Taxation Overview

These flashcards cover key concepts and definitions related to taxation, including its processes, theories, principles, and legislation as discussed in the lecture.

Taxation

The process by which the government collects financial contributions from citizens and businesses to fund public services and infrastructure.

Sovereign

Refers to the independent state or government that has the authority to impose taxes.

Levying

The legislative process of determining and imposing taxes by the law-making body.

Assessment

The process of determining the correct amount of tax due from taxpayers based on existing tax laws and regulations.

Collection

The process of gathering tax payments from taxpayers, ensuring that assessed taxes are paid to the government.

Legitimate Functions of Government

Activities funded by taxes, including infrastructure, education, healthcare, defense, and social services.

Double Taxation

Taxing the same income or property by the same taxing authority within the same taxing jurisdiction for the same purpose.

Direct Taxes

Taxes where the statutory taxpayer is the person who is required by law to pay them.

Indirect Taxes

Taxes where the statutory taxpayer can shift the burden of the tax to another person.

Power of Eminent Domain

The power of the State to acquire private property for public purposes upon payment of just compensation.

Necessary Burden

The tax burden imposed to preserve the state’s sovereignty and provide necessary services to citizens.

Theory of Taxation

The principles underlying the notion that taxes are essential for government operation and citizen well-being.

Fiscal Adequacy

The principle that the revenue generated should be sufficient to meet government expenditures and obligations.

Administrative Feasibility

The quality of a tax system to be easy to administer, enforce, and collect.

Theoretical Justice

Equity in taxation ensuring that taxes are based on the taxpayer's ability to pay.

Tax Exemptions

Grants of immunity to certain individuals or organizations from tax obligations that they would otherwise face.

Tax Amnesty

A government regulation that allows individuals to pay overdue taxes with reduced penalties or interest.

National Internal Revenue Code (NIRC)

The primary law governing national taxes in the Philippines including income tax and VAT.

Local Government Code (LGC)

The law that governs local taxation by providing guidelines for local government units to impose taxes.

Customs Modernization and Tariff Act (CMTA)

Legislation governing customs duties and tariffs on imported goods in the Philippines.