TAXATION Flashcards
(26 cards)
A president who recognizing the vital role of a tax research
institution in the overall economic development thrust
of the New Society
President Ferdinand E.
Marcos
the NTRC was organized as a purely single-headed agency
under the administrative supervision of the ________
National
Economic and Development Authority (NEDA).
the use of the tax prayer of illegal
means to avoid or minimize payment of the tax ‘
TAX EVASION
the use of the taxpayer of legally permissible methods to
reduce his tax liability’’
TAX AVOIDANCE
formal organization of a community by means of which community takes cognizance of the common good and reflects & acts
upon possible solution to these problems.
POLITICAL ORGANIZATION
Legal power & physical power to exact obedience
from citizen in view of the common good.
AUTHORITY
may have interests other
than common good.
COMMUNITY
the first political philosopher to use the term
‘state’ in its specific sense, referring to the government
apparatus which guides the political society and is at the
service of this society.”
Machiavelli
Taxes are the enforced proportional contribution,
generally payable in money, levied by the law
making body of the state by virtue of its sovereignty
upon the persons or property within its jurisdiction for
the support of the government and all public needs.
TAXATION
PURPOSE OF TAXATION
to raise revenue to satisfy government
needs
government cannot exist and function
without means to pay its expenditures.
Necessity
legislative act of imposing the tax, exercised by
Congress
LEVY
administrative act of collecting the tax,
exercised by executive branch
COLLECTION
executive branch to collect the tax
1.Bureau of Internal Revenue - national taxes
2. Bureau of Customs - customs duties
3. Local government Units - local taxes and real
property taxes
4. Appropriate government &charges
“the sources of revenue should be sufficient to meet the demands of public expenditures”.
FISCAL ADEQUACY
“the tax imposed should be proportionate to the taxpayer’s ability to
pay”.
EQUALITY OR THEORETICAL JUSTICE
“tax laws should be capable of convenient, just and effective
administration”
ADMINISTRATIVE FEASIBILITY
3 CONSTITUTIONAL LIMITATIONS
DUE PROCESS CLAUSE
EQUAL PROTECTION CLAUSE
UNIFORMITY CLAUSE
taxpayer may not be deprived of life, liberty or property without due process of law.
DUE PROCESS CLAUSE
taxpayers shall be treated alike under similar circumstances and
conditions, both in privileges and liabilities imposed.
EQUAL PROTECTION CLAUSE
taxable articles or property of the same class shall be taxed at the same rate. No direct double taxation.
UNIFORMITY CLAUSE
HOW DOUBLE TAXATION WORKS
Double taxation often occurs because corporations are considered separate legal entities from their shareholders. As such, corporations
pay taxes on their annual earnings, just like individuals. When corporations pay out dividends to shareholders, those dividend payments incur income-tax liabilities for the shareholders who receive them, even though the earnings that provided the cash to pay the dividends were already taxed at the
corporate level.
personal, poll or capitation: fixed amount imposed
on individuals residing within specified territory.
e.g. community tax
property, real or personal, e.g. real estate tax
AS TO SUBJECT MATTER OR OBJECT
demanded from the person who is
intended to pay it
DIRECT TAX
