Taxation
it is used to raise revenue for the government
taxation
they are the only parts of government who has the power to collect taxes
the Congress
it refers to the process by which the sovereign through its low making body racist revenues used to defray expenses of government
taxation
what are the sources of fund of government aside from taxes
government businesses - PAL,Train Systems, Land Bank of the Philippines
Loan in International Banks - IMF, World Bank
other countries
it is also considered the backbone or bloodline of our country
tax
it is considered one of the oldest job is tax collector terms used before
tribute or tributo
tax is collected
individual and organization
it is a tax taken from your own income from your job (individually)
income tax
it is collected from businessmans
profit tax
organizational income from companies or corporations
corporate tax
a tax for lands and fields
property tax
the person who's passing on the inheritance should pay taxes for the property they are passing on the heir
estate tax
it is a tax that is collected when you donate
donor's tax
it is paid by everybody buying products in markets
value added tax or vat
it is imposed on products or activities that are harmful to health or society like cigarettes alcohols
sin tax
an example of tax issue happened when they complaint about too many taxes like the salt tax stamp tax sugar tax
american revolution
it is the inherent power of the state to impose and demand contribution upon person's properties or rights of the purpose of generating revenues for public purposes
taxation
it is when your income is lower than 21,000 a month or 250000 annually you are exempted from the tax but if higher than that you have to pay taxes
train law
it is said that no one is exempted from tax but it still follows the higher the income the higher the tax. and the income tax of a single speaker than with family
old law
he is the father of economics who wrote the book entitled "in the wealth of nations" in that economics became a part of social science
adam smith
what is the book that created by adam smith
in the wealth of nations
what are the four principles of taxation by adam smith
fairness, certainty, convenience and efficiency
what principle it is about equity the higher the income the higher the tax
fairness
what principle is about the taxpayers assurance of what tax is being paid what it's for and how it is calculated
certainty
what principle is about the comfortable for the taxpayers to forms they need to fill out must be simple as possible
convenience
what principle is the tax collected must be higher than that of the spent money in collecting tax by the government like the photocopy electricity the salary given to the collectors and the water consumed
efficiency
it is the one who is collecting tax in a specific
bureau of internal audit - BIR
it is imposed when someone did not pay their taxes
tax evation
it is classification of taxes in which the subject matter is a
person, fix amount tax levied into persons, for property
personal tax, poll or capitation tax and property tax
it is a classification of taxes as to who bears the burden
-application cannot be transferred to other people
-application can be transferred like value added tax or sales tax because from the 30% it was raised to 50% and vat is implemented
direct tax
indirect tax
it is a classification of taxes as to purpose
-income tax property tax etc those taxes used for general purposes
-levied for specific purposes or on particular goods services or activities
general tax
special tax
it is a classification of taxes as to scope
-collected by national government or bir examples are income tax, estate tax ,property tax ,profit tax, and corporate taxes
-collected by local government for example the sedula (Poll Tax) and business permit
national tax
local tax
another principle of taxation by adam smith the
fiscal adequacy
equality or theoretical justice
administrative feasibility
consistency or compatibility of economic goals
efficiency
fairness
convenience
efficiency and convenience
it is also known as the train law
the tax reform for acceleration and inclusion act
the tax reform for acceleration and inclusion act is also known as a republic act number implemented during prrd time
10963
the purpose of this reform is to correct a number of deficiencies in the tax system to make it simpler, fairer and more efficient
train law
comparing the income tax of train law and old provision
for train law
-annual income is 250,000 annual income and below
-annual income 8 million and above
-13th month pay and other bonuses P 90,000 and below
for all provision
-annual income 10,000 and below
-annual income 500,000 in above
-13th month pay and under benefits 82,000 and below
0%
35%
0%
5% tax
32% tax
0%
comparing the estate tax of train law and all provision
a flat rate of 6% based on the net state value plus the standard deduction is increased to 5 million and exemption for family homes up to 10 million
up to 20% net value of the state with the standard deduction of 1.7 million and exemption for family homes up to 1 million
train law
old provision
comparing the donors tax of train law and to all provision
a flat rate of 6% on net donations for kids exceeding 250,000 regardless of relationships between donor and don e
a rate of 2% to 15% on net donations for gifts if the donor and don are related and 30% otherwise.
train law
provision
what are the issues in public finance
companies and individuals not paying tax
budget deficit - money spent is lesser than money earned
privatization - buyers provides higher quality of service but higher money should be spent