Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd
Upload
10 views

Taxes, Tax Laws, and Tax Administration

The document discusses different aspects of taxation including the definition of tax, elements of a valid tax, classification of taxes by purpose, subject matter, incidence and imposing authority. It also discusses tax laws, sources of taxation laws, types of administrative issuances, principles of a sound tax system, tax collection systems and tax administration.

Uploaded by

Angelica Pagaduan
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
10 views

Taxes, Tax Laws, and Tax Administration

The document discusses different aspects of taxation including the definition of tax, elements of a valid tax, classification of taxes by purpose, subject matter, incidence and imposing authority. It also discusses tax laws, sources of taxation laws, types of administrative issuances, principles of a sound tax system, tax collection systems and tax administration.

Uploaded by

Angelica Pagaduan
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

Tax

TAXES, TAX LAWS, AND TAX It is an enforced proportional contribution levied by the
lawmaking body of the State to raise revenue for public
ADMINISTRATION purpose.

Lesson 2

Elements of a Valid Tax Classification of Taxes


1. Tax must be levied by the taxing power having jurisdiction A. As to purpose
a. Fiscal or revenue tax - for general purpose
over the object of taxation.
b. Regulatory - to regulate business
2. Tax must not violate constitutional and inherent c. Sumptuary - to achieve some social or economic objectives
limitations. B. As to subject matter
a. Personal, poll or capitation - on residents of a particular
3. Tax must be uniform and equitable. territory
4. Tax must be for public purpose. b. Property tax - properties, real or personal
5. Tax must be proportional in character. c. Excise or privilege tax - enjoyment of a privilege or
engagement in an occupation
6. Tax is generally payable in money.
Classification of Taxes Tax Law
C. As to incidence
It refers to any law that arises from the exercise of the
a. Direct tax - collected from the person who is intended to pay the tax
b. Indirect tax - collected from a person other than the person intended to pay the tax taxation power of the State.
D. As to imposing authority
a. National tax - by national government
i. Income tax
ii. Estate tax
iii. Donor’s tax
iv. Value added tax
b. Local tax - by the municipal or local government
v. Real property tax
vi. Professional tax
vii. Business taxes, fees and charges
viii. Community tax

Types of taxation laws Sources of Taxation Laws


1. Tax laws - provide for the assessment and collection of taxes 1. Constitution
a. The National Internal Revenue Code (NIRC)
2. Statutes and Presidential Decrees
b. The Tariff and Customs Code
c. The Local Tax Code 3. Judicial Decisions or case laws
d. The Real Property Tax Code 4. Executive Orders and Batas Pambansa
2. Tax exemption laws - grant immunity from taxation
5. Administrative Issuances
a. The Minimum Wage Law
b. The Omnibus Investment Code of 1987 (E.O. 226) 6. Local Ordinances
c. Barangay Micro-Business Enterprise (BMBE) Law 7. Tax Treaties and conventions with foreign countries
d. Cooperative Development Act
Types of Administrative Issuances Tax System
1. Revenue regulations It refers to the methods or schemes of imposing, assessing, and
collecting taxes.
2. Revenue memorandum orders
3. Revenue memorandum rulings
4. Revenue memorandum circulars Types:
5. Revenue bulletins 1. Progressive
6. BIR rulings 2. Proportional
3. Regressive

Principles of a Sound Tax System Tax Collection Systems


1. Fiscal adequacy - sufficient to cover costs 1. Withholding system
2. Theoretical justice - consider the ability to pay 2. Voluntary compliance system
3. Administrative feasibility - effective and efficient 3. Assessment or enforcement system
Tax Administration
- It refers to the management of the tax system
- It entrusted to the Bureau of Internal Revenue, under supervision of the
Department of Finance
- Other agencies tasked with tax collections or tax incentives related
functions:
- Bureau of Customs
- Board of Investments
- Philippine Economic Zone Authority
- Local Government Tax Collecting unit

You might also like