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Capitalization is the reduction of price in the part of seller while the buyer pays for the
tax.
Taxes are not subject (so with exceptions) to set-off or legal compensation because the
taxpayer and the government are not creditor/debtor of each other.
Tax is power to build not power to destroy
Nature of Tax
Citizenship
Within the
Phil
Outside the
Phil
Income Tax
Filipino - Resident
Filipino Non
Resident
Alien Resident
Alien Non
Resident
Filipino - Resident
Filipino Non
Resident
Alien Resident
Alien Non
Resident
Yes
Yes
Yes
No
Yes
Yes
No
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
No
Transfer Tax
Business Tax
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As to
As to
As to
As to
increases
Regressive Rate
increases
Digessive Rate
increase in tax base
Mixed Tax
Other Charges/Fees
Penalty
-violation of law or acts
Revenue
-all funds or income derived by government.
Debt
-is an obligation to pay
Toll
-compensation for the use of somebody else property
License Fee
-contribution enforced primarily to restrain and regulate
Special Assessment
-for the purpose of reimbursing itself
Customs duties
-all custom duties are taxes but not the opposite
Subsidy
-a subsidy is not a tax
Tariff
-imposed on imported goods
Margin fee
-tax on foreign exchange
Tax Law Republic Act 8424
The Comprehensive Tax Reform of the Philippines
National Internal Revenue Code of 1997
Tax Code
Tax Code is a special law which means it prevails over general law like Civil Code.
Tax law is civil in nature (neither political nor penal)
Interpretation and Application of Tax Laws
Principle of Pari Materia tax law should be with reference to other tax legislations.
Tax burden is not presumed or not to be extended by implication.
Doubts should be resolved liberally in favor of the taxpayer
Tax exemptions must be clearly expressed by the law, not mere implications.
Prospective application
Tax laws prevail over civil laws
Overrule hierarchy
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