Vous êtes sur la page 1sur 1

Taxation 1

Power of Taxation power by which the sovereign through its law making body raises revenue
to defray the expenses of government.

It is the enforced proportional contributions from persons and property, levied by the State by virtue of its
sovereignty, for the support of the government and for all public needs. It is as broad as the purpose for which it
is given.
Purpose:
(1) To raise revenue
2) Tool for regulation
(3) Protection/power to keep alive Tax for special purpose [Sec. 29 (3), Art. VI

]: Treated as a special fund and paid out for such purpose only; when purpose is fulfilled, the balance, if any
shall be transferred to the general funds of the Government. [See: Osmena v.Orbos (1993)]
ScopeandLimitation
General Limitations
(1) Power to tax exists for the general welfare ; should be exercised only for a public purpose
(2) Might be justified as for public purpose even if the immediate beneficiaries are private individuals
(3) Tax should not be confiscatory
If a tax measure is so unconscionable as to amount to confiscation of property, the Court will invalidate it. But
invalidating at ax measure must be exercised with utmost caution

Gen. Prin. Of Taxation

BASIC PRINCIPLES OF TAXATIONA. TAXATION AS AN INHERENT POWER OF THE STATE


Power to tax is inherent in sovereignty
the moment the State exists, the power to tax automatically exists
enforceable even without any delegation by the Constitution or legislation from Congress
LGUs have no inherent power to tax; but expressly granted by the Constitution or legislation
Lifeblood Theory (CIR v Algue)
Tax is necessary to meet the expenses of government without which the latter cannot operate
Every person must contribute his share in the running of the government

Tax from License

Purpose General Purpose Regulatory Purpose


Basis Power of taxation Police Power
Amount No limit Limit to the cost of license
and expenses of police
surveillance and investigation
Time of Payment After commencement of Usually paid before
business
Effect of non payment Does not make the business Make the business illegal
illegal

Tax from Debt

Income Tax

Tax imposed on individual or entities that vary with the income or profits of the taxpayer.

Definition of Taxation