Podcast
Questions and Answers
Who is primarily responsible for exercising the power of taxation?
Who is primarily responsible for exercising the power of taxation?
- The government or its political subdivisions (correct)
- Public service corporations
- Non-profit organizations
- Private entities operating public utilities
What is the primary constitutional limitation on taxation?
What is the primary constitutional limitation on taxation?
- Taxes must be progressive
- Taxes can vary based on geographical location
- Uniform and equitable rule of taxation (correct)
- Tax rates must be set by state governments
What does the principle of 'equal protection of the laws' signify in taxation?
What does the principle of 'equal protection of the laws' signify in taxation?
- Different classes may be subject to different tax rules based on necessity (correct)
- Everyone must be taxed at the same rate regardless of circumstances
- No one can evade taxes in any form
- All individuals may benefit equally from tax-funded services
Which of the following best describes 'uniformity' in the context of taxation?
Which of the following best describes 'uniformity' in the context of taxation?
Which power may also be exercised by public service corporations or private entities?
Which power may also be exercised by public service corporations or private entities?
What is the first stage of taxation?
What is the first stage of taxation?
Which entity primarily exercises the taxing power in the Philippines?
Which entity primarily exercises the taxing power in the Philippines?
Which of the following best defines the power to tax?
Which of the following best defines the power to tax?
What does the police power of the state enable it to do?
What does the police power of the state enable it to do?
What limitation is placed on the exercise of the power of eminent domain?
What limitation is placed on the exercise of the power of eminent domain?
What does it mean when it is stated that the power to tax is 'supreme'?
What does it mean when it is stated that the power to tax is 'supreme'?
Which of the following is NOT considered an inherent power of the state?
Which of the following is NOT considered an inherent power of the state?
Tax collection is characterized as which type of activity?
Tax collection is characterized as which type of activity?
What is required for a non-profit educational institution's income to be exempt from taxation?
What is required for a non-profit educational institution's income to be exempt from taxation?
Which of the following is a limitation of the taxing power?
Which of the following is a limitation of the taxing power?
When can a local government unit (LGU) be subject to income and business taxes?
When can a local government unit (LGU) be subject to income and business taxes?
What happens to unused funds from a special purpose tax?
What happens to unused funds from a special purpose tax?
Which of the following is exempt from the income tax imposed under the National Internal Revenue Code?
Which of the following is exempt from the income tax imposed under the National Internal Revenue Code?
What is the general rule regarding the delegation of the taxing power of the legislature?
What is the general rule regarding the delegation of the taxing power of the legislature?
Which governmental action is explicitly outlined as an exception to the non-delegability of the taxing power?
Which governmental action is explicitly outlined as an exception to the non-delegability of the taxing power?
Why would a special fund collected for a specific purpose be restricted in its use?
Why would a special fund collected for a specific purpose be restricted in its use?
What principle limits the government's authority to impose taxes on foreign entities?
What principle limits the government's authority to impose taxes on foreign entities?
Which of the following is a characteristic of direct double taxation?
Which of the following is a characteristic of direct double taxation?
What does the principle of Fiscal Adequacy ensure in a tax system?
What does the principle of Fiscal Adequacy ensure in a tax system?
Which type of double taxation occurs when the same subject is taxed multiple times by the same authority within the same jurisdiction?
Which type of double taxation occurs when the same subject is taxed multiple times by the same authority within the same jurisdiction?
What is the main purpose of the Life-blood Theory in taxation?
What is the main purpose of the Life-blood Theory in taxation?
Which of the following is NOT a basic principle of a sound tax system?
Which of the following is NOT a basic principle of a sound tax system?
What is a key requirement of the tax laws related to Administrative Feasibility?
What is a key requirement of the tax laws related to Administrative Feasibility?
Which forms of taxation are local government units permitted to create?
Which forms of taxation are local government units permitted to create?
What distinguishes tax obligations from debt obligations?
What distinguishes tax obligations from debt obligations?
Which of the following forms of payment can be made for debts?
Which of the following forms of payment can be made for debts?
Under which circumstance can a person be imprisoned for non-payment?
Under which circumstance can a person be imprisoned for non-payment?
How is assignability of tax obligations different from that of debt obligations?
How is assignability of tax obligations different from that of debt obligations?
What is the primary role of the Bureau of Internal Revenue (BIR)?
What is the primary role of the Bureau of Internal Revenue (BIR)?
What distinguishes a tax from a toll?
What distinguishes a tax from a toll?
Which aspect of debt does compensation or set-off apply to?
Which aspect of debt does compensation or set-off apply to?
Which of the following best describes the nature of a tax?
Which of the following best describes the nature of a tax?
Study Notes
Taxation Defined
- Taxation is the sovereign power used to raise revenue for government expenses.
Stages or Coverage of Taxation
- Three main areas of taxation:
- Levying: Involves the passage of tax laws by Congress in the Philippines.
- Assessment: Determining the correct tax amount owed.
- Collection and Payment: Taxpayer compliance, managed by the Bureau of Internal Revenue (BIR).
Inherent Powers of a State
- There are three inherent powers:
- Power to Tax: Supreme and comprehensive; courts don't interfere unless constitutional limits are breached.
- Police Power: Regulates for public health, safety, welfare, and morals, can include taxation to promote welfare.
- Power of Eminent Domain: Allows the government to take private property for public use with just compensation.
Limitations on the Power to Tax
-
Constitutional Limitations:
- No deprivation of life, liberty, or property without due process.
- Taxation must be uniform and equitable.
- Special funds must only be used for specific purposes they were collected for.
-
Inherent Limitations:
- Taxes must apply within territorial limits.
- Funds must be used for public purposes.
- Government entities are typically exempt, but can be taxed when engaged in business activities.
- The power to tax cannot generally be delegated, with exceptions for local government and tariff/fixed rates by the President.
- International comity limits taxation on foreign entities.
- Double taxation includes direct and indirect forms, not constitutionally forbidden but not favored.
Basic Principles of a Sound Tax System
- Fiscal Adequacy: Revenue sources must meet public expenditure demands.
- Equality or Theoretical Justice: Taxes should reflect taxpayers' abilities to pay.
- Administrative Feasibility: Tax laws should be just and easily administered.
Theory of Taxation
- Life-blood Theory: Taxes are essential for government function.
Tax vs. Debt
- Tax: Obligations due to government by law, no interest (except delinquency), non-assignable, penalties for non-payment.
- Debt: Obligations under a contract, may include interest, generally assignable, no imprisonment for non-payment.
Tax vs. Toll
- Tax: A demand for sovereignty imposed by the government, not tied to property value.
- Toll: A charge by private entities, based on property use or improvements.
Tax Administration
- Involves assessment, collection, and enforcement related to taxes, including execution of judgments in favor of the BIR.
Powers and Duties of the BIR
- Responsible for the assessment and collection of national internal revenue taxes, enforcing penalties, and executing judgments from tax court rulings.
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Description
Explore the fundamental concepts of taxation as defined by Atty. C. Llamado. This quiz covers the definition, stages, and aspects of taxation, providing insights into how government raises revenues. Test your knowledge on the legislative process and the covering areas of taxation.
