Name: __May Ann Bautista_________
Course and Section: _________
Income Taxation – Quiz # 1
IDENTIFICATION:
1. To restrain and legislate for public welfare and morals of a society Police power
2. It is the illegal way of avoiding or minimizing tax liability. Dodging
3. The manufacturer pays the tax him/herself and will not add tax to the price of the
product, fearing the loss of his/her market. It is done by increasing or improving
the quantities of units produced causing a reduced price per unit of a product.
Transformation
4. In exchange for the benefits received, taxes are paid by the citizen to sustain the
activities and for the improvement of the government. Benefits-Protection
Theory
5. It states that collection from taxes must be sufficient to meet the expenditures of
the government. The concept of economy is applicable in this principle. Fiscal
Adequacy
6. It tackles certainty and convenience of administration. Administrative Feasibility
7. Aim to reduce social inequalities, advancement of economy, and protect local