TOPIC 1: DEFINITION, PURPOSES, SCOPE, BASIS OF TAXATION AND BASIC PRINCIPLES

Taxation is the power by which the sovereign raises revenue to defray the necessary expenses of the
government from among those who in some measure are privileged to enjoy its benefits and must bear
its burden.  Tax is the enforced proportional contribution from persons and the properties levied by the
State under its sovereignty for the support of government and public needs.   Taxation is the inherent
power of the sovereign, exercised through the legislature, to impose burdens upon subjects and objects
within its jurisdiction to raise revenues to carry out the legitimate objects of government.  It is also
defined as the act of levying a tax, i.e. the process or means by which the sovereign, through its law-
making body, raises income to defray the necessary expenses of government. It is a method of
apportioning the cost of government among those who, in some measure, are privileged to enjoy its
benefits and must therefore bear its burdens.