Professional Documents
Culture Documents
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Enforced contribution.
Generally payable with money.
Proportionate in character.
Levied on persons or property
Levied by the state which has jurisdiction mover the subject
Levied by the law-making body of the state.
Lommonly required to be paid at regular periods or intervals.
Classification of tax:
1. As to subject matter or object
A. personal, poll or capitation- tax of a fixed amount on individuals residing within a
specified territory, without regard to their property, occupation or business. Ex.
Community tax (basic)
B. property- imposed on property, real or personal, in proportion to its value, or in
accordance with some reasonable method or apportionment. Ex. Real estate Tax
C. Excise- imposed upon the performance of an act, the enjoyment of a privilege, or
the engaging in an occupation, profession or business. Ex. Income tax, VAT, Estate
Tax, Donors Tax
2. As to who bears the burden of the tax
a. Direct- the tax is imposed on the person who also bears the burden thereof
Ex. Income tax, community tax, estate tax
b. Indirect imposed on the taxpayer who shifts the burden of the tax to another,
Ex. VAT, customs duties.
3. As to determination of amount
a. specific imposed and based on a physical unit of measurement as by head
number, weight, length or volume. Ex. Tax on distilled spirits, fermented liquors,
cigars
b. Ad Valorem of a fixed proportion of the value of the property with respect to
which the tax is assessed. Ex. Real estate tax, excise tax on cars, non essential
goods.
4. As to purpose
A. general, fiscal, or revenue- imposed for the general purpose of supporting the
government. Ex. Income tax, percentage tax
B. special or regulatory- imposed for a special purpose, to achieve some social or
economic objective. Ex. Protective tariffs or custom duties on imported goods
intended to protect local industries.
5. As to scope or authority imposing the tax
tax.
to
fund
unemployment
assistance
for
laid-off
workers.
Sales Tax: A tax imposed by the government at the point of sale on retail goods
and services. It is collected by the retailer and passed on to the state. Sales tax is
based on a percentage of the selling prices of the goods and services and is set by
the state. Technically, consumers pay sales taxes, but effectively, business pay
them since the tax increases consumers costs and causes them to buy less.
Foreign Tax: Income taxes paid to a foreign government on income earned in that
country.
Value-Added Tax: A national sales tax collected at each stage of production or
consumption of a good. Depending on the political climate, the taxing authority
often exempts certain necessary living items, such as food and medicine from the
tax.
Tax levying:
under United States Federal law, is an administrative action by theInternal Revenue
Service (IRS) under statutory authority, without going to court, to seize property to
satisfy a tax liability. The levy "includes the power ofdistraint and seizure by any
means". The general rule is that no court permission is required for the IRS to
execute a section 6331 levy.For taxpayers in serious debt to the IRS, the most
feared weapon in the IRS arsenal is the tax levy. Using the powers granted to the
IRS in the Internal Revenue Code, the IRS can levy upon wages, bank accounts,
social security payments, accounts receivables, insurance proceeds, real property,
and, in some cases, a personal residence. Under Internal Revenue Code section
6331, the Internal Revenue Service can levy upon all property and rights to
property of a taxpayer who owes Federal tax. The IRS can levy upon assets that
are in the possession of the taxpayer, called a seizure, or it can levy upon assets in
the possession of a third party, a bank, a brokerage house, etc. All future statutory
references
will
be
to
the Internal
Revenue
Code unless
noted
otherwise.
Tax assessment:
An 'assessor' is a specialist who calculates the value of property. The value
calculated by the assessor is then used as the basis for determining the amounts to
be paid or assessed for tax or insurance purposes.
In local government in the United States, an assessor is an appointed or elected
official
charged
with
determining
the
value
of
each
taxable
property
in
Tax collection:
tax collection occurs wherever the state passes on its obligation to collect taxes to
private companies or firms in return for a fixed or ad valorem fee. This contrasts
with tax farming where a private individual or organization pays off a pre-
determined tax debt, and then subsequently recoups that payment by collecting
money from the people within a certain area or business.
A
modern
example
of
variation
of
tax
farming
is
the United
lower courts in all cases involving the legality of any tax, impost, assessment or any
penalty imposed in the relation thereto.
Tax evasion:
Tax evasion is using illegal means to avoid paying taxes. Typically, tax
evasion schemes involve an individual or corporation misrepresenting their income
to the Internal Revenue Service.
Tax avoidance:
The use of legal methods to modify an individual's financial situation in order to
lower the amount of income tax owed. This is generally accomplished by claiming
the permissible deductions and credits. This practice differs from tax evasion, which
is
illegal.