Estate Taxes
Business and Transfer Taxes Notes
Estate Tax Basic Terms in Taxation
Taxation – power of the Government to impose burden upon the people to earn Revenue.
Right –
The basics of human existence.Those things that are Necessary to live. You cannot live without these.
Eg. Right to breathe, right to live, right to vote, Freedom of speech. Etc.
3 Inherent Powers of the State ( definition: Acaylar, PJ) 1. Police Power – power to monitor people for the general welfare. 2. Eminent Domain – power to expropriate private property for public use. 3. Taxation – power of the government to impose burden upon the people to earn revenue.
PRivilege–
Are Rights that you can live without. These are things that are allowed and granted by the state. These privileges can be Taxed.
Eg. Driver’s license, Professional Licenses, etc. You can live without having to drive or be a lawyer, etc.
U Note:
Government requires us to pay taxes so that we can exercise the privileges that they have granted upon us and these taxes also work for the protection of our rights and privileges.
To understand taxation, one must understand the concept of rights and privileges. Rights are usually not taxable while Privileges are usually taxable. Double Taxation - illegal in the Philippines. You cannot tax the same thing twice for the same period and for the same purpose. Capital Gains tax – A capital gains tax (abbreviated: CGT) is a tax charged on capital gains, the profit realized on the sale of a noninventory asset that was purchased at a lower price. 2 Basic Questions in Taxation 1. Are you a Citizen? 2. Are you a Resident If the answer is YES to anyone of these this is TAXABLE.
U Note:
Taxation is the foundation wherein government is founded on. Taxes and the government have a symbiotic relationship. “Without taxation there is no government” - Judge Cooley
KINDS OF TAXES 1.
Income Taxes – taxes levied on the financial income of persons, corporations, or other legal
Estate Tax Basic Terms in Taxation
Taxation – power of the Government to impose burden upon the people to earn Revenue.
Right –
The basics of human existence.Those things that are Necessary to live. You cannot live without these.
Eg. Right to breathe, right to live, right to vote, Freedom of speech. Etc.
3 Inherent Powers of the State ( definition: Acaylar, PJ) 1. Police Power – power to monitor people for the general welfare. 2. Eminent Domain – power to expropriate private property for public use. 3. Taxation – power of the government to impose burden upon the people to earn revenue.
PRivilege–
Are Rights that you can live without. These are things that are allowed and granted by the state. These privileges can be Taxed.
Eg. Driver’s license, Professional Licenses, etc. You can live without having to drive or be a lawyer, etc.
U Note:
Government requires us to pay taxes so that we can exercise the privileges that they have granted upon us and these taxes also work for the protection of our rights and privileges.
To understand taxation, one must understand the concept of rights and privileges. Rights are usually not taxable while Privileges are usually taxable. Double Taxation - illegal in the Philippines. You cannot tax the same thing twice for the same period and for the same purpose. Capital Gains tax – A capital gains tax (abbreviated: CGT) is a tax charged on capital gains, the profit realized on the sale of a noninventory asset that was purchased at a lower price. 2 Basic Questions in Taxation 1. Are you a Citizen? 2. Are you a Resident If the answer is YES to anyone of these this is TAXABLE.
U Note:
Taxation is the foundation wherein government is founded on. Taxes and the government have a symbiotic relationship. “Without taxation there is no government” - Judge Cooley
KINDS OF TAXES 1.
Income Taxes – taxes levied on the financial income of persons, corporations, or other legal