the inherent power by which the sovereign, through its law-making body, raises revenue to defray the necessary expenses of the government.

T or F: Taxation is a manner of apportioning the costs of the government among those who, in some measure, are privileged to enjoy its benefits and must bear its burdens.

taxation is ——— because its exercise is guaranteed by the mere existence of the state. It could be exercised even in the absence of a constitutional grant.

T or F: The power to tax proceeds upon the theory that the existence of a government is a necessity and this power, however it is not an essential attribute of sovereignty

which does not belong to the group?

It is a principle of a sound tax system that states revenue raised must be sufficient to meet government/public expenditures and other public needs.

It is a principle of a sound tax system that states tax laws must be clear and concise; capable of effective and efficient enforcement; convenient as to time and manner of payment, must not obstruct business growth and economic development.

It is a principle of a sound tax system that states taxation must take into consideration the taxpayer’s ability to pay; Constitution mandates that the rule on taxation must be uniform and equitable and that the State evolve a progressive system of taxation.

The VAT law cannot be considered as violative of the Administrative Feasibility principle because it is principally aimed to rationalize the system on taxes of goods and services

Non-observance of Fiscal Adequacy and Administrative Feasibility will render the tax measure Sound and unconstitutional, and non-observance of the Principle of Theoretical Justice is valid

this means taxing the same person for the same tax period and the same activity twice, by the same jurisdiction.

The following are double taxation in a STRICT sense, except?

Double Taxation in broad has the same sense as direct double taxation and is legally objectionable. The absence of one or more of the foregoing requisites of obnoxious direct tax makes it indirect.

Double taxation in its stricter sense is unconstitutional but that in the broader sense is not necessarily so

Our Constitution STRICLTY prohibits double taxation. Double taxation will not be allowed if it results in a violation of the equal protection clause.

the following are modes of eliminating double taxation, except:

A mode of eliminating double taxation which states that an amount subtracted from the gross income to arrive at taxable income.

A mode of eliminating double taxation which states that an amount subtracted from a taxpayer’s tax liability (tax due) to arrive at the tax still due.

It is a mode of eliminating double taxation that sets out the respective rights to tax of the state of source (situs) and the state of residence with regard to certain cases, an exclusive right to tax is conferred on one of the contracting states

select the best answer (forms of escape from taxation)

a form of escape from taxation which states that the burden of payment is transferred from the statutory taxpayer to another without violating the law

a form of escape from taxation which states that reduction in the price of the taxed object equal to the capitalized value of future taxes the purchaser is expected to be called upon to pay.

a form of escape from taxation which states that manufacturers or producers, upon whom tax are imposed, fearing the loss of his market if he should add to the price, pays the tax and endeavor to recoup himself by improving his process of production, thereby producing his units at a lower cost

a form of escape from taxation that states exploitation by the taxpayer of legally permissible alternative tax rates or methods of assessing taxable property or income, in order to avoid or reduce tax liability. Also known as “tax minimization.” (e.g. utilizing all permissible allowable deductions)

a form of escape from taxation that states grant of immunity to particular persons or corporations of a particular class from a tax which persons or corporations generally within the same rate or taxing district are obliged to pay.

Exemptions are highly favored by law and he who claims an exemption must be able to justify his claim by any proof. An exemption from the common burden must be permitted to exist upon vague implication.

He who claims exemption should prove his factual and legal basis for exemption.

Tax exemptions are strictly construed against the person claiming it.Tax exemptions are strictly construed against the person claiming it.

Constitutional grant of exemptions are self-executing.

In in its indirect relation that taxes are personal, tax exemptionsare may be shared to other members of the family

Deductions from income tax purposes partake of the nature of tax exemptions, therefore should also be construed strictly against the taxpayer.

The following are kinds of Tax Exemption, except

a kind of tax exemption that Expressly granted by the Constitution, statutes, treaties, franchises or similar legislative acts.

a kind of tax exemption that states When particular persons, properties, or exercise are deemed exempt as they fall outside the scope of the taxing provision itself.

Kind of Tax Exemption that agreed to by the taxing authority in contract lawfully entered into by them under enabling laws

kinds of tax exemption as to BASIS: Immunities from taxation which originate from the Constitution

kinds of tax exemption as to BASIS: those which emanate from legislation.

Kinds of Tax Exemption as to Extent are Total and Partial

the following are Grounds for Exemption, except:

A ground of Exemption that states the grant of tax exemption is usually contained in the charter of the corporation to which the exemption is granted

A ground of exemption that states to encourage new and necessary industries, or to foster charitable institutions.

A ground for tax exemption that aims to reduce the rigors of international double or multiple taxation, tax exemptions maybe granted in treaties. A tax exemption is a personalprivilege of the grantee and therefore not assignable; it is generally revocable by the government, unless founded on contract and must not be discriminatory.

use of a taxpayer of illegal or fraudulent means to defeat or lessen the payment of tax. Also known as “tax dodging,” it presupposes malice, fraud, bad faith, or willful intent on the part of the taxpayer either to under- declare income or over-declare deductions to defeat tax liability.

a form of tax escape that states taxes cannot be the subject of compensation because of the lifeblood doctrine; they are not contractual obligations butarise out of duty to the government; and the government and the taxpayer are not mutually debtors and creditors of each other

In compensation (set-off); an exemption to its general rule is that when the liability of the government to the taxpayer has been recognized and the amount of such liability has already been appropriated for such purpose by a corresponding law

A person can refuse to pay tax on the basis that the government owes him an amount equal to or greater than the tax being collected

A form of escape from taxation that states powers granted to the Commissioner of Internal Revenue to reduce tax liabilities and/or penalties.

Tax laws must be construed unreasonably to carry out the purpose, possible effect and the objective of the law.

as a rule, if the tax law is clear and free of ambiguity, it will be applied in its literal import. If there is doubt as to its validity or if it is ambiguous, the law will be construed strictly against the Government and liberally in favor of the taxpayer.

Tax Exemptions; deductions and refund: in case of ambiguity, the law will be construed strictly against the taxpayer and liberally in favor of the government, except:

The following are Stage of Taxation, Except

A stage of taxation that provides The determination by Congress of the subject and object of taxation as well as the rate

stage of taxation which states that a notice to the effect that the amount therein stated is due as tax and a demand for payment thereof.

stage of taxation that states the act of compliance by the taxpayer, including such options, schemes or remedies as may be legally open or available to him.

stage of taxation that states The taxpayer asks for restitution of the money paid as tax which is either excessive or erroneous.

The following are sources of Tax Laws, Except

The following are types of taxes I. Annual Registration Fee II. Capital Gains Tax III. Documentary Stamp IV. Donee’s Tax V. Estate Tax VI. Privilage Tax VII. Income Tax VIII. Percentage Tax IX. VAT X. Withholding Tax which one is true

type of tax: the production, sale or consumption of a commodity in a country. It applies to goods manufactured or produced in the Philippines for domestic sale or consumption or for any other disposition; and to imported goods.

type of tax: tax on all yearly profits arising from property, profession, trades or offices or as a tax on a person’s income, emoluments, profits and the like.

type of tax: is a business tax imposed on persons or entities who sell or lease goods, properties or services in the course of trade or business whose gross annual sales or receipts do not exceed ₱3,000,000.00 and are not VAT-registered.

type of tax: business tax imposed and collected from the seller in the course of trade or business on every sale of properties (real or personal) lease of goods or properties (real or personal) or vendors of services. It is an indirect tax, thus, it can be passed on to the buyer.

Every person subject to any national internal revenue tax such as: IT, estate and donor’s taxes, VAT, percentage tax, withholding tax, excise tax, and DST, including its branches shall register as a Taxpayer

Every taxper MUST have Taxpayer Identification Number

The Tin Number consists of 9 to 13 numeric code 9 — ? 4 — ?

TIN is transferrable and can be shared by multiple tax payers

having multiple TIN can be criminally liable and has a penalty of 10,000 Pesos.

The Estate of a deceased person or a Trust under an irrevocable trust agreement shall be issued a TIN separate and distinct from the TIN of the deceased person and/or trustee;

Minors who are earning shall not be supplied with TIN under Executive Order No. 98

NRANETB and NRFC shall only be issued for the purpose of withholding tax on their income anywhere around the world.

Branches of identified Large Taxpayer shall be registered at the Large Taxpayers Service (LTS) where the Head Office is registered

All incorporators of corporations/associations (stock and non-stock), partners of partnerships and members of cooperatives must have TINs.

Registration Requirement SELF EMPLOYED 1. WHEN 2. WHERE 3. FEE 4. BIR Form

Registration Requirement Earning Purely Compensation 1. WHEN 2. WHERE 3. FEE 4. BIR Form

Registration Requirement Corps, Partnership, Govt. Agencies and Instrumentalities 1. WHEN 2. WHERE 3. FEE 4. BIR Form

Registration Requirements: One-Time Taxpayer and Persons Registering under EO98 1. WHEN 2. WHERE 3. FEE 5. BIR Forms

Issuance of Certificate of Registration shall only be issued to individuals engaged in business (including persons doing business online) or practice of profession and to juridical persons (whether taxable or exempt)

As a general rule, it shall be mandatory for the BIR district office to process and issue simultaneously the Certificate of Registration (COR), ATP and register the books of accounts of business taxpayers immediately after registration and upon complete submission of the requirements.