taxation Flashcards
is the supreme power of a sovereign state to impose
burdens or charges upon person, property or property
rights for public purpose
taxation
the enforced proportional contributions from person
and property, level by the state for virtue of its
sovereignty for the support of the government and for
public needs.
tax/ taxes
Importance of Tax
- Raise Revenue: No government can exist without it, it cannot promote the welfare of the people
- Protect locally produced goods against competition from import by imposing higher custom duties.
- Protect new industries by granting tax exemptions.
- Regulate property.
- Distribute equally the wealth of the nation.
classification of taxes:
a. national tax
b. local tax
Imposed by the National Government under the National Internal Revenue Code and other laws particularly the Tariff and Customs Code
national tax
Imposed by local government to meet particular needs under the Local Government Code
local tax
forms of taxes:
a. direct tax
b. indirect tax
a form of tax paid directly by the individual or corporation directly to the government. They are typically based on the taxpayer’s ability to pay as measured by income, consumption, or net wealth.
direct tax
taxes imposed on a particular article or transaction which paid by others than those from whom the tax collected
receives payment
indirect tax
types of direct taxes:
a. incomes tax
b. inheritance tax
c. estate tax
d. donor’s tax
e. capital gain tax
f. property tax
g. documentary stamp tax
Derived from individual, corporate estates and trust income
income tax
Paid on property passed on from a diseased person to those who are to inherit it
inheritance tax
A tax on the right of the deceased person to transmit his/her estate to his/her lawful heirs and beneficiaries at the time of death and on certain transfer, which are made by law equivalent to testamentary disposition
estate tax
Tax levied of donation or gift and is imposed on the
graduations transfer of property between two or more
persons who are living at the time of the transfer
donor’s tax
Tax imposed on income from the sale of capital assets,
which includes stocks, bonds, real estate, and partnership
capital gain tax
