I.

TAX DISTINGUISHED FROM OTHER CHARGES AND FEES

A. TAX VS TOLL FEE
A tax is a demand of sovereignty while a toll is a demand of proprietorship
A tax can be imposed by the government only while a toll can be imposed by the
government or the owner of the property.
A tax is collected based on government needs while toll is collected for the
improvement of the property and reimbursement of the cost of the property.

B. TAX VS PENALTY
Tax is imposed to raise revenues while penalty is imposed to regulate conduct through
punishment of an act deemed injurious to others.
Tax is imposed by the government while penalty is imposed by the government or
private individual/entity
Tax arises from law while penalty arises from violation of law or contract.
Tax is generally payable in money while penalty is payable in money or in kind.

C. TAX VS SPECIAL ASSESSMENT

Tax is levied on business, interests, transactions, rights, persons, properties or privileges
while special assessment is levied on land affected by public improvements.

D. TAX VS LICENSE FEE

Tax is levied in the exercise of taxing power while license fee emanates from the exercise
of police power
Tax is generally imposed to raise revenue while license fee is imposed for regulation and
control.
Non-payment of tax does not necessarily make the activity illegal while non-payment of
license fee makes the activity illegal.

E. TAX VS. CUSTOMS DUTIES

Tax is broader than customs duties. Customs duties are one of the taxes being collected
by the government

F. TAX VS DEBT
Tax is based on law while debt is based on contract
Tax is not assignable while debt can be assigned
Tax is generally payable in money while debt can be paid in kind or in money
Non-payment of taxes results in imprisonment (except poll tax) while non-payment of
debt does not result in imprisonment except if the debt arises from a crime.

II. TAX EVASION VS TAX AVOIDANCE

Tax evasion is an illegal means of decreasing one’s tax liabilities while tax avoidance is the
legal means of decreasing one’s tax liabilities.