Ateneo de Zamboanga University

School of Management and Accountancy

Fr Eusebio, SJ Campus, La Purisima St., Zamboanga City

LEARNING PACKET
TAX 01 B – INCOME TAXATION
First Semester, SY 2022-2023

LEARNING PACKET NO: 1b

TOPIC: GENERAL PRINCIPLES OF TAXES
DATE: August 9-11, 2021
Week No: 1

MEANING OF TAXES

Taxes are proportionally enforced contributions on persons, properties, rights and transactions levied
by the legislative body for the support of the government.

ESSENTIAL CHARACTERISTICS OF TAXES

1. Enforced contribution.
2. Levied by the legislative body.
3. Proportionate in Character.
4. Payable in money.
5. Levied for public purpose.
6. Collected for government revenues.
7. Collectible by the state within its jurisdiction

CLASSIFICATIONS OF TAXES

According to subject matter or object:

1. Personal, Poll or capitation.

2. Property tax.
3. Excise tax (Privilege Tax).

According to purpose:

1. General, fiscal or revenue.

2. Special or regulatory.

According to who bears the burden:

1. Direct.
2. Indirect.

According to determination of amount:

 1. Ad valorem.

2. Specific.

According to scope or authority imposing the tax:

1. National.
2. Local or municipal.

According to graduation or rate.

1. Proportional
2. Progressive or graduated.
3. Regressive.

TAX DISTINGUISHED FROM OTHER CHARGES

Tax Distinguished from license fee

Permit of License Fee is a charge imposed under police power for purposes of regulation.

Tax Distinguished from Toll

Toll is a sum of money for the use of something, generally applied to the consideration paid for the use
of road, bridge or the like, of a public nature.

Tax Distinguished from Special Assessment

Special assessment is an enforced proportional contribution from owners of lands for special benefits
resulting from public improvements.

Tax Distinguished from Debt

Debt generally arises from contract, express or implied while tax created by law.

Tax Distinguished from Custom Duties

Custom duties are taxes levied upon commodities, imported into or exported across national
boundaries.

Assignment
What are the essential characteristics or elements of Taxes? Explain each element briefly. (5 points)

What are the classification of taxes and give example each (5 points)

PREPARED BY:

DF ESTRADA, CPA
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[Course Code] Instructors