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