Taxation

Loryan Jane Gregorio

Aliah Denise Santos
 Introduction
The government has the innate ability to increase taxes. It relies on demand,
which acquires significance from the recognition that because government has
been established to promote and protect the public's good, it is important that
it be provided with the resources necessary to effectively exercise the power
to impose taxes.

Taxes are crucial because governments collect this money and use it to
finance social projects. Without taxes, government contributions to the health
sector would be impossible. Taxes go to funding health services such as social
healthcare, medical research, social security, etc.
Guiding Principles:

Philosophical View of
Taxation
Philosophical View of Taxation
In the Philippines, the proportion of the economy controlled by the state has grown
enormously over the last century, and pressures on the state are set to rise as people
live longer, meaning that tax will continue to rise for the great majority of the
population. What are the rights and wrongs of asking so many people to pay so
much? To answer this question, let us use the arguments from political philosophy,
and the following three approaches to ethics:
The following three approaches to ethics:

1 2
Deontology, is an ethical theory that says
Utilitarianism, is a theory of morality
actions are good or bad according to a
that advocates actions that foster
clear set of rules. Its name comes from
happiness and oppose actions that cause
the Greek word deon, meaning duty.
unhappiness. Utilitarianism promotes
Actions that align with these rules are
"the greatest amount of good for the ethical, while actions that don't aren't.
greatest number of people."
3
Virtue ethics, is arguably the oldest ethical
theory in the world, with origins in Ancient
Greece. It defines good actions as ones that
display embody virtuous character traits, like
courage, loyalty, or wisdom. A virtue itself is a
disposition to act, think and feel in certain
ways.
Are Taxes Moral?
One of the arguments against the existence of special government powers
such as the power to tax is that taxing is no different from theft. Since theft is
Wrong, so is taxing. A careful examination of this argument shows that it assumes that there is no moral
difference between an individual under government and an individual without government. There is good
reason to believe that this assumption is false, and that taxation is sometimes morally acceptable if our
relationship with the common good of our society must be fair.

Taxation is considered moral because it is seen as overall beneficial for all of society, and because we have
agreed to taxation through the laws and political representatives we vote for. So, taxation is moral, but only so
long as it is fair.
Legitimate Objective of Tax
Tax can be used for all sorts of purposes, and it is often clear what ethics of any particular kind would say about
these purposes. We can start with the provision of law and order and the more extensive public services such as
healthcare and education. Utilitarians will approve of taxation for these things because they allow more goods
and services to be produced, and they also allow more non-materialistic desires to be satisfied. Virtue ethicists
will approve because these services enhance people's opportunities to use their talents and to lead flourishing
lives.

Purpose of taxation Primary purpose • To provide funds

or property with which to promote the general welfare
of its citizens and to enable it to finance its multifarious
activities.
Tax Evasion and Tax Avoidance:

Tax Evasion: Tax evasion is the illegal abandonment to pay taxes needed
or insufficient payment of taxes owed. Usually, tax evasion includes
filing a false declaration to the tax authorities instead of making any kind
of disclosure at all, such as declaring less income, profits, or gains
compared to what was actually earned or overstating deductions.

Tax Avoidance: Tax avoidance usually refers to a legal strategy utilized

by taxpayers to minimize their tax liabilities. They may accomplish this
by means of using every one of the tax code's tax advantages such as
deductions, exclusions, and loopholes. They can either entirely avoid
paying taxes or minimize the cost of taxation through using these
strategies.
Benefits of Paying Taxes
Following these steps will help ensure that issues are addressed effectively.

No/Minimal BIR Audit

Peace of Mind

Good Credit Rating

Social Responsibility and Contribution to the Country

Basic Principles of a Sound Tax System
The principles of a sound tax system are fiscal adequacy, administrative feasibility, and theoretical justice. Fiscal adequacy means the
sources of revenue must be sufficient to meet government expenditures and other public needs

A sound tax system has the following basic principles namely:

Fiscal Adequacy, This means that Equality or Theoretical Justice, Administrative Feasibility, This
the source of revenue should be This means that the tax burden means that the tax should be
sufficient to address the demands should be proportionate to the capable of convenience, just and
of public expenditures. taxpayer's ability to pay. effective administration

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September 30, 2023
Essential Characteristics of Taxation
Following these steps will help ensure that issues are addressed effectively.

1 It is an enforced contribution.

2 It is generally payable in money.

3 It is proportionate in character.

4 It is levied on persons, property or property rights.

5 It is levied by the state, which has jurisdiction over the person or property.

6 It is levied by the legislative branch of the state.

7 It is levied for public purposes.

That's all!
Thank you