Income Taxation 2

Question 1

• refers to any law that arises from the exercise of the taxation power of the State

Answer 1

TAXATION LAW

Question 2

Types of Taxation Laws:

Answer 2

1. Tax laws
2. Tax exemption laws

Question 3

These are laws that provide for the assessment and collection of taxes.
Examples:
a. The National Internal Revenue Code (NIRC)
b. The Tariff and Customs Code
c. The Local Tax Code
d. The Real Property Tax Code

Answer 3

1. Tax laws -

Question 4

These are laws that grant certain immunity from taxation.
Examples:
a. The Minimum Wage Law
b. The Omnibus Investment Code of 1987 (E.O. 226)
c. Barangay Micro-Business Enterprise (BMBE) Law
d. Cooperative Development Act

Answer 4

Tax exemption laws

Question 5

Sources of Taxation Laws:

Answer 5

1. Constitution
2. Statutes and Presidential Decrees
3. Judicial Decisions or case laws
4. Executive Orders and Batas Pambansa
5. Administrative Issuances
6. Local Ordinances
7. Tax Treaties and Conventions with foreign countries
8. Revenue Regulations

Question 6

Types of Administrative Issuances:

Answer 6

1. Revenue regulations
2. Revenue memorandum orders (RMOs)
3. Revenue memorandum rulings (RMRs)
4. Revenue memorandum circulars (RMCs)
5. Revenue bulletins (RB)
6. BIR rulings

Question 7

are issuances signed by the Secretary of Finance recommendation of the
Commissioner of Internal Revenue (CIR) that specify, prescribe, or define rules and regulations for the
effective enforcement of provisions of the National Internal Revenue Code (NIRC) and related statutes.

Answer 7

1. Revenue regulations -

Question 8

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

Answer 8

2. Revenue memorandum orders (RMOs) -

Question 9

are rulings, opinions and interpretations of the CIR with
respect to the provisions of the Tax Code and other tax laws as applied to a specific set of facts, with or
without established precedents, and which the CIR may issue from time to time for the purpose of
providing taxpayers guidance on the tax consequences in specific situations.

Answer 9

3. Revenue memorandum rulings (RMRs) -

Question 10

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

Answer 10

4. Revenue memorandum circulars (RMCs) -

Question 11

refer to periodic issuances, notices, and official announcements
of the Commissioner of Internal Revenue that consolidate the Bureau of Internal
Revenue’s position on certain specific issues of law or administration in relation to the provisions of the
Tax Code, relevant tax laws, and other issuances for the guidance of the public.

Answer 11

5. Revenue bulletins (RB) -

Question 12

• are official positions of the Bureau to queries raised by taxpayers and other stakeholders
  relative to clarification and interpretation of tax laws

Answer 12

6. BIR rulings

Question 13

Is an enforced proportional contribution levied by the lawmaking body of the State to raise revenue
for public purpose.

Answer 13

Tax

Question 14

Classification of Taxes

Answer 14

A. As to purpose
B. As to subject matter
C. As to incidence
D. As to amount
E. As to rate
F. As to imposing authority