Taxation 2

• Taxation law


  Any law that arises from the exercise of the taxation power of the state
• Types of Taxation laws


  • Tax laws
  • Tax Exemption Laws
• Tax laws


  Laws that provide for the assessment and collection of taxes
• Examples of Tax laws

  • The National Internal Revenue Code (NIRC)
  • The Tariff and Customs Code
  • The Local Tax Code
  • The Real Property Tax Code
• Tax Exemption Laws


  Laws that grant certain immunity from taxation
• Examples of Tax Exemption Laws

  • The Minimum wage law
  • The Omnibus Investment Code of 1987 (E.O. 226)
  • Barangay Micro-Business Enterprise (BMBE) Law
  • Cooperative Development Act
• Tax


  An enforced proportional contribution levied by the lawmaking body of the State to raise revenue for public purpose
• Elements of a Valid Tax

  • 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 purposes
  • Tax must be proportional in character
  • Tax is generally payable in money
• Classifications of Tax (as to purpose)

  • Fiscal or revenue tax
  • Regulatory
  • Sumptuary
• Classifications of Tax (as to subject matter)

  • Personal, poll or capitation
  • Property tax
  • Excise or privilege tax
• Classifications of Tax (as to incidence)

  • Direct tax
  • Indirect tax
• Statutory taxpayer


  The person named by law to pay the tax
• Economic taxpayer


  The one who actually pays the tax
• Classifications of Tax (as to amount)


  • Specific tax
  • Ad valorem
• Classifications of Tax (as to rate)

  • Proportional tax
  • Progressive or graduated tax
  • Regressive tax
  • Mixed tax
• Classifications of Tax (as to imposing authority)

  • National tax
  • Local tax
• Examples of National Taxes

  • Income tax
  • Estate tax
  • Donor's tax
  • Value added tax
  • Other percentage tax
  • Excise tax
  • Documentary stamp
• Examples of Local Taxes

  • Real property tax
  • Professional tax
  • Business tax, fees, and charges
  • Community tax
  • Tax on banks and other financial constitutions
• Tax


  Amount imposed by the government for public purpose
• Revenue


  All income collections of the government which includes taxes, tariffs, license, toll, penalties and others
• License fee


  Imposed to regulate the exercise of a privilege such as the commencement if a business or a profession
• Toll


  Charge for the use of other's property
• Debt


  Arises from private contracts
• Special Assessment


  Levied by the government on lands adjacent to a public improvement to compensate the government for a part of the cost of the improvement
• Tariff


  Amount imposed on imported or exported commodities
• Penalty


  Amount imposed to discourage an act
• Tax Administration


  Management of the tax system
• Taxpayer Classification for Tax Administration

  • Large taxpayers
  • Non-Large taxpayers
• Large Taxpayers


  Under the supervision of the Large Taxpayers Service
• Non-Large Taxpayers


  Under the supervision of the respective Revenue District Offices (RDO's) where the business, trade or profession of the taxpayer is situated