Unit 12 Session 2

8/3/2019 Unit 12 Session 2

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TAXATION

Session 2


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Review of Last session

Test of baseline knowledge

Purpose and types of taxation

Different Methods of collection

Tax Legislation

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The act of laying a tax, or of imposing taxes, as

on the subjects of a state, by government, or on the

members of a corporation or company, by the proper

authority;

The raising of revenue by the government or also a

system of raising revenue by the government

the imposition of taxes; the practice of the government

in levying taxes on the subjects of a state


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a levy imposed by governments on legal

entities, individuals or property.

Principal source of revenue for thegovernment.

Local authorities like local governments,

provincial governments, counties andmunicipal corporations also have the right to

impose taxes.

The rates, rules, and regulations of taxation


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Enforced Contribution

Proportionate in character

Generally payable in money

Levied on persons or property

Levied by the state which has jurisdiction

Levied by the law-making body of the state

Levied for public purpose (s)


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The main purpose of taxation is to

accumulate funds for the functioning of the

government machineries.

To provide funds or property with which to

promote the general welfare and protection of its

citizens

Raising revenues for governmental needs

May also be exercised to attain various social and

economic objectives


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Increase in effectiveness and productivity of the nation

Increase in the quantum of revenue collection of the

government

Improvement in services of the government

Improve employment at all industries

Induction of modern technology in to the system

Rationalization of terms and condition of the economicsystem

Rationalization of employment terms and conditions


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Direct Tax Corporate or

Individual Income tax

Indirect Tax Business Tax

like VAT, excise Tax


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Personal Community Tax

Property Real Estate TaxExcise or priviledge VAT

Donors tax


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Specific no assessment

needed

Ad valorem value to be

assessed


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General, fiscal or revenue

regular taxes

Special or regulatory

additional customs and duties


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National National taxes

Municipal or local realestate tax


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Proportional fixed

percentage

Progressive Income tax

Regressive - None


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Income tax

Wealth tax

Gift tax

Expenditure tax

Interest tax


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Capital Gains Tax

Documentary Stamp Tax

Donor's Tax

Estate Tax

Income Tax

Percentage Tax


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Value Added Tax

Withholding Tax on Compensation

Expanded Withholding Tax

Final Withholding Tax .

Withholding Tax on GovernmentMoney Payments

Excise Tax


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Capital Gains Tax - Withheld at PSE (stocks) orPaid through BIR (Real Property)

Donor's Tax - through BIR

Income Tax - Withheld at company(individual)

remitted to BIR (corporate)

Value Added Tax (VAT) - Withheld at source

Expanded Withholding Tax - Withheld at source

Withholding Tax on Government

Money Payments - Withheld at source

Documentary Stamp Tax - through BIR

Estate Tax - through BIR

Percentage Tax - Withheld at source

Withholding Tax on Compensation - Withheld at source

Final Withholding Tax - Withheld at source


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(a)Authorized Agent Banks (Cash)

Over the counter

Bank debit system

Check

Electronic payments

(b)Check Payments


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REPUBLIC ACT NO.

8424- TAX REFORM

ACT OF 1997


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TITLE I ORGANIZATION AND FUNCTION OF THE

BUREAU OF INTERNAL REVENUE

TITLE II TAX ON INCOME

TITLE III ESTATE AND DONOR'S TAXES

TITLE IV VALUE- ADDED TAX

TITLE V OTHER PERCENTAGE TAXES


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TITLE VI EXCISE TAXES ON CERTAIN GOODS

TITLE VII DOCUMENTARY STAMP TAX

TITLE VIII REMEDIES

TITLE IX COMPLIANCE REQUIREMENTS

TITLE X STATUTORY OFFENSES AND

PENALTIES


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TITLE XI ALLOTMENT OF INTERNAL

REVENUE

TITLE XII OVERSIGHT COMMITTEE

TITLE XIII REPEALING PROVISIONS

TITLE XIV FINAL PROVISIONS


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Transactions with the BIR

Advising Clients

Calculating liabilities

Confidentiality

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Explain the role and

responsibilities of

the tax practitioner

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The Fundamentals of Taxation 2009, Hector S. De

Leon & Hector M. De Leon, Jr., Rex Book Store ISBN

978-971-23-5282-9 http:\\www.bir.gov.ph

Documents

Unit 12 Session 2