TAXATION2-3 Flashcards
1
Q
________ is an enforced proportional contribution levied by the law-making body of the State to raise revenue for public purpose.
A
Tax
2
Q
What are the Elements of a Valid Tax
A
- Tax must be levied by the taxing power having jurisdiction over the object of taxation.
- Tax must not violate constitutional and inherent limitations.
- Tax must be uniform and equitable.
- Tax must be for public purpose.
- Tax must be proportional in character.
- Tax is generally payable in money.
3
Q
what are the Classification of Taxes
A
A. As to purpose
B. As to subject matter
C. As to incidence
D. As to amount
E. As to rate
F. As to imposing authority
4
Q
WHAT ARE THE DIFFERENT DISTINCTION OF TAXES WITH SIMILAR ITEMS
A
- Tax vs. Revenue
- Tax vs. License Fee
- Tax vs. Toll
- Tax vs. Debt
- Tax vs. Special Assessment
- Tax vs. Tariff
- Tax vs. Penalty
5
Q
This refers to any law that arises from the exercise of the taxation power of the State.
A
TAXATION LAW:
6
Q
What are the Types of Taxation Laws
A
- Tax laws -
- Tax exemption laws -
7
Q
what are the Sources of Taxation Laws
A
- Constitution
- Statutes and Presidential Decrees
- Judicial Decisions
- Executive Orders
- Administrative Issuance
- Local Tax Ordinances
- Tax Treaties and conventions with foreign countries
8
Q
Types of Administrative Issuances
A
- Revenue Regulations
- Revenue Memorandum Orders
- Revenue Memorandum Rulings
- Revenue Memorandum Circulars
- Revenue Bulletins
- BIR Rulings.
9
Q
What are the Types of Rulings
A
- Value Added Tax (VAT) rulings
- International Tax Affairs Division (ITAD) rulings
- BIR rulings
- Delegated Authority (DA) rulings
10
Q
The ____________refers to the methods or schemes of imposing, assessing, and collecting taxes.
A
tax system
11
Q
The Philippine tax system is divided into two:
A
- national tax system
- local tax system.
12
Q
What are the Types of Tax Systems According to Imposition
A
- Progressive
- pROPORTIONAL
- Regressive
13
Q
employed in the taxation of income of individuals, and transfers of properties by the individuals
A
- Progressive -
14
Q
employed taxation of corporate income and business
A
pROPORTIONAL -
15
Q
not employed in the Philippines
A
- Regressive -
16
Q
Types of Tax System According to Impact
A
- Progressive
- Regressive
17
Q
what are the TAX COLLECTION SYSTEMS
A
A. Withholding system on income tax -
B. Withholding system on business tax
C. Voluntary compliance system -
D. Assessment or enforcement system -
18
Q
WHAT ARE THE PRINCIPLES OF A SOUND TAX SYSTEM
A
- Fiscal adequacy -
- Theoretical justice -
- Administrative feasibility -
19
Q
The sources of revenues, as a whole, should provide enough funds to meet the expanding expenditures of the government.
A
- Fiscal adequacy -
20
Q
Taxes must be based on the taxpayers’ ability to pay.
A
- Theoretical justice -
21
Q
The tax must be clear to the taxpayer, not unduly burdensome and discouraging to business, convenient as to time and manner of payment, and capable of enforcement by competent public officials.
A
- Administrative feasibility -
22
Q
Refers to the management of tax system.
A
TAX ADMINISTRATION
23
Q
_________ of the national tax system in the Philippines is entrusted to ______________ which is under the supervision and administration of the ___________
A
- Tax administration
- Bureau of Internal Revenue
- Department of Finance.
24
Q
What are the Chief Officials of the Bureau of Internal Revenue
A
- 1 Commissioner
- 4 Deputy Commissioners
25
The designation of the 4 Deputy Commissioners
a. Operations group
b. Legal Enforcement group
c. Information Systems Group
d. Resource Management Group
26
WHAT ARE THE POWERS AND DUTIES OF THE BIR
1. _____ and ______ of taxes.
2. Enforcement of all ______-, ______ and fines, and ______ in all cases decided in its favor by the courts.
3. Giving _____ to, and _______ the supervisory and _______ powers conferred to it by the_____ and other laws.
4. _______ of internal revenue officers and other employees to other duties.
5. Issuance of ______ and _______.
6. ______ and _______ of forms, receipts certificates, stamps, etc. to proper officials.
7. _____ of annual report, pertinent information to ______ Oversight Committee in matter of_______.
1. Assessment, collection.
2. forfeitures, penalties, judgments .
3. effect, administering, NIRC .
4. Assignment .
5. receipts , clearances.
6. Provision, distribution .
7. Submission, Congress, taxation.
27
Enumerate As to purpose
1. Fiscal or revenue tax
2. Regulatory
3. Sumptuary
28
a tax imposed for general purpose
. Fiscal or revenue tax -
29
a tax imposed to regulate business, conduct, acts or transactions
2. Regulatory -
30
a tax levied to achieve some social or economic objectives.
3. Sumptuary -
31
enumerate As to subject matter
1. Personal, poll or capitation -
2. Property tax -
3. Excise or privilege tax -
32
a tax on persons who are residents of a particular territory.
Personal, poll or capitation -
33
a tax on properties, real or personal
Property tax -
34
a tax imposed upon the performance of an act, enjoyment of a privilege or engagement in an occupation
Excise or privilege tax -
35
enumerate As to incidence
1. Direct tax -
2. . Indirect tax -
36
When both the impact and incidence of taxation rest upon the same taxpayer, the tax is said to be ______.
Direct tax -
37
The tax is collected from the person who is intended to pay the same.
Direct tax -
38
The statutory taxpayer is the economic taxpayer.
Direct tax -
39
When the tax is paid by any person other than the one who is intended to pay the same, the tax said to be ______.
Indirect tax -
40
This occurs in the case of business taxes where the statutory tax payer is not the economic taxpayer.
Indirect tax -
41
The statutory taxpayer is the person named by law to pay the tax.
Indirect tax -
42
An economic taxpayer is the one who actually pays the tax.
Indirect tax -
43
enumerate As to amount
1. Specific tax -
2. Ad valorem -
44
a tax of a fixed amount imposed on a per unit basis such as per kilo, liter or etc
Specific tax -
45
a tax of a fixed proportion imposed upon the value of the tax object.
Ad valorem -
46
enumerate As to rate
1. Proportional tax -
2. Progressive or graduated tax -
3. Regressive tax -
4. Mixed tax -
47
This is a flat or fixed rate tax.
1. Proportional tax -
48
This tax imposes decreasing tax rates as the tax base increase this is the total reverse of progressive tax.
3. Regressive tax -
49
Tax is a tax which imposes increasing rates as the tax base increase.
2. Progressive or graduated tax -
50
This tax manifest tax rates which is a combination of any the above types of tax
4. Mixed tax -
51
The use of________ emphasizes equality as it subjects all taxpayers with the same rate without regard to their ability to
way
proportional tax
52
________ is regarded as anti-poor. It directly violates the constitutional guarantee of progressive taxation.
Regressive tax
53
The use of _________rates results in equitable taxation because it gets more tax to those who are more capable.
progressive tax
54
It aids in lessening the gap between the rich and poor
progressive tax
55
enumerate As to imposing authority
1. National tax -
2. Local tax -
56
tax imposed by the national government.
National tax -
57
tax imposed by the municipal or local government.
Local tax -
58
what are the examples of local tax
a. Real property tax
b. Professional tax
c. Business taxes, fees, and charges
d. Community tax
e. Tax on banks and other financial institutions
59
what are the example of National tax
a. Income tax -
b. Estate tax -
c. Donor's tax -
d. Value Added Tax -
e. Other percentage tax -
f. Excise tax -
g. Documentary stamp tax -
60
tax on annual income, gains or profits
Income tax -
61
tax on gratuitous transfer of properties by a decedent upon death
Estate tax -
62
consumption tax collected by non-VAT business taxpayers
Other percentage tax -
63
tax on gratuitous transfer of properties by a living donor
Donor's tax -
64
consumption tax collected by VAT business taxpayers
Value Added Tax -
65
tax on sin pay products and non-essential commodities such as alcohol, cigarettes and metallic minerals. This should be differentiated with the _________ which is also called excise tax.
Excise tax -
a. privilege tax
66
a tax on documents, instruments, loan agreements and papers evidencing the acceptance, assignment, sale or transfer of an obligation, right or property incident thereto.
Documentary stamp tax -
67
DISTINCTION OF TAXES WITH SIMILAR ITEMS
Tax vs. ________
________ refers to the amount imposed by the government for public purpose. _____ refers to all income collections of the government which includes taxes, tariff, licenses, toll, penalties and others. The amount imposed is ______ but the amount collected is ______.
1. Revenue
2. Tax
3. Revenue
4. tax
5. revenue
68
DISTINCTION OF TAXES WITH SIMILAR ITEMS
Tax vs. _______
_______- are imposed after the commencement of a business or profession whereas _______ is imposed before engagement to those activities. In other word, tax is ______ imposition whereas license is a pre-activity imposition.
1. License Fee
2. Taxes
3. license fee
4. post-activity
5. pre-activity
69
DISTINCTION OF TAXES WITH SIMILAR ITEMS
Tax vs. _____
_____- is levy of government: hence, it is a demand of ___________. _____ is a charge for the
use of other's property; hence, it is a demand of ________-.
Both the government and private entities impose toll, but private entities cannot impose tax.
1. Toll
2. Tax
3. sovereignty
4. Toll
5. ownership
70
DISTINCTION OF TAXES WITH SIMILAR ITEMS
Tax vs. _______-
_____ arises from law while ______ arises from private contracts. Non-payment of tax leads to________ but non-payment of debt does not lead to imprisonment. Debt can be subject to ______ but tax is not. Debt can be paid in kind (dacion en pago) but tax is generally ___________-.
Tax draws interest only when the taxpayer is ______. Debt draws interest when it is so stipulated by the contracting parties or when the debtor incurs a legal delay.
1. Debt
2. Tax
3. debt
4. imprisonment,
5. set-off
6. payable in money
7. delinquent
71
DISTINCTION OF TAXES WITH SIMILAR ITEMS
Tax is an amount imposed upon persons, properties, or privileges. _________ levied by the government on lands adjacent to a public improvement. It is imposed on adjacent to a public improvement. It is imposed on land only and is intended to compensate government for a part of the cost of the improvement.
Special assessment
72
DISTINCTION OF TAXES WITH SIMILAR ITEMS
Tax vs. ______
Tax is ____ than tariff. Tax is an amount imposed upon persons, private transactions, or properties. _____ is the amount imposed on imported or exported commodity
1. Tariff
2. broader
3. Tariff
73
DISTINCTION OF TAXES WITH SIMILAR ITEMS
Tax vs. _____
Tax is an amount imposed for the support of the government. ________is an amount imposed to discourage an act. Penalty may imposed by both the government and private individuals. It may arise both from law or co whereas tax arises from law.
1. Penalty
2. Penalty
74
wHAT ARE THE EXAMPLE OF Tax laws
a. The National Internal Revenue Code (NIRC) as amended by Tax Reform for Acceleration and Inclusion (TRAIN) Law (R.A. 10963)
b. The Tariff and Customs Code
c. The Local Tax Code
d. The Real Property Tax Code
75
These are laws that provide for the assessment and collection of taxes.
Tax laws -
76
These are laws that grant immunity from taxation.
Tax exemption laws -
77
wHAT ARE THE EXAMPLE OF Tax exemption laws -
a. The Minimun Wage Law
b. The Omnibus Investment Code of 1987 (E.O 226)
c. Barangay Micro-Business Enterprise (BMBE) Law
d. Cooperative Development Act
78
A __________ is one that emphasizes _____. It encourages economic efficiency as it leaves no other resort to taxpayers than to be efficient. This type of tax system impacts more upon the ______.
1. progressive tax system
2. direct taxes
3. rich
79
A _______ is one that emphasizes____. Indirect taxes are shifted by businesses to
________; hence, the impact of taxation rests upon the bottom end of the society. In effect, a regressive tax system is anti-poor. It is widely believed that despite the Constitutional guarantee of a progressive taxation, the Philippines has a dominantly regressive tax system due to the prevalence of business taxes.
1. regressive tax system
2. indirect taxes
3. consumers
80
Under this collection system, the payor of the income withholds or deducts the tax on the income before releasing the same to the payee and remits the same to the government.
Withholding system on income tax -
81
The following are the withholding taxes collected under Withholding system on income tax
1. Creditable withholding tax
2. Final withholding tax -
82
an estimated tax required by the government to be withheld (ie. deducted) by employers against the compensation income to their employees.
Withholding tax on compensation -
83
Types of Creditable withholding tax
a. Withholding tax on compensation -
b. Expanded withholding tax -
84
an estimated tax required by the government to be deducted on certain income payments made by taxpayers engaged in business.
Expanded withholding tax -
85
a system of tax collection wherein payors are required to deduct full tax on certain income payments. It is intended for the collection of taxes from income with high risk of non-compliance.
Final withholding tax -
86
when the national government agencies and instrumentalities including government owned and controlled corporations purchase goods or services from private suppliers, the law requires withholding of the relevant business tax (i.e. VAT or percentage tax).
Withholding system on business tax:
87
_____________- Under this collection system, the taxpayer himself determines his income, reports the same through income tax returns and pays the tax to the government. This system is also referred to as the ____________-.
1. Voluntary compliance system
2. "self-assessment method"
88
The tax due payable herein may have been withheld under the withholding system, such
1. Withholding tax on compensation earners
2. Expanded withholding tax by taxpayer engaged in business or exercise of profession
Voluntary compliance system
89
Under this collection system, the government identifies non-compliant taxpayers, assesses their tax dues and penalties, and enforces collections by coercive means such as summary proceedings or judicial proceedings when necessary.
Assessment or enforcement system -
90
The sources of revenues, as a whole, should provide enough funds to meet the expanding expenditures of the government.
Fiscal adequacy -
91
Taxes must be based on the taxpayers' ability to pay.
Theoretical justice -
92
The tax must be clear to the taxpayer, not unduly burdensome and discouraging to business, convenient as to time and manner of payment, and capable of enforcement by competent public officials.
Administrative feasibility -
