Reporting 241N - Shareena Zaynab Ali

TAXATION
What is taxation? Principles of a sound tax system
Nature of taxation power Escape from taxation
Purposes of taxation What is tax?
Basis of taxation Essential Elements of tax
Aspects of taxation classifications and kinds of tax


What is taxation?
• is the process or means by which the sovereign, through its law making body
imposes burdens upon subjects and objects within its jurisdiction for the purpose
of raising revenues to carry out the legitimate objectives of the government.
• taxation, as a power of the state, is inherent in sovereignty.



Nature of taxation power
1. Inherent power of sovereignty

2. Legislative Function
3. For Public Purpose
4. Territorial in operation
5. Tax exemption of government


Purposes of taxation
A)Primary: raise revenue/fiscal
B)Secondary: regulatory/compensatory
a) promotion of general welfare

b) reduction of social inequality
c) economic growth


Theories/Basis of taxation
A. LIFEBLOOD OR NECESSITY THEORY (theory)

• constitutes the theory of taxation, which provides that the existence of
government is a necessity.
• Without taxes, the government would be paralyzed for lack of the motive power
to activate and operate it.
• And that it has the right to compel its citizen and property within its limits to
contribute.
Theories/Basis of taxation
B. BENEFITS-RECEIVED PRINCIPLE
• the basis of taxation is found in the reciprocal duties of protection and support
between the state and its inhabitants. In return for his contribution, the taxpayer
received benefits and protection from the government.


Aspects of taxation
LEVYING COLLECTION
(LEGISLATIVE) (EXECUTIVE)
ASESSMENT
(EXECUTIVE)


principles of a sound tax system
1) Fiscal Adequacy - sources of revenue are sufficient to meet the

government expenditures.
2) Administrative Feasibilty - the law must be capable of convenient just and

effective administration.
3) Theoretical Justice - the tax imposed must be proportionate to taxpayers

ability to pay.


Escape from taxation
1) SHIFTING
2) CAPITALIZATION
3) TRANSFORMATION
4) TAX EVASION/DODGING
5) TAX AVOIDANCE/MINIMIZATION
6) TAX EXEMPTION


What is tax?
• Taxes are the enforced proportional contributions from

persons and property levied by the law-making body of
the State by virtue of its sovereignty for the support of
the government and all public needs. [Cooley]


Essential Elements of tax
1. It is an enforced contribution.
2. It is generally payable in money.
3. It is proportionate in character.
4. It is levied on persons, property, or the exercise of a right or privilege
5. It is levied by the State which has jurisdiction over the subject or object of
taxation.
6. It is levied by the law-making body of the State.
7. It is levied for public purpose or purposes.


Classification and Kinds of tax
1)As to subject matter or object

a)Personal, poll or capitation
b)Property
c)Excise
2)As to who bears the burden

a)Direct
b)Indirect
3)As to determination of amount

a) Specific
b) Ad valorem
3) As to purpose
a) General, fiscal or revenue
b) Special or regulatory
4) As to authority imposing the tax or scope

a) National
b) Municipal
5) As to graduation or rate
a) Proportiona
b) Progressive or graduated
c) regressive
A)NATIONAL INTERNAL REVENUE CODE OF 1997

a)Income taxes
b)Estate and donors tax
c)Vat
d)Opt
e)Excise tax
f)Documentary stamp tax
B)TARIFF AND CUSTOM CODE OF 1978

a)Import duties
b)Export duties
C)LOCAL GOVERNMENT CODE OF 1991

a)Real property tax
b)Business taxes, fees, and charges
c)Professional tax
d)Community tax
e)Tax on banks and other financial institution
D)SPECIAL LAWS
a)Motor vehicle law - motor vehicle fees
b)Private motor vehicle tax law
c)Phil immigration act of 1940
d)Travel tax law

Reporting 241N - Shareena Zaynab Ali

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TAXATION

What is taxation? Principles of a sound tax system

Nature of taxation power Escape from taxation

Purposes of taxation What is tax?

Basis of taxation Essential Elements of tax

Aspects of taxation classifications and kinds of tax

Nature of taxation power Escape from taxation

Purposes of taxation What is tax?

Basis of taxation Essential Elements of tax

Aspects of taxation classifications and kinds of tax

• taxation, as a power of the state, is inherent in sovereignty.

Nature of taxation power Escape from taxation

Purposes of taxation What is tax?

Basis of taxation Essential Elements of tax

Aspects of taxation classifications and kinds of tax

Nature of taxation power Escape from taxation

Purposes of taxation What is tax?

Basis of taxation Essential Elements of tax

Aspects of taxation classifications and kinds of tax

1. Inherent power of sovereignty

Nature of taxation power Escape from taxation

Purposes of taxation What is tax?

Basis of taxation Essential Elements of tax

Aspects of taxation classifications and kinds of tax

Nature of taxation power Escape from taxation

Purposes of taxation What is tax?

Basis of taxation Essential Elements of tax

Aspects of taxation classifications and kinds of tax

A)Primary: raise revenue/fiscal

a) promotion of general welfare

Nature of taxation power Escape from taxation

Purposes of taxation What is tax?

Basis of taxation Essential Elements of tax

Aspects of taxation classifications and kinds of tax

Nature of taxation power Escape from taxation

Purposes of taxation What is tax?

Basis of taxation Essential Elements of tax

Aspects of taxation classifications and kinds of tax

A. LIFEBLOOD OR NECESSITY THEORY (theory)

Nature of taxation power Escape from taxation

Purposes of taxation What is tax?

Basis of taxation Essential Elements of tax

Aspects of taxation classifications and kinds of tax

Nature of taxation power Escape from taxation

Purposes of taxation What is tax?

Basis of taxation Essential Elements of tax

Aspects of taxation classifications and kinds of tax

Nature of taxation power Escape from taxation

Purposes of taxation What is tax?

Basis of taxation Essential Elements of tax

Aspects of taxation classifications and kinds of tax

Nature of taxation power Escape from taxation

Purposes of taxation What is tax?

Basis of taxation Essential Elements of tax

Aspects of taxation classifications and kinds of tax

1) Fiscal Adequacy - sources of revenue are sufficient to meet the

2) Administrative Feasibilty - the law must be capable of convenient just and

3) Theoretical Justice - the tax imposed must be proportionate to taxpayers

Nature of taxation power Escape from taxation

Purposes of taxation What is tax?

Basis of taxation Essential Elements of tax

Aspects of taxation classifications and kinds of tax

Nature of taxation power Escape from taxation