Unit 1 Flashcards
Who opens the gate of independence?
Jose Rizal
Philippines exercises tax
State
Life; Cannot be separated
Inherent
Enforcement and regulation to provide general welfare
Police power
Everything is under the king (State)
Regalian doctrine
Who makes law (e.g. house of rep, congress)
Legislative
Executes law (e.g. LTO, agencies)
Executive
Decides what is right or wrong (e.g. judges)
Judiciary
“King owns everything.”
Regalian domain
Tax loss should be efficient and effective
Administrative Feasibility
Expenses should at least meet or within the source of income
Fiscal Adequacy
Refers to the elements of state; residing within its territory
Population
Status given by the international body; such as state is independent
Sovereignity
Collegiate body that manages its population within its territory
Government
Kind of tax loss being used in the Philippine jurisdiction; ability of the taxpayer to pay
Theoretical Justice
Kind of taxpayer which is natural born; person
Individual taxpayer
Refere to juridical type of person (e.g. partnership, cooperative)
Corporation
Kind of taxpayer who is considered a Filipino citizen and lives in the Philippine jurisdiction
Resident citizen
Kind of taxpayer who is considered to be Filipino but does not reside within the Philippine jurisdiction
Non-resident citizen
Tax rate of interest, royalties…
20%
This theory dictates that taxes should be collected. If not, the State will not live on its own
Lifeblood doctrine
This theory dictates that payment of taxes is necessary with the expectancy of benefit in return
Benefits received doctrine or Symbiotic Theory
When a taxpayer exceeded 3 million gross sales within the taxable year, a taxpayer shall be subjected to this kind of tax
Value Added Tax (VAT)
If a taxpayer did not exceed 3 million within the taxable year, what kind of tax would a taxpayer be liable on top of this income tax?
Percentage tax (3%)
It is a system of taxation which provides that taxes rates increase as tax base increases. More income you earn, more tax you pay, vice versa
Progressive
When you earn income, you pay tax (15%-22%)
Income tax
Sin tax (e.g. cigarettes, liquor)
Excise tax
Gross receipts exceeds 3 million per year
Value Added Tax (VAT)
Kind of excise tax
Donor’s tax
Right of a deceased person to transmit his/her rightful heirs and beneficiaries on some tranfers
Estate tax
When the same property is taxed twice when it should only be tax once
Double taxation
Situs of taxation: where the act is committed
Performance/service
Situs of taxation: where the payment was made
Payment of interest (interest income)
Situs of taxation: where the property is located; immovable, land
Sale of Real Property
Situs of taxation: where the goods are used; movable
Sale of goods
50% where manufactured, 50% where its consumed
Sale of manufactured goods
“All wealth that flows to the taxpayer, except for a mere return of capital.” (Under Sec. 32)
Income
Proceeds of life insurance (income)
Not taxable
Return of premium (capital)
Not taxable
Payment due to injuries
Not taxable
Income tax + VAT or Percentage tax
Business Income
Last poem the Jose Rizal wrote
“Mi Ultimo Adios”
