14. What are the classification of taxes? Explain each briefly.
(1)
As to subject matter or object:
(PPE)
(a)
Personal, poll, or capitation --
imposed on persons residing within a specified territory without regard to
their property or occupation (ex. Community tax) [the
person itself is the subject of the tax] [capita = per head] [always territorial
jurisdiction]
(b)
Property -- tax on property
whether real or personal (ex. Real estate tax ~> the
only property tax in the Phils.) [territorial also]
(c)
Excise (privilege) -- imposed upon
the performance of an act, enjoyment of privilege, or engaging in an occupation
(ex. Donor’s tax) [attachment is neither on the person
or thing] [territorial as well as personal jurisdiction]
(2)
As to who bears the burden:
(a)
Direct -- demanded from persons
who also shoulder the burden of the tax (ex. Income tax) [the tax is levied, assessed, and collected from 1 person]
[impact and incidence of taxation is only on the statutory taxpayer]
(b)
Indirect -- demanded from persons
who shall indemnify himself at the expense of another (ex. VAT)
(3)
As to determination of amount:
(a)
Specific -- fixed amount by the
head, number or some standard of weight or measurement (ex. Excise tax on
liquors)
(b)
Ad valorem [accdg to value] -- fixed proportion of the value of property with
respect to which tax is assessed (ex. Real estate tax)
(4)
As to purpose:
(a)
General, fiscal, or revenue --
imposed to raise revenue for the general purposes of the government (ex. Income
tax)
(b)
Special or regulatory -- imposed
for special purposes (ex. Custom duties)
(5)
As to scope (or imposing
authority):
(a)
National -- tax imposed by the
national government
(b)
Municipal or local -- tax imposed
by municipal corporations or LGUs
(6)
As to graduation or rate:
(a)
Proportional -- based on fixed
percentage of property, receipts or other basis to be taxed (ex. VAT) [flat or
uniform tax]
(b)
Progressive -- rate increases as
the tax base increases (ex. Income tax)
(c)
Regressive -- rate decreases as
the tax base increases [not practiced in the Phils.]
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