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• Police power is the power of the state to regulate the conduct of its citizens and to protect the public welfare
• Taxation power - power to enforce contribution to raise government funds; it is an inherent power by which the sovereign through its law-making body raises revenue to defray the necessary expenses of the government.
• Eminent Domain Power — power to take private property for public use with just compensation. Similarities and Differences
• Fiscal Adequacy — sufficiency to meet government expenditures and other public needs (Government Budget Balance). This is in consonance of the Lifeblood Theory.
• Budget Deficit = Government Revenues < Government Expenditures
• Budget Surplus = Government Revenues > Government Expenditures
• Equality or Theoretical Justice — based on the taxpayer's ability to pay; must be progressive
• •         Administrative Feasibility — capability of being effectively enforced. Tax laws should not obstruct business growth and economic development.
• Purpose

  • Primarily, to raise revenue.
  • To regulate (inflation, economic and social stability, social control, etc.).
  • To compensate the benefits provided by the governrnent to the people.
• Plenary — full and complete in all respect.
• Comprehensive — it covers persons, businesses, activities, professions, rights and privileges.
• Supreme — it is supreme only insofar as the selection of the subject of taxation is concerned.
• Not Absolute — it is subject to limitations
• Double Taxation - It is taxing the same property twice when it should be taxed once.
• Direct Duplicate Taxation — double taxation in the objectionable or prohibited sense; not allowed in the Philippines. This constitutes a violation of substantive due process.
• Necessity Theory (Theory of Taxation) — the power to tax is an attribute of sovereignty emanating from necessity (national defense, health, education, public facilities, etc.).
• Lifeblood Theory (Importance of Taxation) — without taxes, the government would be paralyzed for lack of the motive power to activate and operate it.
• The power of taxation is sometimes also called the power to destroy.
• Benefits — Protection Theory/ Reciprocal Duties (Basis of Taxation) — there is a symbiotic relationship between the State and the citizens whereby in exchange of the protection and benefits that the citizens received from the State, taxes are paid.
• Levy — the imposition or making of tax laws.
• Assessment — similar to audit.
• Collection — enforcement of tax.
• Levy is often called as tax legislation.
• Taxation is the process or means of imposing and enforcing contributions.
• Tax is the enforced contribution, itself, which generally payable in money.
• Taxes

  • Forced charge.

  •         Generally payable in money.

  •         Exclusively levied by the legislative body.

  •         Assessed in accordance with some reasonable rule of apportionment (ability-topay principle).

  •         Imposed by the State within its jurisdiction.

  • Levied for public purpose.
• Personal tax — imposed upon persons of certain class with fixed amount (e.g. Community tax or poll tax).
• Property tax — assessed on property of certain class (e.g. Real Property tax).
• Excise tax — imposed on the exercise of privilege (e.g. income tax, donor's tax, estate tax, etc.).
• Custom duties — charged upon the commodities being imported into or exported from a country (e.g. tariffs).
• Direct tax — both incidence or liability for the payment of tax as well as the impact or burden of the tax falls on the same person (e.g. income tax).
• Indirect tax — the incidence or liability for the payrnent of tax falls on one person but the impact or burden of the tax falls on another person (e.g. VAT).
• General tax — levied for the general or ordinary purposes of the governrnent.
• Special tax — levied for special purpose.
• Specific tax — imposes a specific sum by the head or number or by some standard of weight or measurement (e.g. excise tax on cigarettes).
• Ad Valorem tax — tax upon the value of the article or thing subject to taxation (e.g. VAT of 12% regardless of the value of sales).
• National tax — levied by the National Government (e.g. income tax, business taxes, transfer taxes).
• Local tax — imposed by the Local Government (e.g. poll tax, real property taxes).
• Toll is charged for the cost and maintenance of the property used
• Penalty is a punishment for the commission of a crime