61.

The distinction of a tax from permit or license fee is that a tax is:

A. Imposed for regulation.

B. One which involves an exercise of police power.

C. One in which there is generally no limit on the amount that maybe imposed.

D. Limited to the cost of regulation.

62. Police power as distinguished from the power of eminent domain:

A. Just compensation is received by the owner of the property.

B. Maybe exercised by private individuals.

C. May regulate both liberty and property.

D. Property is taken by the government for public purpose.

63. A tax wherein both the incidence of or the liability for the payment of the tax as well as the

burden of the tax falls on the same person.

A. Direct tax C. Indirect tax

B. Value added tax D. Percentage tax

64. Which one of the following is not a characteristic or element of a tax?

A. It is an enforced contribution.

B. It is legislative in character.

C. It is based on the ability to pay.

D. It is payable in money or in kind.

65. Tax as distinguished from license fees:

A. Limited to cover cost of regulation.

 B. A regulatory measure.

C. Non-payment does not necessarily render the business illegal.

D. Imposed in the exercise of police power.

66. The power of taxation is exercised by

A. The President C. Bureau of Internal Revenue

B. The Supreme Court D. Congress

67. One of the characteristics of internal revenue laws is that they are:

A. Criminal in nature C. Political in nature

B. Penal in nature D. Generally prospective in application.

68. Which of the following is not an example of excise tax:

A. Transfer tax C. Real property tax

B. Sales tax D. Income tax

69. The following are similarities of the inherent power of taxation, eminent domain, and police

power, except one:

A. Are necessary attributes of sovereignty

B. Superior to the non-impairment clause of the constitution.

C. Compensation is received.

D. Are legislative in character.

70. Which of the following is not a scheme of shifting the incidence of taxation?

A. The manufacturer transfers the tax to the consumer by adding the tax to the selling price of the
goods sold;
B. The purchaser asks for a discount or refuse to buy at regular prices unless it is reduced

by the amount equal to the tax he will pay;

C. Changing the terms of the sale like FOB shipping point in the Philippines to FOB destination
abroad, so that the title passes abroad instead of in the Philippines;

D. The manufacturer transfers the sales tax to the distributor, then in turn to the wholesaler, in turn
to the retailer and finally to the consumer.