Income Taxation Flashcards
The Inherent Powers of the State
Taxation power
Police power
Eminent domain
is the power of the State to enforce proportional contribution from its subjects to sustain itself
Taxation power
Is the general power of the state to enact laws to protect the well being of the people
Police power
Is the power of the State To take private property for public use after paying just compensation.
Eminent domain
May be defined as a state power, a legislative process and the mode of government cost distribution
Taxation
Taxation is an inherent power of the state to enforce a proportional contribution from its subjects for public purpose
As a state power
Taxation is a process of levying taxes by the legislature of the state to enforce proportional contributions from its subjects for public purpose
As a process
Taxation is a mode by which the state allocates its costs or burden to its subjects who are benefited by its spending.
As a mode of cost distribution
What is taxation
As a state power
As a process.
As a mode of cost distribution
What is the theory of taxation
The government’s necessity for funding.
The mutuality of support between the people in the government
Basis of Taxation
Theories of cost allocation
Benefit received Theory
Ability to pay theory.
Presupposes that the more benefit one receives from the government , the more taxes should pay
Benefit received theory
Taxpayers should be required to contribute based on their relative capacity to sacrifice for the support of the government.
Ability to pay theory.
Taxes are the life blood of the government
The life blood doctrine.
The limitations of the taxation power
Inherent limitations
Constitutional limitations
Inherent limitations of the taxation power
Territoriality of taxation
international comity
Public purpose
exemption of the government
Nondelegation of the taxing power.
Stages or aspects of taxation
Levy or imposition
Assessment and collection
Payment of tax
This process involves the passage of tax laws or the ordinances trough the legislature
Levy or imposition
this process involves the act of administration and implementation
of tax laws by the executive through its administrative agencies such as the Bureau of Internal Revenue or Bureau of Customs.
Assessment and collection
This process involves the act of compliance by the taxpayer in contributing his share to pay the expenses of the government.
Payment of Tax
Businesses are subject to tax in the place where the business is conducted.
Business tax situs
Service fees are subject to tax where they are rendered.
Income tax situs on services
The gain on sale is subject to tax in the place of sale.
Income tax situs on sale of goods
