Process or means by which the sovereign through its lawmaking body raises income as to defray necessary expenses of the government

lifeblood of the government and their prompt and certain availability are imperious need

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

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

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

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

It is the one that levies taxes

Sources of revenue are sufficient to meet government expenditures

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

The law must be capable of convenient just and effective administrative

Are those provided for in the constitution are implied in its provision

A restrictions to the power to tax attached to its nature

Tax may be levied only for public use

The state may not tax persons and properties under its jurisdiction

The property of a foreign state may be taxed by another

Governmental agencies performing governmental functions are exempt from taxation

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

Taxes must be imposed by prospectively

Standing alone and not being forbidden our fundamental law is not a valid defense against the legality of a tax measure

Is one other than the direct double taxation through this type may not prove unconstitutional it is being avoided so as not to bring injustice to the taxpayer

Taxes are not subject to set off or legal compensation under article 1279 of the civil code

Happens when the taxpayer minimizes his tax liability by taking advantage of legally available tax planning opportunities

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

Is the place of taxation

Are enforced proportional contributions from persons and property levied by the lawmaking body of the state

Is any contribution imposed by the government upon individuals for the use and service of the state

Tax is a debt

If the average rate decreases as the tax base increases

Tax remains constant for all levels of tax base

Average tax rate increases as amount of tax base increases

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

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

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

Tax demanded from the person who are intended or bound by law to pay the tax

Tax which the taxpayer can shift to another

Tax imposed based on physical unit of measurement as by head or number weight or length or volume

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

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

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

Tax imposed by the national government

Tax imposed by municipal government for specific needs

Tax based on fixed percentage of the amount of property income or other basis to be taxed

Tax rate increases as tax based increases

Tax rate decrease as tax based increase

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

Is any sanction imposed as a punishment for violation of law or acts deemed injurious

Is an enforced proportional contribution from owners of lands for special benefits resulting from public improvements

A charged imposed under the police power for purposes of regulation

Generally based on contract is assignable and maybe paid in kind

Debt is based on law while tax is based on contract

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

Taxes imposed on goods exported from or imported to a country

(Macro) administrative interpretations of the of the statutes enacted by the Congress and tend to be somewhat more detailed than the code itself

(Micro) issues order to explain the tax results of very specific transactions

occurs when the BIR and taxpayers are unable to agree on what constitutes the correct application of the tax authorities to specific situations

3 elements of tax laws

expanded Jurisdiction of the Court of tax Appeals (CTA). This law took effect on Apr. 22, 2024. It amended R.A. 1125 (the law creating the CTA

has exclusive original jurisdiction over all criminal offenses arising from violations of the NIRC and other laws administered by the BIR where the principal amount of taxes and fees (exclusive of charges and penalties) claimed is 1 million and above

The recognized rules in statutory construction also apply to tax statutes

All returns required to be filed by the Tax Code shall be prepared always in conformity with the provisions of the Tax Code, and the rules and regulations issued implementing said Tax Code

In case a difference between provision of Tax Codes and GAAP/GAAS occurred, GAAP/GAAS shall prevail

law passed for the purpose of authorizing the levy and collection of taxes in some form to raise revenue

are neither political nor penal in nature although there are penalties in case of violations

Tax Laws are not civil in nature

The Bureau was created by Commonwealth Act 466, approved by the National Assembly on June 15, 1939 effective July 1, 1939, which revised and codified the then internal revenue laws of the Philippines

mission is to “collect taxes efficiently and effectively, for and at the least cost to the government, through impartial and consistent enforcement of internal revenue laws, and convenient and honest service to taxpayers

under this system, the taxpayer calculates the tax by himself or through an accountant, fills up his tax return, files it with the proper tax office, and pays the tax due thereon upon tax filing

act of tendering payment of the self-assessed tax

identification of sectors of business or industries, and/or economic segments of economic activities where the degree of compliance is low, and the subsequent audit or investigation of enterprises and companies that are part of these selected industries

issuances that specify, prescribe or define rules and regulations for the effective enforcement of the provisions of National Internal Revenue Code (NIRC) and related statutes

issuances that publish pertinent and applicable portions, as well as amplifications, of laws, rules and regulations and precedents issued by the BIR and other agencies/offices

are issuances that provide directives or instructions, prescribe guidelines, and outline processes operations, activities and workflows, methods and procedure necessary in the implementation of stated policies, goals objectives, plans and programs of the Bureau in all area of operations, except auditing

opinions and interpretations of the commissioner of Internal Revenue with respect to the provisions of the Tax Codes and other Tax Laws, as applied to a specific set of facts, with or without established precedents, and which the Commissioner may issue from time to time for the purpose of providing taxpayers guidance on the tax consequences in specific situations.

BIR rulings therefore, cannot contravene duly issued RMRs; otherwise Rulings are null and void ab initio

are official positions of the BIR on inquiries of taxpayers, who request clarification on certain provisions of the Tax Code, other tax laws, or their implementing regulations, usually seeking for tax exemptions.

Rulings are based on particular facts and circumstances presented and are interpretations of the law at a specific point in time

refer to periodic issuances, notices and official announcements of the Commissioner of Internal Revenue