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.

Outlines

00:00

💼 Introduction to Taxation Principles

The paragraph introduces the concept of taxation as an inherent power of the state. It explains the principle of theoretical justice, which states that taxes should be proportional to an individual's ability to pay. The legislative process of taxation, where the legislative department creates tax laws and the executive department collects taxes, is discussed. The paragraph also outlines the three inherent powers of the government: taxation, police power, and eminent domain. Finally, the concept of progressive taxation is explained, where the tax rate increases as the tax base increases.

05:02

⚖️ Understanding Delegation and Tax Systems

This paragraph delves into the delegation of tax powers, clarifying that the power to tax is not delegated to the president but is constitutionally guided. It explains the 'ability to pay' principle as a sound basis for taxation and provides examples of direct taxes like corporate income tax. The rule that taxation must be uniform and equitable is emphasized, and it is clarified that non-payment of certain taxes does not result in imprisonment. The paragraph concludes with a reiteration that the power to tax is legislative and must follow the benefits and protection theory.

10:03

📚 Key Points for the Upcoming Exam

The third paragraph focuses on preparing for the upcoming exams, with reminders about key taxation concepts such as tax exemptions, resident alien taxation on global income, and the inherent limitations of taxation (e.g., territoriality). It stresses that constitutional provisions on taxation are self-executing and do not require additional laws for enforcement. The speaker also mentions the structure of the upcoming exams, emphasizing that most of the discussed topics will be included. The speaker motivates students by mentioning a reward of Php500 for the top scorer in each section.

Keywords

💡Taxation

Taxation is an inherent power of the state to impose financial burdens on persons and property. It is crucial for the functioning of the government as it provides the necessary revenue to fund public projects and services. The video emphasizes that taxation is legislative in nature, while the executive branch is responsible for collecting taxes.

💡Ability to Pay Principle

This principle suggests that taxes should be proportionate to the taxpayer's ability to pay. In other words, those with higher incomes or wealth should contribute more to public funds. The concept is tied to theoretical justice, ensuring fairness in the tax system as discussed in the video.

💡Levy

Levy refers to the legislative act of imposing a tax. It is one of the two main aspects of taxation, the other being collection. In the video, the speaker distinguishes between these two aspects, highlighting that levy is the responsibility of the legislative branch.

💡Progressive Tax

A progressive tax is a system where the tax rate increases as the tax base (income or wealth) increases. The video explains that the Philippine tax system follows a progressive model, meaning wealthier individuals pay a higher percentage of their income in taxes.

💡Eminent Domain

Eminent domain is the government's power to take private property for public use, provided that just compensation is given. The video mentions this as one of the three inherent powers of the government, along with taxation and police power.

💡Police Power

Police power refers to the authority of the government to regulate behavior for the public's welfare, safety, and health. It is one of the three inherent powers of the state, alongside taxation and eminent domain, as discussed in the video.

💡Bureau of Internal Revenue (BIR)

The BIR is the government agency responsible for collecting taxes in the Philippines. The video highlights the role of the executive branch in tax collection and mentions the BIR specifically as the agency in charge of this function.

💡Tax Amnesty

Tax amnesty is a general pardon that involves the waiver of the government's right to collect unpaid taxes. The video defines this as a temporary relief granted to taxpayers, which encourages compliance with the tax system by allowing them to clear their obligations without penalties.

💡Fiscal Adequacy

Fiscal adequacy is the principle that the tax system must generate sufficient revenue to meet the growing needs of the government. The video stresses the importance of this principle in ensuring that taxes can fund expanding public services and infrastructure.

💡Territoriality

Territoriality in taxation refers to the principle that taxes are only imposed on income or assets within a specific jurisdiction. The video mentions this as an inherent limitation of taxation, meaning a government cannot tax income or property outside its territory.

Highlights

There will be 10 identification questions in the exam, each worth 2 points.

Taxation is an inherent power of the state to impose financial burdens on persons and property.

The principle that taxes should be proportionate to the taxpayer's ability to pay is called theoretical justice.

Taxation is a legislative power, but the executive branch is responsible for collecting taxes.

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

Progressive tax systems increase as the tax base increases.

The Bureau of Internal Revenue (BIR) is the agency responsible for collecting taxes.

Tax amnesty refers to a general pardon, waiving the government's right to collect taxes.

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

The main purpose of taxation is to raise revenue for government projects, not to control public behavior.

Income tax is an example of direct taxation.

Nonpayment of poll taxes does not result in imprisonment.

The benefits and protection theory highlights the reciprocity between the state and its citizens.

A resident alien is taxed on worldwide income, both from within and outside the Philippines.

The Constitution provides for self-executing tax exemptions that do not require any additional legislation.

Transcripts

20 item 20 points and

Identification is also equivalent to Two

points each There Will Be 10 questions

under the Identification so now let's

Begin we all know the taxation is

inherent power of the state to impose

financial burdens on persons and

property so the principle that taxes

should be proportionate to the tax

payers ability to pay is what we call

also theoretical justice always remember

that the government cannot exist without

taxation so as to the aspect of taxation

that refers to the legislative Act of

imposing tax as you can remember we have

collection and

Levy Levy refers to the aspect of

taxation that refers to the legislative

Act of

tax the taxation is legislative in

nature but it is the executive

department who implements and collects

the taxes kumbaga si legislative

department lang nagpanday sa mga balaod

we've also discussed the three inherent

powers of the government as you can

remember taxation police power and

eminent domain taxation refers to the

ability of the government to impose

taxes or impose Burden upon persons or

property whereas eminent

domain refers to the state the power of

the state to take private property for

public use whereas police power is the

power of the government to regulate the

behavior for the public welfare As I've

also mentioned that we have a

progressive system of taxation when we

say progressive tax It is a tax that

increases as the tax base increases so

therefore DU sila kabuok nag-increase

tax base and ang tax

Okay the location where a tax is imposed

was also discussed or what we call cus

of taxation ' ba there are different

types sa seus of taxation Depende if

resident alien siya or nonresident alien

now the administrative branch of the

government or the executive branch of

the

government Siya ang nag collect sa taxes

ang agency

as to the collection of taxes is the

bure of

Internal Revenue we've also discussed

about tax

amnesty when we see tax amnesty It is a

general pardon involving a waver of the

government's right to collect taxes so

tax amnesty take note of the word

general pardon so tanan na ay mag aning

tax

amnesty In Line with the theoretical

justice we've also discussed with about

fiscal adequacy when we say fiscal

adequacy it is the principle that the

tax system must Meet the expanding needs

of the government So this is the reason

why kinahanglan mo increase taripa ang

gobyerno batok sa mga taxes or saong

local government code kinahan siya ma

amendahan every 5 years because the

taxes should Meet the needs of the

government So are you still

following

pa Maam now the primary purpose of

taxation is not to control the public

behavior the primary purpose of taxation

is for the government to collect money

para na siya panggasto sa sa mga

projects niya there are two aspects of

taxation Levy and

collection always remember as well the

three inherent powers of the state

taxation police power and eminent

domain there are certain instances

wherein taxation is del

however a statement that power to tax is

delegated to the president is

incorrect because it is the constitution

who provided for the

delegation sa President delegate sa

President fixing of the tar customs

duties

import president

the ability to pay principle is also a

sound basis for

taxation also Please take note of the

definition of regressive

tax and remember that a corporate income

tax is an example of a proportionate

tax when you are asked if

the income tax is a direct tax or an

indirect tax an income tax is considered

as a direct taxation Okay it is an

example of a direct

tax always remember that the rule on

taxation is uniform and equitable

and also remember the concept that

nonpayment of po tax does not lead to

imprisonment w makulong if you do not

pay your po

tax so the Main Purpose of taxation

again is not to control the people but

Revenue and the power to tax is

legislative in

nature and that the benefits and

protection theory is based on the

reciprocity between the state and the

citizens also remember the definition of

the progressive tax system very

agressive tax

system

and tax

exemptions are self executing

constitutional

grants so also remember that a resident

alien shall be taxed on its worldwide

income so From Within And without the

philippines so katong imong Gina earn

abroad and Ang imuhang gina earn dire sa

Philippines if you are a resident

Citizen meaning dirik ka sa Philippines

nagpuyo m

Okay also remember that inherent

limitation of taxation includes

territoriality and kin may nagaingon ng

taxation shall be uniform and equitable

it is the constitution which

provides for the said

doctrine

Okay I think that's it perfect Nam mo

basta si if the constitution provides

for the exemption it is considered as a

self executing ng balaod it does not

require any Republic Act for it to be

enforceable kuha n

so just take note of the things that

I've discussed for tonight because most

of them will come out during sa exams so

There Will Be three sets sa exams ninyo

This

coming Saturday I don't know if magung

Pao another set kay medyo ang setup m sa

AVR is makita ninyo ang iny UB So good

luck in exams I've designed the First

exam as very easy for you

to build up more grades Okay I know pag

midterms and finals daghan Nam

Moog kaang subjects okay that's it for

tonight Thank you very much for

attending today's review wala din nako

Siya na-record na-record ba nako

na-record ata so thank you very much ay

wala si sige ba-bye thank you see you

Saturday Ma'am you Ma'am we not have our

class next Thursday because kinanan

moong mag-study Okay thank you Thank you

ma'am bye Thank you bye Ay By the way By

the way I give

Php500 kung I will give Php500 kung

kinsa man ang top one sa exam so per

section niyo siya ha per section So if

na mag maga mo sa 500 Okay lumoy you

have a

question last

we

medal Okay Yes Yes thank

youniz wala del ko mag attendance ay

Sige po

okay sige sige