TAXATION EXAM REVIEW

Summary

The transcript covers a review session on taxation, emphasizing its inherent power as a function of the state. It discusses key taxation concepts such as proportionality, legislative power in imposing taxes, and the roles of taxation, police power, and eminent domain. The speaker explains progressive and regressive tax systems, tax amnesty, the ability-to-pay principle, and the structure of direct and indirect taxes. The session also highlights important exam topics, offering advice to students about upcoming exams, and includes a motivational incentive for top performers.

Takeaways

• 📜 Taxes are a power of the state to impose financial burdens on persons and property.
• ⚖️ The principle of taxation should be proportionate to the taxpayer’s ability to pay, known as theoretical justice.
• 🏛️ The legislative branch imposes taxes, while the executive branch collects them.
• 🔑 The three inherent powers of the government are taxation, police power, and eminent domain.
• 📈 A progressive tax system means taxes increase as the tax base increases.
• 📜 Tax amnesty refers to a general pardon where the government waives its right to collect certain taxes.
• 💼 Fiscal adequacy means the tax system must meet the expanding needs of the government.
• 🏦 The Bureau of Internal Revenue (BIR) is responsible for collecting taxes in the Philippines.
• 🌎 A resident alien is taxed on both their local and worldwide income.
• 💡 The power to tax is legislative in nature, and any tax exemption provided by the Constitution is self-executing.

Q & A

What is the inherent power of the state to impose financial burdens on persons and property?

The inherent power of the state to impose financial burdens on persons and property is called taxation.

What principle states that taxes should be proportionate to the taxpayer's ability to pay?

This principle is known as theoretical justice.

Which branch of government is responsible for implementing and collecting taxes?

The executive department is responsible for implementing and collecting taxes.

What are the three inherent powers of the government?

The three inherent powers of the government are taxation, police power, and eminent domain.

What does a progressive tax system imply?

A progressive tax system implies that the tax rate increases as the tax base increases.

What is the principle of fiscal adequacy?

Fiscal adequacy is the principle that the tax system must meet the expanding needs of the government.

What is the primary purpose of taxation?

The primary purpose of taxation is for the government to collect revenue to fund its projects.

Is the power to tax delegated to the President?

No, the power to tax is not delegated to the President. It is provided for by the Constitution.

What is the rule on taxation concerning uniformity and equity?

The rule on taxation is that it should be uniform and equitable.

What is the nature of a corporate income tax?

A corporate income tax is an example of a proportionate tax and is considered direct taxation.