A. TERMINOLOGIES

1. Tariff-a book of rated which is usually drawn in alphabetical order containing names of several land or merchandises together with their corresponding payments.

2. License or permit fee- a charge imposed under the police power for the purpose of regulation3. Ad valorem-a fixed proportion tax imposed on property with respect to its assessed value.4. Debt- A tax is not a debt and this is two are distinguished:

a) Debt is generally based on contract, while tax is based on law.b) Debt is assignable, while tax cannot be assigned.c) Debt maybe paid, while tax is generally payable in moneyd) Either debt maybe the subject of set-off or compensation, while tax is generally not.

5. Toll- is a form of money for the use of something, generally applied to consideration which is paid for the use of roads, bridges or of public purposes.

6. Spatial/regulatory tax- it is a tax imposed for special purposes to achieve some special economic ends irrespective tariff/custom duty on imports to protect local industries against foreign competition.

7. Custom duties- taxes imposed on goods exported from a country or imported into a country.8. Police power- 9. Infrastructure10. Government- have the prime responsibility of maintaining peace and order in their respective countries and

putting up infrastructure like roads and bridges that would ensure economic development.11. Sovereignty12. Indirect tax13. Revenue- refers all the funds /income derived from the government, whether it comes from the tax, or any

other sources.14. Property tax- taxes import on real property while personal property.15. Taxation- act of imposing and collecting a tax entity like a government, through its law-making body, raises

revenue to defray the necessary expenses of the government for public.16. Specific tax- a tax of a fixed amount imposed by the head or member, or by some standard or weight or

measurement which requires no assessment.17. External revenue18. Regressive tax- a tax imposed in accordance to the rate of which decrease as the tax base brackets increase.19. Natural tax20. Apportion- is to divide something among or between people21. Direct tax- a demanded tax imposed to a person who usually taken the burden.22. Defray23. Penalty- any sanction imposed as a punishment for violation of law or acts injurious.24. Proportional tax- tax is based on fix percentage of the amount of property, income and other bases.25. Constituents- any one of the people who live and vote in an area.26. Municipal/local tax- tax imposed by the municipal government.27. Property tax- taxes import on real property while personal property. 28. Personal and poll tax- fixed amount tax imposed in people residing in a specific territory without regard to their

properties or earnings from his profession.29. Legislature- a group of people with the power to make a or change laws30. Administrative feasibility- tax laws should be capable of convenient just and effective administration.31. Proportional tax- this tax is based on a fixed percentage of the amount of property, income and other bases. 32. Juris diction-33. Excise tax- a tax imposed upon the performance of an act, a practice of a profession or enjoyment of a privilege34. Life-blood 35. Levied- an amount of money that must be paid and collected by the government or other authority36. Fiscal adequacy- means that the resources, of revenue should be sufficient to meet the demands of public

expenditures.37. Mandate38. Exported- is any product to be sold or sent to other countries.39. Tax- are very important since they give governments a source of money that will and should be spent for public

service purpose.40. Imported-is any product from other countries to bring into the country to be sold or sent.41. Graduated rate

A. 8 DISTINCTION OF TAXES FROM OTHER RELATED TERMS1. Revenue2. Internal revenue3. Custom duties4. Tariff5. Debt6. Toll7. License 8. Penalty

B. 2 CLASSIFICATION OF TAXES ACCORDING TO SCOPE:1. Municipal tax2. National taxC. 3 BASIC PRINCIPLES OF SOUND TAX SYSTEM1. Fiscal adequacy2. Equality of theoretical justice3. Administrative feasibilityA. 2 CLASSIFICATION OF TAX ACCORDING TO PURPOSE1. General, fiscal or revenue2. Special or regulatoryB. 3 CLASSIFICATION OF TAX ACCORDING TO SUBJECT MATTER/ OBJECT1. Personal, poll, capitalization2. Property tax 3. Excise taxC. 4 DISTINCTION OF DEBTS FROM TAX1. Debt is generally based on contract, while tax is based on law.2. Debt is assignable, while tax cannot be assigned.3. Debt maybe paid, while tax is generally payable in money4. Either debt maybe the subject of set-off or compensation, while tax is

generally not.D. 2 CLASSIFICATION OF TAX ACCORDING TO DETERMINATION OF

AMOUNT1. Specific tax2. Ad valoremE. 4 MEANING OF THE TERM “DEBT”1. Debt is generally based on contract.2. Debt is assignable3. Debt maybe paid4. Debt maybe the subject of set-off or compensationF. 3 CLASSIFICATION OF TAX ACCORDING TO GRADUATION RATE1. Proportional2. Progressive/graduated3. Regressive G. 3 NATURE AND POWER OF TAXATION1. It is inherent in sovereignty2. It is legislative in character3. It is subject to constitutional and inherent limitationsH. 7 CHARACTERISTICS OF TAX1. It is an enforced contribution2. It is generally payable in money3. It is proportionate in character4. It is levied on person and property5. It is levied by national/ local government unit in which has juris

diction over the person or property6. It is levied by the la making body of the state 7. It is imposed solely for public purposesI. 5 MEANINGS OF TAXATION1. An act of imposing and collecting a tax entity like a government,

through its law-making body, raises revenue to defray the necessary expenses of the government for public.

2. Method of apportioning the cost of government among those who, in some measure have the privilege to enjoy their benefits and must therefore bear this burden.

3. Taxes are the enforced and proportional contributions from person and property levied or imposed by the law making body of the state by virtue of its sovereignty for the support of the government and all public needs

4. The government has the inherent capacity to impose and collect taxes by virtue of sovereignty/power over their constituents

5. The government needs funds to finance its task of promoting the general welfare and protection of the citizens.

J. 6 CLASSIFICATION OF TAXES:1. As to subject matter or object2. As to purpose3. According to scope4. According to determination of amount5. According to its effect to tax payer6. According to graduation rateK. ACCORDING TO EFFECT OF TAX PAYER1. Direct2. Indirect