4 ways of eliminating double taxation

The 1987 Constitution does not prohibit double taxation in the broad sense; this is that double taxation that is allowed. However, substantive due process stops the government from imposing double taxation in the strict sense; this is also called obnoxious double taxation or direct duplicate taxation.

There are four (4) ways by which this illegal form of double taxation can be eliminated or mitigated.

[1] Tax deduction whereby an amount is subtracted from the gross amount
[2] Tax exemption whereby a person is given immunity from tax laws
[3] Tax credit whereby a person is allowed to deduct an amount from his tax liability
[4] Imposition of a lower rate

Popular Posts