TAXATION Flashcards
What is Taxation
Taxation is the process or means by which the sovereign (independent state), through its law-making body (the legislature), imposes burdens upon subjects and objects within jurisdiction for the purpose of raising revenues to carry out legitimate objects to the government.
Taxation may be defined as:
A state of power, a legislative process, and a mode of government of distribution
______ to enforce a proportional contribution from its subjects for public purposes
AS A STATE POWER
_____LEVYING taxes by the legislature of the states to enforce a proportional contributions from its subjects for public purpose
as a process
____the states allocates its costs or burden to its subjects who are benefited by its spending
as a mode of cost distribution
What are the Inherent power of state
- Taxation
- Police Power
- Eminent Domain
What is taxation power
the power of the state to enforce proportional contribution fro its subjects to sustain itself
What is police power
the general power of the state to enact laws to protect the well being of the people
What eminent domain
the power of the state to take private property for public use after paying just compensation
what are the two theories of cost allocation
- benefit received theory
- ability to pay theory
what it the benefit received theory
presuppose that the more benefit one receives from the government, the taxes he should pay
what is the ability o pay theory
presuppose that the taxation should consider the ability of the taxpayer to pay
what are the aspects of ability to pay theory
- vertical equity
- horizontal equity
____proposes that the extent of one’s ability to pay is directly proportional tot he level of his tax base
vertical equity
____requires consideration of the particular circumstance of the taxpayer
horizontal equity
The ______ expresses that without taxes, a government cannot exist or endure, as taxes are necessary for a government to fulfill its functions and mandate to promote public welfare.
Lifeblood Doctrine
What are the Stages of Taxation
Stages of Taxation
1. Levy or Imposition or Impact of Taxation
2. Assessment and Collection of tax or Incidence of Taxation
What are the 3 branches of PH Government
- Legislative
- Executive
- Judicial
What are the Nature or Characteristics of the Power of Taxation
- For public purpose
- Inherently legislative in nature
- Subject to international comity or treaty
- Not absolute being subject to constitutional and inherent limitations
- Exaction payable in money
- Territorial
Purpose of Taxation
- Primary purpose – to raise revenue
- Secondary purposes
a.) Regulatory
b.) Compensatory
what are the Modes of Cost Allocation
- Benefit Received Theory
- Ability to Pay Theory
a.) Vertical equity
b.) Horizontal equity
What are The Scope of Taxation
- Businesses 5. Acts
- Interests 6. Persons
- Transactions 7. Properties
- Rights 8. Privileges
Two kinds of the Limitations of Taxation
- Inherent Limitations
- Constitutional Limitations
What are the inherent limitations
- Territoriality of taxation
- International comity
- Public purpose
- Exemption of the government*
- Non-delegation of the taxing power*
What are Constitutional Limitation
- Due process of law.
- Equal protection of the law.
- Uniformity rule in taxation.
- Progressive system of taxation.
- Non- imprisonment for non-payment of debt or poll tax.
- Non – impairment of obligation and contract.
- Free worship rule.
- Exemption of religious or charitable entities, non-profit cemeteries, churches and
mosque from property taxes. - Non- appropriation of public funds or property for the benefit of any church, sect or
system of religion. - Exemption from taxes of the revenues and assets of non-profit, non-stock educational
institutions. - Concurrence of a majority of all members of Congress for the passage of a law granting
tax exemption. - Non- diversification of tax collections
- Non-delegation of the power of taxation
- Non-impairment of the jurisdiction of the supreme court to review tax cases
- The requirement that appropriations, revenue. tariff bills shall originate exclusively in the House of Representatives
- The delegation of taxing power to local government units
Fundamental Doctrines of Taxation
- Marshall Doctrine
- Holme’s Doctrine
- Prospectivity of tax laws
- Non-compensation or set off
- Non-assignment of taxes
- Imprescriptibility in taxation
- Doctrine of estoppel
- Judicial Non-interference
- Strict Construction of Tax Laws
whAT ARE THE FACTORS THAT DETERMINE THE SITUS OF TAXATION
- Nature, Kind of Classification of Tax Type
- Subject Matter of the Tax
- Citizenship of the taxpayer
- Residence of the taxpayer
- Sources of income
- Place of exercise, business or occupation being taxed
- Place where income producing activity was held or done
application of situs of taxation
- persons
- community development tax
- business tax
- privilege or occupation tax
- real property tax
- personal property tax (tangible & intagible)
- Income
- Transfer taxes
- Franchise taxes
- corporation taxes
what are the elements of double taxation
- primary elements: same objects
- secondary elements:
* same type of tax
*same purpose of tax
* same jurisdiction
*same tax period
Types of Double Taxation
- Direct
- Indirect
