taxation

• taxation - inherent power of the state (exercised through the legislature)
• taxation - impose burdens
• taxation - for the purpose of raising funds
• taxation - to carry out the legitimate objectives of the government
• theory of taxation

  1. lifeblood theory
  2. symbiotic relationship
• lifeblood theory - without revenue raised from taxation, the government will not survive
• symbiotic relationship - the reciprocal relation of protection and support between the state and the taxpayers
• symbiotic relationship - the state gives protection and for it to continue giving protection, it must be supported by the taxpayers in the form of taxes
• purpose of taxation

  the basic purpose - revenue purpose

  secondary purpose - sumptuary or regulatory purpose and compensatory purpose
• revenue purpose - to raise funds to meet the objectives of government
• sumptuary or regulatory purpose - to promote the general welfare
• compensatory purpose - to maintain high level of employment through acceleration of infrastructure projects
• principles of a sound tax system

  1. fiscal adequacy
  2. administrative feasibility
  3. theoretical justice
• fiscal adequacy - must be able to provide sufficient revenues to meet the objectives of government
• administrative feasibility - should easily be implemented to assure the smooth flow into the treasury of the fiscally adequate amounts
• theoretical justice - should be collected premised on the ability to pay
• reign of egyptian pharaohs - pharaoh would conduct a biennial tour of the kingdom
• earliest taxes in rome - taxes known as portoria were customs duties on imports and exports
• augustus caesar - introduced the inheritance tax to provide retirement funds for the military
• england - taxes were first used as an emergency measure
• philippines - pre-coloniaal society, being communitarian, did not have taxes
• modern industrial nations - the government designates a tax base; income, property holdings, or a given commodity
• tax law - body of rules passed by the legislature by which the government acquires a claim on taxpayers to convey, transfer, and pay to the public authority
• national taxes - refer to national internal revenue taxes imposed and collected by the national government through bureau of internal revenue
• local taxes - refer to those imposed and collected by the government
• 1987 philippine constitution - sets limitations on the exercise of the power to tax
• article VI, Section 28, paragraph 1 - the rule of taxation shall be uniform and equitable
• article VI, section 28, paragraph 3 - tax exemptions; religious, charitable or educational purposes
• national internal revenue law - codifies all tax provisions (the tax reform act of 1997)
• taxpayer - any person subject to tax whose source of income is derived from within the philippines
• taxpayer identification number - required for any individual taxpayer
• kinds of taxes

  1. income tax
  2. donor's tax
  3. estate tax
• income tax - tax on person's income, profits, etc
• donor's tax - tax imposed on donations or those made between living persons to take effect during the lifetime donor
• estate tax - tax on the right of the deceased person to transmit property at death
• value-added tax - tax on consumption levied on the sale, barter, exchange or lease of goods
• capital gains tax - tax imposed on the gains presumed to have been realized by the seller fpr the sale, exchange or other disposition of real property
• excise tax - applicable to specified goods manufactured in the ph for domestic sales or consumption
• documentary stamp tax - tax on documentaries, instruments, etc
• who pays taxes

  1. resident citizens
  2. alien individuals