Fundamentals of taxation|2023 LATEST UPDATE|GUARANTEED SUCCESS

Taxation is the process of collecting fees or taxes from the individuals who earn income from compensation or business profits to raise revenues for govn. expenditures and other services nature of taxation is the relationship or cycle that shows how the govn. and its citizens benefit from each other through taxation principle of taxation states that taxes are collected to support the govn. in its expenses and services for public welfare. donation and borrowing other choose to the principle of taxation canons of taxation refer to the basic principles of a sound tax system fiscal adequacy means that taxes collected by the BIR must be sufficient administrative feasibility means that payment of taxes must be taxpayer-friendly theoretical justice refers to the "ability-to-pay" principle theoretical justice this means that tax burden must be in proportion to the taxpayer's level of income situs of taxation place or location situs of taxation place where to the taxes are to paid income tax this is paid either in the place where income is earned or the place of residence of the taxpayer Real Property Tax this is paid where the property is situated Personal Property Tax can be tangible or intangible. tangible properties paid in the place where the the property is located intangible properties is the owner's domicile. this refers to the place of permanent residence of the owner. Business and Occupation Taxes this is paid in the place where the business or occupation is located inherent limitation are rooted in the nature of the taxation inherent limitation these are specific limitation that are not affected by changes in the provisions of the constitution inherent limitation the tax revenues must be used for public purpose inherent limitation there should be proper delegation of legislative power to tax inherent limitation govn. entities are exempted inherent limitation there are territorial jurisdictions inherent limitation there is observance of international law constitutional limitation are those limitation provided in the constitution constitutional limitation observance of due process of law constitutional limitation equal protection of the law constitutional limitation uniformity and equity rule constitutional limitation non-imprisonment for non-payment of poll tax constitutional limitation No appropriation for religious purposes double taxation refers to an instance when an income, a property, or transaction was imposed with two or more taxes by taxing authority in the same year avoiding taxation ... shifting the passing on the tax burden from one person to another capitalization done by reducing the price of the taxable product or services to lower the tax that will be imposed on its consumption tax avoidance refers to the availing by the taxpayer of legally allowable means in reducing or minimizing the tax due on certain properties