Principles Of Taxation

Mr. Clieford Perez, CPA, MBM

Aspects of Taxation
Aspects of Taxation

▪ Levying or imposition of the tax which is a legislative act or

function.(Function?)
▪ Assessment or determination of the correct amount of applicable
tax. (Function?)
▪ Collection of the tax levied which is essentially administrative in
character. The national agency charged with the function of
collecting internal revenue taxes is the Bureau of Internal Revenue.
(Function?)

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Principles of a Sound Tax System
Principles or Elements of a Sound Tax System

 Fiscal Adequacy
The fundamental purpose of taxation is to raise revenue
necessary to fund public services. Consequently, it is
necessary that the sources of revenues must be adequate to
meet government expenditures and sustain the level of
public services demanded by citizens and policymakers.

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Principles or Elements of a Sound Tax System

 Theoretical Justice or Equity

Taxpayer’s ability to pay must be taken into consideration.
The tax burden should be proportionate to the taxpayer’s
ability to pay.

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Principles or Elements of a Sound Tax System

 Administrative Feasibility
Tax laws must be capable of effective and efficient
enforcement. A good tax system requires informed
stakeholders who understand how taxes are assessed,
collected and complied with. Therefore, the tax system
should be as simple as possible, and should minimize
gratuitous complexity.

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Simple Exercises
Essay
*TBA

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6th Topic is partially completed.
Thank you!