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Chapter 2 - Taxes, Tax Laws and Tax Administration: Shanice Molina-Cabotage, CPA
Chapter 2 - Taxes, Tax Laws and Tax Administration: Shanice Molina-Cabotage, CPA
Taxes, Tax
Laws and Tax
Administration
3) Regressive tax
TAX and its 4) Mixed tax
ELEMENTS
and
CLASSIFICATIONS
DISTINCTION OF TAXES
with SIMILAR ITEMS
Tax vs. GAAP
Tax vs. Revenue
Tax vs. License Fee
Tax vs. Toll
TAX and its Tax vs. Debt
ELEMENTS Tax vs. Special Assessment
and Tax vs. Tariff
CLASSIFICATIONS
Tax vs. Penalty
TAX SYSTEM AND
ITS TYPES
TAX SYSTEMS
Methods and schemes of imposing, TAX SYSTEM
assessing and collecting taxes and its
Types of tax system According to Imposition TYPES
1) Progressive
2) Proportional
3) Regressive
Types of tax system According to Impact
1) Progressive
2) Regressive
TAX COLLECTION SYSTEMS
A. Withholding system on income tax TAX SYSTEM
1. Creditable withholding tax
and its
TYPES
2. Final withholding tax
B. Withholding system on business tax
C. Voluntary compliance system
D. Assessment or enforcement system
TAX SYSTEM
PRINCIPLES OF A SOUND TAX SYSTEM and its
1) Fiscal adequacy TYPES
2) Theoretical justice
3) Administrative feasibility
TAX
ADMINISTRATION
TAX ADMINISTRATION
Management of the tax system
Chief Officials of the Bureau of Internal Revenue (BIR)
1) 1 Commissioner
2) 4 Deputy Commissioners, each to be designated to the
following:
TAX a) Operations Group
ADMINISTRATION b) Legal Enforcement Group
c) Information System Group
d) Resource Management Group
POWERS OF THE BIR
1) Assessment and collection of taxes
2) Enforcement of all forfeiture, penalties and fines, and judgments in all cases
decided in its favor by the courts
3) Giving effect to , and administering the supervisory and police powers
conferred to it by the NIRC and other laws
4) Assignment of internal revenue officers and other employees to other duties
TAX 5) Provision and distribution of forms, receipts, certificates, stamps, etc. to proper
officials
ADMINISTRATION 6) Issuance of receipts and clearances
7) Submission of annual report, pertinent information to Congress and reports to
the Congressional Oversight Committee in matters of taxation
POWERS OF THE
COMMISSIONER OF
INTERNAL REVENUE
1) To interpret the provisions of the NIRC, subject to review by the Secretary of
Finance
2) To decide tax cases, subject to the exclusive appellate jurisdiction of the Court
of Tax Appeals
3) To obtain information and to summon, examine and take testimony of persons
to effect tax collection
TAX
4) To make assessment and prescribe additional requirement for tax
administration and enforcement
ADMINISTRATION 5) To examine tax returns and determine tax due thereon
6) To conduct inventory taking or surveillance
7) To prescribe presumptive gross sales and receipts for a taxpayer
POWERS OF THE
COMMISSIONER OF
INTERNAL REVENUE
8) To terminate tax period
9) To prescribe real property values
10) To compromise tax liabilities of taxpayers
11) To inquire into bank deposits
12) To accredit and register tax agents
ADMINISTRATION
AGENTS and DEPUTIES for
COLLECTION OF NATIONAL
INTERNAL REVENUE TAXES
1) The Commissioner of Customs and his subordinates with respect to
collection of national internal revenue taxes on imported goods.
2) The head of appropriate government offices and his subordinates with
respect to the collection of energy tax.
3) Banks duly accredited by the Commissioner with respect to receipts of
payments of internal revenue taxes authorized to be made thru banks.
TAX
ADMINISTRATION
OTHER AGENCIES TASKED WITH TAX
COLLECTIONS OR TAX INCENTIVES
RELATED FUNCTIONS
1) Bureau of Customs
2) Board of Investments
3) Philippine Economic Zone Authority
4) Local Government Tax Collecting Unit
TAX
ADMINISTRATION
TAXPAYER CLASSIFICATION FOR
PURPOSES OF TAX
ADMINISTRATION
1) Large taxpayer
2) Non-large taxpayer
Criteria for Large Taxpayers
A. As to Payment
1) Value Added Tax
TAX
2) Excise Tax
3) Income Tax
ADMINISTRATION
4) Withholding Tax
5) Percentage Tax
6) Documentary stamp tax
TAXPAYER CLASSIFICATION FOR
PURPOSES OF TAX
ADMINISTRATION
Criteria for Large Taxpayers
B. As to Financial Conditions and Results of Operations
1) Gross receipts or sales
2) Net worth
3) Gross purchases
TAX
4) Top corporate taxpayer listed and published by Securities and Exchange
Commission
ADMINISTRATION
AUTOMATIC CLASSIFICATION OF
TAXPAYERS AS LARGE
TAXPAYERS
1) All branches of taxpayers under the Large Taxpayer’s Service
2) Subsidiaries, affiliates, and entities of conglomerates or group of companies of a
large taxpayer
3) Surviving company in case of merger or consolidation of a large taxpayer
4) A corporation that absorbs the operation or business in case of spin-off of any
large taxpayer
TAX
ADMINISTRATION