Limbix Taxation Notes PDF

What is tax? Enforced contribution to cover government costs Who imposes taxes? The State Who le...

What is tax? Enforced contribution to cover government costs Who imposes taxes? The State Who levies taxes? The Legislature What is the nature of tax payment? Generally payable in money What is the basis for proportionate tax? Taxpayer's ability to pay What can taxes be levied on? Persons, property, activities What is the purpose of levying taxes? Public purpose What are the three inherent powers of the state? Police Power, Eminent Domain, Taxation What does Police Power protect? Citizens' welfare What is Eminent Domain? Taking property for public use What is the purpose of Taxation? Support government Can inherent powers be exercised without Constitution? Yes What are necessary attributes of sovereignty? Effective government Who primarily exercises necessary attributes of sovereignty? Legislature What does police power regulate? Liberty and property Which powers affect only property rights? Eminent domain, taxation Who can exercise police power and taxation? Only government What presupposes equivalent compensation? Eminent domain What is the rule of 'No Estoppel' against the Government? Govt can collect taxes despite past mistakes. How should taxes be collected? Without unnecessary hindrance. Can the collection of taxes be stopped by injunction? No, unless by Court of Tax Appeals. What is the concept of taxes being the lifeblood of? The government. Can taxes be used for compensation or set-off? No Is taxation a limited power? No What authority does the government have regarding taxation? Broad authority What happens if you don't pay your taxes? Government can seize property What is the 'power to tax' described as? Power to destroy What does the necessity theory state? Government needs means to pay expenses Why are taxes necessary? To preserve State's sovereignty What does the government provide with taxes? Army, navy, civil servants What kinds of public improvements are funded by taxes? Enjoyment of citizenry What is the first aspect of the scope of taxation? Comprehensive What does 'Unlimited' mean in taxation? No specific limitations What does 'Plenary' allow the BIR to do? Ensure tax collection What is the supreme power in tax matters? Government What is the most fundamental law of the land? Constitution Which laws are passed by Congress related to taxation? Statutes What regulates the collection of taxes in the Philippines? NIRC Who issues revenue regulations? Department of Finance What are BIR Issuances? Documents for tax guidelines What is a Revenue Memorandum Circular? Clarifications on tax laws What are Revenue Memorandum Orders? Guidelines for BIR staff What do Revenue Administrative Orders assign? Authority to BIR officials What is one inherent limitation to the power of taxation? Public purposes only What governs taxation subject to international relations? International comity What is the legislative nature of taxation? Inherently legislative What must the law be for delegation to be constitutionally valid? Complete and set forth standards What is one power that can be delegated? Power to value property What is another power that can be delegated? Power to assess and collect taxes What details can be delegated? Computation, appraisal, adjustment What are resident citizens? Individuals with domicile in PH Tax implications for resident citizens? Tax on worldwide income Who are non-resident citizens? Filipino citizens without domicile Tax implications for non-resident citizens? Tax on PH source income What are resident aliens? Foreign individuals with domicile in PH Who is subject to Philippine income tax? Resident citizens and non-resident citizens Philippine income tax is levied on which Income? Worldwide income What are the constitutional limitations on Philippine income tax? Due process of law, Equal protection of law, etc. Examples of exempted entities from property tax? Religious entities, Charitable entities, Educational entities What is not allowed regarding public money? No appropriation for religion Who must grant tax exemption? Majority of Congress What case jurisdiction can Congress not deprive? Supreme Court on tax legality How is tax collection treated? General funds of government What is the compensation involved in the other powers? the taxes paid The power to tax is an attribute of what? sovereignty What does the strongest governmental power do? it isn’t without limitations What can it affect? property rights What type of tax can Congress impose on cigarettes? prohibitive What is a contribution from persons and properties? enforced What is the state imposed by the State? sovereignty Who is responsible for the levied money? the government What should people pay based on the benefits they receive from the government? taxes What do citizens contribute to the reciprocal relationship between the state and its citizens? taxes What does this idea emphasize? the reciprocal relationship between the state and its citizens Who does TAXPAYER GOVERNMENT reluctance to surrender part of their hard earned income to? taxing authorities Who must contribute their share to the running of the government? TAXPAYER GOVERNMENT What are the benefits that the government is expected to provide to the people? moral and material values What is the rationale for this symbiotic relationship? taxation What is the primary source of government revenue? Taxation Without what would the other inherent powers be paralyzed? taxation Without taxation, the other inherent powers would be what? paralyzed What does there have to be no government? without revenue Without government, there can be what? no civilization What is the primary purpose of collecting funds or property to support the government in promoting general welfare? TAXATION 1. What is the primary purpose of raising revenue? Revenue/Fiscal What is the name of the Regulatory/Sumptuary/Compensation? *Need to raise money 2. What does Regulatory/Sumptuary/Compensation mean? Promotion of general welfare What does the reduction of? Social inequality What is tax power limited to? the territorial jurisdiction of the State What is limited to the territorial jurisdiction of the State? Tax power No tax law may be enacted to do what? raise revenue for private purposes What law may be enacted to raise revenue for private purposes? No tax law What is ultimately benefited by the promotion of the direct object of the expenditure? public welfare What may respeto ang bawat sovereignty sa tax rules ng isa’t isa 3? immunity from suit of a State What may not be delegated by another state? taxation What are activities undertaken by the government to serve the public interest? functions What are some of the services that governmental functions provide to the public? education, healthcare, and public safety What kind of tax would a public school provide free education to students be exempt from? taxation What is a governmental function that would be exempt from taxation? public school What are activities undertaken by the government that are intended to generate profit or revenue? Proprietary Function What are these functions generally subject to unless specifically exempted by law? taxation What type of corporations are often responsible for a proper function? government-owned corporations or enterprises What would a government-owned utility company typically be subject to? taxation What does GOCCs subject to? tax What are GOCCs? Government-Owned and Controlled Corporations What is the name of the GSIS? Government Service Insurance System What is the name of the Government Service Insurance System? GSIS What is the name of the Philippine Health Insurance Corporation? Social Security System (SSS) What is the name of the Social Security System? Philippine Health Insurance Corporation What type of jurisdiction is tax power limited to? territorial jurisdiction What does not receive any protection from the State? property outside one’s jurisdiction Under what authority must they be made? a valid law Where must they be imposed? territorial jurisdiction What is followed when imposing taxes? Fair procedures