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2-23. BLT 2(2018)-C (LEC) Income and Business Taxation > Chapter 1 > Flashcards

Chapter 1 Flashcards

1
Q

Persons and properties of the same class should be taxed at the same rate

A

To be uniform

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2
Q

Tax should be imposed in proportion to taxpayer’s ability to pay.

A

To be equitable

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3
Q

True or False

Imprisonment for non payment of poll tax.

A

False

No imprisonment for non payment of poll tax.

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4
Q

Constitutional Limitation of Power to Tax

A
  • Observance of due process of law and equal protection
  • Rule of uniformity and equity in taxation
  • No imprisonment for non-payment of poll tax
  • Non-impairment of obligations and contracts
  • Prohibition against infringement of religious freedom
  • Prohibition against appropriations for religious purposes. Related to the non-establishment clause
  • Exemption of all revenues and assets of non-stock, non-profit educational institutions
  • Concurrence by a majority of all members of Congress in the passage of a law granting tax exemptions.
  • Congress may not deprive the Supreme Court of its jurisdiction to review
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5
Q

Situs of Taxation

A
  1. Real property tax
  2. Tangible Personal Property tax
  3. Intangible Personal Property tax
  4. Income tax
  5. Poll or residence Tax
  6. Transfer tax
  7. Business, Occupation and transaction
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6
Q

Is the state or country which has jurisdiction to tax a person, property, or interest

A

Situs of Taxation

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7
Q

in short, __________________ is the place of taxation

A

Situs of Taxation

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8
Q

The place where it is located

A

Real Property Tax

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9
Q

where the act is done, or occupation is pursued

A

Business, Occupation and transaction

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10
Q

Residents or domiciled of the state whether citizen or not

A

Poll or Residence Tax

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11
Q

Where it is physically located

A

Tangible Personal Property Tax

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12
Q

Source of income

A

Income Tax

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13
Q

taxable in the domicile of the owner under the maxim of “Mobilia Seguuntur Personam”

A

Intangible Personal Property Tax

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14
Q

Where the transferor is a citizen or resident or where the property is located

A

Transfer Tax

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15
Q

Means taxing twice by the same taxing authority with the same jurisdiction or taxing district for the same purpose in the same year or taxing period.

A

Double Taxation

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16
Q

True or False

Double Taxation is prohibited by the Constitution and there is double taxations when the same person is taxed by the same jurisdiction for the same purpose.

A

False

Double Taxation is NOT prohibited by the Constitution and there is double taxations when the same person is taxed by the same jurisdiction for the same purpose.

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17
Q

Double Taxation in the narrow sense

A

Unconstitutional

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18
Q

Double taxation in the broader sense

A

it is not necessarily to

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19
Q

Sources of Tax Law

A
  • The 1987 Constitution
  • Statutory Enactments
  • Administrative Rulings and regulations
  • Judicial Decisions of the supreme court
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20
Q

Regulated by but taxation may exist without the constitution

A

The 1987 Constitution

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21
Q

Are interpretations of tax law by the Comissioner of the BIR

A

Administrative Rulings

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22
Q

For purpose of administration and procedure by Secretary of Finance upon recommendation of the Commissioner

A

Administative Regulations

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23
Q

All Tax Laws passed by Congress

A

Statutory Enactments

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24
Q

is not the power to legislate and the under the guise of regulation, legislation may not be enacted.

A

Nature of power to make regulations

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25
Q

The purpose is only to implement the law or put it into effect.

A

Nature of power to make regulations

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26
Q

True or False

The stature or law being administered may not be altered or added to by the power to make regulation thereunder

A

True

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27
Q

True or false

Regulations may not increase or decrease the requirements of the law or embrace matters not covered or intended to be covered by the tax statute

A

True

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28
Q

Requisites of Valid Regulation

A
  • Necessary to the proper enforcement of the law
  • Must not be contrary to the law or consitution
  • Published in the official Gazette
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29
Q

The effectivity of regulations

A

Under the Administrative Code (E.O No. 292), every agency shall file with the UP Law Center 3 certified copies of rules adopted by it. Such rules shall be effective 15 days from the date of filing unless a different day is fixed by law or specified under said rule in cases of imminent danger to public health, safety and welfare.

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30
Q

Are not political.

A

National Internal Revenue Code (NIRc)

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31
Q

Tax Laws are civil and not Penal (Although there are Penalties for violation This is to compel timely payment or punish evasion or neglect of duty to pay taxes)

A

National Internal Revenue Code (NIRC)

32
Q

True or False

Legislative intention must not be considered

A

False

Legislative intention must be considered

33
Q

Are to receive a reasonable construction or interpretation with a view to carrying out their purpose and intent.

A

Tax statutes

34
Q

They should not be construed as to permit the taxpayer to easily evade the payment of tax.

A

Legislative intention must be considered

35
Q

Construction of Tax laws

A

a. Legislative intention mus t be considered
b. Where there is doubt
c. Where Language is plain
d. Where taxpayer claims exemption
e. When there is a conflict with other laws

36
Q

No person or property is subject to taxation unless within the terms or pain import of a taxing statute.

A

Where there is doubt

37
Q

True or False

In every case of doubt, Tax statutes are construed strictly against the government and liberally in favor of the taxpayer.

A

True

38
Q

The rule of strict construction against the government is not applicable where the language of the tax statute is plain and there is no doubt as to the legislative intent.

A

Where Language is plain

39
Q

Example: Good faith of the taxpayer is not sufficient justification for exemption from surchages imposed by law

A

Legislative intention must be considered

40
Q

Example: The word “individual” is changed to “persons”, this clearly indicates that the tax applies to both natural and juridicial persons unless otherwise expressly provided.

A

Where Language is plain

41
Q

True or False

Exemptions are construed not against the government but against the one who asserts the exemption.

A

True

42
Q

Taxation = ?; Exemption =?

A

Rule; Exception

43
Q

are in the nature of exemptions, thus they are strictly construed against the claimant who now has the burden of proving the factual basis of the claim for refund.

A

Tax refunds

44
Q

Are construed not against the government but against the one who asserts the exemption

A

Exemption

45
Q

Is one which embraces a class of subjects or places and does not omit any subject or place naturally belonging to such class

A

General Laws

46
Q

Is one which relates to particular persons or things of a class.

A

Special Law

47
Q

Application of Tax Laws

A
  1. Generally Prospective in Operation
  2. Applicability of Tax Treaties
48
Q

The reason being that the nature and amount of the tax could not be foreseen and understood by the taxpayer at the time the transaction which the law seek to tax was completed.

A

Generally Prospective in Operation

49
Q

Application of tx laws may be subject to the provisions of the tax treaties entered into by the Philippines with other countries.

A

Applicability of Tax Treaties

50
Q

Generally for the avoidance of double taxation which is a deterrent to international trade and investment.

A

Applicability of Tax treaties

51
Q

are between 2 states for allocating tax revenue between them.

A

Tax Treaties

52
Q

seek to eliminate double taxation when 2 or more governments tax the same item of income.

A

Tax treaties

53
Q

These are the provisions intented for the security of citizens or to insure equality of taxation or certainty as to the nature and amount of each.

A

Mandatory

54
Q

Those provisions designed merely for the information or direction of officers or to secure methodical and systematic modes of proceedings.

A

Directory

55
Q

Omission of _____________ provisions renders invalid the act or proceeding to which it relates

A

Mandatory

56
Q

Omission of _____________ does not involve the same consequences

A

Directory

57
Q

Are the enforced contribution from persons and property levied by the law-making body of the state by virtue of its sovereignty for the support of the government and all public needs

A

Taxes

58
Q

Is the act of laying a tax

A

Taxation

59
Q

It is merely a way of apportioning the cost of government among those who in some measure are privileged to enjoy its benefits and therefore must bear its burdens.

A

Taxation

60
Q

What is the purpose of taxation

A

To provide funds or property with which to promote the general welfare and protection of its citizens.

61
Q

Essential Characteristics

A
  1. It is an enforced contribution
  2. It is proportionate in character
  3. it is levied by the law-making body of the state
  4. It is levied for public purpose
  5. It is generally payable in money
  6. It is levied on persons and property by the State which has jurisdiction over the person or property
62
Q

the power of taxation is ___________________________ as an incident or attribute thereof, being essential to the existence of every government.

A

It is inherent in sovereignty

63
Q

It exists apart from the Constitution and without being expressly conferred by the people.

A

It is inherent in sovereignty

64
Q

The power of taxation is pecuniary and ______________ and cannot be exercised by the executive or judicial branch of government.

A

It is Legislative in character

65
Q

Nature of taxing power

A
  1. It is inherent in sovereignty
  2. It is legislative in character
66
Q

It cannot continue without the means to pay its expenses. Thus, it has the right to compel citizens and property to contribute

A

Existence of Government

67
Q

The State and the citizens have the duty to protect and support each other. In return for their contribution, the taxpayer receives the advantages and protection the government provides.

A

Reciprocal duties of the state and its inhabitants

68
Q

Stages in imporsition taxes

A
  1. levy
  2. Assessment
  3. Collection
69
Q

Enactment of tax laws

A

Levy

70
Q

Getting of tax imposed

A

Collection

71
Q

Ascertaining the amount of tax due

A

Assessment

72
Q

Inherent Limitations of Tax Laws

A
  1. Taxation must be for a public purpose
  2. Taxation is a power legislative in nature
  3. Taxation is limited to the territory of the State
  4. Taxation respects international comity
  5. Government agencies performing governmental functions are exempt from taxation.
73
Q

This is a legislative act. Lawmakers make tax laws and decide what to tax, who to tax and at what tax rate

A

Levy

74
Q

Levy = ?; Collection = ?

A

Taxation; Tax administration

75
Q
A

2-23. BLT 2(2018)-C (LEC) Income and Business Taxation (5 decks)

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