SURVEY OF PHILIPPINE TAXES

 
 
A.       Internal revenue taxes imposed under the NIRC
 
1.       Income tax
 
2.       Transfer taxes
 
          a.       Estate Tax
 
          b.       Donor’s Tax
 
3.       Percentage taxes
 
          a.       Value Added Tax
 
          b.       Other Percentage Taxes
 
4.       Excise taxes
 
5.       Documentary stamp tax
 
B.       Local/Municipal Taxes
 
C.       Tariff and Customs Duties
 
D.       Taxes/Tax incentives under special laws
 
 
making body, imposes burdens for the purpose of raising revenues to carry
out legitimate objects of the government

TAXES – the enforced contributions levied by the law-making body of the

state for the support of the government and all the public needs.

3 INHERENT POWERS OF THE STATE

1. Police Power- the power of promoting public welfare and regulating

the use of liberty and property.
2. Power of Taxation – the power which raises revenue for the
expenses of the government
3. Power of Eminent Domain – the power to acquire private property
for public purpose upon payment of just compensation

PURPOSES OF TAXATION
1. Primary: Revenue or Fiscal Purpose
- to provide funds or property with which to promote general welfare and
protection of its citizens

2. Secondary: Regulatory Purpose

- employed as a devise for regulation or control
Effects: ● Promotion of General Welfare
● Reduction of Social Inequality
● Economic Growth

THEORIES OF TAXATION
1. Necessity Theory
- to preserve the state’s sovereignty
- a means to give for protection and facilities

2. Lifeblood Theory
- used to continue to perform the government’s basic function of serving
and protecting its people
- give tangible and intangible benefits

Basis of Taxation – The government may be able to perform its functions

while the citizens may be secured in the enjoyment of the benefits.
MANIFESTATION OF LIFEBLOOD THEORY

1. Rule of “No Estoppel against the government”

2. Collection of taxes cannot be stopped by injunction
 Court of Tax Appeals – have the authority to grant injunction to restrain
collection of internal revenue tax, fee or charge
3. Taxes could not be the subject of compensation or set-off
 Tax is compulsory not bargain.
4. Right to select objects (subjects) of taxation
a)Subject or object to be taxed
b)Purpose of the tax (as long as it is a public purpose)
 c) Amount or rate of the tax
d)Kind of tax
e)Apportionment of the tax
f) Situs (place) of taxation
g)Manner, means, and agencies of collection of the tax
5. A valid tax may result in the destruction of the taxpayer’s property.
 Lawful tax cannot be defeated.
 Bring out the insolvency of the taxpayer
 Forfeiture of property through police power

SCOPE OF TAXATION
The power of taxation is the most absolute of all the powers of the
government.
a)Comprehensive – covers all (persons, businesses, professions)
b)Unlimited – absence of limitations
c) Plenary – it is complete
d)Supreme –
ESSENTIAL ELEMENTS OF TAX

a)It is an enforced contribution.

b)It is generally payable in money.
c) It is proportionate in character.
d)It is levied on persons, property or right.
e)It is levied by the law-making body of the state.
f) It is levied for public purpose.

ASPECTS OF TAXATION
a)Levying or imposition of tax
b)Assessment or determination of the correct amount
c) Collection of tax