Section 6(B) of the NIRC authorizes the Commissioner to assess the property tax due from a taxpayer when he believes that the report the taxpayer…

The question

Section 6(B) of the NIRC authorizes the Commissioner to assess the property tax due from a taxpayer when he believes that the report the taxpayer submitted is false, incomplete, or erroneous. The same provision authorizes the Commissioner to amend the return from his own knowledge and from such information he can obtain through testimony or otherwise, which is deemed prima facie correct and sufficient for all legal purposes. Which statement is WRONG? (2012 Bar Question)

1. A.The power of taxation may be exercised by the government, its political subdivisions, and public utilities;
2. B.Generally, there is no limit on the amount of tax that may be imposed;
3. C.The money contributed as tax becomes part of the public funds;
4. D.The power of tax is subject to certain constitutional limitations.

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