The document discusses the history and principles of taxation in various jurisdictions including Rome, England, the Philippines, and modern industrial nations. It describes how taxes have evolved from customs duties and inheritance taxes to include income taxes and value-added taxes. The key aspects covered include tax bases, tax rates, tax classification, principles of a sound tax system, and the distinctions between taxation, tolls, penalties, and special assessments.
1. ⢠Earliest taxes in Rome
⢠Taxes known as Portoria were customs duties on imports and exports
⢠Augustus Caesar introduced the inheritance tax to provide retirement
funds for the military. The tax was five percent on all inheritances except
gifts to children and spouses
⢠In England
⢠Taxes were first used as an emergency measure
⢠Taxes on income or capital were a recent development as a result of
increasing government intervention in the economy
⢠In the Philippines
⢠The pre-colonial society, being communitarian, did not have taxes
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2. ⢠In Modern Industrial Nations
⢠The government designates a tax base (such as income, property
holdings, or a given commodity)
⢠A Tax Law is a body of rules passed by the legislature by which the
government acquires a claim on tax payers to convey, transfer and
pay to the public authority
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3. Basic Principles of Taxation and its
Remedies
1. Nature, scope, classification and essential characteristics
2. Principles of sound tax system
3. Limitations of the power of taxation (inherent limitations
and constitutional limitations)
4. Differences between taxation and police power
5. Differences between taxation and eminent domain
6. Tax evasion vs. Tax avoidance
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4. Taxation
⢠The process or means by which the sovereign,
through its lawmaking body, raises income to defray
the necessary expenses of the government.
⢠Taxation, as a power of the State, is inherent in
sovereignty.
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5. Taxation (contâd)
⢠The system of compulsory contributions levied by a government or other
qualified body on people, corporations and property in order to fund
public expenditures.
⢠An inherent power of the state to raise income and to demand enforced
contributions for public purposes.
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6. Taxes
⢠Taxes are the lifeblood of the government and their prompt and certain
availability are an imperious need (Commissioner vs. Pineda, 21 SCRA
105). A government cannot continue to exist and operate without
financial means. This inherent power gives the government the right to
tax citizens and properties within its jurisdiction.
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7. Objectives of Taxation
⢠To raise revenues for public needs so that persons can live in a civilized
society
⢠The government increase taxes in order to stabilize prices and stimulate
greater production.
⢠An instrument of fiscal policy influences the direction and structure of
money supply, investments, credits, production, interest rate, inflation,
prices and in general, of the national economy
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8. Objectives of Taxation
⢠To shift wealth from the rich to the poor
⢠To stimulate economic growth
⢠To encourage full employment
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9. Characteristics of a sound Tax system
⢠Fairness
⢠Clarity and Certainty
⢠Convenience
⢠Efficiency
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10. STATE POWERS
1. Taxation â the power of the state by which the sovereign
raises revenue to defray the necessary expenses of the
government
2. Eminent Domain â the power of the state to take private
property for public use upon payment of just compensation.
3. Police Power â the power of the state to enact laws to
promote public health, public morals, public safety and the
general welfare of the people.
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11. ASPECTS OF TAXATION
1. Levying of the tax â the imposition of tax requires legislative
intervention. In the Philippines, it is Congress that levies taxes; and
2. Collection of tax levied. This is essentially an adminitrative function.
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12. Effects of Taxation
⢠Personal Income Tax which is presumed to fall entirely on the
legal taxpayers influences decisions to work, save, and invest.
These decisions affect other people.
⢠Corporate Income Tax may simply result to lower corporate
profits and dividends. It may reduce their income of all
owners of property and businesses. The company may move
toward raising the prices of their products
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13. BASIC PRINCIPLES OF A SOUND TAX SYSTEM
1. Fiscal Adequacy â Sources of revenue are sufficient to meet government
expenditures.
2. Equality or theoretical justice â the tax imposed must be proportionate
to taxpayerâs ability to pay; and
3. Administrative Feasibility â the law must be capable of convenient, just
and effective administration.
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14. Limitations on the Power of Taxation
Two types of limitations in taxation:
1. Constitutional limitations â are those provided for in the constitution or
implied from the provisions of the law
2. Inherent limitations â are restrictions to the power to tax attached to its
nature.
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15. Inherent limitations on the power of taxation
1. Purpose. Taxes may be levied only for public purpose.
2. Territoriality. The State may tax person and properties under its
jurisdiction.
3. International comity. The property of a foreign State may not be taxed
by another.
4. Exemption â Government agencies performing governmental functions
are exempt from taxation.
5. Non-delegation. The power to tax being legislative in nature may not be
delegated.
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16. Taxation in the Philippines
⢠The legislative branch enacts laws to continually revitalize the taxation
policy of the country
⢠BIR (Bureau of Internal Revenue)
â Mandated to comprehend the assessment and collection of all
national internal revenue taxes, fees and charges so as to promote a
sustainable economic growth
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17. Taxation in the Philippines
⢠Republic Act No. 8424 (Comprehensive Tax Reform
Act of 1997)
â Tax Payer: any person subject to tax whose
sources of income is derived from within the
Philippines
â TIN (Taxpayer Identification Number) is required
for any individual taxpayer
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18. Taxation in the Philippines
⢠Tax Reforms:
â Lower income tax rates to enhance the competitiveness of the
Philippines in the region
â Removal of areas which provide avenues for tax avoidance and abuse
â Exemption of OFWs from payment of tax for income earned outside
the Philippines
â Simplification of the tax system which encourages payments from tax
payers including those from the underground economy
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19. Taxation in the Philippines
⢠Taxes are collected within a particular period of time
known as taxable year
⢠This is the calendar year or the fiscal year that
covers an accounting period of 12 months
ending on the last day of any month other that
December.
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20. Shifting the incidence of taxation
â Shifting taxation is the process of passing the
burden of the tax to others.
â A tax can be shifted when the taxpayer is able to
obtain a higher price for something he sells or
when he pays a lower price for a commodity he
purchases.
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21. Double taxation
Double taxation standing alone and not being forbidden by our fundamental
law is not a valid defense against the legality of a tax measure. However,
if double taxation amounts to a direct duplicate taxation, in that the
same subject is taxed twice when it should be taxed but once, in a fasion
that both taxes are imposed for the same purpose by the same taxing
authority, within the same jurisdiction or taxing district, for the same
taxable period and for the same kind or character of a tax, then it
becomes legally objectionable for being oppressive and inequitable.
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22. Double taxation (contâd)
Indirect double taxation is one other than the direct double taxation. Though
this type may not prove unconstitutional, it is being avoided so as not to
bring injustice to the taxpayer. An example of this occurs when business
tax is imposed by the municipal govrnment prior to the issuance of a
business license to a taxpayer for engaging in an advertising business. His
income from his advertising business shall later be imposed income tax by
the national government.
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23. Tax Avoidance
It happens when the taxpayer minimizes his tax liability by taking advantage
of legally available tax planning opportunites. This is otherwise known as
tax minimiztion; others call it tax planning. It is the process of controlling
oneâs actions so as to avoid undersirable tax consequences.
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24. Tax Evasion
⢠When there is fraud through pretension and the use of other illegal
devices to lessen oneâs taxes, there is tax evasion
â Under-declaration of income
â Non-declaration of income and other items subject to tax
â Under-appraisal of goods subject to tariff
â Over-declaration of deductions
This is also known as tax dodging.
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25. Situs of Taxation
(Place of Taxation)
Factors to be considered in the determination of place of taxation:
1. Subject matter â or what is being taxed. He may be a person or it may
be a property, an act or activity.
2. Nature of tax â or which tax to impose. It may be an income tax, an
import duty or a real property tax.
3. Citizenship of the taxpayer; and
4. Residence of the taxpayer.
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26. Situs of Taxation
(Place of Taxation)(contâd)
The following situs of taxation apply:
1. Persons â residence of the taxpayer.
2. Real Property or tangible personal property â location of the
property
3. Intangible personal property â as a rule, situs is the domicile
of the owner unless he has acquired a situs elsewhere.
4. Income â taxpayerâs residence or citizenship, or place where
the income was earned.
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27. Situs of Taxation
(Place of Taxation)(contâd)
5. Income â taxpayerâs residence or citizenship, or place where
the income was earned.
6. Business, occupation and transaction â place where business
is being operated, occupation being practiced and
transaction completed.
7. Gratuitous transfer of property â taxpayerâs residence or
citizenship, or location of the property.
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28. TAXES
⢠These are enforced proportional contributions from persons and property
levied by the lawmaking body of the State by virtue of its sovereignty for
the suppot of the government and all public needs.
⢠These are any contribution imposed by the government upon individuals,
for the use and service of the state, whether under the name of toll,
tribute, tallage, gabel, impost, duty, custom, excise, subsidy, aid, supply,
or other name. Tax, in its essential characteristics, is not a debt.
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29. Essential Characteristics of a Tax
1. It is an enforced contribution.
2. It is levied by the lawmaking body.
3. It is proportionate in character.
4. It is generally payable in the money.
5. It is imposed for the purpose of raising revenues; and
6. It is to be used for public purpose.
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30. Types of Tax Rate Structure
Tax system are often described as either
ď Regressive - average rate decresed as the tax base increases.
ď Proportional (also called flat or uniform taxes) â the average rate of
tax remains constant for all levels of the tax base
ď Progressive â average rate increases as the amount of the tax bases
increases.
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31. Classification of Taxes
1. As to subject matter or object
a. Personal, poll or capitation â tax of a fixed amount imposed on individuals,
whether citizens or not, residing within a specified territory without regard
to their property or the occupation in which they may be engaged. Example:
community tax
b. Property â tax imposed on property, whether eal or personal, inproportion
either to its value or in accordance with some other reasonable method of
appotionment. Example: real estate tax
c. Excise â tax imposed upon the performance of an act, the enjoyment of a
privilege o the engaging in an occupation. Examples: estate tax, donorâs tax,
income tax, value-added tax.
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32. Classification of Taxes (contâd)
2. As to who bears the burden
a. Direct â tax demanded from persons who are intended or bound by
law to pay the tax. Examples: community tax, income tax, estate
tax, donorâs tax
b. Indirect â tax which the taxpayer can shift to another. Examples:
custom duties, value-added tax, some percentage taxes.
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33. Classification of Taxes (contâd)
3. As to determination of amount
a. Specific â tax imposed basd on a physical unit of measurement, s by
head or number, weight, or length or volume. Examples: tax on distilled
spirits, fermented liquors, cigars wines, fireworks, etc.
b. Ad valorem â Tax of a fixed proprortion of the value of property; needs
an independent appraiser to determine its value. Examples: real estate
tax, certain customs duties, excise taxes on cigarettes, gasoline and
others
Excise taxes on certain specific goods imposed under the NIRC are either specific or ad
valorem taxes.
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34. Classification of Taxes (contâd)
4. As to purpose
a. General, fixcal or revenue â ttax with no particular purpose or object
for which the revenue is raised, but is simply raised for whatever
need may arise. Examples: income tax, value-added tax
a. Special or regulatory â tax imposed fo a special purpose
regadless of whether revenue is raised or not, and is intended to
achieve some social or economic end. Example: protective
tariffs or customs duties on certain imported goods to protect
local industries against foreign competition.
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35. Classification of Taxes (contâd)
5. As to authority imposing the tax or scope
a. National â tax imposed by the national government.
Examples: internal revenue taxes, tariff and customs
duties
b. Municipal or local â tax imposed by municipal
governments for specific needs. Example: real estate
taxes, municipal licenses.
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36. Classification of Taxes (contâd)
6. As to graduation or rate
a. Proportional â tax based on a fixed percentage of the amount of
property income or other basis to be taxed. Examples: percentage
taxes, real estate taxes
b. Progressive or graduated â tax rate increases as the tax base
increases. Examples: income tax, estate tax, donorâs tax.
c. Regressive â tax rate decreases as the tax base increases. Example:
value-added tax.
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37. TAX DISTINGUISHED FROM OTHER FEES
1. From toll. TOLL is a sum of money for the use of something, generally
applied to the consideration which is paid for the use of a road, bridge or
the like, of a public nature.
A toll is a demand of proprietorship, is paid for the use of anotherâs
property and may be imposed by the government or private individuals
or entities; while tax is a demand of sovereignty, is paid for the support
of the government and may be imposed only by the State.
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38. TAX DISTINGUISHED FROM OTHER FEES (contâd)
2. From penalty. PENALTY is any santion imposed as a punishment for
violation of law or acts deemed injurious. Violation of tax laws may give
rise to imposition of penalty.
A penalty is designed to regulate conduct and may be imposed by
the government or private individuals or entities. Tax, on the other
hand, is primarily aimed at raising revenue and may be imposed only by
the government.
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39. TAX DISTINGUISHED FROM OTHER FEES (contâd)
3. From special assessment. SPECIAL ASSESSMENT is an enforced
proportional contribution from owners of lands for special benefits
resulting from public improvements.
SPECIAL ASSESSMENT is levied only on land, is not a personal
liability of the person assessed, is based wholly on benefits and is
exceptional both as to time and place. Tax is levied on persons,
property, or exercise of privilege, which may be made a pesonal liability
of the person assessed, is based on necessity and is of general
application.
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40. TAX DISTINGUISHED FROM OTHER FEES (contâd)
4. From pemit or license fee. PERMIT or LICENSE FEE is a charge imposed
under the police power for purposes of regulations.
LICENSE FEE is imposed for regulation and involves the exercise of
police power while tax is levied for revenue and involves the exercise of
the taxing power. Failure to pay a license fee makes an act or a business
illegal while failure to pay a tax does not necessarily make an act or a
business illegal.
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41. TAX DISTINGUISHED FROM OTHER FEES (contâd)
5. From debt. A DEBT is generally based on contract, is
assignable and may be paid in kind while a tax is based on
law, cannot generaly be assigned and is generally payable in
money. A person cannot be imprisoned for non-payment of
debt while he can be for non-payment of tax (except poll
tax).
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42. TAX DISTINGUISHED FROM OTHER FEES (contâd)
6. From revenue. REVENUE is broader than tax since it
refers to all funds or income derived by the
government axes included. Other sources of
revenues are government services, income from
public enterprises and foreign loans.
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43. TAX DISTINGUISHED FROM OTHER FEES (contâd)
7. From custom duties. Customs duties are taxes
imposed on goods exported from or imported to a
country. Customs duties are actually taxes but the
latter is broader in scope.
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44. SOURCES OF TAX AUTHORITY
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45. SOURCES OF TAX LAWS
1. Constitution
2. Statutes and Presidential Decrees
3. Revenue Regulations by the Department of Finance
4. Rulings issued by the Commissioner of Internal Revenue and Opinions by the
Secretary of Justice
5. Decisions of the Supreme Court and the Court of Tax Appeals
6. Provincial, city, municipal, and barangay ordinaces subject to limitations set forth
in the Local Government Code; and
7. Treaties or international agreements the purpose of which is to avoid or
minimize double taxation.
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46. Philippine Tax Laws and Taxes
1. National Internal Revenue Code of 1997 (PD 1158, as
amended)
a. Income taxes (individual and corporate);
b. Estate and donorâs taxes
c. Value-added tax
d. Other percentage taxes
e. Excise tax; and
f. Documentary stamp tax
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47. Philippine Tax Laws and Taxes (contâd)
2. Tariff and Customs Code of 1978 (PD 1464, as amended);
a. Import duties; and
b. Export duties
CUSTOMS DUTIES FOR IMPORTATION AND EXPORTATION OF GOODS
3. Local Government Code of 1991 (RA 7160);
a. Real property tax
b. Business taxes, fees and charges
c. Professional tax
d. Community tax and
e. Tax on banks and other financial institutions.
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48. Philippine Tax Laws and Taxes (contâd)
4. Special Laws
a. Motor Vehicle Law (RA 4136) motor vehicle fees
b. Private Motor vehicle Tax Law (PD 1958) private motor
vehicle tax
c. Philippine Immigration Act of 1940 (CA 613, as amended)
immigration tax; and
d. Travel Tax Law (PD 1183, as amended) â travel tax
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49. Tax Laws Versus GAAP and GAAS
All returns required to be filed by the Tax Code shall be prepared always in
conformity with the provisions of the Tax Code, and the rules and
regulations issued implementing said Tax Code. Taxability of income and
deductibility of expenses shall be dtermined strictly in ans issued
implemeccordance with the provisions of the Tax Code and the rules and
regulations issued implementting the said Tax Code. In case of difference
between the provisions of the Tax Code and the rules and regulations
implementing the Tax Code, on one hand, and the generally accepted
accounting principles (GAAP) and the generally accepted auditing
standards (GAAS) on the other hand, the provisions of the Tax Code and
the rules and regulations issued implementing the said Tax Code shall
prevail (RMC 22-04, April 12, 2004).
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50. BIR ISSUANCES AND RULINGS DEFINED
Revenue Regulations (RRs) are issuances signed by the Secretary of Finance,
upon recommendation of the Commissiner of Intenal Revenue, that
specify, prescribe or define rules and regulations for the effective
enforcement of the provisions of the NIRC related statutes.
Revenue Memorandum Circulars (RMCs) are issuances that publish pertinent
and applicable potions, as well as amplifications, of laws, rules,
regulations and precedents issued by the BIR and other agencies/offices.
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51. BIR ISSUANCES AND RULINGS DEFINED
Revenue Memorandum Orders (RMOs) are issuances that provide or
instructions; prescribe guidelines; and outline processes, operations,
activities, workflows, methods and procedures necessary in the
implementation of stated policies, goals, objectives, plans and programs
of the Bureau in all areas of operations, except auditing.
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52. BIR ISSUANCES AND RULINGS DEFINED
Revenue Memorandum Rulings (RMRs) are rulings, opinions and
interpretations of the Commissioner of Internal Revenue with respect to
the provisions of the Tax Code and othe tax laws, as applied to a specific
set of facts, with or without established precedents, and which the
Commissioner may issue from time to time for the purpose of providing
taxpayers guidance on the tax consequences in specific situations. BIR
Rulings, therefore, cannot contravene duly issued RMRs; othewise, the
Rulings are null and void ab initio.
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53. BIR ISSUANCES AND RULINGS DEFINED
BIR Rulings are official position of the Bureau of to queries raised by
taxpayers and other stakeholders relative to clarification and
interpretation of tax laws.
Revenue Bulletins (RBs) refer to periodic issuances, notices and official
announcements of the Commissioner of Internal Revenue that
consolidate the BIRâs position on certain specific issues of law or
administration in relation to the provisions of the Tax Code, relevant to
tax laws and other issuances for the guidance of the public.
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54. POWERS AND DUTIES OF THE BIR
The chief officials of the Bureau are the Commissioner and four (4) Deputy
Commissioners. Its powers and duties follows:
1. Assessment and collection of all national internal revenue taxes, fees and
charges;
2. Enforcement of all forfeitures, penalties, and fines;
3. Execution of judgments in all cases decided in its favor by the Court of Tax
Appeals and ordinary courts; and
4. Administration of supervisory and police powers conferred to it.
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55. POWERS OF THE COMMISSIONER
KIM JACINTO-HENARES
1. Interpret tax laws and decide tax cases;
2. Obtain information, and to summon, examine, and take
testimony of persons;
3. Make assessments and prescribe additional requriement for
tax administration and enforcement.
The Commissioner of Internal Revenue is authorized to inquire
into the bank deposit of
1. A decedent to determine his gross estate; and
2. Any taxpayer who hs filed an application for compromise of
his tax liability (Sec. 6(F), NIRC)
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56. DOF SECRETARY â CESAR V. PURISIMA
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57. Revenue District Office No. 111 - Koronadal, South Cotabato
⢠Office Address: Barrio Concepcion, National Highway, Koronadal City, South
Cotabato
⢠Revenue District Officer: BAGRO S. SARANSAMUN
⢠e-mail: rdo111@bir.gov.ph; bagro.saransamun@bir.gov.ph
⢠direct no.: (083) 228-4061/ 228-4035
⢠telefax: (082) 228-4035
⢠Assistant Revenue District Officer: ANATACIA B. DEGALA
⢠e-mail: annedegala@yahoo.com
⢠direct no.: (083) 228-4061
⢠telefax: (082) 228-2710
⢠Area of Jurisdiction:
⢠Comprised of the Municipalities of Tantangan, Norala, Sto. Niùo, Banga,
Tampakan, Surallah, Tupi, Lake Sebu, Polomolok, T'boli, and the City of Koronadal.
The District shall be bounded as follows: by Tantangan on the North to General
Santos Drive, by Tupi on the South to General Santos Drive. From Banga on the
East to Alunan Avenue and Southwest by Tampakan to General Santos Drive.
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58. TAX INCENTIVES
ď âAdopt-a-School Act of 1998â RA 8525. Reveneu Regulatins 10-2003 dated Jan.
27, 2003 implements the tax incentive provisions of said law.
⢠Deduction from gross income of the amount of contribution/donation that
were actually, directly and exclusively incurred for the Program, subject to
limitations, plus an additional amount equivalent to fifty (50%) of such
contribution/donation.
⢠Exemption of the Assistance made by the donor from payment of donorâs tax.
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59. INCOME AND INCOME TAXES
In its broad sense, income means all wealth, which
flows into the taxpayer other than a mere return of
capital. It is the return in money from oneâs
business, labor, o capital invested, e.g., gains, profits,
salary and wages. The words income from any
source whatever disclose a legislative policy to
include all income not expressly exempted from the
class of taxable income under our laws.
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60. INCOME AND INCOME TAXES (contâd)
Income is also defined as the amount of money
coming to a person or corporation within a
specified time, whether as payment for
services, interest or profit from investment.
Unless othewise specified, it means cash or its
equivalent. Income may also be thought of as
a flow of the fruits of oneâs labor.
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61. CAPITAL VS. INCOME
CAPITAL is a fund or property existing at one
distinct point of time. INCOME, on the other
hand, denotes a flow of welath during a
definite period of time. While capital is
wealth, income is the service of wealth.
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62. INCOME TAX DEFINED, BASED AND NATURE
DEFINITION OF INCOME TAXâ
Income tax is a tax on all yearly profits arising from
property, rofession, trade or business, or is a tax on personâs
income, emoluments, profits and the like.
BASED OF INCOME TAX â
It is based on income, either gross or net, realized in one
taxable year.
NATURE OF INCOME TAX -
It is generally regarded as an excise (privilege) tax. It is
not levied upon person, property, funds, o profits as such but
upon the right of a person to receive income or profits.
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63. GENERAL PROCEDURES IN DETERMINING INCOME TAX
Step 1. Identify the taxpaying party or âentityâ to which the tax computation formula
applies. Some legal entities are taxed; others are not.
Step 2. Determine the taxpayerâs âgross incomeâ. Appreciation in market value is not
generally regarded as income for tax purposes unless realized through a sale or
exchange.
Step 3. Determine the expenses and certain other items that can be âdeductedâ in
computing the taxpayerâs âtaxable incomeâ.
Step 4. Apply appropriate âtax rateâ to the taxpayerâs taxable income to find the âtax
dueâ.
Step 5. Subtract any applicable âtax credits/paymentsâ from the taxpayerâs tax due in
finding the âtax payableâ.
Step 6. Increase the tax by âpenalties and interestsâ to obtain the âtotal amount
payableâ.
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65. Kinds of taxes
⢠Income Tax
â Tax on all yearly profits arising form property, possessions, trades or offices
â Tax on a personâs income, emoluments and profits
⢠Estate Tax
â Tax on the right of the deceased person to transmit property at death
⢠Donorâs Tax
â Tax imposed on donations inter-vivos or those made between living persons to take
effect during the lifetime of the donor.
⢠Value-added Tax (VAT)
â Tax imposed and collected on every sale, barter, exchange or transaction deemed sale
of taxable goods, properties, lease of goods, services or properties in the course of
trade as they pass along the production and distribution chain
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66. Kinds of taxes
⢠Excise Tax
â Tax applicable to specified goods manufactured in the Philippines for
domestic sale or consumption
â Specific tax: imposed on certain goods based on weight or volume
capacity or any other physical unit of measurement (Specific tax =
volume x tax rate)
Âť Alcohol products, petroleum products, tobacco products
â Ad valorem tax: imposed on certain goods based on selling price or
other specified value of the goods
(Ad valorem tax = selling price x tax rate)
Âť Mineral products, automobiles
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67. Kinds of taxes
⢠Documentary Tax
â Tax on documents, instruments, loan agreements and papers, agreements
evidencing the acceptance, assignments, sale or transfer of an obligation,
rights or property incident thereto
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68. Kinds of taxes
⢠Capital Gains Tax
â Tax imposed on the gains presumed to have been realized by the
seller for the sale, exchange or other disposition of real property
located in the Philippines, classified as capital assets
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69. Withholding tax
⢠Expanded withholding tax:
â A system of collecting taxes whereby the
taxes withheld on certain income payments
are intended to equal or at least
approximate the tax due of the payer on
said income.
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70. Withholding tax
⢠Final withholding tax:
â A system of collecting taxes whereby the amount of
income tax withheld by the withholding agent is
constituted as a full payment of the income tax due form
the payer on the said income. The payer is not required to
file an income tax return for the particular income.
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71. Withholding tax
⢠Withholding tax for compensation income:
â Commonly referred to as pay as you go or
pay as you earn.
â A method of collecting the income tax at
source upon receipt of the income.
end
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Editor's Notes
Escape from taxation. It is not uncommon that taxpayers resort to tax avoidance and tax evasion in order to escape from taxation.