Presentation Transcript

1. PURPOSE OF TAXATION to stabilize prices and stimulate greater/lesser production To increase domestic production: how does tax work on import? Capital deficient businesses? Detrimental or luxurious businesses?
2. PLACES OF TAXATION: INCOME TAX Paid either in the place where income is earned or the place of residence of the taxpayer. E.g. Ms. L resides in Quezon City and works in Makati.
3. PLACES OF TAXATION: REAL PROPERTY TAX This is paid where the property is situated. You were born in Pasig. Your current house is situated in Makati and you work in Taguig. Where is your place of payment for your Real Property Tax?
4. PLACES OF TAXATION: BUSINESS OCCUPATION TAXES This is paid in the place where the business or occupation is located. Ms. S resides in Caloocan City and has a beauty parlor in Manila.
5. PLACES OF TAXATION: PERSONAL PROPERTY TAX Taxes on tangible properties are paid in the place where the property is located Taxes of intangible properties (immovable) is the owner’s domicile This refers to the place of permanent residence of the owner
6. AVOIDING TAXATION (NON-PAYMENT & ESCAPE FROM TAXATION) Shifting Capitalization Tax Avoidance (tax minimization) Tax Evasion (tax dodging) Tax Exemption
7. PASSING OF TAX BURDEN TO CONSUMERS SHIFTING
8. P51.53
9. CAPITALIZATION REDUCING THE PRICE OF A TAXABLE PRODUCT LOW PRICE = LOW TAX
10. TAX AVOIDANCE OR TAX MINIMIZATION MINIMIZING THE TAX DUE BY CONVERSION OR REDISTRIBUTION OF PROPERTIES
11. TAX EVASION OR TAX DODGING NOT DECLARING TAXABLE ITEMS ANNUAL TAX DUE: BEFORE APRIL 15
12. TAX EXEMPTION IMMUNITY BESTOWED BY LAW ON A TAXPAYER
13. CONSTITUTIONAL LIMITATION OF TAXATION
14. CONSTITUTIONAL LIMITATION OF TAXATION RELIGION/ CHARITABLE OR NON-PROFIT INSTITUTIONS GOVERNMENT ENTITIES INTERNATIONAL COMITY TERRITORIAL JURISDICTION
15. NO TAX ON RELIGIOUS PRACTICES/ PURPOSE NO TAX ON RELIGIOUS , CHARITABLE & NON-PROFIT INSTITUTIONS EXCEPT WHEN PRIEST IS ASSIGNED TO A GOVERNMENT OFFICE
16. PROHIBITION AGAINST TAXATION OF GOVERNMENT ENTITIES GOVT OBTAINS ITS REVENUE FROM TAXING ITS PEOPLE TAXING ONESELF WILL NOT GENERATE INCOME
17. EXCEPT FOR GOVERNMENT OFFICES: TASK IS TO HAVE PROFIT DUTY & FUNCTION TO GIVE SERVICE VS DUTY TO ACCUMULATE PROFIT
18. LIMITATION OF INTERNATION COMITY EXEMPTION OF FOREIGN DIPLOMATS SOVERIGN EQUALITY AMONG STATES UNDER INTERNATIONAL LAW
19. LIMITATION OF TERRITORIAL JURISDICTION A person, outside the state, may be taxed where there is relation between him and the taxing state. TAX LAWS ARE APPLICABLE WITHIN JURISDICTIONAL LIMITS
20. Baseline: outerpoints
21. LOCAL TAXATION LGUS CAN IMPOSE TAX ON LOCAL BUSINESSES WITHIN THEIR JURISDICTION EXCEPT FOR: INCOME TAX REGISTRATION FEES OF VESSELS PETROLEUM PRODUCTS VAT
22. LOCAL TAXES REAL PROPERTY TAX TAXES ON LAND, RESIDENTIAL, PROPERTY, COMMERCIAL, INDUSTRIAL BUILDINGS
23. AMUSEMENT TAX
24. DOCUMENTARY STAMP TAX IMPLIES AS A LEGAL EVIDENCE OF OWNERSHIP AND OBLIGATION
25. DOUBLE TAXATION
26. INDIRECT TAXES
27. SALES TAX
28. PERCENTAGE TAX
29. TAX RATE TABLE (REFERENCE FOR TAXABLE INCOME)
30. EXCISE TAX PER UNIT TAX SIN TAX TO DISCOURAGE THE CONSUMPTION OF SUCH GOODS