Part 1 Flashcards
All income from whatever source, derived within or without the Philippines, whether legal or illegal.
Income
May be realized in any form, whether in money, property, services, indirect income benefit.
Income
The amount of money coming to a person or corporation within specified time, whether as payment of services, interest or profits from investment.
Income
The amount of income recognized is generally the value received or which the taxpayer has a right to receive.
Valuation of income
If the services were rendered at a stipulated price in the absence of any evidence to the contrary, such price shall be presumed to be the ___________ of the compensation received.
FMV
Imposed and collected by the National Government throughout the country
National tax
Levied without specific or predetermined purpose
General tax
Imposed on the right or privilege of a person
Excise Tax
Payable by the person upon whom it is directly imposed
Direct Tax
Based upon one’s ability to pay
Progressive Tax
Income Tax System
- Schedular Tax System
- Global Tax System
- Gross Income Taxation
- Net Income Taxation
Various types of income are classified accordingly and are accorded different tax treatments, in accordance with schedules characterized by graduated tax rates
Schedular Tax System
Are group together without any distinction as to the type of nature of the income, and after deducting therefrom expenses and other allowable deductions, are subject to tax at a fixed rate
Global Tax System
Minimizes source of graft and corruption due to minimization of margin discretion exercised by revenue district officers
Gross Income Taxation
Minimizes tax evasion, more revenue to government
Net Income Taxation
