Looks like no one added any tags here yet for you.
Taxation law
refers to any law that arises from the exercise of the taxation power of the State
Tax laws
these are laws that provide for the assessment and collection of taxes
Tax exemption laws
these are laws that grant certain immunity from taxation
Revenue regulations
are issuances signed by the Secretary of Finance upon recommendation of the Commissioner of Internal Revenue (CIR) that specify, prescribe, or define rules and regulations for the effective enforcement of the provisions of the National Internal Revenue Code (NIRC) and related statutes.
True
True/False
Revenue regulations are formal pronouncements intended to clarify or explain the law and carry into effect its general provisions by providing details of administration and procedure.
Revenue Memorandum Orders (RMOs)
Are issuances that provide directives 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.
Revenue Memorandum Rulings (RMRs)
are rulings, opinions and interpretations of the CIR with respect to the provisions of the Tax Code and other tax laws as applied to a specific set of facts, with or without established precedents, and which the CIR may issue from time to time for the purpose of providing taxpayers guidance on the tax consequences in specific sitatuations.
False, they cannot contravene otherwise the rulings are null and void ab initio
True/False
BIR Rulings can contravene duly issued RMRs.
Revenue Memorandum Circulars (RMCs)
Are issuances that publish pertinent and applicable portions as well as amplifications of laws, rules ,regulations and precedents issued by the BIR and other agencies/offices
Revenue Bulletins (RB)
Refer to periodic issuances , notices , and official announcements of the commissioner of internal revenue that consolidate the bureau of internal revenue's position on certain specific issues of law or administration in relation to the provisions of the tax code , relevant tax laws , and other issuances for the guidance of the public
BIR Rulings
are official positions of the Bureau to queries raised by taxpayers and other stakeholders relative to clarification and interpretation of tax laws.
False, they are merely advisory and a sort of information service to the taxpayer such that none of them is binding except to the addressee and may be reversed by the BIR at anytime.
True/False
Rulings are absolute and binding, but they may be reversed by the BIR at anytime.
True, they are mere conventions of financial reporting
True/False
Generally Accepted Accounting Principles are not laws.
False, they are civil and not political in nature
True/False
Philippine Tax Laws are political in nature.
True
True/False
Philippine Tax Laws are effective even during periods of enemy occupation
False, not penal in nature
True/False
Our internal revenue laws are penal in nature because they are intended to secure taxpayers' compliance.
Tax
is an enforced proportional contribution levied by the lawmaking body of the State to raise revenue for public purpose
1 Tax must be levied by the taxing power
2 Tax must not violate Constitutional and inherent limitations
3 Tax must be uniform and equitable
4 Tax must be for public purpose
5 Tax must be proportional in character
6 Tax is generally payable in money
Elements of a valid tax (6)
Fiscal or revenue tax
a tax imposed for general purpose
Regulatory
a tax imposed to regulate business, conduct, acts or transactions
Sumptuary
a tax levied to achieve some social or economic objectives
Personal, poll or capitation
a tax on persons who are residents of a particular territory
Property tax
a tax on properties, real or personal
Excise or privilege tax
a tax imposed upon the performance of an act, enjoyment of a privilege or engagement in an occupation
Direct tax
when both the impact and incidence of taxation rest upon the same taxpayer
Direct tax
The statutory taxpayer is the economic taxpayer
Indirect tax
when the tax is paid by any person other than the one who is intended to pay the same
Statutory taxpayer
is the person named by law to pay the tax
Economic taxpayer
is the one who actually pays the tax
Specific tax
a tax on a fixed amount imposed on a per unit basis such as per kilo, liter, or meter
Ad valorem
a tax of a fixed proportion imposed upon the value of the tax object
Proportional tax
This is a flat or fixed rate tax
Progressive or graduated tax
This is a tax which imposes increasing rates as the tax base increases
Regressive tax
This tax imposes decreasing tax rates as the tax base increases
False, regressive
True/False
Progressive tax is regarded as anti-poor as it directly violates the Constitutional guarantee of regressive taxation.
Mixed tax
this tax manifests tax rates which is a combination of any of the other types of tax
National tax
tax imposed by the national government
Income tax
tax on annual income
Estate taqx
tax on gratuitous transfer of properties by a decedent upon death
Donor's tax
tax on gratuitous transfer of properties by a living donor
Value Added Tax
Consumption tax collected by VAT business taxpayers
Other percentage tax
consumption tax collected by non-VAT business taxpayers
Excise tax
tax on sin products and non-essential commodities such as alcohol, cigarettes and metallic minerals
Documentary stamp tax
a tax on documents, instruments, loan agreements, and papers evidencing the acceptance, assignment, sale or transfer of an obligation, right or property incident thereto
Local tax
tax imposed by the municipal or local goverment
False, bali
True/False
The amount imposed is revenue but the amount collected is tax
Revenue
refers to all income collections of the government which includes taxes, tariff, licenses, toll, penalties, and others
True
True/False
Tax is a post-activity imposition whereas license is a pre-activity imposition
True
True/False
Tax is a demand of sovereingty whereas toll is a demand of ownership
False, bali
True/False
Tax can be subject to set-off and can be paid in kind (Dacion en pago). Debt is not subject to set-off and is generally payable in money.
False, tax, taxpayer
True/False
Debt draws interest only when the debtor is delinquent.
Special assesment
is levied by the government on lands adjacent to a public improvement
False, without
True/False
Tax is levied with expectation of a direct proximate benefit
True
True/False
Special assessment attaches to the land.
False, bali
True/False
Tariff is broader than tax
Tariff
is the amount imposed on imported or exported commodities
True
True/False
Penalty may be imposed by both the government and private individuals. It may arise both from law or contract whereas tax arises from law
Tax system
refers to the methods or schemes of imposing, assessing, and collecting taxes.
1 National tax system
2 Local tax system
The Philippine Tax System is divided into 2:
Progressive
tax system employed in the taxation of income of individuals, and certain local business taxes
Proportional
tax system employed in taxation of corporate income and business
Regressive
tax system not employed in the Philippines
False, cannot
True/False
A direct tax can be shifted
True
True/False
A progressive tax system is one that emphasizes direct taxes
True
True/False
A regressive tax system is one that emphasizes indirect taxes.
False, regressive tax system due to the prevalence of business taxes
True/False
It is widely believed that the Philippines has a dominantly progressive tax system.
Withholding system on income tax
Under this collection system, the payor of the income withholds or deducts the tax on the income before releasing the same to the payee and remits the same to the government
Withholding tax on compensation
an estimated tax required by the government to be withheld by employers against the compensation against their employees
Expanded withholding tax
an estimated tax required by the government to be deducted on certain income payments made by taxpayers engaged in business
Final withholding tax
a system of tax collection wherein payors are required to deduct the full tax on certain income payments
Withholding system on business tax
when the national government agencies and instrumentalities including government-owned and controlled corporations purchase goods or services from private suppliers, this system is what the law requires
Voluntary compliance system
Under this collection system, the taxpayer himself determines his income, reports the same through income tax returns and pays the tax to the government.
Self-assessment method
Voluntary compliance system is also known as
Assessment or enforcement system
Under this collection system, the government identifies non-compliant taxpayers, assess their tax dues including penalties, demands for taxpayer's voluntary compliance or enforces collections by coercive means such as summary proceeding or juridical proceedings when necessary
1 Fiscal adequacy
2 Theoretical justice
3 Administrative feasibility
Principles of a sound tax system (3)
Fiscal adequacy
requires that the sources of government funds must be sufficient to cover government costs
Theoretical justice or equity
Suggests that taxation should consider the taxpayer's ability to pay
Administrative feasibility
suggests that tax laws should be capable of efficient and effective administration to encourage compliance.
Tax administration
refers to the management of the tax system
1 Commissioner
2 Deputy commissioners
a Operations group
b Legal Enforcement group
c Information Systems group
d Resource Management group
Chief officials of the BIR
Zonal Value
The CIR is authorized to divide the Philippines into zones and prescribe real property values after consultation with competent appraisers. The values thus prescribed are referred to as __________________
3 years
Zonal values are subject to automatic adjustment once every ___________
Higher of
Zonal value as prescribed by commissioner
Fair Market value as shown in the schedule of market values
FV of real property shall mean ______________
True
True/False
The NIRC previously use the assessed value which is merely a fraction of the market value
1 Commissioner 4 Deputies
The Evaluation Board is composed of _________
Bureau of Customs
is tasked to administer collection of tariffs on imported articles and collection of the VAT on importation
Department of Finance
Together with the BIR, the BOC is under the supervision of the _______________
Board of Investments
is tasked to lead the promotion of investments in the Philippines by assisting Filipinos and foreign investors to venture and prosper in desirable areas of economic activities
Department of Trade and Industry
The BOI is an attached agency of the _______________
Philippine Economic Zone Authority
is created to promote investments in export-oriented manufacturing industries in the Philippines and, among myriads of functions, supervise the grant of both fiscal and non-fiscal incentives
Fiscal Incentive Review Board
has oversight function on the administration and grant of tax incentives by the Investment Promotion Agencies and other government agencies administering tax incentives.
Large Taxpayers
under the supervision of the Large Taxpayer Service of the BIR National Office
Non-large Taxpayers
under the supervision of the respective Revenue District Offices where the business, trade, or profession of the taxpayer is situated.