BAM 031: Income Taxation HMMA FICATION mento Stadent Activity Sheets Mode #2 Name: Christhel : Class number: _ Section, Schedule: Date: eee Taesvon title: Basic Principles in Taxation ‘Materials: Lens Dhjective Text book: AC the end of this module, | should be able to: Income Taxation by Rex Banggawan 1. Reeognize the linitations onthe Power of Taxation; References: 2. Deseribe the situs/place of taxation and other concepts of taxation; www. awphil.net wow bir.gov.ph Productivity Tip: Turn off Distractions! One of the major productivity Killers is the distraction of constant nterruptions: Social media, phone messages/calls, people appearing at your door. Try to create a distraction free environment when studying. 1) Review (5~ 10 min) ‘True grfalye: Write tue ifthe statement is correct and false if otherwise. 1 ‘Taxation and Police Power can be implemented together 2 Tax is an inherent power ofthe state 3. = The power of taxation is the most absolute of all powers of the government 4, IE The lifeblood theory constitutes the theory of taxation; that government cannot continue without 10 pay its expenses 5. mite ‘The citizen supports the State by paying the portion from his property that is demanded in order iat he may, be secured in the enjoyment of the benefits of an organized society. This is necessity theory. Enumeration: 6 ~ 10 List at least 5 essential elements of taxation: 2) What I know Chart (3 mins) ‘Try answering the questions below by writing your ideas under the first colurnn What I Know. It's okay if you write key words or phrases that you think are related to the questions. [What Know Questions: | What I Leamed _| 1 What are the powers of taxation? | | 2 How is taxation limited in power? 3 What is situs of taxation? dEBAM 031: teams seater nea Se Class number: Date: B. MAINLESSON . Explore the limitations on the Power of Taxation aa e "Requirement that levy must be for a publi purpose Non-delegation ofthe legislative power to tax Exemption from taxation of government entities Intemational comity Territorial jurisdiction LO 2: Determine the situs/place of taxation Situs of taxation - Tax jurisdiction that has the power to levy taxes upon the tax object ‘Example. | Situs/place “Tax on services ‘Where service is rendered Business tax ‘Where business is conducted | Property tax ‘Where is located | [Personal tax ‘Where an individual resides ACTIVITY 1: ‘Think-pair-share’ with seatmate using guide questions. Try to use your own words. (5 mins) 1. Try to enumerate the limitations on the Power of Taxation 2. Explain in your own words what is situs of taxation is Double Taxation ‘© Double taxation refers to income tax being paid twice on the same source of income. ‘Double taxation occurs income is taxed at both the corporate level and personal level, as in the case of stock dividends Double taxation also refers to the same income being taxed by two different countries While critics argue that dividend double taxation is unfair, advocates thou okt Could virally avo paying ay income tex a _The escapes from Taxation Shifting of tax | Process by which tax burden is transferred from statutory tay 1 burden ‘without violating the law. ee ee Kinds of Shifting 1. Forward shifting when burden of tax is transferred from a factor of i Ginmibution unt all sete on theultimate purchaser or coosumer 8 MTOUBA the factors of 2. Backward shifting ~ when the burden is transferred from eoasumer through fac distri factors of production; es Setar of clstriution to te 3. Onward shifting- when the tax is shifted 2 or more times either forward or backward, Tax Use of legal methods to modify an individual's financial situati we avoidance | income tax owed. ‘on to lower the amount | “his document is te property of PHINMA EDUCATION seed aPHINMA EDUCATION HAM 031; Income Taxation hace Student Activity Sheet: Modute #2 als Chass number: Date Name: _Chiasthel _ —— a ‘Schedule: “Tax evasion | An illegal activity in which a pe rately avoids paying a true tax lability. | Aotivity 3: Skil Building 1 The following are the characteristics of special assessment, except It is based on the government’s need of money to suppor its legitimate objectives B. tis tevied only on land c. Itis based solely on the benefits derived by the owners of the land 4. Did not result to personal liability of the person assessed 2.As regard a revenue bill, which of the following is not correct’? ‘a. The Senate may propose amendments if the bill originates from the House of Representatives, ‘The House of Representatives may propose amendments ifthe bill originates from the Scnate . The President may recommend a revenue bill to Congress 4. A House of Representatives version and a senate version approved separately and then consolidated with both houses approving the consolidated with both houses approving the consolidated version 3:The following forms of escape from taxation result to loss of revenue to the government, except a. Exemption © shiting Avoidance 4. Evasion ‘Activity 4: What I know Chart ‘Now let’s check your final understanding of Flexible Learning, I hope that everything about the topic is clear to you. This time you must fill out the What I Learned column. ‘Activity 5: Check for Understanding and Keys to Correction, 1 The following are the objects of taxation, except a. Citizens b. Corporations ¢. Intangible property © Municipal hats 2, A scope of the power of taxation which means that taxation covers many things a Penay © Compreersve & Sipeme aL Unlimited Tris docuicns ive propery of PHINMA EDUCATIONeae e pity EDUCATION ‘eat Schedule: 3-This is not a purpose of taxation "To expropriate property forthe general welfare To reduce inequalities of wealth As protective arf on imported goods to protect local produces ‘against foreign competition ‘home industries though the proper use of tax incentives 4. To encourage the growth of 4,One of the characteristics of a taxis that it is a. Superior to the non-impairment clause b. Generally unlimited in amount Based on the taxpayers ability to pay ‘Legislative in implementation of the constitution 5.Statement 1 ~a tax is generally unlimited because itis based on the needs of the state ‘Statement 2 ~ one of the essential characteristics of tax is itis unlimited in amount a. True, true & Tre, false False, true d. False, false KEY TO CORRECTIONS: Activity 3: G. JA [2 Ts 13. Ts Activity 5: 7. [p [2.18 13-14 ]41cls. 13] Rationalization: 1. Objects of Taxation are personel, property, and excise 2B 3, This is power of eminent domain 4 5. c ‘ {Lis not one of the essential characteristics. LESSON WRAPS tations for finishing this module! Shade the mumber of the module that you finish inished, ‘CongratulBAM 034: Income Taxation PHINMA EDUCATION Student Activity Sheet: Module #2 Class number: Date: Name: Section: ~ Schedule: a_i Did you have challenges learning the concepts in this module? If none, which parts of the module helped you Jearn the concepts? Some question/s I want to ask my teacher about this madule is/are: FAQs is however, subject to constitutional and for in the constitution or implied from its to tax attached to its nature, 1, How is the taxing power limited? Limitations on The Power of Taxation. The power of taxation, iiherent limitations. Constitutional limitations are those provided provisions, while inherent limitations are restrictions to the power 2. Is double Taxation Constitutional? What the law prohibits is the imposition of two taxes on the same subject matter, for the same purpose, bY Tre same taxing authority, within the same jurisdiction and during the same taxing period; thus, double ie son must be of the same kind or character to be a valid issue ww" PC com