MEDINA FOUNDATION COLLEGE

Sapang Dalaga, Misamis Occidental

Purok Jasmin, Poblacion, Sapang Dalaga, Misamis Occidental
Email Address:mfc_1984@yahoo.com

Business Administration Department

COURSE CODE: BUS AD 4
2nd Semester of A.Y. 2020-2021

Name: FLORENCIO L. SEVILLA, JR.

Course and Year: BSBA-FM

Directions: Explain clearly the statement below. Write all your answer in a separate long bond
paper. Below are the criteria for student’s explanatory writing. Please refrain from copying your
classmates’ content. (50 POINTS)
“Tax is a forced burden, charge, exaction, imposition, or contribution assessed in accordance
with some reasonable rule of apportionment by authority of a sovereign state upon the persons
or property its jurisdiction, to provide public revenues for the support of the government, the
administration of law, or the payment of public expense. “
a. Focus Did I focus my writing on exploring the given statement?
b. Textual Evidence Did I support my explanation with evidence from the text?
c. Development Did I develop my explanation with convincing and relevant discussion of
my ideas?
d. Word Choice Did I use a variety of vocabulary, including language I learned from the
text?
e. Conventions Did I edit my writing for spelling, grammar, punctuation and capitalization?

Tax is a mandatory obligation that a taxpayer must comply according to what the law
says. Here, the people are forced to pay their corresponding taxes to the national treasury,
or pay local taxes whenever applicable. These happens in the course of his profession,
business and other financial transactions. A person cannot avoid paying his taxes or else
he can be penalized by law.
Tax can be construed as a forced burden since it is a form of payment. No one can
have direct benefits or special privileges when he pays his taxes. Nobody is given goods
or coupon (except tax credits) when he pays his taxes. For the actual benefits derived
from paying taxes is public in nature. But we must not be saddened on this. For a person
or business is taxed rightfully, justly and proportionately according to his income. The
greater the income, the greater the tax. Hence, a person who earns more is also charged
the obligation to share more for the benefit of the society.
To rightfully see the justice, once has to envision that by this taxes, teachers are paid
in teaching his children and his children are attending good schools, which are
constructed by the government. There is peace and order in his neighborhood because
 policemen are patrolling, or even BPAT members with meager allowances are there to
drive away bad elements.
When a taxpayer travels, he passed through good and cemented roads and modern
bridges built by his taxes. And when he is sick, he goes to a medical facility maintained
by the government. And he is never alone in enjoying these programs and projects. Even
those who are exempted in paying taxes because they are the less-privileged people, they
too are enjoying them. And this makes the taxpayer a good Samaritan, because by being
true in paying his obligations, he has helped oil the government machinery. Invisibly, he
has helped others.

ASSESSMENT (10 points per item) DIRECTIONS: Answer what is being asked. Write
your answer in a separate long bond paper.
1. “Tax is levied for public purposes.” Elaborate the statement.
There is no other purpose for taxes, except to be levied or used for public purposes. Other
than this, anybody who will try to dip his fingers on tax money violates the law and can be
sued for graft and corruption, malversation of public funds and other acts. Tax money cannot
be used to favor a private individual, entity or even one’s religion. Tax money can only be
appropriated to what is allowed by law either through the General Appropriations Act or any
other special statutes.

2. “Tax is an enforced contribution.” Elaborate the statement.

Tax is enforced contribution in the sense that the law mandates, requires, orders, implements
that a person pays a share of his income based on what the law dictates. He cannot avoid
from paying his taxes. Doing so renders him a violator of the tax law and can be penalized.
Paying taxes is not voluntary but it is enforceable. Unless he is exempted from paying taxes
according to the law. There are exemptions of the present TRAIN Law.

3. “As to who bears the burden of tax.” Elaborate the statement.

a. Direct tax is a tax imposed on the person who also bears the burden thereof. If a person has
a taxable income, that person must shoulder the corresponding taxes. He cannot pass the
obligation to others. Examples: Income tax, community tax, estate tax.
b. Indirect tax is a tax imposed on the taxpayer who shifts the burden of the tax to another.
The tax of a certain product which is sold is passed to the consumers. Here, the Value-
added tax of the gasoline, electricity, consumer goods and the rest are added to the cost,
hence what a consumer is finally paying already has taxes on them.

4. In your own opinion, what will happen if the Philippines government will not impose
taxes to people?
Tax is the blood line of the government. Without taxes, the government cannot sustain its
operation and implement various programs and projects. Taxes are the financial resources
which will pay the salaries of teachers, soldiers and other employees. Taxes are used to
purchase Covid vaccines, maintain medical facilities, pay the front liners. Taxes make it
possible to construct roads and bridges, irrigation canals, airports and seaports. Hence, taxes
are imposed in order to meet the annual expenditures. If these taxes are not imposed,
 government will have a shortage of funds, cannot pay its obligations, may shut down its
operations and worst, creates chaos, uncertainties and difficulties.

5. Differentiate National Taxes and Local Taxes.

a. National Taxes are fees that the Bureau of Internal Revenue (BIR) collects from
taxpayers all over the Philippines imposed on different incomes and transactions. These
include: a. Capital gains tax on profits from selling an asset; b) Documentary stamp tax
(DST) charged on documents, loan contracts, and deeds of sale or transfer of ownership of
a property; c) Donor’s tax charged whenever a gift or donation occurs; d) Estate tax levied
against the properties of a deceased; e) Excise tax on the production, sale, or consumption
of goods in the Philippines; f) Income tax against the taxable income of a person or entity;
g) Percentage tax imposed on non-VAT businesses g) Value-added tax added on goods and
services and h) Withholding tax taken from an individual’s income on installment basis.

b. Local Taxes are involuntary fees that local government units (LGUs) collect from their
constituents and use to finance activities and projects for their city or municipality. These
include: a) Basic real property tax on the value of real properties such as houses, lands,
buildings, etc.; b) Business of printing and publication tax that involve printing and
publication; c) Franchise tax on a franchise business such as Jollibee, Mang Insasal; d)
Sand, gravel and other quarry resources tax; e) Professional tax imposed on professionals
such as lawyers, doctors, and engineers; f) Amusement tax on cinemas, theaters, concert
halls, circuses, and other amusement venues; g) Annual fixed tax for delivery trucks and
vans; h) Local business tax on different types of businesses within their jurisdiction; i)
Barangay tax on stores or retailers; j) Community tax known as Cedula imposed on
individuals and corporations within a city’s or municipality’s jurisdiction.