. "Among individuals, the tax gap as (a) percentage of potential income is highest among businessmen and professionals, averaging 68% or P26 billion from 2001-2005. On the other hand, tax evasion is relatively lower among pure compensation income earners or salaried individuals due to the withholding tax scheme. The estimated uncollected income taxes from wage and salary workers (are) less than P10 billion per year from 2001-2005, for an average tax gap of 10.9%. ln fact, in some years, the BIR has been able to collect almost 10Oo/o of the potential tax due from compensation income." Taxation withaut discrimination to realize human rights Taxation that complies with human rights requires both negative and positive actions. Negative actions require the avoidance of any tax measure that results in the non-enjoyment of human rights, or discriminates against anyone. Positive actions require the adoption and implementation of administrative and other arrangements to ensure the efficient and equitable collection of taxation revenues necessary to pursue policies that realize human rights. The development of equitable tax systems is a prerequisite for achieving human rights. (Waris and Kohonen,2011) The 1987 Philippine Constitution mandates uniform and equitable taxation and requires a progressive system of taxation. Progressive taxation simply means that those with higher income pay a relatively larger share of their income on taxes and their share rises progressively when their income levels rise. Philippine taxes may be classified into direct and indirect taxes depending on whether taxes are based on the taxpayer's ability to pay. Philippine Taxes imposed by the National lnternal Revenue Code, the Tariff and Customs Code and the Gcd Govemment Codq DirectTaxes lndirect Taxes lncome Tax (lndividual and Corporate)10 Value Added Tax11 Capital Gains Tax12 Hercentage lax Estate Tax14 and Donor's Tax15 tsxctse lax Real Property Tax lmport Duties ProfessionalTax Export Duties 13 16 Community Tax 10 Tax on all yearly profits arising from property, profession, trades or offices or as a tax on a person's income, emoluments, profits and the like; see Bureau of lnternal Hevenue, http://vvww.bir.gov.ph/taxinfo/taxinfo.htm. 11 Business tax imposed and collected from the seller in the course of trade or business on every sale of properties (real or personal), lease of goods or properties (real or personal) or vendors of services. lt ls an indirect tax, thus, it can be passed on to the buyer; see Bureau of lnternal Revenue, http:,//wvvw.bir.gov.ph/taxinfo/taxinfo.htm. 12 Tax imposed on the gains presumed to have been realized by the seller from the sale, exchange, or other disposition of capital assets located in the Philippines, including pacto de retro sales and other forms of conditional sal e ; see B u rea u of In te rn a I R eve n u e, h ttp ://www. b i r. g o v. p h/taxin fo/taxi nfo. h tm. 13 Business tax imposed on persons or entities who sell or lease goods, properties or services in the course of trade or business whose gross annual sales or receipts do not exceed P550,000 and are not VAT-registered; see Bureau of Intern al Reven u e, h ttp ://vvww. bi r. gov. ph/taxinfo/taxinfo. htm. la Tax on the right of the deceased person to transmit his/her estate to his/her lawful heirs and beneficiaries at the time of death and on certain transfers which are made by law as equivalent to testamentary disposition; see Bureau of ln terna I Reven ue, http ://www. bir. g ov, ph/taxi nfo/taxinfo. htm. lu Tax on a donation or gift, and is imposed on the gratuitous transfer of property between two or more persons who are living at the time of the transferi see Bureau of lnternal Revenue, http://www.bir.gov.ph/taxinfo/taxinfo.htm. 16 Tax levied on specific article, 60