Principles Of Taxation

Question 1

4 Elements of States

Answer 1

1. People
2. Teritory
3. Government
4. Sovereignty

Question 2

3 Inherent Power of State

Answer 2

1. Police Power
2. Power of Taxation
3. Power of Eminent Domain

Question 3

Refers to the inhabitants of the state

Answer 3

People

Question 4

Refers to the physical geographic area over which the state has jurisdiction and control

Answer 4

Terittory

Question 5

The agency or instrumentality through which the will of the State is formulated, expressed, and realized.

Answer 5

Government

Question 6

The supreme and uncontrollable power inherent in a State by which the State is governed.

Answer 6

Sovereignty

Question 7

Inherent power - regulate liberty and propert for the promotion of the general welfare

Answer 7

Police power

Question 8

Inherernt power- forcibly acquire private property, upon payment of just compensation, for some intended public use.

Answer 8

Power of Eminent Domain

Question 9

Inherent power- by which the states raises revenue to defray the necessary expenses of the government

Answer 9

Power of Taxation

Question 10

T or F
Taxation power may be exercised even though not expressly granted by the Constitution.

Answer 10

True.
The inherent power is much more powerful than the Constitution. The inherent power was already existing the momemnt the state was created.

Question 11

Inherent power are exercised primarily by

Answer 11

The Legislature

Question 12

It may be granted to public, service, or utility companies

Answer 12

Power of Eminent Domain

Question 13

Strongest power of the State

Answer 13

Power of Taxation

Question 14

T or F
The power to tax is viewed as the power to destroy in the sense that a lawful tax cannot be defeated just because its exercise would be destructive or would bring about insolvency to a taxpayer.

Answer 14

True. Tax is a valid tax. This is so because a taxpayer could not seek the nullification of the valid tax solely upon the premise that the tax will impoverish him.

Question 15

3 Elements of Taxation

Answer 15

1. An enforced contribution from persons and properties
2. Imposed by the state by virtue of its sovereignty
3. It is levied for the support of the government

Question 16

3 Theory and Basis of Taxation

Answer 16

1. Lifeblood Theory
2. Necessity Theory
3. Benefit-Received Principle

Question 17

What is Lifeblood Theory?

Answer 17

Taxes are the lifeblood of the government, without tax government will not exist nor survive.

Question 18

Theory of Taxation
Resident citizens are taxable even on income derived from sourced abroad.

Answer 18

Benefits-received theory

Question 19

T or F
The power of eminent domain and power of taxation affect only property rights.

Answer 19

True. Police power is not included because it regulates both liberty and property

Question 20

Primary Purpose of Taxation

Answer 20

Provide funds for the government.
Revenue or fiscal

Question 21

(5) Secondary Purpose of Taxation (Sumptuary Purpose)

Answer 21

1. Promotion of general welfare
2. Regulation of activities/industries
3. Reduction of social inequality
4. Encourage economic growth
5. Protectionism

Question 22

(4) Scope of Power of Taxation

Answer 22

1. Comprehensive
2. Unlimited
3. Plenary
4. Supreme

Question 23

(3) Principles of a Sound Tax System

Answer 23

1. Fiscal Adequacy
2. Administrative Feasibility
3. Equality or Theoretical Justice

Question 24

(8) Nature of Taxation

Answer 24

1. Inherent in sovereignty
2. Legislative in character
3. Subject to constitutional and inherent limitation
4. Strongest of all the inherent powers of the government
5. Territoial in operations
6. Generally pecuniary/monetary in nature
7. Generally not delegated to the executive or administrative
8. The right to tax exist apart from the constitution and is not expressly grant by the people.

Question 25

2 Systems of Taxation

Answer 25

1. Progressive System of Taxation
2. Regressive System of Taxation