INCOME TAX
state power, legislative process, mode of cost distribution
Taxation
inherent power if state to enforce proportional contribution
State Power
process of levying taxes
Process
power of state to allocates cost or burden to its subject
Mode of Cost Distribution
provide vast array of public services
Theory of Taxation
mutuality support between the people and the government
basis of taxation
more benefit receives, more taxes should pay
benefit received theory
should consider the tax payer's ability to pay
Ability to pay theory
extent of one's ability to pay directly proportional the level of his tax base
Vertical Equity
gross concept
vertical equity
require consideration of the particular circumtances of taxpayer
horizontal equity
net concept
horizontal equity
taxes are essential and indispensable
LifeBlood Doctrine
life blood of the government
taxes
to enforce proportional contributions from its subject
- most important
taxation power
general power of the state to enact laws to protect the well-being of the people
- most superior
police power
take private property for public use
- important
eminent domain
scope of taxation power
comprehensive, plenary, unlimited, supreme
inherent limitations
territoriality of taxation, international comity, public purpose, exemption of the government and nondelegation of the government
public services normally provided within the boundaries of the state
territoriality of taxation
countried around the world agreed to one fundamental concept of co-equal sovereignty
- no country is powerful than the other
international comity
tax intended for the common good
public purpose
taxation power is broad
- government can exercise the power upon anything including itself
exemption of the government
legislative taxing power is vested exclusively in congress
non delegation of the government
enactment of tax law by congress, called impact of taxation or legislative act
levy or imposition
place of taxation
- tax jurisduction that has power to levy taxes upon the tax object
situs
business are subject to tax in place where the business is conducted
business tax situs
services fees are subject to tax where they are rendered
income tax situs on services
the gain on the sale is subject to tax in the place of sale
income tax situs on sale of goods
properties are taxable in their location
property tax situs
persons are taxable in their place of residence
personal tax situs
when same taxpayer taxed twice by the same tax jurisdiction for the same thing
double taxation
when all element of double taxation exist for both impositions
- discouraged
direct double taxation
when at least one of secondary elements of double taxation is not common for both impositions
- prevalent in practice
indirect double taxation
imposes on income generated by individuals
Income tax
levied on a deceased person's right to pass their estate to their legal heir
Estate Tax
gratuitous transfer of property between two or more living individuals
Donor's tax
consumption tax imposed on the sale, barter, exchange or leasing of product
- indirect tax that can be transferred to the buyer
Value added tax
individual or corporation that leases or sells goods or services
Other percentage taxes
regulated tax on particular commoditied or services
Excise tax
levied on all papers, instrument, loan, agreements and other documents
Documentary stamp tax
when imported from any foreign country into Philippines shall be subject to duty upon each importation
Section 100. Imported Articled Subject to Duty
imposed by the customs authority
Import Duties
general or particular taxes in goods or services
Export Duties
set structures and stipulates the authority
R.A. 7160 Local Government Code of 1991
levy on real estate
Real property tax
fees assessed n procedures used by the local
Business taxes fees and charges
actively engaged in a business or profession
Professional Tax
paid either the individual resides
Community tax
what are the special laws?
private motor vehicle tax law, philippine immigration act of 1940, travel-tax