Philippine Tax System Assessment

2678 Words Mar 21st, 2013 11 Pages
Taxation: Defined
As defined by Cooley, taxation is the process or means by which the sovereign, through its law-making body, raises income to defray the necessary expenses of government. It is expressed in another way as a method of apportioning the cost of government among those who in some measure are privileged to enjoy its benefits and must, therefore, bear its burdens. In order to finance the necessary expenses of the government, there is a need to collect money from those people under its jurisdiction who are also the ones benefiting from the said expenditures.
Taxation is the imposition of a mandatory levy on the citizens and/or the businesses of a country by their
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The encomendero is duty-bound to defend his encomienda and keep peace and order there. In return, he was granted the right to collect tribute according to the limit. Part of this tribute goes to the encomendero and the rest to the Church and government. This is subject, however to several abuses.
Manila-Acapulco Galleon Trade
The Manila-Acapulco Trade is generally a trade between the Chinese and Spaniards in Manila and the Spaniards in Mexico. This has resulted into economic progress. But the negative effects of it far outbalanced the advantages. Some income-producing economies were completely neglected and too much burden were given to Filipinos during their annual polo y servicio.
Basically, there are two types of taxes that are covered by the tax laws in the Philippines, namely the national taxes and local taxes. NATIONAL TAXES refer to the national internal revenue taxes imposed and collected by the national government through the Bureau of Internal Revenue (BIR), such as income tax, Value Added Tax (VAT) or percentage tax, excise tax, estate tax, capital gains tax, and documentary stamp tax. On the other hand, LOCAL TAXES are the taxes imposed and collected by the local government units, such as real property tax, local business taxes, professional tax, amusement tax, and community tax.
National Tax Law
The 1987 Philippine Constitution sets limitations on the exercise of the power to tax. The rule of taxation shall be

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