Introduction to Taxation
John V. Balanquit

Objectives
After the presentation, students should be able to:
• Identify and distinguish the objects of taxation
• Explain the doctrines of taxation
• Explain the “situs of taxation”

Objectives (continued)
• Identify the nature of taxes and explain the characteristics of taxes
• Determine the classification of taxes
• Distinguish taxes from other fees

Objects of Taxation
• Persons (natural or juridical)
• Properties (tangible or intangible, real or personal)
• Excise objects (transactions, privilege, rights or interests)

Doctrines of Taxation
• Prospectivity of tax laws
• Imprescriptibility of taxes
• Double taxation (indirect and direct)
• Escape from taxation (tax evasion vs tax avoidance)
• Equitable recoupment

Doctrines of Taxation
• Set-off of taxes
• Taxpayer suit
• Compromise
• Power to build and destroy

Situs of Taxation
It is the “place” of taxation. It may be based on the:
• Nature of tax
• Citizenship and residence of taxpayer
• Source of income
• Place of the item subject to tax

Nature of Taxes
Taxes are:
• Obligations created by law
• Generally personal to the taxpayer

Essential Characteristics of Taxes
• Enforced contributions
• Imposed by the legislative body
• Proportionate in character
• Payable in the form of money
• Imposed for the purpose of raising revenue
• Used for public purpose

Essential Characteristics of Taxes
• Enforced on persons, properties or rights
• Commonly required to be paid in regular intervals
• Imposed by the sovereign state within its jurisdiction

Classifications of Taxes
As to Purpose
• Revenue/Fiscal
• Regulatory/Sumptuary

Classifications of Taxes
As to Object
• Personal/ Poll/ Capitation
• Property
• Excise

Classifications of Taxes
As to Determination of Amount
• Ad Valorem
• Specific

Classifications of Taxes
As to Who Bears the Burden
• Direct
• Indirect

Classifications of Taxes
As to Authority or Scope
• National (transfer taxes, income taxes, VAT, percentage taxes, excise taxes, documentary stamp tax)
• Local (Community tax, municipal license tax, professional tax, real estate tax)

Classifications of Taxes
As to Rate or Graduation
• Proportionate/ Flat Rate
• Progressive/ Graduated
• Mixed

Other Fees
• Penalty
• Revenue
• Debt
• Toll
• License fee
• Customs duties

Other Fees
• Subsidy
• Tariff
• Margin fee
• Special assessment

End of Lecture.
Thank You!