POINTERS IN PRINECO- FINALS
Cooperative- system of economic
1. Multi-purpose cooperative- a
cooperative that combines two or more
of the business activities of these
different types of cooperatives
2. Taxation- system of raising money to
finance government; supreme power of
a sovereign state
3. Marketing Cooperative- engaged in the
sale of farm products produced
individually by member-farmers
4. Percentage Tax- business tax imposed
on persons or entities who sell or lease
goods, properties or services in the
course of trade or business
5. Fiscal Adequacy- source of revenue
should be sufficient to address the
demands of public expenditures
6. Income Tax- a tax levied directly on
personal income in one taxable period
7. PD NO. 175- late President Ferdinand
E. Marcos issued on April 14, 1973;
program envisions total rural
development through cooperatives
8. Inadequate Capital- most members of
coop are poor-farmers having limited
resources
9. Service Cooperative- established by
members to provide themselves with
certain services which would help
ameliorate their life
10. Value Added Tax- tax imposed by the
government at each stage in the
production of a good or service
11. Incompetent Management- an
organization will not succeed it its
management is incompetent and
ineffective
12. Credit Cooperative- composed of
persons who are bounded by the virtue
of thrift among its members by pooling
their savings
13.
action and business enterprise; derived
from Latin word “cooperates”
14. Producers Cooperative- composed of
skilled workers and craftsmen engaged
in small scale industry
15. The New Cooperative Code of the
Philippines/ RA No. 6398- defines
cooperative as a duly registered
association of persons with a common
bond of interest, who have voluntarily
joined together to achieve a lawful
common social or economic end
16. Indirect tax- taxes imposed on a
particular article or transaction which are
paid by others than those from whom
the tax collector receives payment
17. Local Taxes- taxes imposed by the
local government to meet particular
needs under the Local Government
Code
18. National Taxes- taxes imposed by the
national government under the National
Internal Revenue Code and other laws
particularly the Tariff and Custom Code
19. Excise Tax- is on the manufacture, sale
or use of goods or services levied by
local, state or national governments
20. Tax Evasion- use by the tax payer of
illegal or fraudulent means to defeat or
lessen the amount of tax
21. Robert Owen- “Father of Cooperatives”
22. Mobilia Secuntur Personal-
23. Inheritance Tax- paid on property
passed on from a deceased person to
those who are to inherit it
24. Head of the Family- means an
unmarried or legally separated man or
woman with one or both parents, or with
one or more brothers and sisters
25. December 9, 1927/ Act No. 3425-
Cooperative Marketing Law
26. Tax Exemption- grant of immunity or
freedom from financial charges, burdens
 or fees extended by the state to the f. It is levied by the legislative branch of
taxpayers the state
27. Constitutional Limitation- those g. It is levied for public purposes
expressly found in the constitution or 4. Purpose of Development Cooperative
implied from its provisions Program
28. Consumer Cooperative- composed of a. Facilitate redistribution of income and
consumers residing in a particular wealth
community who have pooled their b. It is a means for community
resources together to produce and development
distribute commodities to members c. To systemize the developments of
29. Documentary Stamp Tax- tax imposed cooperatives
on documents, instruments, loan d. To give more opportunities to the poor
agreements and papers evidencing the
acceptance, assignment, sale or transfer Essay: (get your idea here, formulate your own
of an obligation sentence)
30. Income Tax- derived from the 1. Power of estate to impose tax.
individuals, corporate, estates and trusts
income The power of taxation is inherent power of
State. It rests upon necessity, the
Enumeration: significance of which stems from the
1. Types of Cooperative recognition that since governments have
a. Credit cooperatives been established to promote and protect
b. Consumer’s cooperatives the general welfare, it is necessary that
c. Producer’s cooperatives government should be provided with the
d. Marketing cooperatives means by which it could carry out its
e. Service cooperatives exercise the power of taxation.
f. Multi-purpose cooperatives Government financial operations are well-
2. Importance of Taxation high impossible without taxation. Apart from
a. Raise revenue this, taxation can be a powerful means in
b. Protect locally produced goods against order to achieve the goals of social
competition from import by imposing progress and the objectives of economic
higher custom duties development.
c. Protect new industries by granting tax
exemptions Taxation is very important to maintain the
d. Regulate property society we live in. People are always
e. Distribute equally the wealth of the criticizing the government for this but it is
nation very important.
3. Essential Characteristic of Taxation
2. Different factors that contribute to the
a. It is an enforced contribution
success of cooperative.
b. It is generally payable in money
a. Economic Needs- Man is a social being.
c. It is proportionate in character
As such, his economic problems can
d. It is levied on persons, property or
best be solved through cooperation.
property rights
b. Sound Business Policies- Cooperatives
e. It is levied by the state, which has
are also business organizations; hence,
jurisdiction over the person or property
 it must observe sound business policies.
These refer to efficiency of operation,
careful planning, foresight, and fair
dealing with customers.
c. Honest and Competent Management-
The persons who are to serve as
members of the board of directors
should have adequate business
experience and should be motivated by
a desire to promote the interests of all
the members of the organization.
d. Exemption from Taxes- Since
cooperatives enjoy certain tax
exemptions, it has a decided edge or
advantage over private enterprises.
However, such exemptions should only
be temporary and must be given just to
help the business make a good start.