Train Law Flashcards
(28 cards)
Aspects of Taxation
Refers to the ENACTMENT OF LAW by Congress to impose the
tax
Levy
Aspects of Taxation
Act of implementation of the tax law by the executive department through its administrative agencies
Assessment and Collection
Aspects of Taxation
Act of compliance by the taxpayer
Filing/Payment
Theories
Without taxes, the government lacks the power to function and would be paralyzed
Lifeblood Theory
Theories
- Every able person must contribute their share to run the government
- Whereas, the government is expected to provide tangible and intangible benefits to enhance people’s lives
Benefits-Protection Theory
Theories
Taxation stems from the reciprocal relationship of protection and support between the State and taxpayers
Symbiotic Relationship Theory
Char. of a Sound Tax System
Sources of revenue should be sufficient to meet the demands of public expenditures
Fiscal Adequacy
Char. of a Sound Tax System
Tax burden should be proportionate to the taxpayer’s ability to pay
Equality or Theoretical Justice
Char. of a Sound Tax System
Tax law should be capable of convenient and easy compliance by the taxpayer
Administrative Feasibility
5 Objectives of Taxation
- Revenue
- Regulatory
- Reduction of social inequality
- Encourage economic growth by granting tax incentives and exemptions
- Protectionism
Objectives of Taxation
To provide means for the rehabilitation and stabilization of a threatened industry
Regulatory
Objectives of Taxation
Those who are able to pay should shoulder the bigger portion of the tax burden
Reduction of social inequality
Types of Tax Structures
Tax rates increase with the tax base
Progressive
Types of Tax Structures
Tax rates decrease as the base increases
Regressive
Types of Tax Structures
Fixed percentages to the base
Proportional
Tax Reform for Acceleration and Inclusion (TRAIN) Law
R.A. No. 10963
The TRAIN Law was signed by then Pres. ___ on ___
- Rodrigo Duterte
- December 19, 2017
Excise Tax on Automobiles
Automobiles exempt from excise tax
- Electric vehicles
- Pick-up trucks
Excise Tax on Sweetened Beverages
___ per liter tax on sweetened beverages using purely caloric sweeteners, and purely non-caloric sweeteners, or a mix
P6.00
Excise Tax on Sweetened Beverages
___ per liter on sweetened beverages using purely high fructose corn syrup or in combination with any caloric or non-caloric
sweetener
P12.00
Excise Tax on Sweetened Beverages
Sweetened beverages using purely coconut sap sugar and purely steviol glycosides are ___ from this tax
Exempt
Changes on Other Taxes
The TRAIN Law ___ the final tax imposed on interest income under the expanded foreign currency deposit system from 7.5% to 15%
Increased
Changes on Other Taxes
The TRAIN Law ___ the 5%-10% tax rates to a 15% single tax rate on net capital gains
Increased
Changes on Other Taxes
The TRAIN Law ___ the stock transactions tax from 0.5% to 0.6%
Increased
