General Principles of Taxation

Taxation is a voluntary contribution from individuals to support the government.

The National Internal Revenue Code (NIRC) is the Tax Code of 1987 of the Philippines.

Taxation is a way of distributing the wealth of the government among its citizens.

The power to tax is a delegated authority of the government.

The Tax Reform for Acceleration and Inclusion Act (TRAIN Law) is Republic Act No. 8424.

Taxation is a judicial function of the government.

The purpose of taxation is to raise revenue for the government to support public needs.

Taxes are optional contributions from persons and property.

The power to tax is a constitutional right of the citizens.

Taxation is a means of redistributing wealth among the citizens of a country.

Shifting of tax burden only applies to direct taxes.

Tax avoidance is an illegal means of escaping taxation.

Tax evasion is a legal means of reducing tax liability.

Shifting of tax burden is also known as tax minimization.

Undervaluing the property's price in a contract is a form of tax avoidance.

Registering a business as a proprietorship instead of a corporation to pay lesser taxes is an example of tax evasion.

Shifting of tax burden is only applicable to real estate dealers.

VAT is a direct tax.

Tax evasion is a form of tax minimization.

Shifting of tax burden involves the transfer of the burden of tax from the original payer to the government.

The power of taxation is considered the strongest of all the powers of the government.

The Benefits-Protection Theory of taxation states that the government has a right to compel citizens to contribute to its expenses.

Fiscal Adequacy is a principle of sound tax system that ensures tax laws are capable of being effectively enforced with the least inconvenience to the taxpayer.

Direct Duplicate Taxation is a permissible kind of double taxation.

The Necessity Theory of taxation states that the government has the right to tax because it is necessary for its existence.

The power of eminent domain is the power of the government to regulate to promote welfare.

Tax evasion is a form of escape from taxation where the taxpayer shifts the tax burden to another person.

The Lifeblood Theory of taxation states that taxes are necessary for the existence of the government.

Indirect Duplicate Taxation arises when the same property or subject matter is taxed twice by the same taxing authority.

Abida Land, Inc. is a victim of direct duplicate taxation because it is paying both real property tax and an annual fee of Php20,000.00.