Assignment 3

Zyra Ann E. Ero

BA2A- Income Taxation

1. What is tax amnesty and to whom is it in favour of?

-Tax Amnesty is a general pardon or intentional overlooking by the state of its authority to
impose penalties on persons otherwise guilty or violation of a revenue tax law.
It favour to tax evaders who wish to relent and are willing to reform, a chance to do so and
thereby become a part of the new society with a clean state.

2. Who is a taxpayer?
- Taxpayer is a person, natural or juridical, obliged to pay taxes.

3. Explain the meanings of “voluntary compliance” and “collection by enforcement.”  

Voluntary Compliance - Tax payers act tendering the payment of self-assessed tax.
Collection by enforcement – is conducted through identification of sectors of business or
industries, and/or segments of economic activities where the degree of compliance is law & the
subsequent audit or investigation of companies that are part of these selected industries.

4. What is the primary function of the BIR?

- BIR functions under the supervision and control of the Department of Finance (DOF). They
collect taxes efficiently & effectively for and at least cost to the government, through impartial &
consistent enforcement of internal revenue laws, convenient & honest service to taxpayers.

5. What taxes fall under special laws?

-Custom duties -Special Education fund taxes
-Private motor vehicle tax - Sugar adjustment taxes
-Immigration tax)
-Travel Tax
-Energy Taxes

6. What is a Court of Tax Appeals?

- is the same level as the Court of Appeals. It has exclusive jurisdiction over all criminal
offenses arising from violations of the NIRC and other laws administered by the BIR where the
principal amount of taxes & fee claimed is P1 million.

7. Name some sources of tax laws

-Constitution
-Statutes and Presidential Decrees
-Revenue Regulations by the Department of Finance
-Rulings issued by the Commissioner of Internal Revenue and Opinions by The Secretary of
Justice.
-Decisions by the Supreme Court and the Court of Tax Appeals
-Provincial, City, Municipal, and Barangay ordinances

1+1=3
8. Who pays income tax?
-Residents citizens are taxable on all income derived from sources within or without.
-Non- resident citizens and alien individuals-residents & non-residents- are taxable only on
income derived from sources within the Philippines. An overseas contract worker is taxable only
on his income from sources within.

9. Differentiate between estate tax and donors’ tax.

Estate tax is a tax on the right to transmit property at death. It is a tax on transmission of
property, whether real or personal, effected by means of succession while Donor’s tax is a tax
on the right to transmit property during the lifetime of a donor or grantor of property.

10. What is a value-added tax?

- is a tax on the value added by every seller to his purchase of good & services.

1+1=3