Professional Documents
Culture Documents
TO TAXATION
TAXATION
Cost of Government
-----------------------------------
People
Share in the form of Taxes
National Taxes
Local Taxes
NATIONAL INTERNAL REVENUE TAXES
Income Tax – tax on the net income or the entire income received realized in one
taxable year.
Estate Tax – tax on the right of the deceased to transmit his estate to his lawful heirs
or beneficiaries and certain transfer by the decedent during his lifetime which
are made by law the equivalent of testamentary dispositions.
Donor’s Tax – tax imposed on gift or the transfer without consideration of property
between 2 or more persons who are living at the time the transfer is made.
Value-added Tax – tax on consumption levied on the sale, barter, exchange or lease of
goods or properties and services in the Philippines and on importation of
goods into the Philippines.
NATIONAL INTERNAL REVENUE TAXES
Percentage Tax – tax measured by certain percentage of the gross selling price
or gross value in money of goods sold barter, exchanged, or imported,
or gross receipts or earnings derived by person engaged in sale of
services.
Excise Tax – tax imposed on certain specified goods or articles manufactured
or produced in the Philippines for domestic sale or consumption or for
any other disposition and to things imported into the Philippines.
Documentary Stamp Tax – tax on documents, instruments, papers evidencing
the acceptance, assignment, sale or transfer of an obligation, rights, or
property incident thereto.
SCOPE OR EXTENT
OF LEGISLATIVE TAXING POWER
• Subjects or objects to be taxed (Persons, properties and privileges)
• Purpose or object of the tax, should be for public purpose
• Amount or rate of the tax
• “ THE POWER TO TAX INVOLVES POWER TO DESTROY.” – CJ MARSHALL
• “THE POWER TO TAX IS NOT THE POWER TO DESTROY WHILE THIS COURT (SUPREME COURT) SITS” –
CJ HOLMES
• Kind of tax to be collected
• Apportionment of the tax
• Situs of taxation
• Manner, means and agencies of collection of the tax
ASPECTS OF TAXATION
• Lifeblood Theory.
Taxes are the lifeblood of the nation through which the government
agencies continue to operate and with which the State effects its
functions for the welfare of its constituents.
Since taxes are the lifeblood of the government, they should be
collected without unnecessary hindrance.
NATURE OF POWER OF TAXATION
• It is inherent in sovereignty.
• It is legislative in character.
• Revenue
The primary purpose is to generate funds for the State to finance the
needs of the citizens and to advance the common weal.
PURPOSES OF TAXATION
3. They are ways by which the state interferes with private rights and
property.
SIMILARITIES AMONG
THE THREE POWERS OF THE STATE