Chapter 1 Flashcards
process or means by which the sovereign through its law making body imposes burdens upon subjects and objects within its jurisdiction for the purpose of raising revenues to carry out the legitimate objects of the government.
Taxation
promoting public welfare by restraining and regulating the use of liberty and property.
Police Power
the State raises revenue to defray
the necessary expenses of the government.
Power of Taxation
power of the state to acquire private property for the public purpose upon payment of just compensation.
Power of Eminent Domain
Provide funds of property to promote general welfare
Primary : Revenue
Device for regulation or control
Secondary : Regulatory
– Preserve the state’s sovereignty
– To give protection and facilities
Necessity Theory
– Government’s basic function
Lifeblood Theory
Reciprocal duties of protection and support between the state and its inhabitants.
Basis of Taxation
What are the elements of Sound Tax System?
- Fiscal adequacy
- Theoretical justice or equity
- Administrative feasibility
Place of taxation
Situs of Taxation
the state or political unit which has jurisdiction to impose a particular tax.
Situs of Taxation
sum of money for the use of something
toll
a sanction imposed as a punishment
Penalty
proportional contribution from owners of lands for special benefits
Special Assessment
all funds or income derived by the government
Revenue
pecuniary aid directly granted the government to an individual or private commercial enterprise
Subsidy
charge imposed under the police power
Permit/license fee
taxes imposed exported from or imported into a country.
Custom duties
book of rates containing kinds of merchandise with corresponding duties to pay
Tariff
there is a burden of two or more impositions
double taxation
transfer of tax burden
shifting
producer pays the tax and endeavor to recoup himself by improving his process of production
Transformation
use of illegal means
Evasion
exploitation of legally permissible alternative
Tax avoidance
grant of immunity
Exemption
reduction in the selling price
Capitalization
what are the aspects of taxation?
- Levying or imposition of Tax
- Assessment of the correct amount
- Collection of tax
what are the scope of the power of taxation?
- Comprehensive
- Unlimited
- Plenary
- Supreme
