ASPECTS OF TAXATION

 
 
Processes that are included or embodied in the term “taxation”
 
1.       Levying or imposition of the tax which is a legislative act.
 
2.       Collection of the tax levied which is essentially administrative in character.
 
The first is taxation, strictly speaking, while the second may be referred to as tax
administration. The two processes together constitute the taxation system

CLASSIFICATION OF TAXES
 

AS TO SUBJECT MATTER OR OBJECT

 

1.       Personal, poll or capitation tax

          Tax of a fixed amount imposed on persons residing within a specified territory,
whether citizens or not, without regard to their property or the occupation or business in
which they may be engaged, i.e. community tax.
 

2.       Property tax

          Tax imposed on property, real or personal, in proportion to its value or in

accordance with some other reasonable method of apportionment.
 

3.       Excise tax

          A charge imposed upon the performance of an act, the enjoyment of a privilege,
or the engaging in an occupation.
 
AS TO PURPOSE
 

1.       General/fiscal/revenue tax

A general/fiscal/revenue tax is that imposed for the purpose of raising public

funds for the service of the government.
 

2.       Special/regulatory tax

A special or regulatory tax is imposed primarily for the regulation of useful or

non-useful occupation or enterprises and secondarily only for the purpose of raising
public funds.
 

AS TO WHO BEARS THE BURDEN

 
1.       Direct tax

A direct tax is demanded from the person who also shoulders the burden of the
tax.  It is a tax which the taxpayer is directly or primarily liable and which he or she
cannot shift to another.
 

2.       Indirect tax

An indirect tax is demanded from a person in the expectation and intention that
he or she shall indemnify himself or herself at the expense of another, falling finally
upon the ultimate purchaser or consumer.  A tax which the taxpayer can shift to
another.
 

AS TO SCOPE OF THE TAX

 

1.       National tax

A national tax is imposed by the national government.

 
2.       Local tax

A local tax is imposed by municipal corporations or local government units

(LGUs).
 

AS TO THE DETERMINATION OF AMOUNT

 

1.       Specific tax

A specific tax is a tax of a fixed amount imposed by the head or number or by

some other standard of weight or measurement.  It requires no assessment other than
the listing or classification of the objects to be taxed.
 

2.       Ad valorem tax

An ad valorem tax is a tax of a fixed proportion of the value of the property with
respect to which the tax is assessed.   It requires the intervention of assessors or
appraisers to estimate the value of such property before the amount due from each
taxpayer can be determined.

 
AS TO GRADATION OR RATE
 

1.       Proportional tax

          Tax based on a fixed percentage of the amount of the property receipts or other
basis to be taxed. Example: real estate tax.
 

2.       Progressive or graduated tax

          Tax the rate of which increases as the tax base or bracket increases. Example:
income tax.
 
           Digres.sive tax rate: progressive rate stops at a certain point. Progression halts at
a particular stage.

3.       Regressive tax

          Tax the rate of which decreases as the tax base or bracket increases. There is no
such tax in the Philippines.

DOCTRINES IN TAXATIO

1. Prospectivity of Tax Laws This principle states that “a tax bill mustonly be applicable and operative afterbecoming
a law”
2.