Btax Reviewer PDF

Inherent Powers of the State - No BTAX REVIEWER government can effectively operate without AS A STATE POWER- inherent power of these powers the State. Power- natural, in...

Inherent Powers of the State - No BTAX REVIEWER government can effectively operate without AS A STATE POWER- inherent power of these powers the State. Power- natural, inseparable, and inherent to AS A LEGISLATIVE PROCESS- levying every government. taxes by the legislature of the State. INHERENT POWERS OF THE STATE AS A MODE OF COST DISTRIBUTION- Taxation power- Power of state to enforce State allocates its costs or burden. proportional contribution. Theory of Taxation- every gov provide vast Police power- General power of the State array of public services. protect the well-being Receipt of Benefits-Every citizen and Eminent domain- take private property for resident of the State directly or indirectly public use. benefits from the public services. SCOPE OF TAXATION POWER Benefit received theory-the more benefit one  Comprehensive-covers all (persons, receives from the government, the more taxes businesses, professions, right and he should pay. privileges) Ability to pay theory-consider the taxpayer's  Unlimited-responsibility of the legislature ability to pay.capacity to sacrifice for the imposes tax to the constituents who pay it support of the government.  Plenary- as if it is complete avail of ASPECTS OF THE ABILITY TO PAY remedies to make sure the tax is collected. THEORY  Supreme-whatever subject may be Vertical theory-one's ability to pay is selected to pay the tax. directly. ASPECTS OF TAXATION Horizontal Theory -consideration of the Levy or imposition-enactment of a tax law particular circumstance of the taxpayer. by Congress and is called impact of taxation, The Lifeblood Doctrine- tax are essential referred act of taxation. and indispensable government would be Congress is composed of two bodies: paralyzed for lack of motive power. 1. The House of Representatives, and 2. The Senate Assessment and collection-implemented by 2. Indirect double taxation-occurs when the administrative branch. at least one of the secondary elements of Situs of taxation- place of taxation has the double taxation is not common for both power to levy taxes, serve as frames in impositions. gauging. SCOPE OF TAXATION POWER  Business tax situs- subject to tax in the place where the business is conducted.  Income tax situs on services-Service fees are subject to tax where they are rendered.  Income tax situs on goods-The gain on sale is subject to tax in the place of sale  Property tax situs-Properties are taxable in their location.  Personal tax situs-Persons are taxable in their place of residence. Double taxation- Same tax payer is taxed twice by the same tax jurisdiction for the same thing. Elements of double taxation 1. Primary element: Same object 2. Secondary elements: a. Same type of tax b. Same purpose of tax c. Same taxing jurisdiction d. Same tax period TYPES OF DOUBLE TAXATION 1. Direct double taxation- occurs when all the element of double taxation exists for both impositions.