Rabu, 11 Juni 2014

download materi Taxation



TAXATION
        History of Taxation
        importance of taxation to the taxpayers and to the government
        Kinds and Characteristics of Taxes
        Taxation System in the Philippines

History
        During the reign of Egyptian Pharaohs
     Scribes as tax collectors
        In Greece
     A tax referred to as Eisphora was imposed only in times of war
        In Athens
     A monthly tax called Metoikon was collected to foreigners
        Ancient Greek Taxation
     Taxation was used as an emergency power. Additional resources gained from war were used to refund tax previously collected from the people

        Earliest taxes in Rome
     Taxes known as Portoria were customs duties on imports and exports
     Augustus Caesar introduced the inheritance tax to provide retirement funds for the military. The tax was five percent on all inheritances except gifts to children and spouses  
        In England
     Taxes were first used as an emergency measure
     Taxes on income or capital were a recent development as a result of increasing government intervention in the economy
        In the Philippines
     The pre-colonial society, being communitarian, did not have taxes



      In Modern Industrial Nations
   The government designates a tax base (such as income, property holdings, or a given commodity)
   A Tax Law is a body of rules passed by the legislature by which the government acquires a claim on tax payers to convey, transfer and pay to the public authority

Taxation
       The system of compulsory contributions levied by a government or other qualified body on people, corporations and property in order to fund public expenditures.
       An inherent power of the state to raise income and to demand enforced contributions for public purposes.
 
    Purposes Taxation
        to raise revenues for public needs so that persons can live in a civilized society
       The government increase taxes in order to stabilize prices and stimulate greater production.
       An instrument of fiscal policy influences the direction and structure of money supply, investments, credits, production, interest rate, inflation, prices and in general, of the national economy
       Characteristics of a sound Tax system
    Fairness
    Clarity and Certainty
    Convenience
    Efficiency

   Effects of Taxation
        Personal Income Tax which is presumed to fall entirely on the legal taxpayers influences decisions to work, save, and invest. These decisions affect other people.
        Corporate Income Tax may simply result to lower corporate profits and dividends. It may reduce their income of all owners of property and businesses. The company may move toward raising the prices of their products

    Taxation in the Philippines
       The legislative branch enacts laws to continually revitalize the taxation policy of the country
      BIR (Bureau of Internal Revenue)
   Mandated to comprehend the assessment and collection of all national internal revenue taxes, fees and charges so as to promote a sustainable economic growth


    Taxation in the Philippines
       Republic Act No. 8424 (Comprehensive Tax Reform Act of 1997)
  Tax Payer: any person subject to tax whose sources of income is derived  from within the Philippines
  TIN (Taxpayer Identification Number) is required for any individual taxpayer


    Taxation in the Philippines
      Tax Reforms:
    Lower income tax rates to enhance the competitiveness of the Philippines in the region
    Removal of areas which provide avenues for tax avoidance and abuse
    Exemption of OFWs from payment of tax for income earned outside the Philippines
    Simplification of the tax system which encourages payments from tax payers including those from the underground economy
    Taxation in the Philippines
      Taxes are collected within a particular period of time know as taxable year
   This is the calendar year or the fiscal year that covers an accounting period of 12 months ending on the last day of any month other that December.


  Kinds of taxes
        Income Tax
    Tax on all yearly profits arising form property, possessions, trades or offices
    Tax on a person’s income, emoluments and profits
        Donor’s Tax
    Tax imposed on donations inter-vivos or those made between living persons to take effect during the lifetime of the donor.   
        Estate Tax
    Tax on the right of the deceased person to transmit property at death

  Kinds of taxes
        Value-added Tax (VAT)
    Tax imposed and collected on every sale, barter, exchange or transaction deemed sale of taxable goods, properties, lease of goods, services or properties in the course of trade as they pass along the production and distribution chain
        Capital Gains Tax
    Tax imposed on the gains presumed to have been realized by the seller for the sale, exchange or other disposition of real property located in the Philippines, classified as capital assets
  Kinds of taxes
       Excise Tax
   Tax applicable to specified goods manufactured in the Philippines for domestic sale or consumption
   Specific tax: imposed on certain goods based on weight or volume capacity or any other physical unit of measurement (Specific tax = volume x tax rate)
»   Alcohol products, petroleum products, tobacco products
   Ad valorem tax: imposed on certain goods based on selling price or other specified value of the goods
      (Ad valorem tax = selling price x tax rate)
»   Mineral products, automobiles
  Kinds of taxes
       Documentary Tax
   Tax on documents, instruments, loan agreements and papers, agreements evidencing the acceptance, assignments, sale or transfer of an obligation, rights or property incident thereto
  Withholding tax
     Expanded withholding tax:
A system of collecting taxes whereby the taxes withheld on certain income payments are intended to equal or at least approximate the tax due of the payer on said income.
  Withholding tax
     Final withholding tax:
  A system of collecting taxes whereby the amount of income tax withheld by the withholding agent is constituted as a full payment of the income tax due form the payer on the said income. The payer is not required to file an income tax return for the particular income.

  Withholding tax
     Withholding tax for compensation income:
  Commonly referred to as pay as you go or pay as you earn.
  A method of collecting the income tax at source upon receipt of the income.

   Shifting the incidence of taxation
  Shifting taxation is the process of passing the burden of the tax to others.
  A tax can be shifted when the taxpayer is able to obtain a higher price for something he sells or when he pays a lower price for a commodity he purchases.

   Tax Evasion
       When there is fraud through pretension and the use of other illegal devices to lessen one’s taxes, there is tax evasion
   Under-declaration of income
   Non-declaration of income and other items subject to tax
   Under-appraisal of goods subject to tariff
   Over-declaration of deductions

  Assignment
Write your answer in a 1 whole sheet of paper
                 Define the following:
            Poverty
            Poverty line
            Degradation
                 Explain the causes of poverty
                 What are the effects of poverty?


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