
Originally Posted by
rafee
I think not. Passive taxable Income simply means "Income" not the other way around. Ang imo nuon pagpalit naa gyud na tax(if nagsunod sa balaod - meaning with receipt..etc.)
pero pagbayad nimo, dili na gyud na imoha nga kwarta ky naa nmn nimo ang bugas. So you think bugas ang taxable? sa ato pa 10% sa bugas imo ihatag sa BIR pra maapil ka nga sa mga taxpayer.?. Dili, so ang kwarta nga gibayad nimo iyaha na to sa nagbaligya w/c is gatawag nga halin. So halin means income..
so ang nkahalin mao ang nagbayad ug tax dili ang nagpalit.
consumers pay the vat, not the business. To illustrate, product A costs 50, vat included est around 10%. Breakdown, cogs 30, vat 5, profit 15. Lets say, vat is increased by law to 20%. So lets say cogs remains the same 30, profit may remain the same at 15 but vat will now be at 11, which now increases the price to 56... this simple illustration has a profound implication, all taxes aimed at businesses, inspite of how it is worded, will always be passed on to the consumers. Businesses indirectly act as collectiOn agencies....income taxes of employees are withheld by business, value added taxes likewise are withheld by businesses.