1st Semester FINALS churches and the purchase of materials for

religious celebrations.
GEC 107 READINGS IN THE PHILIPPINE HISTORY
Forced labor or Polo Y Servicio
Taxation - One form of taxation during Spanish era
- If taxes are not paid timely, and the IRS is not - a forty (40) day compulsory work (reduced to 15
notified why the taxes cannot be paid, the law days in 1884) imposed by the Spanish colonial
requires that enforcement action be taken, which government on adult Filipino males ranging from
could include the following: Issuing a notice of the age sixteen (16) to sixty (60) years old to
levy on salary and other income, bank construct bridges, galleon ships, churches,
schools, hospitals, roads, and other
accounts or property (legally seize property to
satisfy the tax debt) Tax Account Number (TAN)
- These taxes are used to pay for Social Security, - every taxpayer has to facilitate the identification of
Medicare, unemployment, government programs, taxpayers and verification of tax records
and local infrastructure. - Administration of Pr. Ferdinand Marcos Sr.
- The TAN was an eight-digit combination where the
Income Tax Return (ITR) first four digits were the number proper and the
- It contains information about the person's income last four digits were check numbers
and the taxes to be paid on it during the year.
Tax Payers Identification Number (TIN)
Bureau of Internal Revenue (BIR) - a nine-digit number assigned by the BIR (plus a
- It is an agency of the Department of Finance and it three-digit branch code, if applicable) to individual
is led by a Commissioner. and corporate taxpayers for identification, tracking,
and record-keeping purposes.
National Internal Revenue Code - Pr. Corazon Aquino
- National Internal Revenue Code of 1997
- 11534, otherwise known as the CREATE Law, Economy Recovery Assistance Payment (ERAP)
and by RA No. 11494 or Bayanihan 2. - Program, which granted immunity from audit and
- Ex: Henry Ide - secretary of finance, author of investigation to taxpayers who have paid 20%
Internal Revenue Law of 1904 more than the tax paid in 1997 for income tax,
VAT and/or percentage taxes.
Tax Avoidance - the legal usage of the tax regime in a - “Humingi ng resibo mananalo ng libo-libo”
single territory to one's own advantage to reduce the
amount of tax that is payable by means that are within the Tax Reform for Acceleration and Inclusion Law (TRAIN
law. (will pay if exceeded P200,000) Law)
- officially designated as Republic Act No.10963
Tax Evasion - The failure to pay or a deliberate - signed into law by President Rodrigo Duterte on
underpayment of taxes. (a criminal offense / didn't pay December 19, 2017
intentionally / you are liable) - The prominent features of the tax reform are
lower personal income tax and higher
Double Taxation - a tax principle referring to income consumption tax. Individual taxpayers with
taxes paid twice on the same source of income. taxable income not exceeding ₱250,000 annually
are exempted from income tax. The exemption for
Section 28(3) of Article VI of the 1987 Constitution - minimum wage earners is retained in the revised
grants religious and charitable institutions exemption from tax system.
real property tax on all lands, buildings, and
improvements, actually, directly, and exclusively used for Value Added Tax (VAT)
religious, charitable, or educational purposes. - a form of sales tax. It is a tax on consumption
levied on the sale, barter, exchange or lease of
Buwis/Handug goods or properties and services in the Philippines
- tax name during Pre-colonial era and on importation of goods into the Philippines.
- came in forms of crops or goods, which the people
living under the datu share a portion of their National Tax - National Internal Revenue Law of 1997
harvest or property, in exchange for security and - Republic Act no 84241
protection. Tax Reform Act of 1997
- Municipal Taxes
Local Tax - Republic act 7610
Sanctorum - Local government code 1997
- tax paid in the local church
Example: Capital Gains Tax
- These were required for the cost of
Area: 2,564 sq.m
Christianization, including the construction of the
Purchase Price: P2,000,000
Zonal Value: P4,000,000 2. It is subject to constitutional and inherent
P2,000,000 x .06 (6%) = P120,000 CGT limitations
3. It is legislative in characters]
Example: Documentary Stamp Tax
Area: 2,564 sq.m Filipino Cultural Heritage
Purchase Price: P2,000,000 National Commission on Indigenous People (NCIP)
Zonal Value: P1,000,000 - To protect tribes
- To give legal assisstance
Fair Market Value: P600,000
15/1000 or 1.5%
P2,000,000 x 0.15 = P30,000 DST

Below P20,833 withholding tax table

Donor's Tax
P2,000,000 x 0.6 (6%) = P120,000

Notary Date: January 8, 2018

Estate Tax
- a tax on the right of the deceased person to
transmit his/her estate to his/her lawful heirs and
beneficiaries at the time of death and on certain
transfers, which are made by law as equivalent to
testamentary disposition.
- Ex: A decedent died on January 18,2018 The
gross estate amounted to P45,000,000 While the
allowable deduction is P25,000,000 How much is
the gross estate tax due?
Gross Estate: P45,00,000
Allowed Deduction: - P25,000,000
Estate Tax: P20,000,000
> 6%: x 0.6
Estate due = P1,200,000

Characteristics of Tax
1. It is an enforced contribution - the government
mandated to pay tax
2. It is generally payable in money - tax deducted
from salary
Substituted filing - will no longer have to personally
file his own ITR
3. It is levied on persons and property - specific
charge/tax and property that you enjoyed.
4. It is levied pursuant to legislative - the law making
body/congress has the power to change
5. It is proportionate in character - based on the
ability to pay

Nature of power of taxation