Post on 06-Apr-2018
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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