Homework

Define Taxation

Taxation is a term for when a taxing authority, usually a government, levies or imposes a financial
obligation on its citizens or residents. There are two basic types of taxation in the Philippines: national
tax and local tax. It is onerous for the tax payer. Train law regulates the tax percentage (25-32%). System
simpler, fairer, and more efficient to promote investments, create jobs and reduce poverty. ... It likewise
introduced new taxes such as the excise tax on cosmetic surgery and sugar- sweetened beverages.

Who benefits from taxes?

Generally, taxes will benefit the government’s programs as aid to fund their programs made to improve
their citizen’s lives. This includes road improvements and maintenance of public parks. Funds the
inherent power of the state. Aids the government in protecting the public.

https://businesstips.ph/different-kinds-of-taxes-in-the-philippines/

Chapter 1 – General Principles and Concepts of Taxation

Inherent Powers of the State

- government has implied power

- 3 types:
o Police Power
 protect citizens and provide safety and welfare of the society
 Purposes:
 makes and implements laws for the general welfare
 Property is taken or destroyed to promote general welfare
 Superior to non-impairment clause
 Limited by the due process (not absolute)
 May be exercised through taxation
o Eminent Domain Power
 To take private property with just compensation (cash) for public use
 Purposes:
 Superior to and may override constitutional impairment provision
 Bounded by public purpose and just compensation
o Taxation Power
 To enforce contributions to support the government, and other inherent power
of the State
 Purposes:
 Enforce contribution to raise government funds
 Money is taken to support the government
 Inferior to non-impairment clause
 Subject to constitutional & inherent limitations (to prevent abuse of
power)
  Inseparable for the existence of a nation

Taxation Defined

Power – raises and accumulates revenue from its inhabitants to pay the necessary expenses of the
government

Nature of Taxation Power

1. Inherent power of sovereignty

2. Essentially a legislative function
3. For public purposes
4. Territorial in operation
5. Tax exemption of government
6. The strongest among the inherent powers of the government
7. Subject to Constitutional and Inherent Limitations

Process – act of imposing a charge by governmental authority on property, individuals or transactions to

raise money for public purpose

Means – through its law-making body, it demands for revenue in order to support its existence and carry
out its legitimate objectives