RUFFA MARIE P.

MENODIADO, MAT
Instructor
• It is the process by which the sovereign,
through its law making body, races
revenues use to defray expenses of the
government.
• It is a means of government increasing a
revenue under the authority of the law,
purposely used to promote welfare and
protection of the citizenry.
• It is the collection of the share of individual
and organizational income by a government
under the authority of the law.
 Taxation is the inherent power of the
state to impose and demand
contribution upon persons, properties,
or rights for the purpose of generating
revenues for public purposes.

The power of taxation upon necessity

and is inherent in every government or
sovereignty.
 TAX DISTINGUISHED FROM TOLL
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TAX DISTINGUISHED FROM PENALTY
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 TAX DISTINGUISHED FROM DEBT
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• To support the colony, several taxes and monopolies
were established. The buwis (tribute), which could be
paid in cash or kind, with tobacco, chickens, produce,
gold, blankets, cotton, rice or other products depending
on the region of the country.

• Also there eas the bandala (from the Tagalog word

mandala, a round stack of rice stalks to be threshed),
an annual forced sale and requisitioning of goods such
as rice.
• Polo y Servicious
 Purposes and Significance of Tax
Primary Purposes generates funds
or revenues to defray expeses
incurred by the government in
promoting in general welfare of its
citizenry.
Public expenditure
Other puposes: To equitably
contribute to the wealth of the
nation.
Characteristics of Tax
• It is enforced contribution.
• It is generally payable in cash.
• It is levied ( to impose; collect) on
person or property.
• It is levied by the state which has
jurisdiction over the person or property.
• It is levied by the law making body of
the state.
• It is levied for public purposes.
 Classification of Taxes

• Personal, Poll or Capitation Tax (ex. Residence Tax)

• Property Tax (ex. Real State Tax)

• Direct Tax (ex. Income Tax)

• Indirect Tax (ex. Buying of goods and services (RVAT))
 Classification of Taxes

General Tax (ex. Almost All Taxes)

Special Tax

National Tax (ex. National Revenue Taxes)

Local Tax
• Fiscal Adequacy. Means that the sources of revenue taken as a
whole should be sufficient to meet the expanding expenditures of
the government regardless of business, export taxes, trade
balances, and problems of economic adjustment.
• Equality or Theoretical Justice. Means the taxes levied must be
base upon the ability of the citizen to pay.
• Administrative Feasibility. This principle connotes that in an successful tax
system, such tax should be clear and plain to taxpayers, capable of
enforcement by an adequate and well-trained staff of public office, convenient
as to the time and manner payment, and not unduly burdensome upon on
discouraging to business activity.
• Consistency or Compatibility with Economic Goals. This refer to the tax
laws that should be consistent with economic goals or programs of the
government. This are the basis services intended for the masses.
• Religious Institutions
• Charitable Institutions
• Non-Profit, Non-stock
Educational Institutions
• Non-profit Cemeteries
• Government Institutions
• Foreign Diplomats
How to pay Tax?
1. Single or divorced without 50, 000
dependent
2. Head of the Family 50, 000
3. Married Individuals 50, 000
Government Budget and Expenditures
• In National Income Accounting, government spending,
government expenditure, or government spending on goods
and services includes all government consumption and
investment by state.
Government acquisition of goods and services for current
use to directly satisfy individual or collective needs of the
members of the community is called government final
consumption expenditure (GFCE)

Government acquisition of goods and services

intended to create future benefits such as
infrastructure investment or research spending is
called gross fixed capital formation, or
government investment, which usually is the
largest part of the government
•Taxation
•Budget Deficit
•Privatization
Kapag lumabis ang gastos sa kita
ng pamahalaan, nagiging malaki
ang kakulangan at naaapektuhan
ang katatagan ng pamahalaan. Ito
ay tinatawag na depisit sa badget
o budget deficit.