Introduction to Taxation [2/2]

This is the continuation of yesterday's post. Of course.

Introduction to Taxation

Situs (place) of taxation

• real property - where the property is located
• tangible personal property - where it is physically located
• intangible personal property - place of living of the owner
• income tax - location where the income earner resides or where income was earned
• business, occupation or transaction - place where business or occupation is done or where the transaction took place.

Double taxation - taxing the sabe subject twice during the same taxing period.

• Direct double taxation - the same subject is taxed twice by the same taxing authority, in the same taxing jurisdiction, for the same taxing period and for the same character of tax.
• Indirect double taxation

Forms of escape from taxation

• shifting - transfer of burden
• capitalization - reduction of price of taxed object 
• transformation - improvement of business process to minimize cost
• evasion - illegal means to lessen the payment of tax
• avoidance - legal means of assessing income to reduce tax liability
• exemption - grant of immunity