GROUP 5

REPORTERS

FLORES GARCIA

ESCOBIN MERCADO
TAXATION
 INTRODUCTION
• The power of taxation is inherent power
of the States.

• Government financial operations are

well-high impossible without taxation

• Taxation is very important to maintain

the society we live in. People are always
criticizing the government for this but it
is very important to the society.
 TAXATION
• The word tax comes from the Latin word
“taxare” meaning to “head up”, “to describe”
or “to tax”.

• Refers to the practice of a government

collecting money from its citizen to pay for
public services

• Taxation is the method of apportioning the

cost of government.
PHILOSOPHICAL VIEW OF TAXATION -
UTILITARIANISM

For Utilitarianism the most important

economic goals are to ensure that
goods and services are available to
allow everyone to have a decent life,
and to ensure that these resources are
distributed widely enough for all or
most people to enjoy.
PHILOSOPHICAL VIEW OF TAXATION -
DEONTOLOGY
• Unlike the utilitarian, the Deontologist does
not tell us to make computations. Instead,
he or she lays down absolute duties.

• One common such duty is to respect others

people’s property rights. This could be
interpreted to mean that there should be no
tax at all, Because tax is the forcible transfer
of property away from taxpayers.
PHILOSOPHICAL VIEW OF TAXATION -
VIRTUE THEORY
• Virtue Ethics can be a bit more helpful on the question of the
justice of taxation.

• Another virtue is Charity, either in cash or in time. The more

take-home pay people have, the more likely it is that they will
feel able to afford charitable donation; and the higher people’s
pay rates, the easier it will be for them to take time away from
paid work to perform charity work or other forms of civic
services, as school governors or magistrates for example.

• A third virtue is Independence. It is good to earn what one

needs rather than to depend on subsidies from others. Lower
rate of taxation make independence more easily achievable.
 INCOME TAX CORPORATE TAX CAPITAL GAIN TAX PROPERTY TAX

A tax imposed on Also called A wealth A property tax or

individuals or corporation tax or tax imposed on large millage rate is
entities (taxpayers) company tax, is a corporations in some an ad valorem tax
in respect of the direct tax imposed provinces in Canada. on the value of a
income or profits by a jurisdiction on The tax is based on property. The tax is
earned by the income or the amount of levied by the
them (commonly capital of capital employed governing
called taxable corporations or (essentially debt and authority of the
income ). analogous legal equity), regardless of jurisdiction in
entities. profitability. which the property
is located.

TYPES OF TAX
 INHERITANCE TAX SALES TAX

A tax imposed by A tax paid to a

certain states on governing body for
those who inherit the sales of certain
assets from the goods and services.
estate of a
deceased person.

TYPES OF TAX
TAX EVASION AND TAX AVOIDANCE

• Most taxpayers pay their taxes, without fuss. But not all
texpayers act in this way. So lastly let’s look at whether two
other forms of behavior can be ethically acceptable: tax
evasion and tax avoidance.

• Tax evasion involves knowingly misreporting the fact: for

example, declaring an income of Php 1,000,000.00 when
the true figure is

• Php 5,000,000.00; or declaring that an asset is owned by

one company in a group, when it is really owned by
another, so paying less tax.
TAX EVASION AND TAX AVOIDANCE

• Tax avoidance is defined as the use of legal methods to

modify and individual’s financial situation to lower the
amount of income tax owed.

• Employing senior citizens to your business gives you an

additional deduction of an equivalent of 15% of their
salaries and wages while employing person with
disabilities entitle you to an addition deduction of an
equivalent of 25% of their salaries and wages. Also giving
discounts equivalent to 20% of their purchases less VAT
can be claimed as additional deduction
LEGITIMATE OBJECTIVE OF TAX

• We can start with the provision of law and order and the more
extensive public services such as health care and education.

• Utilitarian's will approve of taxation for these things because

they allow more goods and services to be produces, and they
also allow more goods and services to be produced, and they
also allow more non-materialistic desires to be satisfied.

• When we turn to aid the poor, Utilitarian’s will approve

because transferring resources from the rich to the poor will
increase the happiness of the poor than reduces the
happiness of the rich.
LEGITIMATE OBJECTIVE OF TAX

• Virtue ethicists will approve because with

redistribution the poor can be helped to flourish
and develop virtues.

• Deontologists can recognize a duty to care for the

poor. The greatest of all deontologists, Immanuel.
Kant, certainly believed in duty to the poor,
although he did not have a tax funded welfare state
in mind as a response.
LEGITIMATE OBJECTIVE OF TAX

• Taxation can very easily be used to make the distribution of

incomes and wealth more equal either by transferring cash
from the rich to the poor, or by providing the same state
services to everyone while taxing the rich more than the poor
in order to pay for them. Greater Equality may also be an
accidental outcome of using the tax system to do other things.
But it can also be a goal itself
BENEFITS OF PAYING TAXES

• The direct benefit of paying taxes for

everyone is that the are used to pay for
services that government provide to
communities.

• As large cities developed in the ancient

world rulers and there communities had
to device ways to compensate the
people who delivered services to the
communities.

• Taxes are classified as regressive if the

affect poor people more that wealthy
people and as progressive if they affect
wealth people more than poor people.
BENEFITS OF PAYING TAXES

• The benefit of paying taxes is to ensure that

everyone in a community enjoy the services
provided by the government.

• In practice this does not always happen. In

fact, we can easily find many examples where
“poor” neighborhoods receive less benefit
from taxation than “wealthy” neighborhoods

• In a perfect world we would only pay enough

taxes to ensure that everyone receives equal
benefits from their communities. In reality we
pay taxes because that is the most efficient
way to provide services, safety, and
infrastructure to large populations.
 BASIC PRINCIPLES OF A SOUND TAX SYSTEM

Administrative feasibility Theoretical justice

Fiscal adequacy means the
means tax laws and
sources of revenue must be means that a sound tax
regulations must be capable
sufficient to meet system must be based on
of being effectively enforced
government expenditures the taxpayers’ ability to
with the least inconvenience
and other public needs. pay.
to the taxpayer.
ESSENTIAL CHARACTERISTICS
OF TAXATION
• It is an enforced contribution
• It is generally payable in money
• It is proportionate in character
• It is levied on persons and property or
property rights
• It is levied by the state, which has
jurisdiction over the person or property
• It is levied by the legislative branch of
the state
• It is levied for public purposes
 2 Major Principle
of Taxation

• Ability-to-pay Principle

• Benefit Principle

067
Ability-to-pay Principle

The belief that taxes

should be based on the
individual’s ability to
pay.
 1. HORIZONTAL EQUITY

Same income pay the same

amount of taxes.

ABILITY-TO-PAY PRINCIPLE
 2. VERTICAL EQUITY

Explain how individual with

different economic capacity
pay different amount of taxes

ABILITY-TO-PAY PRINCIPLE
 Benefit Principle

The idea there should

be some equivalence
between what the
individual plays.
 KEY TAKEAWAYS TO TAXATION
•Taxation occurs when a government or other
authority requires that a fee be paid by citizens and
corporations, to that authority.

•The fee is involuntary, and as opposed to other

payments, not linked to any specific services that
have been or will be provided.

•Tax occurs on physical assets, including property

and transactions, such as a sale of stock, or a home.

•Types of taxes include income, corporate, capital

gains, property, inheritance, and sales.
JUSTICE AND FAIRNESS
 JUSTICE FAIRNESS
• It is part of the central • Showing no bias
core of morality. towards some people
or individuals
• Giving each person
what he or she • An ability to judge
deserves. without reference to
one’s feelings or
• Standard of rightness interests

067 240
It is assumed that Individuals are given All three can see the game
everyone will benefit different supports to without any supports or
from the same supports. make it possible for accommodations because
the cause of the inequity
They are being treated them to have equal
was addressed. The
equally. access to the game. systematic barrier has been
They are treated removed.
equitably.
 COMMON GOOD

001

• Which benefits society as a whole

• It refers to either what is shared and

beneficial for all members of a given entity.
PLATO’S THEORY OF JUSTICE

002 • Justice is that in individual, and in social life,

means placing each individual and each class
is in its proper place.

Political Philosophy

Soul Class
Rational Rulers
Spirited Soldiers
Appetitive Artisans
 ARISTOTLE’S JUSTICE

003
• Obey the laws and acting what is just.

General Justice is
virtue expressed in Particular Justice is the
relation to other correct distribution.
people.
 John Rawls
• American political and ethical
philosopher, best known for his defense
of egalitarian liberalism in his major work,
A Theory of Justice (1971).

• He is widely considered the most

important political philosopher of the
20th century.

• In A Theory of Justice, Rawls defends a

conception of “justice as fairness.”
 Individuals should be treated the
same, unless they differ in ways that
are relevant to the situation in
which they are involved.
TYPES OF JUSTICE

DISTRIBUTIVE
JUSTICE

CORRECTIVE
JUSTICE

COMPENSATORY
JUSTICE
 DISTRIBUTIVE
JUSTICE
Distributive justice refers
to the extent to which
society's institutions
ensure that benefits and
burdens are distributed
among society's members
in ways that are fair and
just.
 CORRECTIVE
JUSTICE
• Also known as
retributive justice

• Refers to the
extent to which
punishments are
fair and just.
COMPENSATORY
JUSTICE
refers to the extent to
which people are fairly
compensated for their
injuries by those who
have injured them; just
compensation is
proportional to the loss
inflicted on a person.
001 Justice, then, is a
central part of ethics
and should be given
due consideration in
our moral lives.

002 Justice is an expression of

our mutual recognition of
each other's basic dignity,
and an acknowledgement
that if we are to live together
in an interdependent
community, we must treat
each other as equals.
Thank you for
listening!