Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Health Economics > CHAPTER 2: Tax, Tax Laws, and Tax Administration > Flashcards

CHAPTER 2: Tax, Tax Laws, and Tax Administration Flashcards

1
Q

______ refers to any law that arises from the exercise of the taxation power of the State.

A

Taxation law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Types of taxation laws

A
  1. Tax laws
  2. Tax exemption laws
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

These are laws that provide for the assessment and collection of taxes.

A

Tax laws

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Examples of Tax Laws

A

a. The National Internal Revenue Code (NIRC)
b. The Tariff and Customs Code.
c. The Local Tax Code
d. The Real Property Tax Code

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

These are laws that grant certain immunity from taxation.

A

Tax exemption laws

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Examples of Tax exemption laws

A

a. The Minimum Wage Law
b. The Omnibus Investment Code of 1987 (E.O. 226)
c. Barangay Micro-Business Enterprise (BMBE) Law
d. Cooperative Development Act

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Sources of Taxation Laws

A
  1. Constitution
  2. Statutes and Presidential Decrees
  3. Judicial Decisions or case laws
  4. Executive Orders and Batas Pambansa
  5. Administrative Issuances
  6. Local Ordinances
  7. Tax Treaties and Conventions with foreign countries
  8. Revenue Regulations
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Types of Administrative Issuances

A
  1. Revenue regulations
  2. Revenue memorandum orders
  3. Revenue memorandum rulings
  4. Revenue memorandum circulars
  5. Revenue bulletins
  6. BIR rulings
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

______ are issuances signed by the Secretary of Finance upon recommendation of the Commissioner of Internal Revenue (CIR) that specify, prescribe, or define rules and regulations for the effective enforcement of the provisions of the National Internal Revenue Code (NIRC) and related statutes.

A

Revenue Regulations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

______ are formal pronouncements intended to clarify or explain the tax law and carry into effect its general provisions by providing details of administration and procedure. It has the force and effect of a law, but is not intended to expand or limit the application of the law; otherwise, it is void.

A

Revenue regulations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

______ are issuances that provide directives or instructions; prescribe guidelines; and outline processes, operations, activities, workflows, methods, and procedures necessary in the implementation of stated policies, goals, objectives, plans, and programs of the Bureau in all areas of operation except auditing.

A

Revenue Memorandum Orders (RMOs)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

______ are rulings, opinions and interpretations of the CRI with respect to the provisions of the Tax Code and other tax laws as applied to specific set of facts, with or without established precedents, and which the CRI may issue from time to time for the purpose of providing taxpayers guidance on the tax consequences in specific situations.

A

Revenue Memorandum Rulings (RMRs)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

______ are issuances that publish pertinent and applicable portions as well as amplifications of laws, rules, regulations, and precedent issued by the BIR and other agencies/offices.

A

Revenue Memorandum Circulars (RMCs)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

______ refer to periodic issuances, notices, and official announcements of the Commissioner of Internal Revenue that consolidate the Bureau of Internal Revenue’s position on certain specific issues of law or administration in relation to the provisions of the Tax Code, relevant tax laws, and other issuances for the guidance of the public.

A

Revenue Bulletins (RB)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

______ are official positions of the Bureau to queries raised by taxpayers and other stakeholders relative to clarification and interpretation of tax laws.

A

BIR Rulings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

______ are merely advisory or a sort of information service to the taxpayer such that none of them is binding except to the addressee and may be reversed by the BIR at anytime.

A

Rulings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Types of rulings

A
  1. Value Added Tax (VAT) rulings
  2. International Tax Affairs Division (ITAD) rulings
  3. BIR rulings
  4. Delegated Authority (DA) rulings
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

______ or ______ are not laws, but are mere conventions of hnancial reporting. They are benchmarks for the fair and relevant valuation and recognition of income, expense, assets, liabilities, and equity of a reporting entity for general purpose financial reporting. ______ accounting reports are intended to meet the common needs of a vast number of users in the general public.

A

Generally accepted accounting principles, GAAP, GAAP

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Philippine tax laws are ______ and not political in nature. They are effective even during periods of enemy occupation. They are laws of the occupied territory and not by the occupying enemy. Tax payments made during occupations of foreign enemies are valid.

A

civil

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Our internal revenue laws are not ______ in nature because they do not define crime. Their penalty provisions are merely intended to secure taxpayers compliance.

A

penal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

______ is an enforced proportional contribution levied by the lawmaking body of the State to raise revenue for public purpose.

A

Tax

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Elements of a Valid Tax

A
  1. Tax must be levied by the taxing power having jurisdiction over the object of taxation.
  2. Tax must not violate Constitutional and inherent limitations.
  3. Tax must be uniform and equitable.
  4. Tax must be for public purpose.
  5. Tax must be proportional in character.
  6. Tax is generally payable in money.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Classification of Taxes

A

1) as to purpose: Fiscal or revenue tax, regulatory, sumptuary
2) as to subject matter: personal, poll or capitation, property tax, excise tax
3) as to incidence: direct tax, indirect tax
4) as to amount: specific, ad valorem
5) as to rate: proportional, progressive or graduated, regressive, mixed
6) as to imposing authority: national, local

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

a tax imposed for general purpose

A

Fiscal or revenue tax

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

a tax imposed to regulate business, conduct, acts or transactions

A

Regulatory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

a tax levied to achieve some social or economic objectives

A

Sumptuary

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

a tax on persons who are residents of a particular territory

A

Personal, poll or capitation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

a tax on properties, real or personal

A

Property tax

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

a tax imposed upon the performance of an act, enjoyment of a privilege or engagement in an occupation

A

Excise or privilege tax

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

When both the impact and incidence of taxation rest upon the same taxpayer, the tax is said to be direct. The tax is collected from the person who is intended to pay the same. The statutory taxpayer is the economic taxpayer.

A

Direct tax

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

When the tax is paid by any person other than the one who is intended to pay the same, the tax is said to be indirect. This occurs in the case of business taxes where the statutory taxpayer is not the economic taxpayer.

The statutory taxpayer is the person named by law to pay the tax. An economic taxpayer is the one who actually pays the tax.

A

Indirect tax

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

a tax of a fixed amount imposed on a per unit basis such a per kilo, liter or meter, etc.

A

Specific tax

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

a tax of a fixed proportion imposed upon the value of the tax object

A

Ad valorem

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

This is a flat or fixed rate tax. The use of this emphasizes equality as it subjects all taxpayers with the same rate without regard to their ability to pay.

A

Proportional tax

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

This is a tax which imposes increasing rates as the tax base increase. The use of this rates results in equitable taxation because it gets more tax to those who are more capable. It aids in lessening the gap between the rich and the poor.

A

Progressive or graduated tax

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

This tax imposes decreasing tax rates as the tax base increase. This is the total reverse of progressive tax. It is regarded as anti-poor. It directly violates the Constitutional guarantee of progressive taxation.

A

Regressive tax

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

This tax manifest tax rates which is a combination of any of the above types of tax.

A

Mixed tax

38
Q

tax imposed by the national government

A

National tax

39
Q

Examples of National tax

A

a. Income tax
b. Estate tax
c. Donor’s tax
d. Value Added Tax
e. Other percentage tax
f. Excise tax
g. Documentary stamp tax

40
Q

tax on annual income, gains or profits

A

Income tax

41
Q

tax on gratuitous transfer of properties by a decedent upon death

A

Estate tax

42
Q

tax on gratuitous transfer of properties by a living donor

A

Donor’s tax

43
Q

consumption tax collected by VAT business taxpayers

A

Value Added Tax

44
Q

consumption tax collected by non-VAT business taxpayers

A

Other percentage tax

45
Q

tax on sin products and non-essential commodities such as alcohol, cigarettes and metallic minerals

A

Excise tax

46
Q

a tax on documents, instruments, loan agreements, and papers evidencing the acceptance, assignment, sale or transfer of an obligation, right or property incident thereto

A

Documentary stamp tax

47
Q

tax imposed by the municipal or local government

A

Local tax

48
Q

Examples of Local tax

A

a. Real property tax
b. Professional tax
c. Business taxes, fees, and charges
d. Community tax
e. Tax on banks and other financial institutions

49
Q

______ refers to the amount imposed by the government for public purpose. ______ refers to all income collections of the government which includes taxes, tariffs, licenses, toll, penalties and others. The amount imposed is ______ but the amount collected is ______.

A

Tax, Revenue, tax, revenue

50
Q

______ has a broader subject than ______. ______ emanates from taxation power and is imposed upon any object such as persons, properties, or privileges to raise revenue.
______ emanates from police power and is imposed to regulate the exercise of a privilege such as the commencement of a business or a profession.

A

Tax, license, Tax, License fee

51
Q

______ are imposed after the commencement of a business or profession whereas ______ is imposed before engagement in those activities. In other words, ______ is a post-activity imposition whereas ______ is a pre-activity imposition.

A

Taxes, license fee, tax, license

52
Q

______ is a levy of government; hence, it is a demand of sovereignty. ______ is a charge for the use of other’s property; hence, it is a demand of ownership.

A

Tax, Toll

53
Q

The amount of ______ depends upon the needs of the government, but the amount of ______ is dependent upon the value of the property leased.

A

tax, toll

54
Q

Both the government and private entities impose ______, but private entities cannot impose taxes.

A

toll

55
Q

______ arises from law while ______ arises from private contracts. Non-payment of ______ leads to imprisonment, but non-payment of ______ does not lead to imprisonment.

A

Tax, debt, tax, debt

56
Q

______ can be subject to set-off but tax is not.

A

Debt

57
Q

______ can be paid in kind (dacion et pago) but ______ is generally payable in money.

A

Debt, tax

58
Q

______ draws interest only when the taxpayer si delinquent. ______ draws interest when it is so stipulated by the contracting parties or when the debtor incurs a legal delay.

A

Tax, Debt

59
Q

______ is an amount imposed upon persons, properties, or privileges. ______ is levied by the government on lands adjacent to a public improvement. It is imposed on land only and is intended to compensate the government for a part of the cost of the improvement.

A

Tax, Special assessment

60
Q

The basis of ______ is the benefit ni terms of the appreciation in land value caused by the public improvement. On the other hand, ______ is levied without expectation of a direct proximate benefit.

A

special assessment, tax

61
Q

Unlike taxes, ______ attaches to the land. It wil not become a personal obligation of the land owner. Therefore, the non-payment of ______ will not result to imprisonment of the owner (unlike in non-payment of taxes).

A

special assessment, special assessment

62
Q

______ is broader than ______. ______ is an amount imposed upon persons, privilege, transactions, or properties. ______ is the amount imposed on imported or exported commodities.

A

Tax, tariff, Tax, Tariff

63
Q

______ is an amount imposed for the support of the government. ______ is an amount imposed to discourage an act. ______ may be imposed by both the government and private individuals. It may arise both from law or contract whereas tax arises from law.

A

Tax, Penalty, Penalty

64
Q

The ______ refers to the methods or schemes of imposing, assessing, and collecting taxes. It includes all the tax laws and regulations, the means of their enforcement, and the government offices, bureaus and withholding agents which are part of the machineries of the government in tax collection.

A

tax system

65
Q

The Philippine tax system is divided into two: the ______ and the ______.

A

national tax system, local tax system

66
Q

Types of Tax Systems According to Imposition

A
  1. Progressive
  2. Proportional
  3. Regressive
67
Q

employed in the taxation of income of individuals, and certain local business taxes

A

Progressive

68
Q

employed in taxation of corporate income and business

A

Proportional

69
Q

not employed in the Philippines

A

Regressive

70
Q

Types of Tax System According to Impact

A
  1. Progressive system
  2. Regressive system
71
Q

A ______ tax system is one that emphasizes direct taxes. A direct tax cannot be shifted. Hence, it encourages economic efficiency as it leaves no other resort to taxpayers than to be efficient. This type of tax system impacts more upon the rich.

A

progressive

72
Q

A ______ tax system si one that emphasizes indirect taxes. Indirect atxes are shifted by businesses to consumers; hence, the impact of taxation rests upon the botom end of the society. In effect, a regressive tax system is anti-poor.

A

regressive

73
Q

It is widely believed that despite the Constitutional guarantee of a progressive taxation, the Philippines has a dominantly regressive tax system due ot the prevalence of ______.

A

business taxes

74
Q

TAX COLLECTION SYSTEMS

A

A. Withholding system on income tax
B. Withholding system on business tax
C. Voluntary compliance system
D. Assessment or enforcement system

75
Q

Types of Withholding system on income tax

A
  1. Creditable withholding tax
    a. Withholding tax on compensation
    b. Expanded withholding tax
  2. Final withholding tax
76
Q

Under this collection system, the payor of the income withholds or deducts the tax on the income before releasing the same to the payee and remits the same to the government.

A

Withholding system on income tax

77
Q

an estimated tax required by the government to be withheld (i.e. deducted) by employers against the compensation income to their employees

A

Withholding tax on compensation

78
Q

an estimated tax required by the government to be deducted on certain income payments made by taxpayers engaged in business

A

Expanded withholding tax

79
Q

The ______ is intended to support the self-assessment method to lessen the burden of lump sum tax payment of taxpayer and also provides for a possible third-party check for the BIR of non-compliant taxpayers.

A

creditable withholding tax

80
Q

a system of tax collection wherein payors are required to deduct the full tax on certain income payments

A

Final withholding tax

81
Q

The ______ is intended for the collection of taxes from income with high risk of non-compliance.

A

final withholding tax

82
Q

when the national government agencies and instrumentalities including government-owned and controlled corporations (GOCCs) purchase goods or services from private suppliers, the law requires withholding of the relevant business tax (i.e. VAT or percentage tax). Business taxation is discussed under Business and Transfer Taxation by the same author.

A

Withholding system on business tax

83
Q

Under this collection system, the taxpayer himself determines his income, reports the same through income tax returns and pays the tax to the government. This system is also referred to as the “Self-assessment method.”

A

Voluntary compliance system

84
Q

Under this collection system, the government identifies non-compliant taxpayers, assesses their tax dues including penalties, demands for taxpayer’s voluntary compliance or enforces collections by coercive means such as a summary proceeding or judicial proceedings when necessary.

A

Assessment or enforcement system

85
Q

PRINCIPLES OF A SOUND TAX SYSTEM

A
  1. Fiscal adequacy
  2. Theoretical justice
  3. Administrative feasibility
86
Q

______ requires that the sources of government funds must be sufficient to cover government costs. The government must not incur a deficit. A budget deficit paralyzes the government’s ability to deliver the essential public services to the people. Hence, taxes should increase in response to increase in government spending.

A

Fiscal adequacy

87
Q

______ or ______ suggests that taxation should consider the taxpayers ability to pay. It also suggests that the exercise of taxation should not be oppressive, unjust, or confiscatory.

A

Theoretical justice, equity

88
Q

______ suggests that tax laws should be capable of efficient and effective administration to encourage compliance. Government should make it easy for the taxpayer to comply by avoiding administrative bottlenecks and reducing compliance costs.

A

Administrative feasibility

89
Q

______ refers to the management of the tax system. ______ of the national tax system in the Philippines is entrusted to the Bureau of Internal Revenue which is under the supervision and administration of the Department of Finance.

A

Tax administration

90
Q

Chief Officials of the Bureau of Internal Revenue

A
  1. 1 Commissioner
  2. 4 Deputy Commissioners, each to be designated to the following:
    a. Operations group
    b. Legal Enforcement group
    c. Information Systems Group
    d. Resource Management Group
91
Q

OTHER AGENCIES TASKED WITH TAX COLLECTIONS OR TAX INCENTIVES RELATED FUNCTIONS

A
  1. Bureau of Customs
  2. Board of Investments
  3. Philippine Economic Zone Authority
  4. Local Government Tax Collecting Unit
  5. Fiscal Incentives Review Board

Health Economics (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions