Professional Documents
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Power of Taxation
Power of Taxation
Power of taxation
These three powers are inherent and belong to the very essence of
government. Without these, the government cannot perform its functions and
cannot exist. However, people who are given the mandate to discharge government
functions might abuse their powers. The constitution does not grant the government
these three great powers but it defines, delimits and allocates their exercise among
various government-agencies. - Discourses on the 1987 Philippine Constitution
(Reynaldo S. Naguit)
Meaning of taxation
- Hector De Leon
Meaning of tax
- Leao, Jr
- Naguit
- Naguit.
Importance of taxation
1. Raise revenue. No government can exist without it. It cannot promote the
welfare of the people.
2. Protect locally produced goods against competition from import by
imposing higher custom duties.
3. Protect new industries by granting tax exemptions.
4. Regular property.
5. Distribute equality the welfare of the nation.
1. It is an enforced contribution
2. It is generally payable in money
3. It is proportionate in character
4. It is levied on persons, property or property rights
5. It is levied by the state, which has jurisdiction over the person or property
6. It is levied by the legislative branch of state
7. It is levied for public purpose
- Naguit
Taxes are classified as to the scope or authority imposing the tax. They are as
follows:
1. Income tax
2. Inheritance tax
3. Estate tax
4. Donors tax
5. Capital Gains tax
6. Documentary stamp
1. Harbor fee
2. Wharfage due
3. Berthing charge
4. Storage charge
5. Arrastre charge
6. Tonnage due
The power to impose tax is purely legislative; congress cannot delegate the
power to others. At least three distinct ideas have contributed to the development
of the principle that legislative power cannot be delegated. Once of the reason is
the doctrine of separation of powers. It means that each must exercise its power
without intruding into the exercise of the powers of the other branches, for they are
independent and coordinate.
and through the government would be taxing itself to raise money to pay over to
itself. (De Leon, Agrarian Reform and Taxation)
Gross income it means all income derived from whatever source, including but not
limited to the following items:
1. Compensation for service in whatever form paid, including, but not limited to
fees, salaries, wages, commissions, and similar items;
2. Gross income derived from the conduct of trade or business or the exercise of
a profession;
3. Gains derived from dealings in property;
4. Rents;
5. Royalties;
6. Dividends;
7. Annuities;
8. Prizes and winnings;
9. Pensions; and
10.Partners distributive share from net income of the general professional
partnership.
Ordinary income
Taxable income
Passive income
1. Life insurance
2. Amount received by insured as return of premium
3. Gifts, and devices
4. Compensation for injuries or sickness
5. Income exempt under treaty
6. Retirement benefits, pension and gratuities
7. Miscellaneous items.
Taxpayer it means any person subject to tax imposed as imposed by the national
internal revenue code.
1. Individual taxpayer
a. Resident citizen
b. Non-resident citizen
c. Resident aliens
d. Non-resident aliens
2. Corporate taxpayer
a. Domestic corporation
b. Foreign corporation
c. Resident corporation
d. Non-resident corporation
3. General professional partnerships
4. Estates and trusts
1. Legislative- this power can only be exercised by the law making body (Congress)
not the executive or the judicial branch of the government, except when delegated
by the national legislative body to a local legislative body or to the executive branch,
subject to limitations as may be provided by law
2. Inherent in sovereignty- the power exists as an incident or attribute of sovereignty,
as it is essential to the existence of every government. The power can therefore be
exercised even without the constitution or any law expressly conferring such power
Flow of discussions