Concept, Nature and Characteristics of Taxation and Taxes

Question 1

the power to destroy

Answer 1

1. tax as a means to destroy a certain industry
2. therefore should be exercised with caution to minimize injury to the proprietary rights of the taxpayer

Question 2

The power to tax is said to be comprehensive, unlimited, plenary and supreme.
What does that mean? (Characteristics of Taxation)

Answer 2

comprehensive - broad coverage
unlimited - not invalidated when it regulates or deters taxed activities
plenary - Must be collected without unnecessary hindrances.
supreme - In the sense of selection of the subject of taxation

The Philippine government’s power to tax is comprehensive, unlimited, and supreme, granting it broad discretion to levy a wide range of taxes without strict limitations. This plenary taxing authority reflects the government’s need to generate revenue for public services, which can supersede individual or business interests. However, the exercise of this power remains subject to constitutional and legal safeguards to prevent excessive taxation or infringement on taxpayer rights.

Question 3

Aspects/Stages of Taxation

Answer 3

1. Levying
2. Assessment & Collection
3. Payment

Question 4

Levying of tax

Answer 4

LEGISLATIVE; decides the coverage, object, nature, extent, situs of the tax to be imposed`

Question 5

Assessment and Collection

Answer 5

EXECUTIVE; Computing the correct amount of tax payable and enforcing

Question 6

Payment

Answer 6

EXECUTIVE; Actual payment

Question 7

Which government has the primary role of tax administration in the Philippines?

Answer 7

Bureau of Internal Revenue

Question 8

Why is Levying Legislative?

Answer 8

involves the creation of law

Question 9

Purposes of Taxation

Answer 9

generate revenue
(promotion of general welfare, reduction of social inequality, encourage economic growth, protectionism)

Question 10

Promotion of general welfare

Answer 10

the imposition of a higher tax on vehicles powered by petroleum products such as diesel or gasoline

Question 11

Reduction of social inequality

Answer 11

Minimum wage exemption law

Question 12

Encourage economic growth

Answer 12

CREATE law, reduction of the corporate income tax rate, incentives and tax holidays to foreign investors

Question 13

Protectionism

Answer 13

tariffs and customs

Question 14

Principles of a sound tax system

Answer 14

Fiscal Adequacy
Administrative Feasibility
Theoretical Justice

Question 15

Fiscal Adequacy

Answer 15

revenue raised must be sufficient to meet government/public expenditures and other public needs

Question 16

Administrative Feasibility

Answer 16

the tax system should be capable of being effectively administered and enforced conveniently to the taxpayer.

streamlined and efficient

Question 17

Theoretical justice

Answer 17

our constitution mandates that the rule on taxation must be uniform and equitable and that the state must evolve a progressive system of taxation

Question 18

If the principles of a sound tax system are not present, would that invalidate a tax imposition?

Answer 18

No. except if specific constitutional or statutory limitations are impaired

Question 19

tax imposed on online sellers or influencers. the government is finding it difficult to collect. Would that invalidate because its not feasible?

Answer 19

No.

Question 20

Lifeblood Theory

Answer 20

taxes are the lifeblood of the government and should be collected without unnecessary hindrance. Government can not exist or function without it

Question 21

Benefits Protection Theory

Answer 21

1. AKA Doctrine of symbiotic relationship
2. it involves the power of the state to demand and receive taxes based on the reciprocal duties of support and protection between the state and its citizens

Question 22

Necessity Theory

Answer 22

1. taxation is predicated upon necessity. It is a necessary burden to preserve the state’s sovereignty
2. in order for the government to perform its functions

Question 23

Under theories of taxation, if such protection, government service, government function can no longer be afforded or provided by the state, can the subjects refuse to pay taxes?

Answer 23

1. there will be anarchy and systems will collapse because there is no tax to function
2. the nonpayment of taxes can not be justified

Question 24

Taxation

Answer 24

the inherent power of the sovereign exercised through the
legislature to impose burdens upon subjects and objects within its jurisdiction
for the purpose of raising revenues and to carry out the legitimate objectives of
government.

Question 25

Basis of taxation

Answer 25

inherent in a sovereign state because it is a necessary attribute of
sovereignty

Question 26

Scope of Taxation

Answer 26

the subjects and objects on which taxes are imposed

Question 27

Is the power to tax required to be explicitly provided in a State’s constitution?
Why or why not?

Answer 27

No because it is an inherent power of state.

Question 28

Do we have constitutional provisions related to Taxation in our present constitution? Cite some examples. What is the purpose of those Constitutional provisions?

Answer 28

Yes, the current 1987 Constitution of the Philippines contains several provisions related to taxation.

Article X, Section 5 allows local governments to have a just share in national taxes. Section 28 (3), Article VI

These constitutional provisions aim to exercise the government’s taxation powers by ensuring oversight and control over public funds, protecting the independence of the judiciary, providing fiscal autonomy for local governments, and incentivizing the cooperative sector - all with the purpose of promoting sound public finance, equitable distribution of resources, and a healthy economic environment.

Question 29

similarities of 3 inherent powers of state

Answer 29

They are inherent powers of the State
2. All are necessary attributes of sovereignty
3. They exist independently of the constitution
4. They constitute the three methods by which the State interferes with private rights and property
5. They presuppose equivalent compensation

Question 30

police power

Answer 30

power to regulate the actions of people to promote general welfare

Question 31

eminent domain

Answer 31

the power to take private property with just compensation for public purpose