Discussion Questions Activity No.

1. Explain the concept of Situs

 Situs of taxation means place of taxation. The general rule is that the taxing power cannot go
beyond the territorial limits of the taxing authority. The state where the subject to be taxed has
a situs may rightfully levy and collect the tax.

2. Distinguish the Marshall Doctrine from the Holme’s Doctrine.

3. Explain double taxation, its elements, and its types.

Double taxation is a system in which the same financial assets or earnings are
taxed at two different levels, such as at the personal and corporate levels or in two
countries. Double taxation occurs when income is taxed at both the corporate level and
personal level, as in the case of stock dividends. Double taxation refers to income tax
being paid twice on the same source of income.

4. What are the categories of escapes from taxation? Enumerate and explain each means escape
under each category.

Categories of Escapes from Taxation:

A.) Those that result to loss of government revenue

1.TAX EVASION: also known as tax dodging refers to any act or trick that tends to illegally reduce or
avoid the payment of tax.

2.TAX AVOIDANCE: also known as tax minimization refers to any act or trick that reduces or totally
escapes taxes by any legally permissible means.

3.TAX EXEMPTION: also known as tax holidayrefers to the immunity, privilege orfreedom from being
subject to a tax whichothers are subject to.

B.) Those that do not result to loss of government revenue

1.SHIFTING: the process of transferring tax burden to other tax payers.

Forms of Shifting:

a.Forward Shifting: shifting of tax which follows the normal flow of distribution and is common with
essential commodities and services such as food and fuel

.b.Backward shifting: reverse of forward shifting and is common with non-essential commodities where
buyers have considerable market power and commodities with numerous substitute products.
c.Onward shifting: refers to any tax shifting in the distribution channel thatexhibits forward shifting or
backward shifting policies, goals, objectives, plans, and programs of the Bureau in all areas of operations
except auditing.

2.CAPITALIZATION: pertains to the adjustment of the value of an asset caused by changes in tax rates.

3.TRANSFORMATION: pertains to the elimination of wastes or losses by the taxpayer to form savings to
compensate for the tax imposition or increase in taxes.

TAX AMNESTY: is a general pardon granted by the government for erring taxpayers to give thema
chance to reform and enable them to have a fresh start to be part of a society with a clean slate. It is an
absolute forgiveness or waiver by the government on its right to collect and is retrospective in
application.

TAXCONDONATION: (tax remission) is the forgiveness of the tax obligation of a certain taxpayer under
certain justifiable grounds

5 Distinguish tax amnesty from tax condonation.

Tax AmnestyTax Condonation Generalpardon; absolute forgiveness or waiver by the government on its
right to collect; retrospective (backward)in application.Covers both civil, criminal, and administrative
liabilities.Conditional upon the taxpayer payingthe government a portion of the tax (hindi pede
makulong pero kailangan muna ng bayad; required to pay in a minimum)Estate tax amnesty kailanan
magbayad ng 5k kapalit ng hindi ka na magbabayad ng penaltiesTax remission; forgiveness of the tax
obligation of acertain taxpayer; this operates prospectively (present to future) to any unpaid balance of
the tax.Covers onlycivil liabilities of the taxpayer Requires no payment. (pede makulong