Taxation- Part 1

66問 • 1年前

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It is the process or means by which the sovereign, through its lawmaking body, raises income to defray the necessary expenses of the government.

TAXATION

_______ as a power of the state, is inherent in sovereinty.

TAXATION

These are lifeblood of the government and their prompt and certain availability are imperious need. A government cannot continue to exist and operate without financial means.

TAXES

This Inherent power gives the government the right to tax citizens and properties within its jurisdiction

TAXES

It is much more than just a means of raising revenue for the government. It is also one of the major means by which the national government attempts to achieve economic and social objectives.

TAXATION

Which of the following are objectives of Taxation?

Shifting Wealth from rich to poor, Maintaining Price Stability, Stimulating economic growth, Encouraging full employment

Provisions of Congress in achieving objectives includes:

First, some tax rules are enacted for the purpose of mitigating certain undesirable economic and social conditions already existing., Second, other tax rules provide incentives for certain desirable activities

The power of the State by which the sovereign raises revenue to defray the necessary expenses of the government

POWER OF TAXATION

The power of the state to take private property for public use upon payment or just compensation

POWER OF EMINENT DOMAIN

The power of the state to enact laws to promote public health, public morals, public safety and the general welfare of the people.

POLICE POWER

Which of the following are true about the aspects of taxation?

Levying of the Tax. The imposition of tax requires legislative intervention. In the Philippines, it is congress that levies taxes., Collection of the tax levied. This is essentially an administrative function.

What are the basic principles of a sound tax system?

FISCAL ADEQUACY, EQUALITY OR THEORETICAL JUSTICE AND ADMINISTRATIVE FEASIBILITY

Sources of revenue are sufficient to meet government expenditures

FISCAL ADEQUACY

The tax imposed must be proportionate to taxpayer’s ability to pay

EQUALITY OR THEORETICAL JUSTICE

The law must be capable of convenient, just and effective administrative

ADMINISTRATIVE FEASIBILITY

What are the 2 limitations of the Power of Taxation?

CONSTITUTIONAL AND INHERENT LIMITATIONS

limitations that are provided for in the constitution or implied from its provisions

CONSTITUTIONAL LIMITATIONS

restrictions to the power to tax attached to its nature.

INHERENT LIMITATIONS

Inherent Limitations' purpose

Taxes may be levied only for public purpose

Inherent Limitations' Territoriality

The State may tax persons and properties under its jurisdiction

Inherent limitations' international comity

The property of a foreign state may not be taxed by another

Inherent Limitations' exemption

Governmental agencies performing governmental functions are exempt from taxation

Inherent Limitations' non delegation

The power to tax being legislative in nature may not be delegated.

True or False: Taxes must be imposed by retroactively. But if the legislative intent is for a tax statute to operate prospectively, then such statute much state so explicitly and clearly.

FALSE

True or False: Taxes may be imposed retroactively by law but, unless so expressed by such law, these taxes must only be imposed prospectively.

True

True or False: Double Taxation standing alone and not being forbidden our fundamental law is valid defense against the legality of a tax measure

FALSE

Double Taxation standing alone and not being forbidden our fundamental law is not a valid defense against the legality of a tax measure. Unless, If double taxation amounts to a direct duplicate taxation (when subject is taxed twice when it should be taxed but once) of:

Imposed for the same purpose by the same taxing authority, Within the same jurisdiction or taxing district, Same taxable period, Same kind or character of a tax

When subject is taxed twice when it should be taxed but once

DOUBLE TAXATION

It is one other than the direct double taxation. Though this type may not prove unconstitutional, it is being avoided so as not to bring injustice to the taxpayer

INDIRECT DOUBLE TAXATION

Set-off taxes: Taxes are subject to set-off or legal compensation under Article 1279 of the Civil Code.

False

Escapes from Taxation includes;

TAX AVOIDANCE (TAX MINIMIZATION/ TAX PLANNING) AND TAX EVASION (TAX DODGING)

It happens when the taxpayer minimizes his tax liabilityby taking advantage of legally available tax planning opportunities. Controlling of actions so as to avoid undesirable tax consequences

TAX AVOIDANCE (TAX MINIMIZATION/ TAX PLANNING)

Occurs when the taxpayer resorts to unlawful means to lessen or get away with his tax liability

TAX EVASION (TAX DODGING)

It is the place of taxation

SITUS TAXATION

Situs of Taxation includes;

SUBJECT MATTER, NATURE OF TAX, CITIZENSHIP OF THE TAXPAYER AND RESIDENCE OF THE TAXPAYER

The following situs of taxation apply to:

Persons, Real Property or tangible personal property, Intangible personal property, Income, Business Occupation and transaction, Gratuitous transfer of property

True or False: Taxes are debt

False

Are enforced proportional contributions from persons and property levied by the lawmaking body of the state by virtue of its sovereignty for the support of the government and all public needs. Is any contribution imposed by the government upon individuals, for the use and service of the state.

TAXES

Essential Characteristics of a Tax includes;

It is an enforced contribution, It is levied by the lawmaking body, It is proportionate in character, It is generally payable in money, It is imposed for the purpose of raising revenues, It is to be used for public purposes

Types of Tax Rate Structures

REGRESSIVE, PROPORTIONAL AND PROGRESSIVE

if the average rate decreases as the tax base increases

REGRESSIVE

(also called flat or uniform taxes) tax remains constant for all levels of the tax base

PROPORTIONAL

Classification of Taxes as a subject matter or object includes;

PERSONAL, POLL OR CAPITATION, PROPERTY AND EXCISE

tax of a fixed amount imposed on individuals, whether citizens or not, residing within a specific territory without regard to their property or the occupation in which they may be engaged

PERSONAL, POLL OR CAPITATION

Tax imposed on property, whether real or personal, in proportion either to its value or in accordance with some other reasonable method of apportionment

PROPERTY

Tax imposed upon the performance of an act, the enjoyment of privilege or the engaging in an occupation

EXCISE

Classification of tax as to who bears the burden includes;

DIRECT AND INDIRECT

tax demanded from the persons who are intended or bound by law to pay the tax.

DIRECT

Tax which the taxpayer can shift to another.

INDIRECT

Classification of tax as to determination of amount includes;

SPECIFIC AND AD VALOREM

Tax imposed based on physical unit of measurements, as by head or number, weight, or length or volume.

SPECIFIC

Tax of a fixed proportion of the value of property, needs and independent appraiser to determine its value.

AD VALOREM

Classification of taxes as to purposes includes;

GENERAL, FISCAL OR REVENUE AND SPECIAL OR REGULATORY

Tax with no particular purpose or object for which the revenue is raised, but is simply raised for whatever need may arise.

GENERAL, FISCAL OR REVENUE

Tax imposed for a special purpose regardless of whether the revenue is raised or not, and is intended to achieve some social or economic end.

SPECIAL OR REGULATORY

Classification of Taxes as to Authority imposing the tax or scope includes;

NATIONAL AND MUNICIPAL OR LOCAL

Tax imposed by the national government.

NATIONAL

Tax imposed by municipal governments for specific needs.

MUNICIPAL OR LOCAL

Classification of Tax as to graduation rate includes;

PROPORTIONAL, PROGRESSIVE OR GRADUATED AND REGRESSIVE

It is a sum of money for the use of something, generally applied to the consideration which is paid for the use of a road, bridge or the like of a public nature.

TOLL

It is any sanction imposed as a punishment for violation of law or acts deemed injurious. Violatoon on tax laws may give rise to imposition of it.

PENALTY

It is an enforced proportional contribution from owners of lands for special benefits resulting from public improvements.

SPECIAL ASSESSMENT

A charge imposed under the police power for purposes of regulation

PERMIT OR LICENSE FEE

It is generally based on contract, is assignable and may be paid in kind while a tax is based on law, cannot generally be assigned and is generally payable in money

DEBT

It is broader than tax since it refers to all funds or income derived by the government taxes included.

REVENUE

These are taxes imposed on goods exported from or imported to a country.

CUSTOMS DUTIES

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