CONCEPTS OF TAXATION. Chapter 16 ECONOMICS: its concepts and principles By: BKG Gabay RM Remotin, Jr. EAM Uy. Definition of Terms. TAXATION is defined in many ways. Commonly heard definitions include:
ECONOMICS: its concepts and principles
By: BKG Gabay
RM Remotin, Jr.
TAXATION is defined in many ways.
Commonly heard definitions include:
It is the process by which the sovereign, through its law making body, races revenues use to defray expenses of government.
It is a means of government in increasing its revenue under the authority of the law, purposely used to promote welfare and protection of its citizenry.
It is the collection of the share of individual and organizational income by a government under the authority of the law.
Taxationis the inherent power of the state to impose and demand contribution upon persons, properties, or rights for the purpose of generating revenues for public purposes.
The power of taxation upon necessity and is inherent in every government or sovereignty.
Primary purpose: generates funds or revenues use to defray expenses incurred by the government in promoting the general welfare of its citizenry.
Tax distinguished from Toll
Tax distinguished from Penalty
Tax distinguished from Debt person or property.
Tax distinguished from other Terms
Situs is a latin term which means “situation”, “location”, or “place.” In short, its literal meaning refers to a place taxation. In real property, the rules is tax is imposed to a place or state where the property is located and subject to be tax has a jurisdiction over the said property.
Direct Duplicate person or property.
By the same taxing authority
Within the same taxing jurisdiction
For the same purpose
In the same taxable period
Involving the same purpose
Indirect duplicate taxation, on the other hand, occurs when taxes on the property are not imposed by the same taxing authority. The local and national governments imposed taxes on the same property during one taxable period. This kind of imposition is legal.Double Taxation
6 forms of escape from taxation
Kinds of Shifting
Grounds for tax exemption:
Contract, wherein the government is the contracting party.
Glaiza E. Mata
Gregar Donaven E. Valdehueza, MBA