Access over 20 million homework & study documents

Introduction to Taxation

Content type
User Generated
Type
Study Guide
Rating
Showing Page:
1/4
Taxation - inherent power of a sovereign state which imposes a levy, a burden upon
persons, property and rights for purposes of raising revenue to defray the expenses of the government.
- A mode of raising revenue for public purposes
- Life and strength of the government
Inherent: a necessary attribute and a consequence of sovereignty
Necessity: the basis of the right of the government to compel all persons, natural or juridical, who has
income, wealth, property and rights within its territorial boundaries to contribute.
Constitutional provisions: only limits the power of tax, but not remove/grant it; a legislative function.
Inherent powers of the government: taxation, police power, eminent domain.
Difference:
Taxation- legislative; revenue collected for public purpose; cannot impair obligations of contracts;
subject to constitutional limitations; can be delegated to President
Police power- executive; amount collected for operation and existence of agency; can impair obligations
of contracts; free from constitutional limitations but limited to public demand and due process; can be
delegated to local government units
Eminent Domain- judicial; power to take private property for public use upon payment of just
compensation; property must be expropriated first through court proceedings; can be delegated to local
government units; can override constitutional impairment provision because the welfare of the State is
superior to any private contract; limited by public purpose and just compensation
Purposes and Objectives:
Revenue- collecting funds from taxpayers to fund operations for public welfare and protection
Regulation- to regulate tobacco, alcoholic products, luxury products (Sin products)
Promotion of General Welfare- tool of police power to promote general welfare
Encourage Economic Growth- tax incentives or exemptions attract investments
Reduction of Social Inequity- system of taxation to prevent undue concentration of wealth
Protectionism- tax imposed to protect local industries from foreign industries
Incidental Purposes- tool in International Relations: discriminatory duty (equalize foreign discrimination
against local products), countervailing duty (to offset subsidies from exporting countries to their
exporters to protect local industries), marking duty (to imported articles with improper classifications),

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/4
dumping duties (tax on imported goods with prices lower than their market value to protect local
industries).
Basis of Taxation:
Doctrine of Attribute of Sovereignty- taxing power is a right to every independent government; burden
to those who enjoyed the privileges of the government; of protection and welfare
Lifeblood Doctrine- tax is essential because the government cannot exist and operate without it
General Welfare Doctrine- tax is the strongest because it involves the power to destroy; can prohibit
certain activities inimical to the public good
Theories of Taxation:
Necessity Theory- It is a power predicated upon necessity.
Benefits Protection Theory- State’s power to tax is grounded on the reciprocal duties of support and
protection; symbiotic relationship.
Personal Liability Theory- a tax is personal to the taxpayer. (On corporations: piercing the corporate veil
doctrine)
Nature of Taxation:
Inherent power of the State
A Legislative function
Intended for purposes of raising revenue
Revenue collected is exclusively for public purpose
Cannot be applied to heads of State, ambassadors, and its diplomatic corps or staff
Strongest power of the Government subject only to its inherent and constitutional limitations
Points to Ponder:
a. Taxation recognizes superiority of contracts- the power to tax recognizes obligations imposed
by contracts as guaranteed by Article 3 Section 10 of the 1987 Constitution. This does not apply
when the State exercises its police power in disregarding or impairing the obligation of contracts.
b. The legislature has unlimited scope to everything to be taxed where there are no
constitutional restrictions.
c. The power to tax includes the power to destroy but when it is unjust the court can strike it
down for the power to tax cannot override constitutional proscriptions.

Sign up to view the full document!

lock_open Sign Up
Showing Page:
3/4

Sign up to view the full document!

lock_open Sign Up
End of Preview - Want to read all 4 pages?
Access Now
Unformatted Attachment Preview
Taxation - inherent power of a sovereign state which imposes a levy, a burden upon persons, property and rights for purposes of raising revenue to defray the expenses of the government. A mode of raising revenue for public purposes Life and strength of the government Inherent: a necessary attribute and a consequence of sovereignty Necessity: the basis of the right of the government to compel all persons, natural or juridical, who has income, wealth, property and rights within its territorial boundaries to contribute. Constitutional provisions: only limits the power of tax, but not remove/grant it; a legislative function. Inherent powers of the government: taxation, police power, eminent domain. Difference: Taxation- legislative; revenue collected for public purpose; cannot impair obligations of contracts; subject to constitutional limitations; can be delegated to President Police power- executive; amount collected for operation and existence of agency; can impair obligations of contracts; free from constitutional limitations but limited to public demand and due process; can be delegated to local government units Eminent Domain- judicial; power to take private property for public ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
I was struggling with this subject, and this helped me a ton!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Documents