Name: Zhan D. Ladera 5.

Inherent Powers of Government :

Section: HRM-2A - Eminent Domain : Government's authority

to acquire private property for public use with
compensation.
REVIEWER SUMMARY IN INTAX
- Police Power : Authority to regulate
behavior and enforce laws for public order.

1. Tax: Mandatory payment imposed by the - Taxation Power : Authority to impose taxes
government on individuals or entities to fund to generate revenue for public services.
public expenditures.

6. Purposes of Taxation :
2. Types of Tax Systems:
- Primary : Raise revenue for public welfare.
- Regressive Tax System: Tax rate decreases as
- Secondary : Reduce inequality, encourage
income increases.
local industries, regulate activities.
- Progressive Tax System: Tax rate increases as
income increases.
7. Taxation and Lifeblood Doctrine :
- Proportional Tax System : Same tax rate for
all income levels. - Taxation is vital for government functioning
and must be collected promptly.

3. Requirements for Valid Tax :

8. Theories on Taxation :
- Imposed through legislative action.
- Necessity Theory : Taxes necessary for
- Collected in the form of money for public
government functions and sovereignty.
purposes.
- Benefits-Protection Theory : Taxes paid for
benefits and protection provided by the state.
4. Types of Taxes :

- Income Tax : Tax on financial income.

9. Double Taxation : Occurs when the same
- Value Added Tax (VAT) : Consumption tax on taxpayer is taxed twice by the same tax
goods and services. jurisdiction for the same thing.

- Estate Tax : Tax on property transmission

upon death.
10. Escapes from Taxation : Methods to limit
- Property Tax : Tax on real estate. or avoid tax impact.

- Excise Tax : Tax on specific goods or - Tax evasion : Illegal reduction of tax
services. payment.
 - Tax avoidance : Legal reduction or escape
from taxes.
- Tax exemption : Immunity from certain
taxes.
11. Tax Refund : Excess tax payment returned
to taxpayer.
12. Tax Credit : Direct reduction in tax owed.
13. Tax Amnesty : Pardon for erring taxpayers.
14. Taxpayer’s Suit : Legal action challenging
government decisions related to taxes.
15. Limitations of Taxation :
- Public Purpose : Taxes should serve a public
benefit.
- Legislative Nature : Taxes must be enacted
through legislative process.
- International Comity and Treaties : Tax laws
must comply with international agreements and
diplomatic conventions.
Module 4: National Internal Revenue
1. Bureau of Internal Revenue (BIR) Overview
:
- Under Department of Finance supervision.
- Responsible for national revenue tax
assessment, collection, and enforcement of
penalties.
- Administers supervisory and police powers
as per the tax code.
2. Chief Officials :
- Commissioner of Internal Revenue heads the
BIR.
- Four Deputy Commissioners assist the
Commissioner.
3. Powers of the Commissioner :
- Exclusive jurisdiction to interpret tax laws.
- Authority to decide disputed tax cases.
- Power to obtain information and summon
individuals for examination.
4. Assessments and Additional
Requirements :
- Commissioner can authorize tax examination
and determine tax liability.
- May prescribe additional requirements for
tax administration and enforcement.
5. Delegation of Powers :
- Commissioner can delegate powers to
subordinate officials, subject to limitations.
6. Duty to Ensure Compliance :
- Commissioner ensures provision and
distribution of tax-related forms, receipts,
certificates, etc.
7. Internal Revenue Districts :
- Commissioner divides the Philippines into
revenue districts for administrative purposes.
- Each district supervised by a Revenue District
Officer.
8. Revenue Regional Director : 14. Rules and Regulations :

- Implements tax laws and regulations in the - Secretary of Finance promulgates rules for
region. tax enforcement.

- Issues examination letters and ensures - Rules cover various aspects like assessment,
efficient tax service. collection, penalties, and interest rates.

9. Duties of Revenue Officers : 15. Statutory Offenses and Penalties :

- Ensure compliance with tax laws and - Civil penalties and interest imposed for tax
regulations. deficiencies, late filings, and failure to comply.

- Aid in preventing, detecting, and punishing - Failure to file information returns incurs
tax fraud and delinquencies. penalties.

10. Agents for Tax Collection :

- Customs Commissioner, government heads,

and accredited banks act as agents for tax
collection.

11. Authority of Revenue Officers :

- Power to administer oaths, take testimony,

make arrests, and seizures for tax violations.

12. Assignment of Internal Revenue Officers :

- Officers may be assigned to establishments

or special duties as required.

13. Reports and Accountability :

- Internal revenue officers report violations to

the Commissioner.

- Commissioner submits detailed annual

reports to disclose revenue collections and
disbursements.