The document discusses various concepts related to taxation including regressive taxes, tax avoidance versus tax evasion, the ability to pay theory, and exemptions for religious and charitable entities. It also covers the territoriality principle of taxation, that taxes are necessary to fund government, and that the Bureau of Internal Revenue is responsible for assessing and collecting national taxes.
The document discusses various concepts related to taxation including regressive taxes, tax avoidance versus tax evasion, the ability to pay theory, and exemptions for religious and charitable entities. It also covers the territoriality principle of taxation, that taxes are necessary to fund government, and that the Bureau of Internal Revenue is responsible for assessing and collecting national taxes.
The document discusses various concepts related to taxation including regressive taxes, tax avoidance versus tax evasion, the ability to pay theory, and exemptions for religious and charitable entities. It also covers the territoriality principle of taxation, that taxes are necessary to fund government, and that the Bureau of Internal Revenue is responsible for assessing and collecting national taxes.
1. Regressive Taxes states that tax rate increases as the tax base increases.
2. Debt is generally based on contract, is assignable and may be paid in kind.
3. Taxes are enforced proportional contributions from persons levied by the law- making body of the State by virtue of its sovereignty. 4. Under inherent limitation, the territoriality discusses that state may tax persons and property under its jurisdiction. 5. Tax avoidance is a completely illegal in nature. 6. Tax avoidance is completely legal in nature. 7. Under Tax Avoidance, the tax payer minimizes the activity wherein tax is imposed. 8. Just as the penalties of criminal law can be avoided by not committing a crime, taxes cab be avoided by not engaging in those activities that are taxed. 9. Under declaration of sale and overstatement of expenses are best example of tax avoidance. 10. Tax evasion occurs when the taxpayer resorts to unlawful means to lessen or to get away with his tax liability. 11. The imposition of tax requires legislative intervention. In the Philippines, it is the barangay that levies taxes. 12. Tax imposed must be proportionate to taxpayer’s ability to pay. 13. Under Police Power, the state has the power to take private property for public use upon payment of just compensation. 14. Taxes are the lifeblood of government. 15. Special assessment is levied only on land, is not a personal liability of the person assessed. 16. Taxation is indispensable and inevitable price for civilized society; without taxes, the government would be paralyzed. 17. Ability to Pay Theory presupposes that the more benefit on receives from the government, the more taxes he should pay. 18. Benefit Received Theory- presupposes that the less benefit on receives from the government, the more taxes he should pay. 19. Religious or charitable entities, non –profit cemeteries, churches, and mosque are exempt from tax. 20. Residence of the Tax Payers is not part of Situs of Taxation. 21. Income tax is a tax on all yearly profits arising from property, profession, trade or business or is a tax on a person’s income, emoluments and profits and the like. 22. Assessment and collection of all national internal revenue taxes, fees and charges is one of the functions of BIR.