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2.There are 8 sources of tax laws the constitution, statutes and presidential decrees,
judicial decisions or case laws, executive orders and Batas Pambansa, Administrative
issuances, local ordinances, tax treaties and conventions with foreign countries and
lastly the revenue regulations.
3. Philippines tax law are civil and not political in nature. They are laws of the occupied
territory and not by the occupying enemy. Tax payments made during occupations of
foreign enemies are valid. Our internal revenue laws are not penal in nature because
they do not define crime. Their penalty provisions are merely intended to secure tax
payers compliance.
4. Tax laws provide the assessment and collection of taxes (ex. The national internal
revenue code NIRC, The tariff and customs code, The local tax code and the real
property tax code)
5. Tax is an enforced proportional contribution leveid by the law making body of the state
to raise revenue for public purpose.
The elements of a valid tax are as follows:
(BASAHIN MO NALANG SA LIBRO KASI MARAMI) HAHAHAAHAH (nasa page 38)
6. A. As to purpose
Fiscal or Revenue Tax- A tax imposed for general purpose
B. As to subject matter
Personal, poll or capitation- A tax on persons who are residents of a particular
teritory
C. As to incidence
Direct Tax – When both the impact and incidence of taxation rest upon the same
tax payer, the tax is said to be direct.
D. As to amount –
Specific Tax- A tax of a fixed amount imposed on a per unit basis such as per
kilo, liter or metered. (NASA PAGE 38)
7. (NASA PAGE 40 LAHAT SAGOT NITO)
9. Tax System refers to the methods or schemes of imposing, assessing, and collecting
taxes. The Philippine tax system is divided into two: The national tax system and the
local tax system.
AS TO PAYMENT CRITERIA
1.Value added tax 200,000/QUARTER
2.Excise Tax 1,000,000/YEAR
3.Income tax 1,000,000/YEAR
4.Withholding tax 1,000,000/YEAR
5.Percentage tax 200,000/QUARTER
6.Documentary stamp tax 1,000,000/YEAR
AS TO CONDITIONS AND OPERATIONS
1.Gross receipts or sales 1,000,000,000 IN A YEAR
2.Net worth 300,000,000 AT YEAR END
3.Gross purchases 800,000 IN THE PRECEDING
YEAR
1. B
2. A
3. C
4. C
CHAPTER 3:
Exercise Drill No.2
Check the box where each of the following items is taxable:
1. B
2. C
3. C
4. A
CASE PROBLEM 1:
REQUIRED:
COMPUTE THE TOTAL INCOME EARNED FROM SOURCES
1.WITHIN THE PHILIPPINES- (P1,040,000)
2. OUTSIDE OF THE PHILIPPINES- (P760,000)
CASE PROBLEM 2:
REQUIRED:
COMPUTE THE TOTAL INCOME EARNED FROM SOURCES
1. WITHIN THE PHILIPINES- (P750,000)
2. WITHOUT THE PHILIPPINES- (P340,000)
CASE PROBLEM 3:
1. A ( 1,960,000;1,360,000)