MARY ARLENE E.

AMABAT

BSBA – III

Q. 18 DETERMINE THE SITUS ON PERONS, PROPERTY AND BUSINESS TRANSACTIONS.

A. SITUS ON PERSONS:

1. personal tax (e.g. Community Tax)- residence of the person.

2. income tax:

a. citizenship of recipient;

b. residence of; and

c. place where the income is derived.

B. SITUS ON PROPERTY

1. real property- location of property

2.tangible personal property- location of property

3.intangible personal property- domicile or residence of the owner

C. SITUS ON BUSINESS TRANSACTIONS – place where the act is perform

Q.019 DEFINE A TAX AND GIVE ITS ESSENTIAL CHARACTERISTIC

ANS: Tax is a burden or charge imposed by the legislative power upon persons or property to raise
money for public purposes.

Its essential characteristics are:

a. it is an enforced contribution;

b. it is exacted pursuant to legislative authority

c. it involves the exercise of the taxing power;

d. it is a contribution in money

e. it is for the purpose of raising revenue; and

f. it is to be used for government purposes

Q. 020 EXPLAIN BRIEFLY THE MEANING OF THE FOLLOWING TERS:

A. PROGRESSIVE TAX

B. REGRESSIVE TAX

C. PROPORTIONATE TAX

ANS:

A. A progressive tax is one where tax rate increase as the tax base increases. An example is the
graduated income tax rates for the individual taxpayers wherein the tax rate correspondingly increases
from 5% to 32% as the taxable income increases.

Incidentally, the constitutional provision that the Congress shall evolve a “progressive
system of taxation” has been ruled by the Supreme Court as merely permissive and not mandatory.
Resort to indirect taxes should be minimized but not avoided entirely because it is difficult, but if
impossible, to avoid them (Philippine Airlines, INC vs. Secretary of Finance, et al. G.R. No 115852).

B. A regressive tax is one where the tax rate decreases as the tax base increases. This type of tax
runs counter to the ability-to-pay principle of taxation. Strictly speaking, there are no regressive taxes in
the Philippines.

C. A proportionate tax is one where a fixed percentage is applied regardless of the amount of
the income, property or other basis to be taxed. An example is single corporate income tax rate imposed
on the taxable net income of corporate taxpayers

B.