Chapter 14: Classification of Taxes Flashcards
Taxes imposed by the national government and are national in scope.
National
Taxes imposed by local governments
Municipal or Local
Taxes that are imposed as specific amounts on a specific standard of measurement
Specific
A tax which is added into the assesed value of a taxable Entitiy
Ad Valorem
Taxes that are computed as a fixed proportion of the value of an entity being taxed or the rate of consumption
Proportional
Taxes whose rates increase as the entity being taxed also increases
Progressive or Graduated
The Tax bracket decreases as the entity taxed increases
Regressive
The earnings of a person are taxed by the national government and are progressive in nature
income Tax
The act of a certain person in disposing a certain thing without the consideration of money
Donor’s Tax
Tax imposed on the right of a deceased person to transfer the estate to his lawful heir or beneficiary
Estate Tax
Tax imposed on the sale and/or exchange of goods and services
Value-Added Tax
Tax imposed on specific goods produced in the Philippines for local consumption or sale in the country, or to goods made in other countries and imported and consumed in the Philippines
Excise Tax
Tax imposed on and based the selling price or gross value of goods and services being sold, imported, exchanged, or bartered
Other Percentage Taxes
Tax on legal documents and papers. All documents without stamp are rendered void and legally non-useable
Documentary Stamp Taxes
Taxes imposed on the importation and exportations of goods and in and out of the country.
Customs Duties
A book of “book of rates” of customs duties for different goods
Custom Tariff
Tax imposed on travel whether local or foreign
Travel Tax
Tax imposed on the use of petroleum products
Energy Tax
Tax imposed on the owners of private motor vehicles for the use of the vehicles.
Private Motor Vehicles Tax
The act of putting up taxes on persons, activities, and products
Tax Levying
The official action of an officer duly authorized by law in determining the amount of tax due
Tax Assesment
The process of getting the taxes imposed by the proper government agencies
Tax Collection
What are the limitations on the power of Taxation
1) The principle of Due Process of Law
2) The principle of Equal Protection of the Law
3) Rule of Uniformity in Taxation
4) Non-Impairment of the Obligation of Contracts
5) The President has the Authority
6) Final Jurisdiction of the Supreme Court
The use by a taxpayer of legally permissible means or methods in order to avoid or reduce tax liability. It is not punishable by law.
Tax Avoidance
The use by the taxpayer of illegal or fraudulent means to defeat or reduce the payment of a tax. It is punishable by law.
Tax Evasion
