Various Doctrines Flashcards
(Unedited, will be further fixed?) Includes various forms of escape and writing/application of tax law
in indirect taxes, what is being shifted is the _________ of paying tax
incidence or the economic burden
Normally, ___________ are NOT indirect taxes
Witholding taxes, like VAT
(T or F) The concept of Territoriality in taxation is NOT similar to the situs of taxation. It is just ONE aspect/consideration of the situs of taxation
True
Double taxation is _______ unconstitutional
not always unconstitutional
Direct doubt taxation is ______
unconstitutional
methods to eliminate double taxation
tax credit, tax deduction, tax exemption, and imposition of a lower rate
Tax abatement
is not a way to minimize double taxation; it is a power of BIR to cancel or lower tax assessments
Tax Credit
is the deduction of the actual amount of the tax to be paid (double citizenship, taxes paid in the US can be deducted from the taxes due to be paid in the Philippines)
Tax deduction
amount is deducted from the gross income
preferential rate
is almost always lower
Examples of Tax evasion
non-declaration of the correct amount of sales or overstating expenses
bloating expenses
Evidence of tax evasion
- course of action is unlawful
- state of mine as being evil, in bad faith, willful or deliberate, and not achievable
- end to be achieve where payment is less than that is known by the taxpayer to be legally due or non-payment of tax when it is show that tax is due)
As a rule, laws are interpreted based on
their ordinary or plain meaning (no doubt or ambiguity)
If there is doubt or ambiguity in the language of a tax law, we
apply the different rules n the construction and interpretation of such laws
determine the legislative intent; what is the intent of the legislators when drafting the law
In case of doubt, tax laws are construed
strictly against the government and in favor of the taxpayer
in case of doubt, tax exclusions or tax exemptions are strictly construed
against the taxpayer
tax laws are generally _______ in nature
prospective
(T or F) tax laws are special laws that prevail over general laws
TRUE
retroactive application of tax laws may be allowed if ___________
it will not amount to a violation of due process
A special law is
when the topic/subject of the law is very specific
all sources of tax laws in the Philippines
the constitution, statutes, implementing rules, and administrative issuances
Tax Amnesty
a general pardon or intentional overlooking by the state of its authority to impose penalties on persons otherwise guilty of evasion or violation of a revenue or tax law partakes of an absolute forgiveness or waiver by the government of its right to collect what otherwise be due to it
Exercise of Tax Amnesty
Legislative in Character; may NOT be exercised by the chief executive; may be applied retroactively
domestic double taxation happens when the imposition of taxes ____________
are made within the same state
(T or F) The following factors determine the situs of taxation: residence, citizenship, nature of the tax, subject matter of the tax, and the source of income.
TRUE
Direct double taxation means the same property or object is taxed twice when it should only be taxed once. Taxes are imposed on the same subject matter, for the same purpose, by the same taxing authority, within the same jurisdiction, during the same taxing period, and the taxes are of the same kind and character.
True
Indirect double taxation happens when the effect of double taxation is shifted to another person.
False
When someone is required to pay quarterly income tax and quarterly percentage tax there is direct double taxation.
False
