Exam Reviewer Flashcards
A tax system where the revenues are supplied mostly by indirect taxes.
Regressive
The power to acquire private property upon payment of just compensation for public purpose.
Power of Eminent Domain
The power to regulate liberty and property to promote the general welfare.
Police Power
The tax imposed should be proportionate to the taxpayer’s ability to pay.
Equality or Theoretical Justice
The sources of revenue as a whole, should be sufficient to meet the demands of public expenditures.
Fiscal Adequacy
The tax laws must be capable of convenient, just and effective administration.
Administrative feasibility
Persons or things belonging to the same class shall be taxed at the same rate.
Uniformity of taxation
The tax should be proportional to the relative value of the property to be taxed.
Equality in taxation
It literally means “place of taxation”; the country that has the power and jurisdiction to levy and collect the tax.
Situs of taxation
The existence of the government is a necessity and that the state has the right to compel all individuals and property within its limits to contribute.
Theory of taxation
These are issuances signed by the Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue, 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.
Revenue Regulations
These are issuances that provide directives or instructions; prescribe guidelines; and outline processes, operations, activities, workflows, methods and procedure necessary in the implementation of stated policies, goals, objectives, plans and programs of the Bureau in all areas of operations, except auditing.
Revenue Memorandum Orders
These are issuances that publish pertinent and applicable portions, as well as amplifications, of laws, rules, regulations and precedents issued by the BIR and other agencies/offices.
Revenue Memorandum Circulars
Taxes that is imposed upon the performance of an act, enjoyment of a privilege or the engagement in a profession.
Excise tax
Collection system where the payor of the income deducts the tax on the income before releasing the same to the payee, and remits such to the govern.
Withholding tax system on income tax
It is the privilege of not being imposed a financial obligation to which others are subject.
Tax exemption
A tax system where the greater bulk of the tax revenues is derived by direct taxes.
Progressive
This is an inherent limitation on the power of taxation.
Tax must be for the public purpose
The power to demand proportionate contributions from personal and property to defray the expenses of the government.
Power of taxation
The reciprocal duties of support and protection between the people and the government.
Basis of taxation
Subject to inherent and constitutional limitations, the power of taxation is regarded as supreme, plenary, unlimited, and comprehensive.
Scope of taxation
Our national internal revenue laws are
Civil in nature
The levying or imposition of tax and the collection of the tax are processes which constitute the taxation system
Aspects of taxation
The process or means by which the sovereign, through its law-making body raises income to defray the expenses of the government.
Taxation
Enforced proportional contributions from persons property levied by the state by virtue of its sovereignty for the support of the government and for all public needs.
Taxes
An escape from taxation where the tax burden is transferred by the one on whom the tax is imposed or assessed to another.
Shifting
And escape from taxation where the producer or manufacturer pays the tax and endeavors to recoup himself by improving his process of production thereby turning out his units of products at a lower cost.
Transformation
An escape from taxation where there is reduction in the price of a taxed object equal to the capitalized value of future taxes which the taxpayer expects to be called upon to pay.
Capitalization
The use of illegal or fraudulent means to avoid or defeat the payment of tax.
Evasion
The use of legal or permissible means to minimize or avoid taxes.
Avoidance
