Professional Documents
Culture Documents
1. What is taxation?
f)
Taxation is an act of laying taxes, i.e., the process or
means by which the sovereign, through its lawmaking body, raises income to defray the necessary
expenses of the government. It is merely a way of
apportioning the cost of government among those
who in some measure are privilege to enjoy its
benefits and, therefore, must bear its burden.
As a power, taxation refers to the inherent power of
the state to demand enforced contribution for public
purpose or purposes.
2. What is the purpose of taxation?
The primary purpose of taxation on the part of the
government is to provide funds and property with
which promote the general welfare and protection of
its citizens. Aside from raising revenues for
governmental needs, taxation may also be exercised
to attain various social and economic (non-revenue)
objectives.
3. What is the scope of taxation?
In its broadest and most general sense, taxation
includes every imposition or charge or burden by the
sovereign power upon persons, property, or property
rights for the use and support of the government to
enable it to discharge its appropriate functions.
4. What are taxes?
Taxes are enforced proportional and pecuniary
contributions from persons and property levied by the
law-making body of the state having jurisdiction of the
subject of the burden for the support of the
government and all public needs.
5. What are the essential characteristics of tax?
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a) It is an enforced contribution not a voluntary
payment or donation; not dependent upon will or
assent of taxpayer; principle of representation
(satisfied by adequate representation in the
legislative body which votes the tax);
b) It is proportionate in character ordinarily based
on ability-to-pay;
c) It is generally payable in money unless
qualified by law (such as backpay certificates), it
is understood to be a pecuniary burden; an
exaction discharged alone in the form of money
which must be in the legal tender;
d) It is levied on persons or property may also be
levied on acts, transactions, rights or privileges;
in each case however, it is only a person who
pays the tax;
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a) Levying or imposition of the tax it is a
legislative act;
b) Collection of the tax levied it is essentially
administrative in character;
The first is taxation, strictly speaking, while the
second (including the payment by the taxpayer) may
be referred to as tax administration. The two
processes together constitute the taxation system.
9. What is the extent of the legislative power to tax?
The power of taxation being legislative, all its
incidents are naturally within the control of the
legislature. Subject to constitutional and inherent
restrictions, the legislature has discretion to
determine:
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(a) Subjects or objects to be taxed;
(b) The purpose or object of the taxed so long as it is
public purpose;
(c) The amount or rate of the tax;
(d) The manner, means, and agencies of collection
of the taxes;
10. Which has the power to determine whether the
purpose is public or private?
It is the courts.
11. What is the limitation of judicial review?
Judicial action is limited only to a review where it
involves:
(a) Determination of the validity of the tax in relation
to constitutional precepts or provisions;
(b) Determination in an appropriate case of the
application of a tax law.
12. What are some of the non-revenue objectives of
taxation?
(a) It can strengthen anemic enterprise or provide
incentive to greater production;
(b) Taxes on imports may be increased to protect
local industries against foreign competition or
decreased to encourage foreign trade;
(c) Taxes on imported goods may also be used as a
bargaining tool to enhance its bargaining power;
(d) Taxes may be increased in times of prosperity in
order to curb spending power and halt inflation or
decreased in times of slump to expand business
and ward off depression;
(e) Taxes may be levied to reduce inequalities in
wealth and income;
(f) Taxes may be levied to promote science and
invention;
(g) Taxation may be used as an implement of police
power;
(h) Tax provisions may be enacted so that low
income individuals pay little or no income taxes
through a system of exclusions, exemptions,
deductions and tax credits;
TAX
Intended
to
raise
revenue
Imposable only by the
government
TAX
May be levied on
anything
Personal liability of the
person assessed
Necessary
for
the
existence of government
Has general application
TAX
Demand of a sovereignty
Paid for the support of
the government
Generally, there is not
limit on the amount of tax
TAX
Enforced
contribution
assessed by sovereign
authority to defray public
expense
Levied for revenue
Involves exercise of
taxing powers
Generally no limit on the
amount of tax that may
be imposed
Failure to pay does not
necessarily make the act
or business illegal
on
or
TAX
Based on law
Cannot generally be
assigned
Generally payable in
money
Cannot be set-off or
compensated, generally
Imprisonment
is
a
sanction
for
nonpayment
Governed by special
prescriptive periods in
the tax code
Draws interest when it is Does not draw interest
so stipulated or when except
only
when
there is default
delinquent
A liability and an obligation
25. Can taxes be set-off with debts owed by the
government to the taxpayer?
(b) As to purpose:
(g) As to relationship to the Constitution:
In taxation, the property (generally in the form of
money) is taken for the support of the
government;
In eminent domain, the property is taken for
public use or benefit; hence, must be
compensated; and
In police power, the use of property is regulated
for the purpose of promoting the general welfare;
hence, not compensable.
(c) As to persons affected:
Taxation and (usually) police power operate upon
a community or a class of entities or individuals.
(a)
(b)
(c)
(d)
(e)
(f)
Taxing twice;
By the same taxing authority;
Within the same jurisdiction or taxing district;
For the same purpose;
In the same year (taxing period);
Some of the property in the territory.