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Income Taxation > Concepts Taxation > Flashcards

Concepts Taxation Flashcards

1
Q

Define taxation

A

the process or means by which the sovereign, through its lawmaking body, raises income to defray the necessary expenses of the government

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2
Q

What is “lifeblood of the government and their prompt and certain availability are an imperious need” and its meaning?

A

Taxes, government cannot continue to exist and operate without financial means.

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3
Q

What is “indispensable and inevitable price for civilized society” and its meaning?

A

Taxation, without taxes, the government would be paralyzed.

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4
Q

What are the objectives of taxation?

A

a. raising of revenue for the government
b. achieve various economic and social objectives that includes:
- shifting wealth from the rich to the poor
- maintain price stability
- stimulate economic growth
- encourage full employment

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5
Q

State Powers

A
  • Taxation
  • Eminent Domain
  • Police Power
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6
Q

The power of the state by which the sovereign raises revenue to defray the necessary expenses of the government.

A

Taxation

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7
Q

The power of the state to take private property for public use. upon payment of just compensation.

A

Eminent Domain

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8
Q

The power of the state to enact laws to promote public health, public morals, public safety and the general welfare of the people.

A

Police Power

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9
Q

Aspects of Taxation

A
  1. Levying of the tax.
  2. Collection of the tax levied.
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10
Q

The imposition of tax requires legislative intervention. In the Philippines, it is Congress that levies taxes

A

Levying of the tax

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11
Q

This is essentially an administrative function.

A

Collection of the tax levied.

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12
Q

Basic Principles of a Sound Tax System

A
  1. Fiscal adequacy.
  2. Equality or theoretical justice.
  3. Administrative feasibility.
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13
Q

Sources of revenue are sufficient to meet government expenditures

A

Fiscal adequacy

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13
Q

The tax imposed must be proportionate to taxpayer’s ability to pay

A

Equality or theoretical justice.

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14
Q

The law must be capable of convenient, just and effective administration

A

Administrative feasibility

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15
Q

Limitations on the Power of Taxation

A

constitutional and inherent limitations

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16
Q

limitations are those provided for in the constitution or implied from its provisions

A

Constitutional Limitations

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17
Q

Restrictions to the power to tax attached to its nature.

A

inherent limitations

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18
Q

Purpose

A

Taxes may be levied only for public purpose

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19
Q

Territoriality

A

The State may tax persons and properties under its jurisdiction

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20
Q

International comity

A

The property of a foreign State may not be taxed by another

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21
Q

Exemption

A

Governmental agencies performing governmental functions are exempt from taxation

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22
Q

Non-delegation

A

The power to tax being legislative in nature may not be delegated

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23
Q

Give some doctrines in taxation and its meaning.

A
  1. Prospectivity of Tax Laws
    - Taxes must be imposed prospectively.
  2. Double Taxation
    - Same taxpayer is taxed the same tax jurisdiction for the same thing.
  3. Set-off of Taxes
    - Taxes are not subject to set-off or legal compensation under Article 1279 of the Civil Code.
  4. Escape from Taxation
    - Available to the taxpayer to limit or even avoid the impact of taxation.
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24
Q

Types of Double Taxation

A
  • Direct Double Taxation
  • Indirect Double Taxation
25
Q

Categories of Escape from Taxation

A

-Tax Avoidance/ Tax Minimization/ Tax Planning
- Tax Evasion/ Tax Dodging

26
Q

Situs of Taxation

A

place of taxation

27
Q

Situs of Persons

A

Residence of the taxpayer

28
Q

Situs of Real property or tangible personal property

A

Location of the property

29
Q

Situs of Intangible personal property

A

Situs is the domicile of the owner unless he has acquired a situs elsewhere

30
Q

Situs of Business, occupation and transaction

A

Place where business is being operated, occupation being practiced and transaction completed

30
Q

Situs of Income earned

A

Taxpayer’s residence or citizenship, or place where the income was earned

31
Q

Situs of Gratuitous transfer of property

A

Taxpayer’s residence or citizenship, or location of the property

32
Q

Enforced proportional contributions from persons and property levied by the lawmaking body of the State by virtue of its sovereignty for the support of the government and all public needs

A

Taxes

33
Q

Any contribution imposed by the government upon individuals

A

Tax

34
Q

Essential Characteristics of a Tax

A
  • enforced contribution
  • levied by the lawmaking body
  • proportionate in character
  • generally payable in money
  • imposed for the purpose of raising revenues
  • to be used for public purpose.
35
Q

Types of Tax Rate Structures

A
  • regressive
  • proportional
  • progressive
35
Q

The average rate decreases as the tax base increases.

A

Regressive Tax

36
Q

The average rate of tax remains, constant for all levels of the tax base.

A

Proportional Tax

37
Q

The average rate increases as the amount of the tax bases increases.

A

Progressive Tax

38
Q

clarified the constitutional provision on progressive system of taxation

A

Republic Act (R.A.) 9337 or VAT Reform Act

39
Q

Tax of a fixed amount imposed on individuals, whether citizens or not, residing within a specified territory without regard to their property or the occupation in which they may be engaged. Example: community tax.

A

Personal Tax/ Poll Tax/ Capitation Tax

39
Q

Tax imposed on property, whether real or personal, in proportion either to its value or in accordance with some other reasonable method of apportionment.

A

Property Tax

40
Q

Tax imposed upon the performance of an act, the enjoyment of a privilege or the engaging in an occupation

A

Excise Tax

41
Q

Tax demanded from persons who are intended or bound by law to pay the tax

A

Direct Tax

42
Q

Tax which the taxpayer can shift to another

A

Indirect Tax

43
Q

Tax imposed based on a physical unit of measurement, as by head or number, weight, or length or volume.

A

Specific Tax

44
Q

Tax of a fixed proportion of the value of property; needs an independent appraiser to determine its value

A

Ad valorem Tax

45
Q

Tax with no particular purpose or object for which the revenue is raised, but is simply raised for whatever need may arise.

A

General Tax/ Fiscal Tax/ Revenue Tax

46
Q

Tax imposed for a special purpose regardless of whether revenue is raised or not, and is intended to achieve some social or economic end

A

Special Tax/ Regulatory Tax

47
Q

Tax imposed by the national.

A

National Tax

48
Q

Tax imposed by municipal governments for specific needs.

A

Municipal Tax/ Local Tax

49
Q

three branches of the national government are

A
  • President and his administration (executive)
  • Congress (legislative)
  • Courts (judicial)
50
Q

Statutory Law

A

Republic Act 8424, The National Internal Revenue Code (NIRC) of 1997

51
Q

types of administrative tax authorities

A
  • Revenue Regulations
  • Revenue Rulings
52
Q

administrative interpretations of the statutes enacted by Congress and tend to be somewhat more detailed than the Code itself

A

Revenue Regulations

53
Q

more detailed, as they are issued in order to explain the tax results of very specific transactions

A

Revenue Rulings

54
Q

tax ‘law,’ in general, is composed of all three elements:

A

(1) the Code
(2) Regulations and Rulings,
(3) decisions of various courts that hear tax cases

55
Q

Sources of Tax Laws

A
  1. Constitution
  2. Statutes and Presidential Decrees
  3. Revenue Regulations
  4. Rulings by the Commissioner of Internal Revenue and Opinions by the Secretary of Justice
  5. Decisions of the Supreme Court and the Court of Tax Appeals
  6. Provincial, city, municipal, and barangay ordinances
  7. Treaties or international agreements
56
Q

First Philippine Internal Revenue Law was approved by (1)______________ on (2)______________ as (3)______________ effective on (4)______________

A
  1. Philippine Commission
  2. July 2, 1904
  3. Act 1189
  4. August 4, 1904
57
Q

The Bureau was created by (1)______________, approved by the (2)______________ on (3)______________, effective on (4)______________.

A
  1. Commonwealth Act 466
  2. National Assembly
  3. June 15,1939
  4. July 1, 1939
58
Q

(1)______________ an act amending the National Internal Revenue Code, known as (2)______________

A
  1. RA 8424
  2. Tax Reform Act of 1997

Income Taxation (2 decks)

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