Local Government Tax | Real Property Tax | Flashcards
(10 cards)
- Taxing Power of local government units shall NOT extend to the following taxes, except one:
a. Income tax on banks and other financial institutions
b. Taxes of any kind on the national government, its agencies and instrumentalities, and local government units
c. Excise taxes on articles enumerated under the National Internal Revenue Code
d. Taxes on agricultural and aquatic products when sold by the marginal farmers or fishermen
A
Section 133. Common Limitations on the Taxing Powers of Local Government Units.- Unless otherwise provided herein, the exercise of the taxing powers of provinces, cities, municipalities, and barangays shall not extend to the levy of the following:
(a) Income tax, except when levied on banks and other financial institutions
- Which statement on prescriptive periods is true?
a. Action for the collection of local taxes may be instituted after the expiration of the period to assess and to collect the tax
b. Local taxes may be assessed within ten (10) years from discovery of the underpayment of tax which does not constitute fraud
c. Local taxes shall be assessed within five (5) years from the date they became due
d. The prescriptive periods to assess taxes in the National Internal Revenue Code and the Local Government Code are the same
C
Section 194. Periods of Assessment and Collection.
(a) Local taxes, fees, or charges shall be assessed within five (5) years from the date they became due.
- The appraisal assessment, levy and collection of real property tax shall be guided by the following principles. Which statement does NOT belong here?
a. Real property shall be appraised at its current and fair market value
b. Real property shall be assessed on the basis of a uniform classification within each local political subdivision
c. Real property shall be classified for assessment purposes on the basis of its actual use
d. The appraisal and assessment of real property shall be based on audited financial statements of the owner
D
Section 198. Fundamental Principles.- The appraisal, assessment, levy and collection of real property tax shall be guided by the following fundamental principles:
(a) Real property shall be appraised at its current and fair market value;
(b) Real property shall be classified for assessment purposes on the basis of its actual use;
(c) Real property shall be assessed on the basis of a uniform classification within each local government unit;
(d) The appraisal, assessment, levy and collection of real property tax shall not be let to any private person; and
(e) The appraisal and assessment of real property shall be equitable.
- Where the real property tax assessment is erroneous, the remedy of the property owner is:
a. To file a claim for refund in the CTA if he has paid the tax within thirty (30) days from date of payment
b. To file an appeal with the Provincial Board Assessment Appeals within sixty (60) days from receipt of the assessment and paying the assessed tax under protest
c. To file an appeal with the Provincial Board of Assessment Appeals within thirty (30) days from receipt of the assessment
d. To file an appeal with the Provincial Board of Assessment Appeals within sixty (60) days from receipt of the assessment
B
Section 226. Local Board of Assessment Appeals.- Any owner or person having legal interest in the property who is not satisfied with the action of the provincial, city or municipal assessor in the assessment of his property may, within sixty (60) days from the date of receipt of the written notice of assessment, appeal to the Board of Assessment Appeals of the provincial or city by filing a petition under oath in the form prescribed for the purpose, together with copies of the tax declarations and such affidavits or documents submitted in support of the appeal.
Section 252. Payment Under Protest.
(a) No protest shall be entertained unless the taxpayer first pays the tax.
- A municipality may levy an annual ad valorem tax on real property such as land, building, machinery, and other improvement only if
a. the DILG authorized it to do so
b. the real property is located in the municipality
c. the real property is within the Metropolitan Manila Area
d. the power is delegated to it by the province
C
Section 232. Power to Levy Real Property Tax.- A province or city or a municipality within the Metropolitan Manila Area may levy an annual ad valorem tax on real property such as land, building, machinery, and other improvement not hereinafter specifically exempted.
6.The City Government of Manila may NOT impose:
a. Special levy on lands within its territory specially benefited by public works projects or improvements funded by it at 80% of the actual cost of the projects or improvements
b. Basic real property tax at 2% of the assess value of real property
c. Additional ad valorem tax on idle lands at a rate not exceeding 5% of the assessed value
d. Additional levy on real property for the special education fund at 1% of the assessed value of real property
A
Section 240. Special Levy by Local Government Units.- A province, city or municipality may impose a special levy on the lands comprised within its territorial jurisdiction specially benefited by public works projects or improvements funded by the local government unit concerned: Provided, however, That the special levy shall not exceed sixty percent (60%) of the actual cost of such projects and improvements, including the costs of acquiring land and such other real property in connection therewith: Provided, further, That the special levy shall not apply to lands exempt from basic real property tax and the remainder of the land portions of which have been donated to the local government unit concerned for the construction of such projects or improvements.
Section 235. Additional Levy on Real Property for the Special Education Fund.- A province or city, or a municipality within the Metropolitan Manila Area, may levy and collect an annual tax of one percent (1%) on the assessed value of real property which shall be in addition to the basic real property tax. The proceeds thereof shall exclusively accrue to the Special Education Fund (SEF).
- Which of the following properties is not exempted from real property taxes?
a. A building and lot owned by X Corporation leased out to the Securities and Exchange Commission.
b. Abuilding and lot owned by X Corporation actually used by Toledo Water District
c. Abuilding and lot owned and used by Fairchild Multipurpose Cooperative
d. Abuilding and lot owned by X Corporation leased out to Caritas Charity
A
Section 234. Exemptions from Real Property Tax.- The following are exempted from payment of the real property tax:
(a) Real property owned by the Republic of the Philippines or any of its political subdivisions except when the beneficial use thereof has been granted, for consideration or otherwise, to a taxable person;
(b) Charitable institutions, churches, parsonages or convents appurtenant thereto, mosques, non-profit or religious cemeteries and all lands, buildings, and improvements actually, directly, and exclusively used for religious, charitable or educational purposes;
(c) All machineries and equipment that are actually, directly and exclusively used by local water districts and government owned or controlled corporations engaged in the supply and distribution of water and/or generation and transmission of electric power;
(d) All real property owned by duly registered cooperatives as provided for under R.A. No. 6938; and
(e) Machinery and equipment used for pollution control and environmental protection.
- What is the tax base for the imposition by the province of professional taxes?
a. The pertinent provision of the local government code
b. That which congress determined
c. The reasonable classification made by the provincial sanggunian
d. That which the Dept of Interior and Local Government determined
C
Section 139. Professional Tax.(a) The province may levy an annual professional tax on each person engaged in the exercise or practice of his profession requiring government examination at such amount and reasonable classification as the sangguniang panlalawigan may determine but shall in no case exceed Three hundred pesos (P300.00).
- Which of the following statements is TRUE
a. A manufacturing company with a principal office in Cebu City and a sales outlet in Mandaue City shall pay the tax of its sale transaction made in Lapu-lapu City to Cebu City.
b. An assembler with a principal office in Cebu City and a factory in Lapu-lapu city shall allocate its sales at the rate of 30% and 70% to its principal office and factory, respectively, for purposes of local taxation and provided that sales were made in Lapu-lapu City
c. A producer with a principal office in Cebu, a factory in Lapu-lapu City and plantation in Toledo City shall allocate its sales at the rate of 30%, 28% and 42% to its principal office, factory and plantation, respectively, for purposes of local taxation and provided that sales were made in Lapu- lapu City and Toledo City. (wrong 30%, 42%, 28%- Principal, Factory, Plantation, respectively)
d. An exporter with a principal office in Cebu City, factories in Lapu-lapu City, Mandaue City and Bogo City shall allocate its sales at the rate of 30% and 70% to its principal office and factories, respectively, provided that the 70% shall be allocated to the factories based on the volume of sales made in their respective locations.
A
Edward: If there is no branch where the sale was made → principal office. (ICAB, there is no branch the place of sale (LLC) so, Principal office in Cebu City)
- Z corporation has a gross earnings of P5,000,000 last year inclusive of the dividends it received from another corporation worth P2,500,000. How much is the community tax it should be required to pay this year?
a. 2500
b. 1500
c. 5005
d. 10,500
A 2500 →500+[(5M/5k)x2]
Section 158. Juridical Persons Liable to Community Tax.- Every corporation no matter how created or organized, whether domestic or resident foreign, engaged in or doing business in the Philippines shall pay an annual community tax of Five hundred pesos (P500.00) and an annual additional tax, which, in no case, shall exceed Ten thousand pesos (P10,000.00) in accordance with the following schedule:
(1) For every Five thousand pesos (P5,000.00) worth of real property in the Philippines owned by it during the preceding year based on the valuation used for the payment of real property tax under existing laws, found in the assessment rolls of the city or municipality where the real property is situated- Two pesos (P2.00); and
(2) For every Five thousand pesos (P5,000.00) of gross receipts or earnings derived by it from its business in the Philippines during the preceding year- Two pesos (P2.00).
The dividends received by a corporation from another corporation however shall, for the purpose of the additional tax, be considered as part of the gross receipts or earnings of said corporation.
