1. Determine what is asked in each item.

Ad Valorem a. It means according to value.

Indirect Tax b. Type of tax when it is passed on to the

ultimate consumer.

Property Tax c. Fixed tax charge against a person of a

territory.

Taxation Principles d. Principles that reinforces Ability to Pay

Principles.

Tax e. The support of the government,

administration of law, or the payment of Public
expenses.

Local Tax f. Imposed by Local Government Units.

Bureau of Internal Revenue g. enforcing agency of the government to

collect taxes.

Non-revenue aims h. Objective to regulate behaviour of people.

Chief Justice John Marshall i. Who said “power to tax involves power to
destroy”?

The National Internal Revenue Code j. Tax code

2. Match Column A to Column B

a) Provide directives or instructions, prescribe

guidelines and outline processes necessary in
_______f_____ 1. DOJ Opinions the implementation of stated policies, goals and
objectives.
_______b_____ 2. RDAO
b) Functions delegated by the Commissioner to
_______e_____ 3. RMC revenue officials.

_______g_____ 4. RAO
_______d_____ 5. RR c) Rendered upon the request of taxpayers who
filed queries with the bureau
_______c_____ 6. BIR Rulings
d) Issuance signed by the Secretary of
_______a_____ 7. RMO Finance, upon recommendation of the
Commissioner
_______h_____ 8. TIN
e) Publish pertinent and applicable portions, as
_______i_____ 9. CAATTs well as amplification, of laws, rules and
regulations
_______j_____ 10. eFPS
f) Secretary of Justice opinions involving tax
questions

g) Cover subject matters dealing strictly with

the permanent administrative set-up of the
Bureau.

h) for faster Identification and verification of

taxpayers

i) Computerized-Assisted Audit tools and

techniques use to enhance the BIR’s auditing
capabilities.

j) Paperless filing of tax returns and payment of

taxes.

3) Why taxation is important to the state and explain this phrase "The Purpose of taxation
must always be a public purpose? (10 points)

Taxation. According to Merriam-Webster (2021), taxation is defined as “the action of

taxing” or “the imposition of taxes”. From the same source, tax is defined as “a charge usually of
money imposed by authority on persons or property for public purposes”. Hence, taxation is levied
by an authority (the government in every nation/state’s case) to raise funds necessary for
government expenditures. The contributions of taxpayers are used in nation-building and
development. This includes projects and expenditures such as the construction of public
establishments, transport systems, public welfare in terms of health, education, livelihood, etc.,
national defense, social security, payroll for service of government employees, and more. In short,
tax that is contributed by the people is also given back to the people.

This manifests the importance of taxation to the state. That is why it is inherent to the state
to impose taxation. The generation of revenue from taxes is important to fuel the projects and
developments of the country. Without it, the government won’t have the budget to take action on
issues, problems, and needs of the country. Taxation is necessary for the survival and continued
existence of the nation.

Moving on to the phrase, “The Purpose of taxation must always be a public purpose”, the
phrase is self-explanatory. It means what it means – the taxation levied by the authority to its
people must be used for the people. Taxation shouldn’t be used for personal gains or other
agendas, it must be always used for a public purpose. Among these purposes, these include the
abovementioned projects and expenditures mentioned. To assist the effective and efficient use
of tax, a tax system is considered to look after (1) fiscal sufficiency, (2) equality or theoretical
justice, and (3) administrative feasibility. Alongside these principles, are the agencies and
laws/rules that are created for the purpose of a reasonable and appropriate tax system.

4) In your own words, describe the tax evasion and who is eligible for the Tax Amnesty
on Delinquencies. (10 points)

Tax evasion is in simple terms, is the non-payment of tax, which can be done by different
entities such as individuals or companies. The act is commonly reflected in the untruthful
declaration of income (lesser than original), overstating deductions, underpayment of tax, and
more. This act is unlawful and serious charges against the entities are imposed. The act is
considered illegal is due to the unfair advantage tax evaders get such as public property usage
and economy/market activities without the contribution of funds. Usual entities that practice tax
evasion are those who operate illegal activities which prevents them from the declaration of true
reports regarding their income and records.

Even more so, the act is illegal because it causes problems to the government. Less tax
is collected from the public due to the evaders which affect the budgeting of projects and
expenditures. To make up for the lack of revenue from taxes, the government has no other choice
but to increase tax or impose new tax obligations on goods/services/acquisitions. This can be
observed in the recently signed TRAIN Law and the controversial taxation on app subscriptions
such as Netflix, Spotify, and more.

Now, let’s talk about tax amnesty. Tax amnesty by definition is “…a limited-time
opportunity for a specified group of taxpayers to pay a defined amount, in exchange for
forgiveness of a tax liability (including interest and penalties) relating to a previous tax period or
periods and without fear of criminal prosecution.” (IGI Global. 2021). This is an opportunity for
those who have violated or broken a law by not paying the right amount of tax or by not paying at
all. This allows the entities to settle their obligations in the payment of tax. According to Section
19 of the Tax Amnesty Act, those who are eligible to file Tax Amnesty on delinquencies are any
person, natural or juridical, who wishes to avail it. However, that entity must comply with the
requirements and processes required for Tax Amnesty.

5) Based on existing tax law, you believe that paying taxes is an enforced contribution that
is not primarily dependent on the taxpayer's will. (10 points)

Existing tax laws in the Philippines levies its residents or its people the obligation to pay
their taxes. Republic Act No. 8424 or The Tax Reform Act of 1997 is the basic source of the laws
concerning tax in the Philippines. This act promotes the sustenance of the Philippine economy as
it assists in the rationalization of the tax system and tax administration. The essence of it is to
provide relief to taxpayers, promote the establishment and success of firms towards the regional
and global market, and ensure the government’s ability to provide for the needs of the nation.
What follows this act are other laws and policies concerning tax. All are passed with the aim of
improving the tax system alongside the objective to meet the revenue needed for budgeting
projects and actions essential to the growth of the nation. Besides that, it is inherent to the state
to impose taxation to supply its people with the service and support they need.
 I believe that the payment of tax is or should be an enforced contribution. It is not to be
based primarily on the taxpayer's will. If we were to face reality and are given the choice not to
pay taxes, most of the population would choose to fully keep their income to themselves. Tax
deducts a great amount to the earnings of individuals and entities so if the opportunity arises,
many would use that money for other expenditures. Without tax to fuel the government’s activities,
the nation won’t have the capacity to grow and strive. Causing an economic downfall which may
also lead to the nation’s destruction.

However, if a taxpayer is eager to pay less of his/her taxes, it is the taxpayer's free will to
look up loopholes that concern his/her own situation. This allows the taxpayer to avoid taxes,
which are legal if requirements are met appropriately. So to sum it all up, though taxes are
enforced and are not primarily based on the taxpayer's will, the entities may still find within the
system to relieve the amount of tax they are paying.

Sources:

https://www.merriam-webster.com/dictionary/taxation

https://www.merriam-webster.com/dictionary/tax

https://www.igi-global.com/dictionary/tax-amnesty/68165

https://www.bir.gov.ph/index.php/legal-matters/guide-to-philippines-tax-law-research.html

https://mirror.officialgazette.gov.ph/1997/12/11/republic-act-no-8424/