Taxation- is the process or means by w/c the
sovereign, through its lawmaking body, raises
income to defray the necessary expenses of the
government.
- The power of the state by w/c the sovereign
raises revenue to defray the necessary expenses
for the government.
- As a power of the state, is inherent in
sovereignty
- is indispensable and inevitable price for civilized
society; without taxes, the government would be
paralyzed.
Taxes- are the lifeblood of the government and
their prompt and certain availability are an
imperious need.
- are enforced proportional contribution from
persons and property levied by the lawmaking
body of the state by the virtue of its sovereignty
for the support of the government and all public
needs.
- Any contribution imposed by the government
upon individuals for the use and service of the
state.
Inherent power- gives the government the right
to tax citizens and properties w/ jurisdiction.
Eminent domain- is the power of the state to
take private property for public use upon
payment of just compensation.
Police power- The power of state to enact laws
to promote public health, public morals, public
safety and the general welfare of the people
Fiscal adequacy- sources of revenue
sufficient to meet govt expenditures.
Equality of theoretical justice- the tax
imposed should be proportionate to taxpayer’s
ability to pay.
Administrative feasibility- the law must be
capable of convenient, just and effective
administration.
Constitutional limitation- those provided for in
the constitution or implied from its provision
Inherent limitation- is restrictions to the
power to tax attached to its nature.
Tax minimization/ Tax avoidance/ Tax
planning- it happens when the taxpayer
minimizes his tax liability by taking
advantage of legally available tax planning
opportunities.
- It is the process of controlling one’s action
to avoid undesirable tax consequences.
Tax avoidance- is a complete legal activity.
Tax evasion/ tax dodging the taxpayer
resort to unlawful means to lessen or to get
away w/ his tax liability
Avoidance- is the legal process
Tax evasion- illegal process
Situs of taxation- place of taxation
Gratuitous transfer of property-
taxpayer’s residence of citizenship, or
location of the property
Regressive- if the average rate decreases,
as the tax base increases.
Proportional taxes- flat or uniform taxes-
the average rate remains constant for all
levels of the tax base.
Progressive- is one for w/c the average
rate increases as the amount of the tax base
increases.
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