General Principles of Taxation Flashcards
The inherent power by which the sovereign, through its law-making body, raises revenue to defray the necessary expenses of the government
Taxation
What is the primary purpose of Taxation?
To raise revenue to finance government expenditures
Characteristics of Power to Tax? CUPS
Comprehensive
Unlimited
Plenary
Supreme
3 Principles of Sound Tax System?
FAT
Fiscal Adequacy - revenue raised must be sufficient to meet expenditures
Administrative Feasibility - tax laws must be clear and concise
Theoretical Justice or Equality- ability to pay theory
Inherent Limitations: NEPTI
- Non delegation of legislative power to tax
- Exemption from taxation of government entities (GOCC are taxable)
- Levied for Public purpose
- Territoriality jurisdiction (situs)
- International comity
Constitutional Limitations
- Due process
- Equal protection of the laws
- Rule of uniformity and equity in taxation
- Non-imprisonment for non-payment of poll tax
- Non-impairment of oblicon
- Non-infringement of religious freedom
- No appropriation for religious purposes
- Exemption for religious, charitable, educational entities NGO
- Power of President to veto
- Non-impairment of the jusrisdiction of the Supreme Court in tax cases
Stages or Aspects of Taxation
- Levy - Congress determination of object and subject, rates
- Assessment and Collection
- Payment
- Refund
The BIR shall be composed of:
- Comissioner
- 4 Deputy Comissioners for:
a. Operations Group
b. Legal
c. Information Systems
d. Resource Mgmt.
Inherent Powers:
Police Power
Eminent Domain
Taxation
The inherent powers of the state are primarily_____ in character
Legislative!
Doctrine of Symbiotic Relationship?
Benefits-received theory - Mutualism
Justifies tax being preferred credit?
Lifeblood Doctrine
Also known as Tax dodging, and is ILLEGAL way of not paying tax
Tax Evasion
When the LAW itself provides for non-payment of taxes, such tax escape is
Tax Holiday
The House of Representives is composed of 300. Only 200 attended the session. Howmany votes are required to pass the Bill?
Still 151
Foreign governments cannot collect taxes from PH government is the principle of?
International Comity
BIR Comissioner as of May 2021?
Ceasar Dulay
Nature/Characteristics of the State’s Power to Tax: ILS
Inherent in Sovereignty- can be exercised though not expressly stated in Consti
Legislative in Character - only legislative can impose tax and enact laws
Subject to Constitutional and Inherent limitations
Term for Specific - tax or fixed amount
Ad Valorem
Double Taxation Unconstitutional?
No but being discourage
2 types of Double Taxation
Direct - taxing the same property or subject matter, same purpose, etc.
Indirect - absence of forgoing requisites makes it indirect
An amount substracted from GROSS INCOME to arrive at taxable income
Tax Deduction
An amount subtracted from TAX LIABILITY (TAX DUE) to arrive at the tax liability still due
Tax Credit
Refers to the ariticulation of the absolute waiver by sovereign of its right to collect taxes and power to impose penalties on persons or entities guilty of violating tax law
Tax Amnesty - immunity from all criminal and civil obligations from non-payment of taxes
Grant of immunity to particular persons or corporations. Immunity from CIVIL LIABILITY ONLY
Tax Exemption
Prescription period for Tax Refund
2 years
All taxable property shall be taxed alike
Uniformity
The burden of taxation falls to those better able to pay
Equitability
When the burden of the tax falls equally and impartially upon all persons and property subject to it
Equality
Tax rate increases as the tax base increases
Progressivity - ability to pay theory
Tax on individuals residing within a specified territory, whether citizens or not
Poll Tax
Constitutional Limitation:
No person shall be imprisoned for non-payment of a_____
Poll Tax
This principle means that only taxpayers directly affectedbby imposition of tax law shall be allowed to assail its constitutionality
Legal Standing or Locus Standi
