TA X ATION

GROUP 6
V E L A S C O C A S I L A N PA C H E C O S E R R A N O
L AC SAM ANA P USUNG
WHAT IS TAXATION?

• Taxation is a term for when a taxing authority, usually a government, levies or imposes a
tax.
• The term "taxation" applies to all types of involuntary levies, from income to capital gains
to estate taxes.
• Tax (from latin word TAXO) is a mandatory financial charge
DIFFERENT KINDS OF TAXATION

1. Income Tax
2. Corporate Tax
3. Capital gains
4. Property Tax
5. Inheritance
6. Sales Tax
INCOME TAX

• Governments impose income taxes on financial income generated by all

entities within their jurisdiction, including individuals and businesses.
CORPORATE TAX

• This type of tax is imposed on the profit of a business.

CAPITAL GAINS

• A tax on capital gains is imposed on any capital gains or profits made by

people or businesses from the sale of certain assets including stocks, bonds,
or real estate.
PROPERTY TAX

• A property tax is asses by a local government and paid for by the owner of a
property. This tax is calculated based on the property and land values.
INHERITANCE

• A type of tax levied on individuals who inherit the estate of a deceased

person.
SALES TAX

• A consumption tax imposed by a government on the sale of goods and

services. This can take the form of a value-added tax (VAT), a goods and
services tax (GST), a state or provincial sales tax or an excise tax
IMPORTANCE OF TAXES IN SOCIETY

• • Health Without taxes, government contributions to the health sector would be impossible. Taxes
go to funding health services such as social healthcare, medical research, social security, etc.
• • Education could be one of the most deserving recipients of tax money. Governments put a lot of
importance in development of human capital and education is central in this development. Money
from taxes is channeled to funding, furnishing, and maintaining the public education system.
• • Governance is a crucial component in the smooth running of country affairs. Poor governance
would have far reaching ramifications on the entire country with a heavy toll on its economic
growth.
ADVANTAGE

• Tax advantage refers to the economic bonus which applies to certain

accounts or investments that are, by statute, tax-reduced, tax-deferred, or
tax-free. Governments establish the tax advantages to encourage private
individuals to contribute money when it is considered to be in the public
interest.
ADVANTAGE

• It reduces the purchasing power of the payer

• -Easy to evade: Except through PAYE system, payers of direct tax can submit
a false return of income and thus evade the tax.
• -Direct taxes may discourage saving and investment
• -Direct taxes may cause social conflict
• -Direct taxes may reduce motivation level on tax payers
DISADVANTAGE

• They are inflationary in nature

• -They increase the prices of commodities
• -They are difficult to estimate
• -They could lead to industrial unrest
• -They are not economical, as they attract high cost of collection
• -They bring uncertainty in revenue generation
IS TAXATION ETHICAL AND FAIR? WHY DO
PEOPLE EVADE PAYING TAXES?

• In professions like tax preparation, accountancy, and other similar

professions, ethical questions are likely to arise on a regular basis. Naturally,
federal and local laws govern a great deal of these decisions, as well as
ethical codes laid out by professional organizations. At the end of the day,
making that crucial distinction between right and wrong in a given scenario
requires tax professionals to use their training to make an informed
judgment.