CANADIAN AND FEDERAL INCOME TAXATION PRACTICE 100+ DETAILED QUESTIONS WITH CORRECT ANSWERS 2026-2027 (Complete And Verified Study material) (43pages) LEARNEXAMS

Statement 1 : Congress can exercise the power of taxation even without Constitutional delegation of the power to tax. Statement 2 : Only the legislature can exercise the power of taxation, eminent domain and police power. Which statement is correct? Both statements are true a. The benefit received theory explains that the government is obliged to serve the people since it is benefiting from the tax collection from its subjects. b. The lifeblood theory underscores that taxation is the most superior power of the State. c. The police power of the State is superior to the non-impairment clause of the Constitution. d. The power of taxation is superior to the non-impairment clause of the Constitution. c. The police power of the State is superior to the non-impairment clause of the Constitution. a. Since there is compensation, eminent domain raises money for the government. b. Once a government is established, taxation is exercisable. c. The most important of the power is taxation. d. Police power is more superior than the non-impairment clause of the Constitution. a. Since there is compensation, eminent domain raises money for the government. The following statements reflect the differences among the inherent powers except: Eminent domain and police power do not require constitutional grant but taxation being a formidable power requires constitutional grant a. The power to tax includes the power to exempt. b. Exemption is construed against the taxpayer and in favor of the government. c. Tax statutes are construed against the government in case of doubt. d. Taxes should be collected only for public improvement. d. Taxes should be collected only for public improvement. Which of the following is not a constitutional limitation of the