Types of Taxes Classification

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What is the nature of Philippine tax laws during enemy occupation?

They focus on criminal penalties

They become more relaxed

They cease to apply

They continue to work and apply to the occupied territory (correct)

What does a Revenue Bulletin issued by the Commissioner of Internal Revenue provide?

Penalties for non-compliance

Guidelines on real estate transactions

Guidance on tax treatment of cryptocurrency transactions (correct)

Enforcement actions against taxpayers

How do BIR Rulings differ from Revenue Bulletins?

Revenue Bulletins reverse BIR Rulings

BIR Rulings focus on general financial reporting, while Revenue Bulletins guide tax returns

Revenue Bulletins are binding for all taxpayers, while BIR Rulings are not

BIR Rulings are legally binding, while Revenue Bulletins are advisory (correct)

In case of a conflict between GAAP and tax laws, what should taxpayers follow when preparing tax returns?

Tax laws Signup and view all the answers

What is the purpose of BIR Rulings issued in response to taxpayer inquiries?

Provide clarification and interpretation of tax laws Signup and view all the answers

What do Philippine tax laws focus on in terms of penalties?

Ensuring taxpayers comply Signup and view all the answers

Which type of tax is imposed on residents of a territory?

Personal tax Signup and view all the answers

In what type of tax does the statutory taxpayer differ from the economic taxpayer?

Direct tax Signup and view all the answers

Which tax is based on a fixed proportion imposed on the value of the tax object?

Ad valorem tax Signup and view all the answers

What type of tax treats all taxpayers equally with a flat or fixed rate?

Proportional tax Signup and view all the answers

Which type of tax is considered anti-poor and violates progressive taxation principles?

Regressive tax Signup and view all the answers

In which type of tax is the impact and incidence of taxation collected from the same taxpayer?

Direct tax Signup and view all the answers

What does a progressive tax system rely on?

Direct taxes that cannot be shifted Signup and view all the answers

Which tax system is considered dominantly regressive in the Philippines?

Regressive tax system Signup and view all the answers

What is the purpose of Final Withholding Tax?

To deduct the full tax on specific income payments Signup and view all the answers

What is the purpose of the withholding system on income tax in the Philippines?

To ease lump sum tax payments Signup and view all the answers

What is the similarity between Final Tax and Creditable Withholding Tax?

In both, the income payor withholds part of the income and sends it to the government Signup and view all the answers

What is the purpose of the withholding system on business tax mentioned in the text?

To reduce cash flow issues for taxpayers Signup and view all the answers

What does a regressive tax system rely on?

Indirect taxes shifted to consumers Signup and view all the answers

Under the Voluntary Compliance System (Self-assessment), how is the tax due reduced for taxpayers?

By withholding tax on compensation Signup and view all the answers

Why is it important for government funds to cover costs, as mentioned in the text?

To provide public services Signup and view all the answers

What is the principle of Theoretical Justice (Equity) in taxation?

Taxation should not be confiscatory Signup and view all the answers

How does the Administrative Feasibility principle aim to encourage compliance?

By using methods like e-filing and e-payment Signup and view all the answers

What is the purpose of Revenue Memorandum Rulings (RMRs)?

To guide taxpayers on how tax laws apply to specific situations Signup and view all the answers

What is the purpose of the Assessment or Enforcement System mentioned in the text?

To identify non-compliant taxpayers and enforce collections Signup and view all the answers

What happens if BIR Rulings contradict Revenue Memorandum Rulings (RMRs)?

They are rendered void from the start Signup and view all the answers

Which type of ruling must align with Revenue Memorandum Rulings (RMRs), or it becomes void?

BIR Rulings Signup and view all the answers

What is the purpose of Revenue Memorandum Circulars (RMCs)?

To guide taxpayers on specific tax issues Signup and view all the answers

What do Revenue Bulletins (RBs) do?

Consolidate BIR's views on specific tax issues Signup and view all the answers

What example is given in the text to explain a Revenue Memorandum Ruling (RMR)?

RMR No. 10-2023 Signup and view all the answers