TAXATION – 20 to 21

A. Definition
B. Purpose of Taxation
1. To collect revenue for the government
2. To redistribute income
3. To combat inflation
4. To correct and adverse balance of payment
5. To check consumption of goods which are considered undesirable
6. To protect local infant industries
7. To influence population trend
8. To improve unfavorable terms of trade
9. To relocate resources to create a sense of identity
C. Sources and Origin of Taxation
1. The Constitution
2. Statuses or Presidential Degrees
3. Bureau Of Internal Revenue regulations
4. Judicial Decision
5. Provincial, Municipal and Barrio Ordinances
6. Observance of International Agreement
7. Administrative Ruling and Opinions
D. Classification of Tax System
1. Progressive Income Tax
2. Proportional Tax
3. Regressive Tax
E. Classification of Taxes
1. As to the subject matter
2. As to who bears the burden
3. As to determination of the amount
4. As to purpose
5. As to scope
F. Types of Taxes
1. Direct Taxes
2. Indirect Taxes
G. Characteristics of a Sound Tax System
1. Efficiency
2. Equity
3. Convenience
4. Stability