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INCOME TAX > CHAPTER 1- Def. Of Terms > Flashcards

CHAPTER 1- Def. Of Terms Flashcards

1
Q

Process or means by which the sovereign through its law making body imposes burdens upon subjects and objects within its jurisdiction for the purpose of raising revenues to carry out the legitimate objects of the government

A

Taxation

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2
Q

Three Inherent Powers of the State

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

Promoting public welfare by restraining and regulating the use of liberty and property.

A

Police Power

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4
Q

The state raises revenue to defray the necessary expenses of the government

A

Power of Taxation

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5
Q

Power of the state to acquire private property for the public purpose upon payment of just compensation

A

Power of Eminent Domain

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6
Q

Similarities among the three inherent powers of the state

A
  1. Inherent in the state
  2. Exist independently in the constitution
  3. State interferes with private rights and properties
  4. Legislative in nature and character
  5. Presuppose an equivalent compensation received, directly or indirectly, by the persons affected.
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7
Q

Power to enforce contributions to raise government funds

A

Taxation

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8
Q

Power to make and implement laws for the general welfare

A

Police power

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9
Q

Purposes of Taxation

A

• Primary : Revenue
• Secondary: Regulatory

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10
Q

Provide funds of property to promote general welfare

A

Primary : Revenue

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11
Q

Device for regulation or control

A

Secondary : Regulatory

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12
Q

Theory of taxation

A

• Necessity Theory
• Lifeblood Theory

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13
Q

Preserve the state’s sovereignty and to give protection and facilities

A

Necessity Theory

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14
Q

Government’s basic function

A

Lifeblood Theory

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15
Q

Reciprocal duties of protection and support between the state and its inhabitants

A

Basis of Taxation

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16
Q

Manifestation of Lifeblood Theory

A

• No estoppel against the government
• Collection of taxes cannot be stopped by injunction
• Taxes could not be the subject compensation set-off
•Right to select objects (subjects) of taxation
• A valId tax may result in the destruction of the taxpayer’s property

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17
Q

Scope of the power of taxation

A

• Comprehensive
• Unlimited
• Plenary
• Supreme

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18
Q

Essential Elements of Tax

A

• Enforced contribution
• Payable in money
• Proportionate
• Levied on persons, property, rights
• Levied by the law-making body
• Levied for public purpose

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19
Q

Aspects of Taxation

A

• Levying or imposition if tax
• Assessment of the correct amount
• Collection of tax

20
Q

Nature/ characteristics of the state’s power to tax

A

• Inherent in sovereignty
• Legislative
• Exemptions of government entities, agencies and instrumentalities
• International Comity
• Limitation if Territorial Jurisdiction
• Strongest among the inherent powers

21
Q

Exceptions to Non-Delegation Rule

A

•President
•Local Government
•Administrative Agencies
•Constitutional and Inherent limitations

22
Q

Exception of government entities, agencies and instrumentalities

A
  • Agencies performing governmental functions
  • Agencies performing propriety functions
  • GOCCs
  • GSIS
  • SSS
  • PHIC
  • Local water district
23
Q

Classification of taxes:

A

Scope
- National
- Local

Subject Matter
- Personal
- Property
- Excise

Who bears the burden
-Direct
-Indirect

Determination of fixed amount
- Specific Tax
- Ad valorem

24
Q

Elements of sound tax system

A

• Fiscal Adequacy
• Theoretical justice or equity
• Administrative feasubility

25
Q

Limitations on the state power to tax

A

• Inherent limitations
• Constitutional Limitations

26
Q

Situs of Taxation

A

• Place of Taxation
• The state or political unit which has jurisdiction to impose a particular tax

27
Q

Factors in Determining Situs of Taxation

A

a. Subject matter (person, property, or activity)
B. Nature of tax
C. Citizenship
D. Residence of tax payer
E. Source of Income
F. Place of excise, business or occupation being taxed.

28
Q

Sum of money for the use of something

A

Toll

29
Q

A sanction imposed as a punishment

A

Penalty

30
Q

Proportional contribution from owners of lands for special benefits

A

Special Assessment

31
Q

All funds or income derived by the governement

A

Revenue

32
Q

Pecuniary aid directly granted the government to an individual or private commercial enterprise

A

Subsidy

33
Q

Pecuniary aid directly granted the government to an individual or private commercial enterprise

A

Subsidy

34
Q

Charged imposed under the police power

A

Permit/license fee

35
Q

Taxes imposed exported from or imported into a country

A

Customs Duties

36
Q

Book of rates containing kinds of merchandise with corresponding duties to pay

A

Tariff

37
Q

True or False: There is a burden of two or more impositions

A

True

38
Q

DIRECT DOUBLE TAXATION means taxing twice

A
  1. By the same taxing authority, jurisdiction or taxing district
  2. For the same purpose
  3. In the same year or taxing period
  4. Same subject or object
  5. Same kind or character of the tax
39
Q

Avoiding/Minimizing the burden of tax

A

•Shifting
•Transformation
•Evasion
•Tax Avoidance
•Exemption
•Capitalization

40
Q

Transfer of tax burden

A

Shifting

41
Q

Producer pays the tax and endeavor to recoup himself by improving his process of production

A

Transformation

42
Q

Use of illegal means

A

Evasion

43
Q

Exploitation of legally permissible alternative

A

Tax Avoidance

44
Q

Grand of immunity

A

Exemption

45
Q

Reduction in the selling price

A

Capitalization

INCOME TAX (1 decks)

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