1. Assume there are 100 Congressmen in the 11.

Euphemia, a native of Italy, now a

Philippines. A tax exemption law is being naturalized Filipino citizen and living in
passed for educational institutions catering Quezon City since 2000 is taxable within
for blind. There are only 70 congressmen and without the Philippines.
who attended the congressional
consideration of the proposed exemption 12. Odysseus, a Filipino citizen born in
law. It only takes 36 votes for this law to be Sampaloc Manila but working as overseas
approved. contract worker in Spain is taxable on his
income within the Philippines.
2. Lost Believers is a religious institution which
focuses on the counseling and redirection of 13. The aspects of taxation are share by the
the life of crazy people. Due to its legislative and executive departments
benevolence and charitable achievements,
the Philippine Government grants a 1- 14. Only the government may exercise the
hectare lot to Lost Believers to build on a three inherent powers of a state.
chapel. This grant is void because of non-
15. Our National Internal Revenue Laws are
appropriation for religious purposes.
civil in nature.
3. Eminent domain refers to the power to take
16. Taxation is unlimited as to the amount of
public property for private use after paying
imposition.
just compensation.
17. In case of doubt, tax statutes are construed
4. Police power being the most superior power
liberally in favor of the government and
of the State is not subject to any limitation.
strictly against the taxpayer.
5. Taxation power shall be exercised by
18. In case of doubt, tax exemptions are
Congress even without an express
construed strictly against the government
Constitutional grant.
and liberal in favor of the taxpayer.
6. Taxes may be collected even in the
19. Exemptions from taxation are highly
absences of a law since obligation arising
disfavored in law and he who claims tax
from law is always presumed.
exemption must be able to justify his claim.
7. In case of conflict between the provisions of
20. No person shall be imprisoned for debt or
a tax treaty and domestic law, the tax treaty
non-payment of poll tax.
shall prevail.
21. A purchaser who asks for discount or
8. The tax exemption of properties used by
refuses to but at regular prices (unless it is
diplomats or heads of states in the exercise
reduced by the amount equal to tax he will
of sovereign powers and diplomatic
pay) is an example of a scheme of shifting
functions is a constitutional limitation.
the incidence of taxation
9. Schneizel, a Canadian citizen, who stayed
22. The provisions of taxation in the Philippine
in the Philippines for 181 days is taxable
Constitution are grants of power enabling
within
the state to impose taxes.
10. Cornelia, an American citizen, married
23. In Police Power of the State, the person
Clovis, a resident citizen. She had been
who is parting with his money or property is
living in Manila since 1999. Cornelia's
presumed to receive a benefit.
income is taxable within and without the
Philippines.
24. For thee exercise of the power of taxation,
the state can tax anything at any time

25. Power of eminent domain may be exercised

by public service companies and private
utilities.