18 Questions
What type of tax is assessed against all properties of a certain class, located within the jurisdiction of the taxing authority, in proportion to its value, or on some other method of apportionment?
Property tax
Which type of tax is a charge upon the performance of an act, the enjoyment of a privilege, or the engaging in an occupation, and is not a personal tax or a property tax?
Excise tax
Which type of tax is imposed on the person obliged to pay the same, and the burden cannot be shifted or passed on to another?
Direct tax
Which type of tax is a fixed amount based on the volume, weight, or quantity of goods as measured by tools, instruments, or standards, and requires no assessment as the subject of taxation is often listed according to their general classification?
Specific tax
Which type of tax imposition is based on the value of the property subject to tax, and requires assessment to determine the amount payable?
Ad valorem tax
Which type of tax allows the payment to be demanded from a person who is allowed to transfer the burden of taxation to another?
Indirect tax
What is the primary purpose of regulatory taxes?
To achieve specific social or economic goals
Which of the following is an example of a personal tax?
Community Development Tax (Cedula)
What is the primary characteristic of a property tax?
It is based on the value of an individual's personal property
Which of the following is an example of an excise tax?
Tax on cigarettes and alcohol
What is the main characteristic of a direct tax?
It is imposed directly on individuals or businesses
Which of the following taxes is considered a fiscal or revenue tax?
Income tax
What distinguishes a license from a tax?
A license is for regulation purposes, while a tax is for revenue.
Which of the following statements about taxes is correct?
Taxes are forced contributions for maintaining government functions.
Which of the following is a characteristic of a debt, but not a tax?
It is transferable.
What distinguishes a toll from a tax?
All of the above.
Which of the following taxes is primarily imposed for regulation purposes?
Professional license tax
The Bureau of Internal Revenue (BIR) is responsible for:
Collecting more than half of the total government revenues.
Study Notes
Types of Taxes
- Property tax is a tax assessed against all properties of a certain class, located within the jurisdiction of the taxing authority, in proportion to its value.
- Excise (privilege) tax is a charge upon the performance of an act, the enjoyment of a privilege, or the engaging in an occupation.
Incidence of Taxation
- Direct tax is imposed on the person obliged to pay and cannot be shifted or passed to another.
- Indirect tax is the payment demanded from a person who is allowed to transfer the burden of taxation to another.
Amount of Taxation
- Specific tax is a fixed amount based on the volume, weight, or quantity of goods as measured by tools, instruments, or standards.
- Ad valorem tax is based on the value of the property subject to tax.
Classification of Taxes
- As to purpose:
- Fiscal (general or revenue) tax is levied without a specific or pre-determined purpose.
- Regulatory (special or sumptuary) tax is intended to achieve some social or economic goals.
- As to subject matter:
- Personal (poll or capitation) tax is a fixed amount imposed upon all persons, or upon all persons of a certain class, residents within a specified territory.
- Property tax is a tax assessed against all properties of a certain class, located within the jurisdiction of the taxing authority, in proportion to its value.
Taxation vs. Other Concepts
- Tax vs. Custom Duties: Tax is broader in terms because it includes all kinds of impositions including customs duties.
- Tax vs. License: Tax is for revenue purposes, while license is for regulatory purposes.
- Tax vs. Debt: Tax is based on law, not transferrable, and generally payable in money, while debt is based on contract, transferrable, and may be paid in cash or in kind.
- Tax vs. Toll: Tax is a demand of sovereignty, while toll is a demand of proprietorship.
Bureau of Internal Revenue (BIR)
- Created under Commonwealth Act No. 466, July 1, 1939.
- Under the supervision and control of the Department of Finance.
- Responsible for collecting more than half of the total revenues of the government.
Test your knowledge on different types of taxes such as property tax and excise (privilege) tax. Understand the concepts of taxation and how they are applied in various jurisdictions.
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