Principles of Taxation Flashcards
Scope of Taxation
CUPS
Comprehensive
Unlimited
Plenary
Supreme
Non Impairment Clause
which inherent powers is superior or inferior to non impairment clause?
ONLY Taxation is inferior
Police Power is superior
Eminent Domain is superior
Legislative Act (Levy or Imposition)
Impact or Incidence?
**Impact of Taxation
Administrative Act (Collection)
Impact or Incidence?
Incidence of Taxation
Ability to Pay Theory
Vertical Equity vs Horizontal Equity
Vertical - higher income, higher tax
Horizontal - consider the circumstances of the subject
Theory of Taxation
a necessity
Basis of Taxation
government and people have reciprocal duties of support
Inherent Limitation
TIP-END
Territoriality
International Comity
Public Purpose
Exemption of Government
Non Delegation of power of taxation
Situs of Taxation
- Persons
- Community Development Tax
- Transfer Tax
Residence / Citizenship of Taxpayer
Situs of Taxation
- Business Tax
where the business / transaction was conducted
Situs of Taxation
- Privilege
- Income
where it is exercised
where it is earned
Situs of Taxation
- Real Property Tax
where property is located
Situs of Taxation
- Personal Property Tax
Tangible and Intangible
Tangible - where it is physically located
Intangible - domicile of owner unless property has acquired own situs
Situs of Taxation
- Franchise Tax
state that grants the franchise
Situs of Taxation
- Corporate Tax
depends on law of corporation
