Taxation Governments way of financing their expenditure by imposing charges on citizens and

corporate entities.
The process of collecting tax is taxation. This is imposed so that the government can spend for various
projects around the country.
Lifeblood Doctrine It constitutes the theory of taxation, which provides that the existence of
government is a necessity; that government cannot continue without means to pay its expenses; and that
for these means it has a right to compel its citizens and property within its limits to contribute.
Like blood, which supports every human organ in order to perform its duty inside the body, tax acts as the
blood which supports the government and the state.
Situs of Taxatim Literally means the place of taxation, or the country that has jurisdiction to levy a
particular tax on persons, property, rights or business.
Kinds of Taxes
Excise Tax is directly imposed by the law making body of a government on merchandise, products, or
certain types of transactions, including carrying on a profession or business, obtaining a license, or
transferring property. It is a fixed and absolute charge that does not depend upon the taxpayers financial
status or the value that the taxed property has to the taxpayer.
Property Tax it takes the taxpayers wealth into account, as represented by the taxpayers income or the
property he or she owns.
Limitations in Taxation
Public purposes of taxes
Non - Delegability of the taxing power
Territoriality or situs of taxation
Tax exemption of the government
International Comity