taxation and tax administration

7/25/2019 Taxation and Tax Administration

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Taxation and Tax Administration

Taxationand Tax

Administration

Prepared byDennie Leo LoganCrishelle ViernesGrancis Ayra CastroGilbert GabrielCharlene Mae CulanagRina AnanayoLady Dominique Lumidaoai!en Manuel AntonioAubrey "ideaLi!el de Gu!man


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#aturday$ %&March$ '(%)

Taxation De*nedAct o+ imposing and collecting tax,

A process or means by -hich a so.ereign entity li/e a go.ernment$

through its la-0ma/ing body$ raises re.enues to de+ray the necessary

expenses o+ the go.ernment +or the public,

Characteristics o+ TaxesTaxes are an enforced distribution1 go.ernment en+orce taxes and

the citi!ens must abide by it, 2ltimately$ the go.ernment -ill returnthese taxes in some other +orms including protection$ public -or/s and

in+rastructures$ healthcare$ and other basic ser.ices,

Taxes are generally payable in money1 Money is used to pay

taxes, The amount o+ money depends on a person3s earnings$ property

.alues$ and their consumption rate,

Taxes are imposed on persons and property1 They are hinged on

a person3s capability to earn and there+ore pay,

Taxes are levied by the national or a local government unit

which has a jurisdiction over person or property1 "o other entitycan impose taxes other than the go.ernment or state,

It takes a congressional act to put up taxes1 "ational tax should

be *lled and passes in Congress and appro.ed by the #enate, Local

Go.ernment 2nits are also allo-ed to tax -ithin the limits o+ la-,

Taxes are imposed solely for public purposes1 Collected taxes

are intended only +or paying the costs o+ running a go.ernment and

other basic public ser.ices,

Classi*cation o+ TaxesAs to sub4ect matter or ob4ect

%, Personal, poll or capitation0 These are *xed amount taxes

imposed on people residing in a speci*ed territory -ithout regard

to their properties or earnings +rom their pro+ession,


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', Property0 These are taxes imposed on real or personal property,

5, !xcise0 This tax imposed on consumption$ engagement in the

practice o+ a pro+ession$ per+ormance o+ an act$ or en4oyment o+

a pri.ilege,

As to purpose

%, "eneral, #scal or revenue0 All taxes are imposed to generate

income or re.enue +or the go.ernment,

', $pecial or regulatory0 These are special taxes and more

speci*cally$ regulatory taxes,

As to scope 6authority imposing the tax7

%, %ational0 These are taxes imposed by the national go.ernment

and are national in scope,

', &unicipal or 'ocal0 These are taxes imposed by localgo.ernments,

As to determination o+ account

%, $peci#c0 These are imposed taxes as speci*c amounts on a

speci*c standard o+ measurement,

', (d valorem0 A tax in -hich is added into the assessed .alue o+

a taxable entity,

As to graduation or rate

%, Proportional0 These are imposed taxes that are computed as a

*xed proportion o+ the .alue o+ an entity being taxed or the rate

o+ consumption,

', Progressive or graduated0 These are taxes -hose rates

increase as the entity being taxed also increases,

5, )egressive0 The tax or tax brac/et decreases as the entity

taxed increases,

Di8erent inds o+ Taxes%ational Taxes

Income Tax 1 these are earnings that are taxed by the national

go.ernment and are progressi.e in nature,

*onor+s Tax1 donor is a certain person in disposing -ithout

considering the money$ or gi.ing things in +a.our o+ another -ho


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accepts it, 9e+ore$ the donor3s tax is di8erent +rom the donee3s$

but no- it is combined into donor3s tax,

!state Tax1 imposed on the right o+ a deceased person to

trans+er the estate to his la-+ul heir or bene*ciary

-alue.added Tax1 imposed on the sale and:or exchange o+

goods and ser.ices$ or lease o+ goods and real and personal

properties

!xcise Tax 1 imposed on speci*c domestic goods +or local

consumption$ and imported goods consumed in the Philippines

/ther percentage Taxes1 imposed and based on the selling

price or gross .alue o+ goods and ser.ices being sold$ imported$

exchanged$ or bartered,

*ocumentary $tamp Taxes1 taxes on legal documents and

papers

ustoms *uties and Taris1 imposed in the importation and

exportation o+ goods in and out o+ the country

Travel Tax1 imposed on tra.el -hether local or +oreign

!nergy Tax 1 imposed on the use o+ petroleum products

Private &otor -ehicle1 imposed on the o-ners o+ pri.ate

motor .ehicles +or the use o+ the .ehicles

Tax 'evying1 act o+ putting up taxes on persons$ acti.ities$ and

products

Tax (ssessment1 the o;cial action o+ an o;cer in authority in

determining the amount o+ tax due based on tax le.ied

Tax ollection1 process o+ getting taxes imposed by the proper

go.ernment agencies,

Limitations on the Po-er o+ TaxationPrinciple of due process of law1 a person -ho has tax liabilities

and not able to pay taxes may not be depri.ed o+ his property -ithout beinggi.en due notice$ and other legal procedures,

!2ual protection of the laws 3 the code o+ conduct that is applicable

to one is applicable to all,

)ule of uniformity in taxation 3 all taxable properties$ acti.ities$ or

goods -ill ha.e the same tax -ithin the same class, There may be de.elop


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di8erences among di8erent classes o+ taxable ob4ects and acti.ities$

ho-e.er the same system is implemented on ob4ects -ithin the same class,

"obody .t is there+ore not punishable by la-,

Tax !vasion1 the use o+ illegal or +raudulent means to reduce:de+eat

tax liability, >t is punishable by la-,

Common administrati.e approaches en+orce tax collections?

%, *istrait of personal property1 sei!ure by the go.ernment

o+ personal property to en+orce tax collection, >t can be done

on tangible or on non0tangible properties,

', 'evy of real property1 sei!ure by the go.ernment o+personal property to en+orce tax collection$ but done in real

properties -hich are then placed to public sale,5, !nforcement of forfeiture1 trans+erring the property title

to another in +a.our o+ the go.ernment,&, !ntering into a compromise of tax liability1 go.ernment

agencies responsible +or tax collection:assessment and the


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taxpayer enter into a compromise or settlement to a.oid legal

disputes,), 7iling of bonds1 to ensure compliance -ith the pro.isions o+

tax regulations,@, $urcharge1 amount imposed as an addition to the primary

tax +or la-0brea/ing taxpayers

, Interest0 amount imposed as an addition to the primary tax+or taxpayers paying lateB usually '( per annum,

, "iving of rewards to informers1 legal -ay +or the

go.ernment to get in+ormation about delinquent:late

taxpayers or tax e.aders,

(rrests, searches, and sei8uresare allo-ed by 9ureau o+

>nternal Re.enue i+ the .iolation is penal in nature o+ a regulation

administered by the 9>R,

(liens may be deported+or re+using or /no-ingly and

+raudulently e.ading taxes,

Inspection of books of accounts can be doneon indi.iduals$

companies$ or other entities$ to chec/ the correctness o+ taxes

paid,

In2uiring into bank deposit accounts can be done on

deceased person3s account e.en -ith protection +rom ban/

deposit inquiry$ li/e-ise to a person -ho is -illing to enter into a

compromise the tax payments -ho claims to be *nancially

inadequate,

taxation and tax administration

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