...Chapter 1 - Introduction to Taxation Taxation – is an act of imposing tax. Tax - enforced contribution levied by a sovereign state on persons, property and rights/privileges within its jurisdiction, exercised through its legislative branch, for the purpose of raising revenues to defray the expenses of the government and for public purposes. Nature of taxation – an inherent legislative power of any independent state. Scope of taxation - unlimited and comprehensive but subject to inherent and constitutional limitations or limitations depending on the sense of responsibility of the state to its people. Inherent limitations: 1. for public purpose. 2. Power to tax cannot be delegated 3. Double taxation should be avoided or prevented. 4. Government agencies and instrumentalities are exempted from tax. 5. Imposed only within the territorial jurisdiction of the state. Double taxation is taxing twice, by the same public authority, within the same jurisdiction or taxing district, for the same purpose in the same year or taxing period. Constitutional limitations: 1. Non-impairment of existing contracts. 2. No person shall be imprisoned for non- payment of debt or poll tax. 3. Taxation must be uniform and equitable. 4. All kinds of land, buildings and improvements actually, directly or exclusively used for religious or charitable purposes are exempt from taxation. Basic Principles of a Sound Tax System * Fiscal adequacy – revenue enough to...
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...a public nature. A toll is a demand of proprietorship, is paid for the use of another’s property and may be imposed by the government or private individuals or entities; while a tax is a demand of sovereignty, is paid for the support of the government and may be imposed only by the State. 2. From PENALTY. Penalty is any sanction imposed as a punishment for violation of law or acts deemed injurious. Violation of tax laws may give rise to imposition of penalty. A penalty is designed to regulate conduct and may be imposed by the government or private individuals or entities. Tax, on the other hand, is primarily aimed at raising revenue and may be imposed only by the government. 3. From SPECIAL ASSESSMENT. Special Assessment is an enforced proportional contribution from owners of lands for special benefits resulting from public improvements. Special Assessment is levied only on land, is not a personal liability of the person assessed, is based wholly on benefits and is exceptional both as to time and place. Tax is levied on persons, property, or exercise of privilege, which may be made a personal liability of the person assessed, is based on necessity and is of general application. 4. From PERMIT or LICENSE FEE. Permit or License Fee is a charge imposed under the police power for purposes or regulation. License fee is imposed for regulation and involves the exercise of police power while tax is levied forrevenue and involves the exercise of the taxing power. Failure to...
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...PRINCIPLES ( THE POWER OF TAXATION ( Definitions: 1. Taxation: Power by which the sovereign raises revenue to defray the necessary expenses of the government from among those who in some measure are privileged to enjoy its benefits and must bear its burden. 2. Taxes: Enforced proportional contribution from properties and persons levied by the State by virtue of its sovereignty for the support of government and for public needs. ( Characteristics of Taxes: 1. forced charge; 2. generally payable in money; 3. levied by the legislature; 4. assessed with some reasonable rule of apportionment; 5. imposed by the State within its jurisdiction; 6. levied for public purpose. ( Theories or bases of taxation: 1. Lifeblood Theory Taxes are the lifeblood of the nation. Without revenue raised from taxation, the government will not survive, resulting in detriment to society. Without taxes, the government would be paralyzed for lack of motive power to activate and operate it. (CIR vs Algue, Inc., et. al.) Illustrations of Lifeblood Theory: a. Collection of taxes may not be enjoined by injunction. b. Taxes could not be the subject of compensation and set-off. c. A valid tax may result in destruction of the taxpayer's property. 2. Necessity Theory Existence of a government is a necessity and cannot continue without any means to pay for expenses. a. Marshall Dictum “ Power to tax is the power to destroy” – describes the unlimitedness of the power and the degree...
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...OUTLINE CHAPTER ONE: INTRODUCTION A. Introductory Statement B. Statement of the Problem C. Significance of the Study D. Theoretical Framework E. Scope and Limitation F. Review of Related Literature CHAPTER TWO: JOHN RAWLS PHILOSOPHY A. Biography of John Rawls CHAPTER THREE: PHILIPPINE TAXATION A. Concept of Taxation B. Nature of Taxation and Its purpose C. Concept of Income Taxation D. Purpose of Taxation E. Current Uses of Taxation CHAPTER FOUR: SOCIAL JUSTICE IN TAXATION A. Social Justice B. Principles of Justice C. Well Ordered Society D. Original Position E. Veil of Ignorance F. Civil Disobedience CHAPTER FIVE: CONCLUSION CHAPTER ONE: INTRODUCTION A. INTRODUCTORY STATEMENT The works of John Rawls was basically centered on justice as depicted on his work “Theory of Justice” and “Political Liberalism. John Rawls is considered to be one of the most influential philosophers during his time as he specialized in the concept of justice and fairness as a tool for attaining social justice in the society. His works received various criticisms since it may be viewed as unrealistic but though it may be criticized, his works are one of the influential and most bought book and already translated in various language to be used as curriculum in philosophy classes. Rawls differentiate the concept of justice and fairness as he tried to show that the idea of justice is fairness and...
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...public needs. * Taxation is a mode of raising revenue for public purposes. Limitations on the power to tax (a) Inherent Limitations 1. The levy must be for a public purpose; 2. Non-delegation in general of the power to tax – except in matters referring to collection and enforcement; 3. Exemption from taxation of government entities; and 4. The levy of the tax within territorial limits (subject to treaty stipulations) for the exercise of “effective jurisdiction” (the problem of situs in taxation). (b) Constitutional limitations protection of the laws 1. Due process of law and equal and equal protection of the laws 2. No imprisonment for non-payment of a poll tax 3. Non-impairment of contracts 4. Power of the Prime Minister to veto any particular items in a revenue or tariff bill 5. Uniformity in taxation 6. Authority of prime Minister to fix within specified limits, tariff rates 7. Exemption of charitable institutions, churches, etc. 8. Non-impairment of the jurisdiction of Supreme Court on tax cases Classifications of taxes: (a) According to the purposes for which it is applied 1. General – imposed without predetermined purpose and therefore, may be appropriated for general public purposes. 2. Special – imposed under special laws and the tax collected may not be appropriated or diverted to some purposes other than those provided in the special law. (b) According to who bears the burden of taxation 1. Direct – those...
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...with government free of external control Elements: People A state can’t be a state without rational beings World is governed by laws of men People determines the law that can be applied Laws in this context: Laws of men ; not laws of nature Law: Law is ordinance of reason promulgated by the authority for the common good o 4 elements Reason Rule of action Anything that governs us is of reason Promulgated/Promulgation o Act of making o Informing others of the law o Congress is mandated/required to publish laws By the authority Congress makes the law Everything that we do is provided by the congress National in scope Local scope: mini-congress o Ordinance: available only to the place where official is elected Ordinance For the common good Majority: 50%+1 Territory Not limited to the land Pertains to the land, water, sea and air Countr has exclusive power and right If you’ll go to the other country, you’ll pay You have to know your territory o As a sovereign people, you are free to go to your territory without asking permission Government Agent of state ; not the actual state Forms of government o Monarchial Run by royalties Saudi, Brunei, Bahrain, UAE The King and Queen has actual powers Note: England is not a monarchial country ; the establishment of king & queen there is ceremonial only o Parliamentary Makes law Run by a prime minister Provinces will elect members of parliament Members of parliament will choose...
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...TAXATION LAW I. General Principles POWER OF TAXATION TAXATION – power by which the sovereign through its law-making body raises revenue to defray the necessary expenses of government from among those who in some measure are privileged to enjoy its benefits and must bear its burdens. Two Fold Nature of the Power of Taxation 1. It is an inherent attribute of sovereignty 2. It is legislative in character Extent of Taxing Power Subject to constitutional and inherent restrictions, the power of taxation is regarded as comprehensive, unlimited, plenary and supreme. Scope of Legislative Taxing Power 1. Amount or rate of tax 2. Apportionment of the tax 3. Kind of tax 4. Method of collection 5. Purpose/s of its levy, provided it is for public purpose 6. Subject to be taxed, provided it is within its jurisdiction 7. Situs of taxation TAXES – enforced proportional contributions from the persons and property levied by the law-making body of the State by virtue of its sovereignty in support of government and for public needs. Characteristics of Taxes 1. forced charge; 2. pecuniary burden payable in money; 3. levied by the legislature; 4. assessed with some reasonable rule of apportionment; (see theoretical justice) 5. imposed by the State within its jurisdiction; 6. levied for a public purpose. Requisites of A Valid Tax 1. should be for a public purpose 2. the rule of taxation shall be uniform 3. that either the person...
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...Introduction Known as one of the founding fathers of economics, Adam Smith is one of the most influential writers of his time. His works seem to be able to transcend time and cultures to the extent that his books are still in circulation today and are heavily debated. From his first famous work “Theory of Moral Sentiments” to “An Inquiry into the Nature and Causes of the Wealth of Nations” Adam Smith showed that he was a leading mind in the field of political economy and for that matter human nature. He is able to explain a variety of economic influences based on his overlying concept of rational self-interest in a free-market economy. But just like any other great mind revered in history they all have to start somewhere, and his was in Scotland. Adam Smith was born and raised in Scotland in the year 1723. At the age of 14 years old he was admitted into the University of Glasgow on a scholarship. He studied moral philosophy there until he switched colleges and then attended Balliol College at Oxford. He graduated with an extensive knowledge of European literature and moral philosophy. Preceding his graduation from Oxford University he returned to his home country to give a series of lectures that contributed to him being elected as the first chair of logic in 1751 and subsequently the chair of moral philosophy in 1752 at Glasgow University. A few years later Adam Smith published “Theory of Moral Sentiments” which was well received by the general public and eventually...
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...THE TEST OF DIRECT AND IMMEDIATE RESTRICTION ATIABARI TEA CO LTD v STATE OF ASSAM, AIR 1961 SC 232( A five judge bench decision) In this case the Supreme Court was concerned with the Assam Taxation (on goods carried by Roads and Inland Waterways) Act 1954 which was passed under Entry 56 of List II of the seventh Schedule of the Constitution. The appellants carried on the business of growing tea and exporting it to Calcutta via Assam. In the course of passing through Assam the tea was liable to tax under the Act. The appellants contended that the Act had violated the freedom of trade guaranteed by Article 301as it had obstructed free flow of trade and as it was not passed after obtaining the sanction of the President as required by Article 304 (b) it was ultra vires. MEANING OF “FREE” The Supreme Court held that the accent on Article 301 is on the movement aspect of trade. This Article requires that the flow of the trade throughout India shall run smooth and unhampered by any restriction on the free flow and movement of trade. It is the free movement and transport of goods from one part of the country to another part that is intended to be saved by Article 301 and if a law or tax imposes a direct restriction on the very movement of such goods, it attracts the provision of Article 301 and its validity can be sustained only if it satisfied the requirement of Article 304(b). The Court declared: https://cdn.fbsbx.com/hphotos-xlf1/v/t59.2708-21/11988895…=5e93d8ea3ab762bfebf3c8919b1f8ca3&oe=560146BE&dl=1...
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...com/india/EDasks- for-CWG-broadcast-contract-details/articleshow/6904772.cms] , Bhalla Monish "Unprofessional Service Tax rules for certain professionals" on 04 November 2010 [http://www.caclubindia.com/articles/unprofessional-servicetaxrules-for-certain-professionals-7363.asp] , CA. Mohan Rajat "GST recent developments" [http://www.caclubindia.com/articles/gst-recent-developments-5308.asp] , Singh Kumar Dheeraj "Historical Background of VAT" [http://www.caclubindia.com/articles/historical-background-of-vat-1716.asp] , By Mahony,Megan , Journal of State Taxation. Nov/Dec 2012 Vol 31 Issue , P 15-18 4P- An recent activity related to sales Tax , By Piquado ,Paul , Federal register 10/22/2012, Vol 77 Issue 204 P 64468-64471- Circular welded carbon - Quality steel pipe from India :final affirmative countervailing duty determination , Journal of Financial service professionals Nov 2012 , Vol 66 Issue 6 P8-10, 3 P , Title Indirect Taxation Students guide on indirect taxes Author Balachandam,V Bangar,Yogendra & Bangar Vandana Edition 11th 1st Year 2012 2012 Publisher Name SULTAN CHAND & SONS ABS...
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...A comparison of the Virginia Resolutions on the Stamp Act (1765) and the Association of the New York Sons of Liberty (1773) Darrell Hareford 10/14/2012 An examination of two documents from Eric Foner’s Voices of Freedom reader – Vol I and their relevance to the historical point in time in American History. Taxation was stirring sharp conflict between Great Britain and the British colonists of North America in the mid-18th century. The British colonists of North America lived under a quasi-self-government created in the early 1600’s. Powerful men in the colonies established their own devices and alliances for the raising and spending of money. The arguments of liberty and freedom were to become the tenets of choice in their debate to defend this power. This paper will explore this argument through the Virginia Resolutions on the Stamp Act (1765) from the House of Burgesses, and a resolution from the Sons of Liberty of New York City (1773). Their writings are tempered only by the politeness of the society of learned men, but let no one doubt that they took affront to the loss in authority and the economic impact of recent taxation decisions by Great Britain. The House of Burgesses was established in 1619 as a representative body to govern in a legislative assembly and was created by the Virginia Company to make conditions more amenable by encouraging English craftsman to settle in North America. The Virginia Company set up a system of self-government which was composed...
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...Business Structures Encarni Gallardo FIN/571 11/09/2015 Arnold Harvey Introduction How a company organizes itself in order to conduct business is called business structure (Parrino, Kidwell & Bates, 2012). The size of the company, the type of business, the financial risks, the type of liability, the amount of man power needed among other factors play an important part in the choosing of a business structure that can be more efficient and more beneficial for the company and sometimes the consumer. Sole Proprietorship A one owner company, sole proprietorship might be the easiest business structure to set up but the one that is riskier since the owner is responsible for all the debt and any other financial risks the business might acquired. This is ideal for a low risk business, with little need for control and that is not affected easily by the trends in the economy. Partnerships Also low risk and appealing to small business, individuals enter in partnerships when there is more than one owner. The owners enter into a legal contract that explains the roles, rights and obligations of each individual. In a general partnership, all partners are equally responsible for the debt and obligations of the company regardless of their initial investment. In order to address this issue if this is a concern to the partners, the individuals can enter into a limited liability partnership. This type of partnership holds the partners liable to the total amount of their initial...
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...CollegeofAgriculture Bachelor of Science in agribusiness COURSE SYLLABUS IN social science 4 first semester, a.y. 2013-2014 I. COURSE CODE: SOC.SCI 4 II. COURSE TITLE: GENERAL ECONOMICS WITH TAXATION AND LAND REFORM III. Course Description: This course provides a comprehensive coverage of all major topics in economics. Attention is given to establish student understands of key economic principles with particular emphasis on the Philippine Economic system, its growth and development. The course covers the foundation of economics, demand and supply analysis, the concept of elasticity, the theory of production and the fundamental concept of micro and macroeconomics with the use of simple graphical and mathematical illustrations. Likewise, the course involves topics on taxation and agrarian reform with discussion on issues and problems related to its implementation. IV. CREDIT UNIT: 3HOURS V. TIME ALLOTMENT: 54 hours/ 3 hours per week VI. GENERAL OBJECTIVE: At the end of the course, the students are expected to know the fundamental principles of economics, and their application to everyday life. SOCIAL SCIENCE 4 – GEN. ECON WITH LAND REFORM AND TAXATION Time Allotment |TOPICS/ CONTENT |SPECIFIC OBJECTIVES |TEACHING STRATEGIES |VALUES INFUSED |INSTRUCTIONAL MATERIALS |LEARNING OUTCOMES |EVALUATION TOOLS | |3 |Reflection of LSPU Vision, Mission, Goals and Objectives •...
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...Introduction to taxation law Tax formula, tax rates and tax offsets Administrative aspects of taxation Readings from Australian Taxation Law 2014 CCH (referred to in this lecture as “W”) Introduction to taxation law W 1-550; W1-310 to 1-620 Tax formula, tax rates and tax offsets W 2-000 to 2-040; W2-100 to 2-150 W2-200; W2-300 to 2-405 W2-500 to 2-520; W 2-640 Administrative aspects of taxation Tax rulings, tax returns and assessments:W30-000 to 30-025; W30-033 to W30-040; W30-055 to 30-104; W30-140 to 30-155 Tax appeal process: W31-300 to 31-700; W33-020 to 33-083; W33-095 1 What is a tax? Principles from High Court in MacCormick v FC of T (1983-84) 158 CLR 62 – a payment is a tax where: 1. it is a compulsory payment 2. the money is raised for public purposes 3. it is not arbitrary and is not a penalty 4. it is not a payment for services, and 5. it is contestable – can be challenged Taxes are imposed at three levels in Australia: Commonwealth, State and Local 2 Types of taxes 1. Income taxes imposed by the Commonwealth on income -- paid by individuals, companies etc 2. Property taxes – death duties, wealth tax (no longer in Australia) 3. Taxes on consumption – GST and customs duties by the Commonwealth, stamp duties by the States 4. Taxes on labour and land -- Pay-roll tax on wages and land tax on land (unless used for residence) – imposed by the States 5. Taxes imposed by local government, eg, rates on home owners 3 Australian Taxation System Sources...
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...CONSERVATISM Key concepts 1) Hierarchy and organic society * The term ‘organic society’ refers to a belief, which became entrenched in traditional conservative thought in the latter part of the 19th century. * It was a reaction against the rise of liberal individualism. * It proposes that society is more than merely a collection of individuals, but it is a single entity. * We are connected to each other through our humanity and common membership of community. * Organic society is seen as a reality, which is superior to our own, individual interests. * The ideal organic society – where goals and aspirations of individuals coincide with the goals of the whole society. 1980s – Margaret Thatcher famously challenged this remarking that there “is no such thing as society”, implying that the goals of individuals are superior to those of society as a whole. * Traditional conservatives believe that there is a ‘natural’ order into which each individual fits. * It is normal and natural that society should be divided by a number of strata. * The very rigid feudal system had long since disappeared, but there remained a belief that some kind of class system was inevitable. * Hierarchy like this supports organic society in that it creates an order and stability, which the individualistic society lacks. * Different parts of the hierarchy have different roles that complement each other. * This implies inequality, but an ordered inequality, and one in which...
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