Solution ManualIncome Taxation(2009 Edition)Chapter 1True or False 1-11.True2.False. Taxation covers person, properties, rights andtransactions.3.False. Person in taxation includes the concept ofpartnership, corporation, estate and trust.4.True5.False. Taxation as a legislative process is under thepower of the legislative body, the Congress.6.False. Taxation is the primary source of governmentrevenue. Usually, the government resorts to borrowingif taxes collected are not sufficient to defray itsbudgetary requirements.7.True8.True9.False. Basically, taxes imposed are based on the abilityof the taxpayer to pay.It is the primary obligation of the state toprotect all the constituents regardless of whether theypay or not their tax liabilities.1
7.False. 8.False. 9.False. The power of taxation is restricted by inherentand constitutional limitations.Tax assessment is the valuation anddetermination of the amount of tax. The passage oftaxation is called levying or imposition of tax.4.False. The three inherent powers can be and havebeen delegated by the Legislative to the ExecutiveBranch.6.TrueIncome tax cannot be classified as ad valorem,since the amount is not fixed and does not rely uponan independent appraiser. It is properly classified asgraduated.2
taxation violates the principle of uniformity; hence,considered unconstitutional.