TAXATION Session 2

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

a levy imposed by governments on legal entities, individuals or property. Principal source of revenue for the government. Local authorities like local governments, provincial governments, counties and municipal corporations also have the right to impose taxes. The rates, rules, and regulations of taxation

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

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 economic system 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

Personal Community Tax Property Real Estate Tax Excise or priviledge VAT Donors tax

Specific no assessment needed Ad valorem value to be assessed

General, fiscal or revenue regular taxes Special or regulatory additional customs and duties

National National taxes Municipal or local real estate tax

Proportional fixed percentage Progressive Income tax Regressive - None

Income tax Wealth tax Gift tax Expenditure tax Interest tax

Capital Gains Tax Documentary Stamp Tax Donor's Tax Estate Tax Income Tax Percentage Tax

Value Added Tax Withholding Tax on Compensation Expanded Withholding Tax Final Withholding Tax . Withholding Tax Money Payments Excise Tax on Government

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Capital Gains Tax Donor's Tax Income Tax

Withheld at PSE (stocks) or Paid through BIR (Real Property) through BIR Withheld at company (individual) remitted to BIR (corporate)

Value Added Tax (VAT) Expanded Withholding Tax Withholding Tax on Government Money Payments Documentary Stamp Tax Estate Tax Percentage Tax

Withheld at source Withheld at source

Withheld at source through BIR through BIR Withheld at source Withheld at source Withheld at source

Withholding Tax on Compensation Final Withholding Tax -

(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

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

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

TITLE XI ALLOTMENT OF INTERNAL REVENUE TITLE XII OVERSIGHT COMMITTEE TITLE XIII REPEALING PROVISIONS TITLE XIV FINAL PROVISIONS

 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