Understanding Key Concepts in Taxation and Financial Law
Law Governing Taxpayer Rights & Programs
Tax Law
Tax Law’s Top 3 Distinguishing Features
- The nature of the tax liability
- Parties responsible
- The coercive economic power
Tax Collection Obligation in Public Finance
The nature of tax liability.
Tax Authority’s Debt Enforcement Power
The coercive economic power.
Sanctioning Power of Tax Authorities
The ability to exert sanctions.
Doctrinal Principles of Taxation Location
In the charter.
Adam Smith’s Principles of Taxation
- Principle of Justice
- Principle of Certainty
Characteristics of Taxpayer’s Tax Obligations
- They must be certain and stable.
- They should be extinguished (upon payment).
- They must be determinable.
The Principle of Convenience in Taxation
Taxes shall be levied when most convenient for the taxpayer.
Taxation of Extraordinary Profits
It provides for extraordinary profits to be taxed (profit beyond expectations).
Constitutional Principles of Taxation
Constitutional articles related to individual rights in taxation.
State Financial Resources for Societal Needs
- Collection of revenues
- Income administration
- Application of income to meet necessities
Disciplines Supporting State Financial Activity
- Financial Policy
- Financial Economics
Definition of Financial Law
The set of legal rules that systematize income and expenditure.
Definition of Financial Sociology
Study the effects of financial activity in general society and the state.
Definition of Economic Law
The rules governing the operation of state assets.
Definition of Credit Law
The set of rules governing and regulating internal and external loans.
What Does Tax Law Study?
It studies the set of legal rules related to taxation.
Three Types of Federal Taxes
- Taxes
- Social Security Contributions
- Contributions for Improvements
Federal Tax Code: Article 2, Fraction IV
Refers to contributions established by law for services provided by the state.
Federal Tax Code: Article 3
Refers to counter-prestations for services provided by the state.
Federal Expense Budget Definition
It is the catalog of concepts on which the executive and administrative agencies proceed.
Country’s Economic Policy Activities
Management of monetary and fiscal policy.
What Does Income Tax Record?
The profit from investment or return on capital.
Income Tax (ISR) Rebate Percentages
- 50% for those engaged in agriculture, livestock, fishing, and tree farming.
- 25% if those taxpayers industrialize their product.
- 25% if engaged in business or industrial activities.
- 50% if the activity is devoted to book publishing.
Who is Subject to VAT?
Natural and legal persons that carry out activities in national territory.
Activities Subject to VAT
The disposal of property, provision of independent services.
Definition of Asset Tax
It is an additional charge to income tax.
Products Subject to Special Production Tax
- Beer
- Alcohol
- Denatured Alcohol
Definition of Payroll Taxes
Is an estate tax that is specified in the law of the state treasury.