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Taxation > TAXATION > Flashcards

TAXATION Flashcards

1
Q

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

A

Taxation

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2
Q

Taxation, as a power of the state, is _______.

A

inherent in sovereignty

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3
Q

What is the lifeblood of the government?

A

Taxes

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4
Q

A government cannot continue to _____ and _____ without financial means.

A

exist and operate

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5
Q

What inherent power does the government have the right to tax the citizens and properties within its jurisdiction?

A

Taxation

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6
Q

Taxation is _____ and _____ price for civilized society; without taxes, the government would be paralyzed.

A

indispensable and inevitable

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7
Q

One of the primary undertakings of any government in order to provide sufficient funds.

A

Collection of taxes

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8
Q

What is the premier tax agency in the Philippines?

A

Bureau of Internal Revenue (BIR)

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9
Q

The ultimate beneficiaries of taxation

A

Both the government and the citizens

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10
Q

The state collects taxes in the exercise of the sovereign right for the:

A
  1. Support of the government
  2. Administration of the laws
  3. Continue operation of the various legitimate functions of the state.
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11
Q

Objectives of Taxation

A
  1. Shifting wealth from the rich to the poor
  2. Maintaining price stability
  3. Stimulating economic growth
  4. Encouraging full employment
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12
Q

The three State Powers.

A
  1. Taxation
  2. Eminent Domain
  3. Police Power
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13
Q

STATE POWER
The power of the state by which the sovereign raises revenue to defray the necessary expenses of the government.

A

Taxation

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14
Q

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

A

Eminent Domain

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15
Q

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

A

Police Power

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16
Q

Aspects of Taxation.

A
  1. Levying of the tax.
  2. Collection of the tax levied.
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17
Q

ASPECTS OF TAXATION
The imposition of tax requires legislative intervention. In the Philippines, it is Congress that levies taxes;

A

Levying of the Tax

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18
Q

ASPECTS OF TAXATION
This is essentially an administrative function.

A

Collection of the tax levied

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19
Q

Basic Principles of a Sound Tax System

A
  1. Fiscal Adequacy
  2. Equality or Theoretical Justice
  3. Administrative Feasibility
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20
Q

BASIC PRINCIPLES OF A SOUND TAX SYSTEM
Sources of revenue are sufficient to meet government expenditures;

A

Fiscal Adequacy

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21
Q

BASIC PRINCIPLES OF A SOUND TAX SYSTEM
The tax imposed must be proportionate to the taxpayer’s ability to pay

A

Equality or Theoretical Justice

22
Q

BASIC PRINCIPLES OF A SOUND TAX SYSTEM
The law must be capable of convenient, just, and effective administration.

A

Administrative Feasibility

23
Q

LIMITATION ON THE POWER OF TAXATION
_____ are those provided for in the constitution or implied from its provisions.

A

Constitutional limitations

24
Q

The five inherent limitations.

A
  1. Purpose
  2. Territoriality
  3. International Comity
  4. Exemption
  5. Non-delegation
25
Q

INHERENT LIMITATION
Taxes may be levied only for a public purposes;

A

Purpose

26
Q

INHERENT LIMITATIONS
The State may tax persons and properties under its jurisdiction.

A

Territoriality

27
Q

INHERENT LIMITATIONS
The property of a foreign State may not be taxed by another;

A

International Comity

28
Q

INHERENT LIMITATIONS
Governmental agencies performing governmental functions are exempt from taxation;

A

Exemption

29
Q

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

A

Non-delegation

30
Q

SOME DOCTRINES IN TAXATION
“Taxes may be imposed retroactively by law but, unless so expressed by such law, these taxes must only be imposed prospectively.”

A

Prospectivity of Tax Laws

(According to this doctrine, taxes must only be applicable and operative after becoming a law. The effectiveness of this law is only applicable in the future.)

31
Q

_____ standing alone and not being forbidden by our fundamental law is not a valid defense against the legality of a tax measure.

A

Double Taxation

32
Q

_____ in that the same subject is taxed twice when it should be taxed but once, in a fashion that both taxes are imposed for the same purpose by the same taxing authority, within the same jurisdiction or taxing district, for the same taxable period and for the kind or character of a tax, then it becomes legally objectionable foe being oppressive and inequitable.

A

Direct duplicate taxation

33
Q

_____ is one other than direct double taxation. Though this type may not prove unconstitutional, it is being avoided so as not to bring injustice to the taxpayer. An example of this occurs when the business license a taxpayer for engaging in the advertising business. His income from his advertising business shall later be imposed as income tax by the national government.

A

Indirect double taxation

34
Q

When an item of income is taxed in the Philippines and the same income is taxed in another country, there is only a case of ______ which is not legally prohibited because the taxes are imposed by different taxing authorities.

A

Indirect duplicate taxation

35
Q

The usual method to avoid the occurrence of double taxation:

A
  1. allowing reciproca: exemptions either by law or by treaty;
  2. allowance of tax credit for foreign taxes paid;
  3. allowance of deduction for foreign taxes paid;
  4. reduction of the Philippine tax rate.
36
Q

LIMITATIONS ON THE POWER OF TAXATION
_____ are restrictions to the power to tax attached to its nature.

A

inherent limitations

37
Q

Taxes are not subject to _____ or legal compensation under Article 1279 of the Civil Code.

A

set-off

38
Q

2 types of Escape from Taxation:

A
  1. Tax Avoidance (legal)
  2. Tax Evasion (ilegal)
39
Q

_____ happens when the taxpayer minimizes his tax liability by taking advantage of legally available tax planning opportunities.

A

Tax Avoidance

40
Q

______ occurs when the taxpayer resorts to unlawful means to lessen on to get away with his tax liability.

A

Tax Evasion

41
Q

Tax evasion connotes the integration of three factors:

A
  1. The end to be achieved
  2. An accompanying state of mind that is described as being in bad faith, willful or deliberate and not accidental; and
  3. A course of action or failure of action that is unlawful.
42
Q

The _____ is the place of taxation. The rule is that the state may rightfully levy and collect the tax where the subject being taxed has a situs under it jurisdiction.

A

Situs of Taxation

43
Q

The Situs of Taxation is determined by number of factors:

A
  1. Subject matter - or what is being taxed. He may a person or a property, an act or an activity;
  2. Nature of tax - or which tax impose. It may be an income tax, an import duty, or a real property tax;
  3. Citizenship of the taxpayer; and
  4. Residence of the taxpayer.
44
Q

The following situs of taxation apply:

A
  1. Persons
  2. Real property or tangible personal property
  3. Intangible personal property
  4. Income
  5. Business, occupation and transaction
  6. Gratuitous transfer of property
45
Q

The following situs of taxation apply:

Residence of the taxpayer

A

Persons

46
Q

The following situs of taxation apply:

Location of the property

A

Real property or tangible personal property

47
Q

The following situs of taxation apply:

As a rule, situs is the domicile of the owner unless he has acquired a situs elsewhere.

A

Intangible personal property

48
Q

The following situs of taxation apply:

Taxpayer’s residence or citizenship or place where the income was erned.

A

Income

49
Q

The following situs of taxation apply:

Place where business is being operated, occupation being practiced and transaction completed.

A

Business, occupation and transaction

50
Q

The following situs of taxation apply:

Taxpayer’s residence or citizenship or location of the property.

A

Gratuitous transfer of property

Taxation (3 decks)

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