TRUE OR FALSE: Write True on the blank provided if the statement is correct and False if the statement is incorrect:

1. Tax laws must originate exclusively from the House ofRepresentatives. 2. The presence of penalties for late filing and payment of taxes suggests that tax laws are penal in nature. 3. Tax exemption laws which are vague as to its provisions must be construed against the government as this should have been deliberated well when itwas still in the legislativeprocess. 4. One characteristic of a sound tax system is that taxes are generally paid in cash since liquidity is important for the use governmentfunds. 5. All of the powers of the Commissioner of Internal Revenue cannot be delegated. 6. In case of discrepancies of GAAP and tax laws, the provisions of tax laws should be followed in terms of taxreporting. 7. The presence of a graduated tax table for personal income tax in the Philippines suggests the employment of a progressive taxsystem. 8. Tax is a broader term as compared to revenue andtariff. 9. Sources of tax laws are only from the legislative and executive branch of the government. 10. Even though the community/poll tax is a local tax, the certificate stillbears the BIR logo.

Case Study 2.1

GOING LOCO ON LOCAL

The Municipality of Santo Cristo, claiming that it can impose taxes under the Local Government Code, imposed a tax on common carriers in addition to the 3% common carrier's tax imposed in the National Internal Revenue Code. The common carriers in the municipality objected on this ordinance stating that the power of taxation cannot be delegated and that this constitutes double taxation. Is their contention tenable?

Case Study 2.2

IS THE COMPROMISE COMPROMISED?

Due to the government budget crunch due to the pandemic, the economic manager of the country looked into tax compromises and abatements done during the year. Upon evaluation, it discovered a tax liability of P400,000 which was compromised by the Regional Evaluation Board. The economic manager stated that the tax compromise is not valid since it is the CIR's power for the tax compromise to take effect. He also adds that this power cannot be delegated. Is his contention tenable?

MULTIPLE CHOICE

Choose the best answer from the choicesprovided. 1. When the economic burden of a tax already paid is transferred to another, the tax is mostlikelya/n . A DirectTax B IndirectTax C PersonalTax D Specific Tax 2. Which is not a characteristic oftax? A It is an enforcedcontribution. B It is generally payable inmoney. C It is subject toassignment. D It is levied by the law-making body of theState. 3. Which issues revenueregulations? A Commissioner of InternalRevenue B Bureau of InternalRevenue C Department ofFinance D Secretary of Finance 4. Philippine Tax laws, by nature,are A penal B civil C remedial D political 5. Which of the following do not relate totax? A does not render business illegal when notpaid B arises from law rather than fromcontracts C intended to cover cost ofregulations D intended for publicpurpose