Solution Manual
Income Taxation
(2009 Edition)

Chapter 1

True or False 1-1

1. True
2. False. Taxation covers person, properties, rights and transactions.
3. False. Person in taxation includes the concept of partnership, corporation, estate and trust.
4. True
5. False. Taxation as a legislative process is under the power of the legislative body, the Congress.
6. False. Taxation is the primary source of government revenue. Usually, the government resorts to borrowing if taxes collected are not sufficient to defray its budgetary requirements.
7. True
8. True
9. False. Basically, taxes imposed are based on the ability of the taxpayer to pay.
10. False. It is the primary obligation of the state to protect all the constituents regardless of whether they pay or not their tax liabilities.

True or False 1-2

1. True
2. True
3. True
4. True
5. True
6. False. The President cannot delegate the power of taxation, since taxation is not vested in the President. Taxation is vested in the legislative body.
7. False. Taxation cannot be separated from the state. The moment a state exists, taxation also exists.
8. False. The making of tax law is undertaken ahead of the collection of taxes.
9. False. Levying refers to the making of tax laws.
10. False. Only the legislative body, the Congress, can grant tax exemptions.

True or False 1-3

1. False. It is the legislative branch of the government that is vested with the power of taxation.
2. False. The power of taxation is restricted by inherent and constitutional limitations.
3. False. Tax assessment is the valuation and determination of the amount of tax. The passage of taxation is called levying or imposition of tax.
4. False. The three inherent powers can be and have been delegated by the Legislative to the Executive Branch.
5. True
6. True
7. False.