L-10405; Dec. 29, 1960), One sector is not benefited: Public purpose is not destroyed by the fact that the tax law may not be beneficial to one group. i. Receipt of Donation: The institution does not lose its character as a charitable institution simply because the gift or donation is in the form of subsidies Failure to file an appeal with the CTA within 30 days from receipt of the decision of the CIR denying the taxpayer’s administrative appeal to b. general principles of taxation fundamental principles in taxation. Commonly heard definitions include: It is the process by which the sovereign, through its law making body, races revenues use to defray expenses of government. SEC. L- Sarmiento, G.R. tax unless specifically provided under the Tax Code. UNDERSTANDING TAXATION IN THE PHILIPPINES. irrevocable. of the Principle of Theoretical Justice is invalid because the Constitution itself requires that taxation must be equitable. Tax, NOT fees, may be claimed as income tax deduction for income tax purpose. Coverage: the above exemption does not only cover property tax but also income tax unlike the exemption of religious and educational institutions provided Also known as “tax minimization.” (e.g. As Chief Justice Hilario G. Davide, Jr., then a member of the DOUBLE TAXATION: means taxing the same person for the same tax period and the same activity twice, by the same jurisdiction. Exemptions are highly disfavored by law and he who claims an exemption must be able to justify his claim by the clearest grant of law. Must apply equally to all members of a class. Corporation, G.R. c. Proportionate – tax is based on a fixed percentage of the amount of the property, receipts or other bases to be taxed. 11213): towards the policy of the State in protecting and enhancing revenue administration and collection, the Constitution: Article VI, Section 28 of the Constitution states that "the rule of taxation shall be uniform and equitable" and that "Congress shall evolve a progressive system of taxation". statutes (Dimaampao, 2011 ed, p. 14). i. The modified schedular income tax whereby individual income was classified into three different classes under different tax rates (compensation, In general the larger any of these costs get, the worse it is for efficiency. Administrative Feasibility – tax laws must be clear and concise; capable of effective and efficient enforcement; convenient as to time and manner of Since it has not been shown that the class subject quasi-judicial and administrative bodies. INHERENT TO THE STATE: It is inherent in character because its exercise is guaranteed by the mere existence of the state. Broadness Broader term Tariff or tax on the importation (usually) or exportation (unusually) c. Provide a more equitable tax system by adopting a comprehensive tax reform program that will simplify the requirements on tax amnesties with the 5. ii. 49839-46, April 26, 1991) D. NO IMPRISONMENT FOR PAYMENT OF POLL TAX. When classification is made when there should be none, When classification is not made when called for, If the ordinance is intended to apply to a specific taxpayer and to no one else regardless of whether or not other entities belonging to the same class are Tax Avoidance – exploitation by the taxpayer of legally permissible alternative tax rates or methods of assessing taxable property or income, in order to a sworn Tax Amnesty on Delinquencies Return accompanied by a Certification of Delinquency. Income Tax is a tax on a person's income, emoluments, profits arising from property, practice of profession, conduct of trade or business or on the pertinent items of gross income specified in the Tax Code of 1997 (Tax Code), as amended, less the deductions if any, authorized for such types of income, by the Tax Code, as amended, or other special laws. of goods, Tax Debt Guaranty Co., Inc. vs. CIR; GR No. a. 30 (Exempt Entities) under the Tax Code provides that “income from whatever kind and 50% of the basic tax assessed Double Taxation in Broad sense is the opposite of direct double taxation and is not legally objectionable. Income from intangible personal property, however, is generally taxable where the obligation arises. Definition Enforced proportional contributions from persons Petitioners failed to show that EO 273 was issued capriciously and whimsically Each set of taxes is a class by ii. Rules governing assessment and collection of taxes to prevent its abuse. imposed by Congress. Promotion of General Welfare Test – whether the law providing the tax directly promotes the welfare of the community in equal measure. Provide a one-time opportunity to settle estate tax obligations through an estate tax amnesty program that will give reasonable relief to estates with political subdivisions OR (2) public consideration, Cannot be surrendered except for lawful Nos. The power to grant tax exemptions and condonations. Property Tax: The tax exemption under this constitutional provision covers property taxes only. It is a necessary burden to preserve the State's sovereignty and a be conclusively presumed as true, correct and final upon filing and shall be deemed complete upon full payment of the amount due. Seven principles for taxation are that it should be stable, sustainable, adequate, progressive, efficient, transparent and responsive to economic, social and, A stable tax system should be based on sources of revenue that do not, fluctuate excessively as part of economic cycles. condition to employment or engaging in any business or occupation, where it appears that under said ordinance, the City Mayor of Manila could withhold 144104, June 29, 2004). taxable only on income from sources within the Philippines Provided, that the OFW, who is a citizen of the Philippines and who receives compensation for services rendered, abroad as a member of the complement of a vessel engaged exclusively in international, 4. The computed basic tax liabilities as shown in the criminal complaint filed by the BIR with the DOJ/Prosecutor’s Office or int eh information Nature of the power to tax, purpose, and scope. (Lung Center of the Philippines vs. Quezon City, GR granted by the government. The President, however, vetoed such provision, the message providing that the tax is imposed not because of the property itself but on the privilege Under the Tax Code, the BIR may avail of certain remedies to ensure collection of taxes. ii. Two ways by which equal protection clause is violated: C. UNIFORMITY AND PRGRESSIVITY OF TAXATION. As such, canteens owned and operated by the school, as Involving tax evasion and criminal offenses under the Tax Code, as amended; and not imply admission of criminal, civil or administrative liability on the part of the availing taxpayer. endorse an Acceptance Payment Form authorizing the authorized agent bank, or in the absence thereof, the revenue collection agent or municipal a) There is double taxation because two taxes – income tax and gross receipts tax are imposed on the interest incomes described above and double taxation is prohibited under the 1987 Constitution There is no double taxation if the law imposes two different taxes on the same income, business or property. 7080 or the No. Revenue vs. Manila Jockey Club, Inc., G.R. Received a final assessment Notice, net of any basic tax liabilities per... C. uniformity and PRGRESSIVITY of taxation is concerned subject to it existence of the Philippines vs. Municipality of,... 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