Group 2 Mrs. Tess Sagadraca members: Abigail villanueva Paulo Erfe Carmela rosoroso Michelle Barrientos Kristea Carpio

2. Private Economy Public Economy
 Benefit of Business &  Service
Industry  Budget is allocated based
 Determines How much on previous.
spends according to
needs use labor and
capital effectively.

3.  Concerned with a collective sytem of economy
Reason to study:
To be aware in numerous functions of the government.

4.  Governance
The physical exercise of management power and policy
 Fiscal Administration
How public budgets operate
 Public income
How wealth is produced, distributed and preserved
 Taxation
 Other sources of government Income
Ex. Individual Income Tax

5. Taxes
Biggest source of government funds.

6. Agency of Department of Finance

7.  The Bureau of Internal Revenue
 Internal revenue taxes
 fees and charges
 enforcement of all forfeitures
 penalties and fines
presently headed by Deputy Commissioner Lilian Hefti.

8.  The Bureau of Custom
 In charge of imports
 exports and foreign trade.
presently headed by Commissioner Napoleon Morales

9.  Income taxes of individuals
 Business property taxes
 Residence taxes
 Import taxes
 Inheritance taxes
 Gift taxes
 Other specific taxes

10.  Collection of fines and fees
 Licenses and registration charges
 Commercial revenue
 Profits earned by government- operated and
controlled corporations.

11.  Political reluctance to raise taxes
 Government- sponsored capital improvements
 To stimulate the economy

12. Internal Sources
 Ex. Central Bank
External Sources
 Ex. Foreign Governments

13. Functional
Classification of
Public
Expenditures
By: Paulo

14.  Isthe duty of the Government to
provide its children with the rudiments
of at least a Primary Education.

15.  stateis to provide for its National
Defense, thus, protection against the
foreign aggression or even domestic
terrorism.

16.  public welfare cover a wide range. The
term is used to include expenditures for
society indigents, the infirm, and the
aged.

17.  Another priority of the government. Priority
projects include infrastructure, agro-
industrial production, both for export and
domestic consumption.

18.  is the act of laying a tax. It is the process
or means by which the sovereign through
its law-making body raises income to
defray the necessary expenses of the
government.

19. 1) The primary purpose is to raise income
for government needs and this is identified
as the revenue purpose.
2) The secondary purposes of taxation are:

20. A) Compensatory Purposes
• To reduce excessive inequalities of wealth
• To maintain high level of employment
• To control inflation
B) Sumptuary or Regulatory Purposes
• To implement the police power of the state which
in charge in the promotion of general welfare

21. • The power of taxation proceeds upon the theory
that the existence of government is a necessity
and that it cannot continue without the means of
pay its expenses.
• The state collects taxes from the subjects of
taxation in order that it may be able to perform the
functions.
• The lifeblood Theory means that taxes are the
lifeblood of the government and their prompt and
certain availability are an imperious( expecting
obedience) need.

22. TAXATION
&
TAXES
BY; MICHELLE

23. Taxation
Taxation is the process of tax collection.
Taxes
are most important source of government revenues.

24. 2 GENERAL PRINCIPLES OF TAXATION
1. Benefit Received Principle
 holds that an individual's tax burden should be proportional to the amount
of "benefit" that the individual receives from the resource .
2. Ability to pay Principles
 underlies the system of progressive income taxation
 the richer pay a higher percentage of income tax

25. 2 DIMENSIONS OF ABILITY TO PAY PRINCIPLES:
1.Horizontal Equity
 implies that we give the same treatment to
people in an identical situation.
2.Vertical Equity
 Implies that people with higher incomes should
pay more tax.

26. The Cost of Service Theory
 Satisfy the idea of equity or justice in taxation
Fiscal Adequacy
 The source of revenue should be sufficient to the
demands of public expenditures.
 The tax should be adequate for future revenues.

27. PROPORTIONATE PRINCIPLE
 Taxes are levied in proportion to the income of
individuals

29.  A good tax ought to be certain, not
arbitrary

30.  Tax paid should be the least annoying

31.  no tax should be imposed which is not
capable of efficient and economical
administration

32.  it does not depend on where the
revenue is collected, but on the price
elasticity of demand and the price
elasticity supply

33.  Fiscal Adequacy
 Equality or theoretical justice
 Administrative feasibility

34.  It is inherent in sovereignty
 It is legislative in character
 It is subject to constitutional and inherent
limitations

35.  Levying or imposition of tax
 Collection of the tax

36.  Enforced contribution
 Levied pursuant to legislative authority
 Proportionate in character
 Payable in money

37.  Levied upon persons and property with
in the jurisdiction of the state
 Levied and collected for the purpose of
raising revenue to be used for public
purpose

38.  Required to be paid at regular intervals

39. A.
Direct – is demanded from the person who
shoulders the burden of tax

40. Indirect- tax which can be passed on by
the seller to the buyer

41. B. According to the rate or gradation
 Proportional
 Regressive
 Progressive

42. C. According to economic stages
 Acquisition
 Exchange
 consumption

43. D. According to mode of levy
 Personal
 Impersonal
 Mixed

44. E. As to authority imposing the tax or scope
 National
 Municipal

45. F. As to determination of amount
 Specific
 Ad valorem

46. G. As to purpose
 General, fiscal, or revenue
 Specific or Regulatory

47. By: Abigail

49. TAX
from the Latin taxo "I estimate“
~ is to impose a financial charge or other toll
upon a taxpayer (an individual or legal entity)

50. Continuation…..
~ by a state or the functional equivalent of a
state such that failure to pay is punishable by
law.

51. Types of Taxes
~ Direct
~ Indirect

52. ~ "pecuniary burden laid upon
individuals or property owners to
support the government a payment
exacted by legislative authority.“

53. ~ is the system by which the
government takes money from
people and spends it on things
such as education, health and
defense.
-Black Law’s Dictionary

54. Government
Borrowing

56. ~ is the debt owed by a central
government.
~ the total amount of money that a
country's central government has
borrowed to fund its spending on public
services and benefits.

57. Money borrowed by
the government through issuance
of securities, bonds and bills.
The government borrows money to make
up the difference
between revenues and expenditures. The
money comes from lenders within the
country and from foreign lenders.

58. Stabilization
~ involves the effort by the
government to achieve “full
employment with low inflation” or
an “acceptable unemployment and
inflation”.

59. The graph below shows historical exchange rates
between the Philippine Peso (PHP) and the US Dollar (USD)
between 8/6/2012 and 9/4/2012

60. Fiscal Policy
~ measures are frequently used in
tandem with monetary policy to achieve
certain goals."

61. Tariff
~ is a tax or duty levied on the import of
goods.
~ is a tax that a government collects on
good coming into a country.

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