INCOME AND

BUSINESS TAXATION
TANONG KO – SAGUTIN MO
UNDERSTANDING TYPES OF BANK ACOUNTS
DEPOSIT SLIPS AND WITHDRAWAL SLIPS
PREPARATION OF CHECKS
 TANONG KO- SAGUTIN MO
The class will be grouped into two.
Each grouped shall come up with 2
questions- 1 easy and 1 difficult. The
questions will be answered by the
other group. If the group got the
correct answer, a corresponding plus
point will be given
 TANONG KO- SAGUTIN MO

SCORING:
EASY QUESTION – PLUS 1
DIFFICULT – PLUS 2
DEAL OR
NO DEAL
 INSTRUCTIONS:
The briefcase
contains trivia
questions regarding
Philippine taxation.
 INSTRUCTIONS:

Also, each question

corresponds to a
given point.
 LET’S
START!
 2 3 4

5 6 7 8

9 10
Who is the top 1 earning
celebrity of 2018 with an
income tax return of
P10,960,000,000?
SCORE: +2 OR -2
 What does
TRAIN stands
for?
SCORE: +1 OR -1
Who is the current
commissioner of
BIR?
SCORE: +1 OR -1
What is the parent
government
agency of BIR?
SCORE: +1 OR -1
 What is the annual
income range
exempted to pay
personal income tax?
SCORE: +2 OR -2
What is the primary
purpose of
taxation?
SCORE: +2 OR -2
You’ve got a bonus of
3 points.
Task: kantahin ang
highest note ng buwan
SCORE: +3 or 0
 Taxes are levied by
lawmaking body, levied on
persons and property,
levied for public purposes.
What is LEVY in Filipino?
SCORE: +2 OR -2
Give one country
that does not pay
income taxes?
SCORE: +1 OR -1
 When was TRAIN or
RA 10963 signed into
law by President
Duterte?
SCORE: +3 OR -2
 INCOME AND
BUSINESS TAXATION
 TAXATION

-process by which a
government, through its
lawmaking body, imposes
charges on its inhabitants to
raise money for public use
PURPOSE OF
TAXATION
 PURPOSES OF TAXATION
The primary purpose of
taxation is to raise revenues
that will be used in
defraying government
expenses
 PURPOSES OF TAXATION

The secondary purpose of

taxation is to achieve
certain social and
economic objectivesa
 SECONDARY PURPOSES
A. Regulate inflation
B. Minimize adverse effect
of certain activities
C. Equitable distribution of
wealth
NATURE OF
TAXATION
 1. INHERENT POWER
Taxation is one of the
three inherent
powers of a
sovereign state
 2. LEGISLATIVE

Taxation is a
process that is
legislative in nature
 3. SUBJECT TO
CONSTITUTIONAL
AND INHERENT
LIMITATIONS
The power of taxation is
considered plenary,
subject only to
constitutional and
inherent limitations
 INHERENT LIMITATIONS:
1. Purpose
2. Territorial jurisdiction
3. Non- delegation of legislative power
to tax
4. Tax exemption of government
entities
5. International comity
CONSTITUIONAL LIMITATIONS:
1. Due process and equal
protection of the laws
2. Rule of uniformity and
equity in taxation
 CONSTITUIONAL LIMITATIONS:

3. President’s power to veto tax bills

4. A law granting any tax exemption
needs the concurrence of the majority
of the Members of the Congress
5. Supreme court’s power to make final
judgment on tax cases
 CONSTITUIONAL LIMITATIONS:
6. Non imprisonment for non- payment of poll
tax
7. Exemption of religious, charitable, or
educational entities, non- profit cemeteries,
and churches from property taxes
8. Exemption of revenues and assets on non-
stock, non- profit educational institutions from
taxation
THEORY AND
BASIS OF
TAXATION
1.Reciprocal duties
of protection and
support
The government
protects the welfare of
the people, in return,
the people support the
government
2. Benefits received
people
Taxes are used
for the benefit of
the public
ASPECTS OF
TAXATION
 1. LEVY

Tax laws, specifying

the object and amount
of taxation, are
enacted
 2. COLLECTION

Tax laws are

implemented and
administered
 PRINCIPLES
OF TAXATION
 1. FISCAL ADEQUACY
Revenues should
be sufficient to
defray
expenditures
 2. THEORETICAL JUSTICE
Taxes are
proportionate to
the taxpayer’s
ability to pay
3. ADMINISTRATIVE FEASIBILITY

Tax laws can be implemented

efficiently and effectively,
avoiding unnecessary
inconvenience and confusion
on the part of taxpayers
TAXES
 TAXES
Mandatory contributions
imposed upon persons
and property for the
support of the
government
CHARACTERISTICS
OF TAXES
1. It is mandatory
2. It is levied by the
lawmaking body
3. It is imposed primarily
to raise revenues to the
governement
4. It is generally payable in money
5. It is proportionate in character
6. It is levied on persons and
property
7. It is levied for public purposes
CLASSIFICATIONS
OF TAXES
AS TO SUBJECT MATTER:
1. Personal, capitation or
poll tax
2. Property tax
3. Excise tax
PERSONAL, CAPITATION OR POLL TAX
Fixed amount charged to
all persons residing within
a specified territory
irrespective of their
occupation or property
 PROPERTY TAX

Tax imposed on
properties based on their
value or some other
method of appointment
 EXCISE TAX
Tax imposed upon the
performance of an act,
the enjoyment of a
privilege, or the engaging
in an occupation
AS TO WHO BEARS THE
BURDEN:
1. Direct Tax
2. Indirect tax
 DIRECT TAX
Tax which the
taxpayer must pay
and cannot shift to
another
 INDIRECT TAX

Tax which the

taxpayer can shift to
another
AS TO DETERMINATION OF
AMOUNT:
1. Ad Valorem
2. Specific
 AD VALOREM

Tax based on
the value of the
property
 SPECIFIC
Tax based on weight,
volume or other
physical unit of
measurement
AS TO SCOPE:
1. National Tax
2. Local Tax
 NATIONAL TAX

Tax levied by
the national
government
 LOCAL TAX

Tax levied by
the local
government
AS TO RATE OR
GRADUATION:
1. Proportional Tax
2. Progressive Tax
3.Regressive Tax
 PROPORTIONAL

Tax based on
a fixed rate
 PROGRESSIVE
Tax based on an
increasing rate as
the taxable amount
increases
 REGRESSIVE
Tax based on a
decreasing rate as
the taxable amount
increases
INCOME TAX VS
BUSINESS TAX
 INCOME TAX
Tax on a person’s income
derived from employment,
business, trade, practice of
profession, or from property,
after excluding the deductions
allowed by law
 BUSINESS TAX
Tax on the production, sale,
or consumption of goods
and services, leasing of
property, or other business
activities