Train Law

Question 1

Aspects of Taxation

Refers to the ENACTMENT OF LAW by Congress to impose the
tax

Answer 1

Levy

Question 2

Aspects of Taxation

Act of implementation of the tax law by the executive department through its administrative agencies

Answer 2

Assessment and Collection

Question 3

Aspects of Taxation

Act of compliance by the taxpayer

Answer 3

Filing/Payment

Question 4

Theories

Without taxes, the government lacks the power to function and would be paralyzed

Answer 4

Lifeblood Theory

Question 5

Theories

• Every able person must contribute their share to run the government
• Whereas, the government is expected to provide tangible and intangible benefits to enhance people’s lives

Answer 5

Benefits-Protection Theory

Question 6

Theories

Taxation stems from the reciprocal relationship of protection and support between the State and taxpayers

Answer 6

Symbiotic Relationship Theory

Question 7

Char. of a Sound Tax System

Sources of revenue should be sufficient to meet the demands of public expenditures

Answer 7

Fiscal Adequacy

Question 8

Char. of a Sound Tax System

Tax burden should be proportionate to the taxpayer’s ability to pay

Answer 8

Equality or Theoretical Justice

Question 9

Char. of a Sound Tax System

Tax law should be capable of convenient and easy compliance by the taxpayer

Answer 9

Administrative Feasibility

Question 10

5 Objectives of Taxation

Answer 10

1. Revenue
2. Regulatory
3. Reduction of social inequality
4. Encourage economic growth by granting tax incentives and exemptions
5. Protectionism

Question 11

Objectives of Taxation

To provide means for the rehabilitation and stabilization of a threatened industry

Answer 11

Regulatory

Question 12

Objectives of Taxation

Those who are able to pay should shoulder the bigger portion of the tax burden

Answer 12

Reduction of social inequality

Question 13

Types of Tax Structures

Tax rates increase with the tax base

Answer 13

Progressive

Question 14

Types of Tax Structures

Tax rates decrease as the base increases

Answer 14

Regressive

Question 15

Types of Tax Structures

Fixed percentages to the base

Answer 15

Proportional

Question 16

Tax Reform for Acceleration and Inclusion (TRAIN) Law

Answer 16

R.A. No. 10963

Question 17

The TRAIN Law was signed by then Pres. ___ on ___

Answer 17

• Rodrigo Duterte
• December 19, 2017

Question 18

Excise Tax on Automobiles

Automobiles exempt from excise tax

Answer 18

• Electric vehicles
• Pick-up trucks

Question 19

Excise Tax on Sweetened Beverages

___ per liter tax on sweetened beverages using purely caloric sweeteners, and purely non-caloric sweeteners, or a mix

Answer 19

P6.00

Question 20

Excise Tax on Sweetened Beverages

___ per liter on sweetened beverages using purely high fructose corn syrup or in combination with any caloric or non-caloric
sweetener

Answer 20

P12.00

Question 21

Excise Tax on Sweetened Beverages

Sweetened beverages using purely coconut sap sugar and purely steviol glycosides are ___ from this tax

Answer 21

Exempt

Question 22

Changes on Other Taxes

The TRAIN Law ___ the final tax imposed on interest income under the expanded foreign currency deposit system from 7.5% to 15%

Answer 22

Increased

Question 23

Changes on Other Taxes

The TRAIN Law ___ the 5%-10% tax rates to a 15% single tax rate on net capital gains

Answer 23

Increased

Question 24

Changes on Other Taxes

The TRAIN Law ___ the stock transactions tax from 0.5% to 0.6%

Answer 24

Increased

Question 25

Changes on Other Taxes

The TRAIN Law levied a new excise tax equivalent to 5% of gross receipts, net excise tax and VAT, from invasive cosmetic procedures, surgeries, and body enhancements

Question 26

The TRAIN Law was implemented to generate funds for the ___

Answer 26

Build Build Build (BBB) program

Question 27

TRAIN law

The ultimate aim is to reduce poverty to ___ by ___, ___ by ___, and even lower further into the future from the current 22% (2019)

Answer 27

• 17%; 2020
• 15%; 2022

Question 28

Allocation of revenue from train law

Answer 28

• 70% for BBB program
• 30% for social program expansions such as the (4Ps), the discounts of NFA rice, education and health projects