taxation

B. Police power D. Power of eminent domain

76. One of the characteristics of a tax is that:

A. It is generally based on contact.

B. It is generally payable in money.

C. It is generally assignable.

D. It is generally subject to compensation.

77. The following are the characteristics of our internal revenue laws except:

A. Political in nature.

B. Civil in nature.

C. Generally prospective in application.

D. May operate retrospectively if congress so provides.

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

A. Provinces C. Barangays

B. Cities D. Barrios

79. Which of the following statements is wrong? A revenue bill:

A. Must originate from the House of Representatives and on which same bill the Senate may
propose amendments.

B. May originate from the Senate and on which same bill the House of Representatives may
propose amendments.

C. may have a House version and a Senate version approved separately, and then consolidated,
with both houses approving the consolidation version.

D. May be recommended by the President to Congress.

80. Tax as distinguished from special assessment:

A. not as a personal liability of the person assessed.

B. based wholly on benefits

C. exceptional as to time and place

D. based on necessity and is to raise revenues