Documente Academic
Documente Profesional
Documente Cultură
TAXATION
TAXATION DEFINED
Taxation
-process or means by which the sovereign, through its law
making body, imposes burdens upon subjects and
objects within its jurisdiction for the purpose of raising
revenues to carry out the legitimate objects of the
government
22 January 2013
Slide 2
TAX
22 January 2013
Slide 3
PURPOSES OF TAXATION
1.
2.
Regulatory
Compensatory
22 January 2013
Slide 4
Lifeblood Theory
The government cannot continue to perform its basic
functions of serving and protecting its people without
means to pay its expenses.
22 January 2013
Slide 5
22 January 2013
Legislative in nature
Public purpose
Amount or rate of tax
Kind
Apportionment
Situs
Manner, means, and agencies of collection of the tax
22 January 2013
Basis of Taxation
22 January 2013
22 January 2013
PROCESS/STAGES OF TAXATION
Levying
Collection
Assessment
22 January 2013
2.
Inherent in sovereignty
Legislative in character
Exceptions:
a)
b)
c)
3.
4.
5.
6.
CLASSIFICATION OF TAXES
1.
As to scope:
a.
b.
2.
b.
c.
3.
National
Local
As to subject matter or
object:
a.
Personal, poll or
capitation
Property
Excise
4.
Direct
Indirect
As to determination of
amount:
a.
b.
5.
As to purpose:
a.
b.
6.
Specific
Ad valorem
General, Fiscal or
Revenue
Special or Regulatory
As to graduation or rate:
a.
b.
c.
Proportional
Progressive or graduated
Regressive
22 January 2013
Fiscal Adequacy
Ability to pay
Administrative Feasibility
22 January 2013
LIMITATIONS
Inherent Limitations
1.
2.
Constitutional Limitations
1.
2.
3.
4.
5.
6.
7.
8.
9.
LIMITATIONS (CONTD)
Others:
a. Grant of tax exemption
b. Presidents power to veto separate items in revenue
or tariff bils
c. Delegated authority of the President to impose
tariff rates, import and export quotas, tonnage and
wharfage dues as delegated by Congress through a
law within the framework of national development
program
d. Non-impairment of the Supreme Court jurisdiction
e. Revenue bills
f.
Infringement of press freedom
g. Grant of franchise
22 January 2013
SITUS OF TAXATION
SOURCE RULES
2.
3.
22 January 2013
Corporate Taxpayers
Domestic Corporation
Resident Citizen
Taxable Partnership
Non-resident Citizen
Alien
Non-resident Foreign
Corporation
Resident Alien
Non-resident Alien engaged
in trade or business
Non-resident Alien not
engaged in trade or business
22 January 2013
INDIVIDUAL TAXPAYERS
Taxable
income
Resident
Citizen
(RC)
NonResident
Citizen
(NRC)
Resident
Alien
(RA)
NonResident
Alien
engaged in
trade or
business
(NRAETB)
Within and
outside the
Philippines
Within the
Philippines
Within the
Philippines
Within the
Philippines
Nonresident
alien not
engaged in
trade or
business
(NRANET
B)
Within the
Philippines
22 January 2013
Non-Resident Aliens
1. Engaged in Trade or Business- if the
aggregate period of his stay is more than one
hundred eighty (180) days during any calendar
year.
- Taxed as resident alien
CORPORATE TAXPAYERS
Taxable Income
Domestic /
Taxable
Partnership
Resident
Foreign
Corporation
Non-Resident
Foreign
Corporation
Within and
Without the
Philippines
Within the
Philippines
Within the
Philippines
RHQ
Philippines Branch
Representative Office
1.
2.
Capitalization/Transformation
3.
Evasion
4.
Avoidance
Exemption
Grounds:
1.
2.
3.
Based on contract
Based on ground of public policy
Based on grounds of reciprocity
22 January 2013
Exemption
22 January 2013
Exemption
Kinds of Exemption
As to basis:
Contitutional
Statutory
As to extent
Total
Partial
As to form:
Express
Implied
22 January 2013
SOURCES OF TAXATION
1.
2.
3.
4.
5.
6.
7.
8.
9.
Constitution
National Internal Revenue Code
Tariff and Customs Code
Local Government Code
Local tax ordinances / City or municipal tax codes
Tax treaties and international agreements
Special laws
Decisions of the Supreme Court and the Court of
Tax Appeals
Revenue rules and regulations and administrative
rulings and opinions
22 January 2013
2.
3.
4.
5.
6.
7.
8.
Constitution
Treaty
International agreements
Domestic laws/statutes (e.g. Tax Code); Supreme Court
decisions (Art. 8, Civil Code)
Implementing rules and regulations (e.g. Revenue
regulations)
RMC, RMO and similar issuances
Revenue Rulings
Other issuances
22 January 2013
THANK YOU!