SUMMARY
Scope of the Power of Taxation
a. Comprehensive – as it covers persons, businesses, activities, professions,
rights, and privileges.
b. Unlimited – In the absence of limitations prescribed by Law or the
constitution, the Power of tax is unlimited and comprehensive.
c. Plenary – as it is complete; BIR may avail of certain remedies to ensure the
collection of taxes.
d. Supreme – so far as the selection of the subject of taxation.
Classification of Taxes
1. As to the scope:
a. National – imposed by the national government.
b. Local – imposed by local government.
2. As to subject matter or object:
a. Personal, poll, or capitation – tax of a fixed amount imposed upon an
individual, whether citizens or not, residing within a specified
territory without regard to their property or the occupation in which he
may be engaged.
b. Property – a tax imposed on property, whether real or personal, in
proportion to its value.
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c. Excise – any tax which does not fall w/in the classification of a poll
tax or a property tax.
3. As to who bears the burden:
a. Direct – a tax which is demanded from the person who also shoulders
the burden of the tax or tax which taxpayer cannot shift to another.
b. Indirect – a tax which is demanded from one person in the expectation
and intention that he shall indemnify himself at the expense of
another.
4. As to determination of amount:
a. Specific – tax of fixed amount imposed by the head or number.
b. Ad Valorem – tax fixed proportion of the value of the property with
respect to which tha tax is assessed.
5. As to purpose:
a. Primary, Fiscal, or Revenue Purpose – tax imposed generally for
government.
b. Secondary, Regulatory, Special or Sumptuary Purpose – tax imposed
for a specific.
6. As to graduation or rate:
a. Proportional – tax based on a fixed percentages.
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b. Progressive or graduated – tax the rate of which increases as the tax
base.
c. Regressive – tax rate of which decreases as the tax base.
7. As to taxing authority:
a. National – taxes imposed under the National Internal Revenue Code.
b. Local – taxes imposed by local Government units.
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