Income Taxation Law Chapter 1: General Principles

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What are the powers of the Commissioner of Internal Revenue?

Delegate power, assign internal revenue officers, apply accounting period, allocate income and deductions, suspend business operations, compromise/abate/refund taxes, and file civil and criminal actions

What is the classification of taxes based on who bears the burden?

Direct Taxes and Indirect Taxes

What is the principle of taxation that ensures taxes are based on the taxpayer's ability to pay?

Theoretical Justice or Equality

What is the principle of taxation that ensures the tax system is capable of being effectively administered and enforced?

Administrative Feasibility Signup and view all the answers

What is the principle of taxation that ensures taxes are uniform and non-arbitrary?

Uniformity of Taxation Signup and view all the answers

Who is the proper party to question or seek a refund of an indirect tax?

Statutory Taxpayer Signup and view all the answers

What is the inherent limitation of taxation that ensures the taxing authority is not improperly delegated?

No improper delegation of the taxing power or authority Signup and view all the answers

What constitutional clause is violated if taxation is not uniform and equitable?

Due process clause Signup and view all the answers

What is the purpose of the presidential veto power in appropriation, revenue, or tariff bills?

To allow the President to object to specific items in the bill Signup and view all the answers

What is the principle of taxation that ensures taxes are applied equally to all members of the same class?

The classification applies equally well to all those belonging to the same class Signup and view all the answers

What is the inherent limitation of taxation that recognizes the autonomy of government entities?

Tax exemption of government entities Signup and view all the answers

What is the goal of the Congress in evolving a taxation system?

To create a progressive system of taxation Signup and view all the answers

What is the primary purpose of taxation in a state?

to raise revenue in order to defray the necessary and legitimate expenses of the government Signup and view all the answers

Is the power to tax always the power to destroy?

No Signup and view all the answers

What is the characteristic of taxation that requires it to be levied by a specific branch of government?

Levied by the legislative Signup and view all the answers

What is the basis of taxation according to the Lifeblood Theory?

the very life and the very blood of the nation solely depend on taxation Signup and view all the answers

What is the key difference between tax assumption and tax exemption?

In tax assumption, the obligation or liability remains, whereas in tax exemption, the obligation or liability is removed Signup and view all the answers

What is the primary aspect of taxation that involves the process of imposing a tax?

Levy Signup and view all the answers

What is the principle of construing tax exemptions, and what is the rationale behind it?

Tax exemptions are construed strictissimi juris, meaning they are interpreted very strictly, to prevent abuse and ensure that only those who are explicitly granted exemptions are entitled to them. Signup and view all the answers

What is the key difference between tax avoidance and tax evasion, and what are the consequences of each?

Tax avoidance is a legal means of reducing tax liability, whereas tax evasion is an illegal scheme that may result in civil or criminal liabilities. Tax avoidance is allowed by law, while tax evasion is outside of lawful means. Signup and view all the answers

What is the condition for set-off or compensation to occur, and why is it not allowed for taxes?

Set-off or compensation occurs when two persons are creditors and debtors of each other, and the obligations are due and demandable. However, it is not allowed for taxes because taxes cannot be the subject of compensation. Signup and view all the answers

What is the rationale behind the principle that a tax does not depend upon the consent of the taxpayer?

The principle is based on the idea that taxation is a sovereign power of the state, and the state has the authority to impose taxes on its citizens regardless of their consent. Signup and view all the answers

What is the remedy against international double taxation, and how does it work?

One of the remedies against international double taxation is the Tax Credit Method, which allows a taxpayer to claim a credit for taxes paid in another country against their tax liability in their home country. Signup and view all the answers

What is the principle regarding tax refunds in relation to tax exemptions, and what is the significance of this principle?

A tax refund is akin to a tax exemption, and it is not allowed to be offset with a tax deficiency. This principle is significant because it ensures that taxpayers are not penalized for claiming tax refunds they are entitled to. Signup and view all the answers

What is the essence of a taxpayer's suit, and what are the requisites for it to be filed?

A taxpayer's suit allows a taxpayer to sue when there is a claim that public funds are illegally disbursed or wasted. The requisites are: 1) use of public funds, 2) disbursement is illegal or unconstitutional, and 3) the petitioner is directly affected by the alleged act. Signup and view all the answers

What are the circumstances under which the court may grant an injunction in a tax case, and what are the requirements that the taxpayer must comply with?

An injunction may be granted when the taxpayer shows a clear right to refuse or hold in abeyance the payment of taxes, and the collection may jeopardize the government's and/or taxpayer's interest. The taxpayer must either deposit the amount claimed or file a surety bond with the court. Signup and view all the answers

What is the concept of tax amnesty, and what is its purpose?

Tax amnesty is a general pardon or intentional overlooking by the State of its authority to impose penalties on persons guilty of evasion or violation of a revenue or tax law. Its purpose is to encourage taxpayers to comply with tax laws and regulations. Signup and view all the answers

What is tax pyramiding, and how does it differ from a regular tax?

Tax pyramiding is a tax on another tax. It is a tax levied on a tax that has already been paid. Signup and view all the answers

What is the relationship between the Internal Revenue Code and the Civil Code, and which one prevails in case of a conflict?

The Internal Revenue Code is a special law, while the Civil Code is a general law. In case of a conflict, the Internal Revenue Code prevails. Signup and view all the answers

What is the significance of the 'transcendental importance' doctrine in the context of a taxpayer's suit?

The 'transcendental importance' doctrine refers to the character of the funds or assets involved, the presence of a clear case of disregard of a constitutional or statutory prohibition, and the lack of any other party with a more direct and specific interest. This doctrine is significant in determining whether a taxpayer's suit can be filed. Signup and view all the answers