Académique Documents
Professionnel Documents
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Necessity theory - cannot continue without means to pay its expenses thus has right to
compel all citizens and property within its limits to contribute
Benefit-protection theory - the state demands and receives taxes from the subject of taxation
within its jurisdiction so that it maybe enabled to carry its mandate into effect and perform
the functions of government, and the citizen pays from his property the portion demanded in
order that he may, by means thereof, be secured in the enjoyment of benefits of organized
society.
Constitutional limitation
inherent limitations
contracts
The income effect expresses the impact of increased purchasing power on consumption, while
the substitution effect describes how consumption is impacted by changing relative prices.
BIR – judicial
NIRC – admin
2. to determine whether or not the interpretation of the law according to the intentions of the
Congress
3. Doctrine of Territoriality – Power of taxation can only be exercised only within the extra territorial
jurisdiction of taxing authority
exercise of right is exempt from the Doctrine of Territoriality
1. Income tax
4. Documentary Stamp tax – transfer of rights/ obligations/ properties/ interests must be stamped
and all supporting documents
If the person primarily liable is exempt from payment of DST, the documents remain taxable
Congress has the residual power of taxation – outside normal scope of taxation Example: text
messages
Defined TAX EXEMPTIONS – is an immunity from payment of tax where others are obliged to pay
GOCC generally are taxable and considered as ordinary taxpayers and exempt only when the law or
charter creating them provides exemption
50% of income from allied services (canteen, dorm, bookstores, parking ) – normal corporation – taxable
Special tax lien – taxes that were not collected due to tax exemptions
revocable
not subject to non-impairment clause
bec. franchise is not a contract - no meeting of minds