12 Questions
Where can a person rightfully levy and collect a tax according to the basic rule of situs of taxation?
In the state that has jurisdiction over the subject to be taxed
In which state should real estate property taxes be paid according to the text?
In the state where the property is located
What is an example of tax that depends on the municipality where the taxpayer resides?
Cedula
Why is real estate property subject to taxation in the state where it is located?
Because of the stationary and fixed character of property
Which term refers to the place where a property is situated and is used to determine its taxation?
Lex rei sitae
Who may be subject to a poll tax according to the text?
Persons who are inhabitants or residents of a state
Where is tangible personal property typically taxable according to the modern rule?
Where the property is physically located
What does lex rei sitae refer to in relation to personal property?
Law of the place where the property is situated
What is the principle behind 'mobilia sequuntur personam'?
The situs of personal property is the domicile of the owner
When can tangible property have a situs elsewhere according to the text?
When it has a definite location with some degree of permanency elsewhere
Why are shares of stock in domestic corporations owned by non-resident foreigners taxable in the Philippines?
Because they receive protection and benefit from Philippine laws
What determines the power to levy an excise tax regarding business, occupation, or transactions?
The place where the business is done, occupation engaged in, or transaction took place
Study Notes
Situs of Taxation
- Situs of taxation refers to the place of taxation, where the state has jurisdiction over the subject being taxed.
- The basic rule is that the state where the subject has a situs may levy and collect the tax.
Cedula
- Cedula is a form of tax imposed by the government.
- To obtain a cedula, one must reside in the municipality where it is issued.
Real Property Tax
- Real property is subject to taxation in the state where it is located, regardless of the owner's residence.
- The rationale is that the taxing authority has control over the property and provides protection to it.
Tangible Personal Property
- The modern rule is that tangible personal property is taxable in the state where it is physically located.
- The Philippines adopts the rule of lex rei sitae for personal property.
Intangible Personal Property
- Intangible personal property, such as credits and bonds, does not have an actual location.
- The situs for taxation is at the domicile of the owner, following the principle of mobilia sequuntur personam.
Income Tax
- Income tax may be exacted from residents, citizens, and non-residents who derive income from sources within the taxing state.
Business, Occupation, and Transaction
- The power to levy an excise tax depends on the place where the business is done, the occupation is engaged in, or the transaction took place.
SALN (Statement of Assets, Liabilities, and Net Worth)
- A declaration of assets, liabilities, and business/financial interests of an official/employee, their spouse, and unmarried children under 18.
- Includes assets like land and vehicles, and liabilities like loans and debts.
Learn about situs of taxation, which refers to the place where taxes can be rightfully levied and collected. Understand the concept of double taxation and its implications. Explore examples such as cedula and how it is imposed by the government.
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