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Taxation > TAXES > Flashcards

TAXES Flashcards

1
Q

_____ are enforced proportional contributions from persons and property levied by the lawmaking body of the State by virtue of its sovereignty for the support of the government and all public needs.

A

Taxes

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2
Q

_____ in general sense, is any contribution imposed by the government upon individuals, for the use and service of the state, whether under the name of toll, tribute, tallage, gabel, impost, duty custom, excise, subsidy, aid, supply or other name.

A

Tax

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3
Q

_____ in its essential characteristics is not a debt (Black’s Law Dictionary).

A

Tax

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4
Q

Essential Characteristics of a Tax

A
  1. It is an enforced contribution;
  2. It is levied by the lawmaking body;
  3. It is proportionate in character;
  4. It is generally payable in money;
  5. It is imposed for the purpose of raising revenues; and
  6. It is to be used for public purpose.
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5
Q

Types of Tax Rate Structures:

A
  1. Regressive
  2. Proportional
  3. Progressive
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6
Q

Types of Tax Rate Structures:

A tax is said to be _____ if the average rate decreases as the tax base increases

A

regressive

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7
Q

Types of Tax Rate Structures:

_____ taxes (also called flat or uniform taxes), the average rate of tax remains constant for all levels of the tax base

A

proportional

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8
Q

Types of Tax Rate Structures:

_____ tax is one for which the average rate increases as the amount of the tax bases increases.

A

progressive

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9
Q

Constitutional Provision on Progressive System of Taxation

A

The Supreme Court declared Republic Act (R.A.) 9337 or the VAT Reform Act constitutional. In the same decision, it clarified the constitutional provision on progressive system of taxation. The increase in corporate income tax rate and the removal of certain exemptions are meant to distribute the burden of taxation. Although indirect taxes, e.g. VAT, are regressive by nature, the constitution does not prohibit the imposition of indirect taxes. When the Constitution mandated Congress to evolve a progressive system of taxation, it simply meant that direct taxes should be preferred and that the regressive indirect taxes can be minimized with exemptions and differentiated rates (G.R. 168207, G.R. 168463, and G.R. 168730, Sept. 1,2005).

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10
Q

Classification of Taxes

  1. As to subject matter or object:
A
  1. Personal, poll or capitation
  2. Property
  3. Excise
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11
Q

Classification of Taxes
1. As to subject matter or object:

Tax of a fixed amount imposed on individuals, whether citizens or not, residing within a specified territory without regard to their property or the occupation in which they may be engaged.
Example; community tax

A

Personal, poll or capitation

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12
Q

Classification of Taxes
1. As to subject matter or object:

Tax imposed on property, whether real or personal, in proportion either to its value or in accordance with some other reasonable method of appointment.
Example: real estate tax

A

Property

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13
Q

Classification of Taxes
1. As to subject matter or object:

Tax imposed upon the performance of an act, the enjoyment of a privilege or the engaging in an occupation.
Examples: estate tax, donor’s tax, income tax, value-added tax.

A

Excise

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14
Q

Classification of Taxes
2. As to who bears the burden

A
  1. Direct
  2. Indirect
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15
Q

Classification of Taxes
2. As to who bears the burden

Tax demanded from persons who are intended or bound by law to pay the tax. Examples: community tax, income tax, estate tax, donor’s tax

A

Direct

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16
Q

Classification of Taxes
2. As to who bears the burden

Tax which the taxpayer can shift to another. Examples: customs duties, value-added tax, some percentage taxes

A

Indirect

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17
Q

Classification of Taxes
3. As to determination of amount

Excise taxes on certain specific goods imposed under the National Internal Revenue Code are either ____ or ____ taxes.

A
  1. specific
  2. ad valorem
18
Q

Classification of Taxes
3. As to determination of amount

Tax imposed based on a physical unit of measurement, as by head or number, weight, or length or volume.
Examples: tax on distilled spirits, fermented liquors, cigars, wines, fireworks, etc.

A

specific

19
Q

Classification of Taxes
3. As to determination of amount

Tax of a fixed proportion of the value of property; needs an independent appraiser to determine its value.
Examples: real estate tax, certain customs duties, excise taxes on cigarettes, gasoline and others.

A

ad valorem

20
Q

Classification of Taxes
4. As to purpose

A
  1. General, fiscal or revenue
  2. Special or regulatory
21
Q

Classification of Taxes
4. As to purpose

Tax with no particular purpose or object for which the revenue is raised, but is simply raised for whatever need may arise. Examples: income tax, value-added tax

A

General, fiscal or revenue

22
Q

Classification of Taxes
4. As to purpose

Tax imposed for a special purpose regardless of whether revenue is raised or not, and is intended to achieve some social or economic end.
Example: protective tariffs or customs duties on certain imported goods to protect local industries against foreign competition.

A

Special or regulatory

23
Q

Classification of Taxes
5. As to authority imposing the tax or scope

A
  1. National
  2. Municipal or local
24
Q

Classification of Taxes
5. As to authority imposing the tax or scope

Tax imposed by the national government. Examples: internal revenue taxes, tariff and customs duties.

A

National

25
Q

Classification of Taxes
5. As to authority imposing the tax or scope

Tax imposed by municipal governments for specific needs.
Examples: real estate taxes, municipal licenses.

A

Municipal or local

26
Q

Classification of Taxes
6. As to graduation or rate

A
  1. Proportional
  2. Progressive or graduated
  3. Regressive
27
Q

Classification of Taxes
6. As to graduation or rate

Tax based on a fixed percentage of the amount of property income or other basis to be taxed.
Examples: percentage taxes, real estate taxes.

A

Proportional

28
Q

Classification of Taxes
6. As to graduation or rate

Tax rate increases as the tax base increases. Examples: income tax, estate tax, donor’s tax.

A

Progressive or graduated

29
Q

Classification of Taxes
6. As to graduation or rate

Tax rate decreases as the tax base increases.
Example: value-added tax.

A

Regressive

30
Q

Tax Distinguished from Other Fees
From _____
____ is sum of money for the use of something generally applied to the consideration which is paid for the use of a road, bridge or the like of a public nature.

A

Toll

31
Q

Tax Distinguished from Other Fees

A _____ is a demand of proprietorship is paid for the use of another’s property and may be imposed by the government or private individuals or entities; while tax is a demand of sovereignty, is paid for the support of the government and may be imposed only by the State.

A

toll

32
Q

Tax Distinguished from Other Fees
From ______
_____ is any sanction imposed as a punishment for violation of law or acts deemed injurious. Violation of tax laws may give rise to imposition of penalty.

A

Penalty

33
Q

Tax Distinguished from Other Fees

A ______ is designed to regulate conduct and may be imposed by the government or private individuals or entities. Tax, on the other hand, is primarily aimed at raising revenue and may be imposed only by the government.

A

penalty

34
Q

Tax Distinguished from Other Fees
From ______
______ is an enforced proportional contribution from owners of lands for special benefits resulting from public improvements.

A

Special assessment

35
Q

Tax Distinguished from Other Fees

_____ is levied only on hand, is not a personal liability of the person assessed, is based wholly on benefits and is exceptional both as to time and place. Tax is levied on persons, property, or exercise of privilege, which may be made a personal liability of the person assessed, is based on necessity and is of general application.

A

Special assessment

36
Q

Tax Distinguished from Other Fees
From ______
______ is a charge imposed under the police power for purposes of regulation.

A

Permit or license fee

37
Q

Tax Distinguished from Other Fees

_____ is imposed for regulation and involves the exercise of police power while tax is levied for revenue and involves the exercise of the taxing power. Failure to pay a _____ makes an act or a business illegal while failure to pay a tax does not necessarily make an act or a business illegal.

A

License fee

38
Q

Tax Distinguished from Other Fees
From ______
A _____ is generally based on contract, is assignable and may be paid in kind while a tax is based on law, cannot generally be assigned and is generally payable in money. A person cannot be imprisoned for non-payment of debt while he can be for non-payment of tax (except poll tax).

A

debt

39
Q

Tax Distinguished from Other Fees
From ______
_____ is broader than tax since it refers to all funds or income derived, by the government taxes included. Other sources of revenues are government services, income from public enterprises and foreign loans.

A

Revenue

40
Q

Tax Distinguished from Other Fees
From ______
_____ are taxes imposed on goods exported from or imported to a country. Customs duties are actually taxes but the latter is broader in scope.

A

Customs duties

Taxation (3 decks)

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