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Lesson 6 (Finals) - Taxation

This document discusses taxation. It defines taxation as the inherent power of the state to impose and demand contributions upon persons, properties or rights for the purpose of generating revenues for public purposes. It describes the nature of taxation as the process by which the sovereign raises revenues through its laws to fund government expenses and promote citizen welfare. The document also distinguishes between taxes and tolls, penalties, and debts. It provides a short history of taxation in the Philippines and lists key characteristics of taxes. Finally, it classifies taxes and outlines forms of escaping taxation.

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Albert Cobico
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41 views20 pages

Lesson 6 (Finals) - Taxation

This document discusses taxation. It defines taxation as the inherent power of the state to impose and demand contributions upon persons, properties or rights for the purpose of generating revenues for public purposes. It describes the nature of taxation as the process by which the sovereign raises revenues through its laws to fund government expenses and promote citizen welfare. The document also distinguishes between taxes and tolls, penalties, and debts. It provides a short history of taxation in the Philippines and lists key characteristics of taxes. Finally, it classifies taxes and outlines forms of escaping taxation.

Uploaded by

Albert Cobico
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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TAXATIO

N
Prepared by:
Mr. Albert Gaddiel Cobico,
CSP
Taxation
༝ Is the inherent power of the
state to imposed and demand
contributions upon persons,
properties or rights for the
purpose of generatint revenues
for public purposes.

2
NATURE OF
TAXATIO
N
Nature of Taxation
༝ It is the process by which
the sovereign, through its
law making body, races
revenues use to defray
expenses of government.
Nature of Taxation
༝ means of government in
increasing its revenue under
the authority of the law,
purposely used to promote
welfare and protection of its
citizenry.
Nature of Taxation
༝ It is the collection of the share
of individual and
organizational income by a
government under the
authority of the law.
DISTINCTION
OF

TAX
Tax against Toll
༝ Tax is demand on sovereignty, while Toll is
demand for proprietorship
༝ Tax is paid for the use government’s
property while, toll is used for the use of
another property.
༝ Tax are imposed by the government only.
While toll are imposed by a private entity or
government
Tax against Penalty
༝ Tax is intended to raise
revenue, while penalty is
designed to regulate conduct
Tax against Debt
༝ Tax is based on law, while debt is based on a
contract.
༝ Tax may not be assignable, while debt is
assignable.
༝ Tax is payable by cash, Debt is payable by
cash or in kind.
༝ Non-payment of tax may cause
imprisonment, while non-payment of debt
may not cause imprisonment.
SHORT HISTORY
OF

TAX
IN THE PHILIPPINES
Tax History in the Philippines
༝ To support the colony, several taxes and
monopolies were established. The “BUWIS”,
which could be paid in cash or kind such as
tobacco, chicken, harvest goods, etc.
༝ The “BANDALA” system is the annual forced
sale of goods which we know as “TRIBUTO”
CHARACTERISTICS
OF

TAX
CHARACTERISTICS OF
TAXATION
It is enforced contribution.
Its payment is not voluntary nature, and the
imposition is not dependent upon the will of the
person taxed.

It is generally payable in cash.


This means that payment by checks, promissory
notes, or in kind is not accepted.
14
CHARACTERISTICS OF
TAXATION
It is proportionate in character.
Payment of taxes should be base on the ability to pay
principle; the higher income of the tax payer the
bigger amount of the tax paid. 

It is levied (to impose; collect) on person


or property.
There are taxes that are imposed or levied on acts,
rights or privileges. Ex. Documentary tax.
15
CHARACTERISTICS OF
TAXATION
It is levied by the state which has jurisdiction
over the person or property. As a general rule, only
persons, properties, acts, right or transaction with in the
jurisdiction of the taxing state are subject for taxation. 

 It is levied for public purposes.


Taxes or imposed to support the government for
implementation of projects and programs.
16
CLASSIFICATION
OF

TAX
CLASSIFICATION OF
TAX
AS TO SUBJECT AS TO WHO AS TO THE AS TO THE
MATTER BEARS THE PURPOSE SCOPE
༝ Personal or BURDEN ༝ General Tax ༝ National Tax
Capitation Tax ༝ Direct Tax (almost all ༝ Local Tax
(ex. Residence (Income Tax) taxes)
Tax)  ༝ Indirect Tax (Value ༝ Special Tax
༝ Property Tax added tax)
༝ Excise Tax

18
FORMS OF ESCAPE
FROM

TAX
FORMS OF ESCAPE FROM
TAXATION
SHIFTING EVASION AVOIDANCE EXEMPTION
༝ The original ༝ The use of illegal ༝ The use of tax ༝ The government
payee or one or fradualent saving devices grants immunity to
whom the tax means to escape or or means particular persons,
was assessed lessen the payment sanctioned by corporations, or a
transfers the of tax law to avoid or particular class of
burden of tax to reduce tax persons or nature
someone else liability of business

20

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