Page 6 - Taxation (TAX 112 A & B, BA-203)
P. 6

Business, Transfer and Income Taxation

          TAX 112 A & B, BA 203

          Source: E.Valencia & G. Roxas, Income Taxation (2010)


                  Introduction Income Tax


                                Taxation  is  the  process  or  means  by  which  the

                  sovereign through its law-making body, raises income to pay the

                  necessary  expenses  of  the  government.  Expressed  in  another

                  way,  it  is  a  method  of  apportioning  the  cost  of  the

                  government  among  those  who  are  privileged  to  enjoy  its

                  benefits and must, therefore, bear its burden.




                                Aside          from         financing            purely          the       government

                  operational  and  investment  expenditures,  taxation  is  also

                  utilized  as  a  tool  to  carry  out  national  objectives  of  social

                  amelioration  and economic development.


                                Income Tax is referred to tax levied on yearly income

                  from  property,  profession,  trade  or  offices  and  other  personal

                  income sources (passive and active income streams).
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