Taxation Law Summer Reviewer
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15) Special purpose - special fund for saidpurpose, balance goes to general funds16) Veto power of the President - revenue/tariff bill17) Power of review of the SC18) Power of Local Government to create their own sources and levy taxes, fees, charges19) Just share of local government in nationalrevenue which shall be automaticallyreleased.20) Tax exemption of all revenues and assets of (a) proprietary or cooperative educationalinstitutions(b) subject to limitations provided by law21) Tax exemption of grants, endowments,donations or contributions USED
XCLUSIVELYfor educational purposes
CIR v. CA (298 SCRA 85)
YMCA is a non-stock, non-profit institution,which conducts various programs and activitiesbeneficial to the public pursuant to its religious,educational and charitable objective. In 1980, YMCAearned an income of more than P600K from leasingout a portion of its premises to small shop ownersand P47K from parking fees.
Is the rental income from real property ownedby the YMCA subject to income tax?
, the exemption claimed by YMCA isexpressly disallowed by the last paragraph of then§27 of the NIRC. Furthermore, Art. XIV, §4 (3) of theConstitution only exempts YMCA from property taxesNOT income tax. YMCA cannot be considered as an“educational institution” within the purview of theabove-cited article. The term “educational institution”under the Education Act of 1982 refers to schools.The school system is synonymous with formaleducation, which refers to hierarchically structuredand chronologically graded learnings organized andprovided by the formal school system and for whichcertification is required in order for the learner toprogress through grades or more to higher levels.Nothing in the Articles of Incorporation or By-Laws of the YMCA suggests that it is an educationalinstitution.
Classification of TaxesA.
As to subject matter of object
personal, poll, capitation tax
–(a) fixed amount(b) individuals residing within specifiedterritory(c) without regard to their property,occupation or business
Community Tax (Cedula)2)
property tax –
(a) imposed on property, real or personal(b) in proportion to its value or other reasonable method of apportionment
Real estate tax3)
excise, privilege tax -
(different from theexcise tax in Taxation II)(a) imposed upon performance of an act, theenjoyment of a privilege or the engagingin an occupation, profession or business
Income tax, VAT, estate tax, donor’s tax
As to who bears the burden
the tax is imposed on the personwho also bears the burden thereof
Income tax, community tax, estate tax2)
imposed on the taxpayer whoshifts the burden of the tax to another
VAT, specific tax, percentage tax,customs duties
As to determination of amount
tax imposed and based on aphysical unit of measurement, as by head,number, weight, length or volume
Tax on distilled spirits, fermentedliquors, cigars2)
Ad Valorem -
tax of a fixed proportion of thevalue of property with respect to which thetax is assessed; requires intervention of assessor.
Real estate tax, excise tax on cars, non-essential goods
As to purpose
General, fiscal or revenue -
imposed for thegeneral purpose of supporting thegovernment
Income tax, percentage tax2)
Special or regulatory -
imposed for aspecial purpose, to achieve some social or economic objectives
Protective tariffs or customs duties onimported goods intended to protect localindustries
As to authority imposing the tax
imposed by the nationalgovernment
National internal revenue taxes, customduties2)
Municipal or local -
imposed by themunicipal corporations or local governments
Real estate tax, occupation tax