READINGS IN PHILIPPINE HISTORY | FIRST SEMESTER
BASIC TAXATION PRINCIPLES
POWERS OF THE STATE
Three Inherent Powers of the State
1. Police Power
- The state's power to enact laws to
promote public safety and order,
public health, public morals,
education, and general welfare.
2. Power of Eminent Domain
- The power of the state to take
private property for public purposes
upon payment of a just
compensation.
- Examples: road widening,
construction of highways
3. Power of Taxation
- The power of the state to exact
proportional contributions from its
people to cover the cost of
government expenditure.
TAXATION
- Is the inherent power of the state to demand
contributions for public purposes.
- Taxes will be used for government
operations and contributions to nation-
building projects.
Taxes
- Are the enforced proportional contributions
from persons and property levied by the
lawmaking body of the state by virtue of its
sovereignty for the support of the
government and all public needs
TAXATION SYSTEM
Bureau of Internal Revenue (BIR)
- Shall be under the supervision and control
of the Department of Finance
- (BIR MANDATE) Its powers and duties shall
comprehend the assessment and collection
of all internal revenue taxes, fees, and
charges, and the enforcement of all
forfeitures, penalties, and fines connected
therewith
- Includes the execution of judgments
in all cases decided in its favor by
the Court of Tax Appeals and the
ordinary courts.
- Shall give effect to and administer the
supervisory and police powers conferred to
it by the Internal Revenue Code or other
laws.
Commissioners of Internal Revenue
- Caesar R. Dulay (2020)
- Kim Jacinto Henares (former commissioner;
before Dulay)
- Joel Y. Tan-Torres (former Head of the
Board of Accountancy)
TRAIN LAW
Tax Reform for Acceleration and Inclusion
- Republic Act no. 10963
- Amending numerous sections of the
Republic Act No. 8424, National Internal
Revenue Code of 1997 (Tax Code)
- January 1, 2018
- Nagkaroon ng tax reforms which is
the TRAIN Law
ESSENTIAL CHARACTERISTICS OF TAXES
- It is an enforced contribution since it is a
power of the state.
- Tax evasion- failure to pay taxes
- It is generally payable in money.
- It is proportional in character.
- Only a portion of an income is
subjected to taxation.
- It is levied on persons or property.
- Imposed on owners/people and their
properties.
- It is levied by the state that has jurisdiction
over the person or property.
- Imposed by the local government
that has jurisdiction over the person
and their property.
- It is levied by the lawmaking body of the
state.
- Legislative
- It is levied for public purposes
- It is commonly required to be paid at regular
periods or intervals.
- Monthly- income (sahod)
- Quarterly- value-added taxes
- Annually- income taxes, income
taxes on business, corporate income
taxes
