Local Treasury Operations Manual Latest Edition Quiz and Flashcards

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Questions and Answers

What is the title of the document mentioned in the text?

Philippines Fiscal Policies Guide

Local Treasury Operations Manual (correct)

Local Tax Collection Handbook

Local Government Finance Manual

Who published the Local Treasury Operations Manual?

Department of Finance

Department of Treasury

Bureau of Local Government Finance (correct)

Manila Printing Press

What is the ISBN number of the Local Treasury Operations Manual?

978-971-94098-8-5 (correct)

971-978-940-8-5

971-94098-8-5

978-940-971-8-5

Which section of the manual discusses the definition of terms?

Section 36 Signup and view all the answers

What does LTOM stand for in the context of the text?

Local Treasury Operations Manual Signup and view all the answers

Which chapter of the manual discusses the Taxing Powers of Local Government Units (LGUs)?

Chapter 1 Signup and view all the answers

What professionals are subject to the professional tax?

Real estate brokers and civil engineers Signup and view all the answers

What is the maximum amount that the professional tax should not exceed?

Php300.00 Signup and view all the answers

Who administers the professional tax collection?

Professional Regulations Commission Signup and view all the answers

Which profession does NOT fall under the category subject to the professional tax?

Geologists Signup and view all the answers

How often can the rate of the professional tax be adjusted?

Every 5 years Signup and view all the answers

Which organization conducts licensure examinations for real estate service practitioners?

Real Estate Service pursuant to Republic Act No. 9646 Signup and view all the answers

What penalty may be imposed on a local treasurer for failing to issue or execute a warrant of levy within one year?

Dismissal from service Signup and view all the answers

In case of failure to execute a warrant of levy, what other legal consequences might a local treasurer face, besides dismissal from service?

Criminal prosecution Signup and view all the answers

Under what circumstances can the action assailing the validity of a tax sale be entertained by a court?

Without any requirement for prior deposit Signup and view all the answers

What is the consequence if the sale at public auction is declared invalid by a court?

Purchaser receives the amount deposited by the taxpayer Signup and view all the answers

Under what condition can a court declare a sale at public auction invalid?

If the substantive rights of the delinquent owner are impaired Signup and view all the answers

Before a court entertains an action challenging the validity of a tax sale, what must the taxpayer do?

Deposit the sale amount without interest Signup and view all the answers

What principle is associated with the concept that the more you earn, the more tax you pay?

Ability to pay Signup and view all the answers

In what context is a tax considered equitable according to the provided text?

In relation to the distribution of real income Signup and view all the answers

What is the primary requirement for the proceeds of taxation according to the Local Government Code?

To support public purposes and government services Signup and view all the answers

What quality must a tax possess to prevent it from being labeled as unjust or oppressive?

Reasonable and non-oppressive Signup and view all the answers

How does the Local Government Code suggest that taxes should affect an area?

As community-wide burdens Signup and view all the answers

What is a critical aspect of an equitable tax system?

It must closely align with equity standards in income distribution Signup and view all the answers

What does the Special Education Fund (SEF) cover in terms of liabilities for real property tax?

All liabilities for real property tax, excluding special levies accruing to the SEF Signup and view all the answers

Under the EOs, what assessment level is applied to the fair market value (FMV) of machinery and equipment of the IPPs?

15% Signup and view all the answers

What is the annual depreciation rate of machinery and equipment used by IPPs under the EOs?

2% per annum Signup and view all the answers

What was ordered to be condoned regarding interests on RPT delinquencies on machinery and equipment of IPPs?

All interests on RPT delinquencies Signup and view all the answers

What types of court actions are exempt from the payment of court and sheriff's fees as per the LGC?

Actions instituted at the instance of treasurers under the LGC Signup and view all the answers

What entities are relieved from paying interests on RPT delinquencies according to the text?

Independent Power Producers (IPPs) Signup and view all the answers

Study Notes

Professional Tax

An annual tax levied on individuals engaged in a profession or calling, such as lawyers, doctors, architects, engineers, and others.
The tax is regulated by the Professional Regulations Commission, Supreme Court, and other government agencies.
The amount of professional tax shall not exceed Php 300.00, or the rate provided under a duly enacted local ordinance, subject to adjustment not exceeding 10% every 5 years.

Collection and Administration of Professional Tax

The collection and administration of professional tax shall be guided by the following rules:
A penalty for failure to issue and execute a warrant of levy within one year from the date of issuance shall be dismissed from the service.
Levy may be repeated if necessary until the full amount due, including all expenses, is collected.

Action Assailing Validity of Tax Sale

No court shall entertain any action assailing the validity of any sale at public auction of real property or rights therein until the taxpayer deposits with the court the amount for which the real property was sold, together with interest of 2% per month.
The amount deposited shall be paid to the purchaser at the auction sale if the deed is declared invalid, but it shall be returned to the depositor if the action fails.
Neither shall any court declare a sale at public auction invalid by reason of irregularities or informalities in the proceedings unless the substantive rights of the delinquent owner of the real property or the person having a legal interest therein have been impaired.

Taxation Principles

The taxpayer's ability to pay must be considered, and it cannot be absolute or based on a hard and fast rule.
Ability to pay is more equated with the progressive system of taxation, that is, the more you earn, the more tax you pay.
Taxation must be based, as far as practicable, on ability to pay.
A tax is said to be "equitable" if it is distributed fairly and based on the ability to pay.

Characteristics of a Good Tax System

A good tax system must be levied and collected only for public purposes.
The tax should be designed to support the services of the government and the recognized public needs.
The tax must affect the area as a community rather than as individual.
The tax must not be unjust, excessive, oppressive, or confiscatory.
The tax must be reasonable in order not to be unjust or oppressive.

Exemptions and Concessions

Certain entities, such as Independent Power Producers (IPPs), may be exempt from real property tax and other levies.
Fees in court actions instituted by the provincial, city, or municipal treasurer under the provisions of the Local Government Code are exempt from the payment of court and sheriff's fees.