BAC 2 CHAPTER 1 AND QUIZ 1

• Taxation power


  power of the State to enforce proportional contribution from its subject to sustain itself.
• Eminent Domain


  power of the State to enact laws to protect the well - being of the people. Taking of private property with a just payment.
• Police Power


  the general power of the State to enact laws to protect well - being of the people.
• Local tax


  imposed by the Municipal
• National tax


  imposed by the National Government
• Legislative branch


  The law-making body
• Judiciary branch


  the law interpreting body (vested in the Supreme Court of the

  Philippines
• Executive branch


  The law-enforcing body
• Inherent limitations


  The power could be exercised even in the absence of a constitutional grant
• Territoriality of taxation


  Public services normally provided within the boundaries of the State.
• International comity


  An inherent limitations of the power of taxation is violated by the imposition of tax on the states and other diplomatic or consular representatives of other countries.
• Public purpose


  Tax is intended for the common good.
• Exemption of the government


  the government normally does not tax itself as this will

  not raise additional funds but will only impute additional costs.
• Non-delegation of the taxing power


  The legislative taxing power is vested exclusively in Congress
• Constitutional limitations


  these are restriction expressly or written in the Constitution
• Due process of law


  No one should be deprived of his life, liberty or property without due process of law.
• Equal protection of the law


  No person shall be denied the equal protection of the law. Taxpayers should be treated equally both in terms of rights conferred and obligations imposed.
• Uniformity rule of taxation


  The rule of taxation shall be uniform and equitable.
• Progressive system of taxation


  Under the progressive system, tax rates increase as the tax base increases.
• Non-imprisonment for non-payment of debt or poll tax


  As a policy, no one shall be imprisoned because of his poverty, and no one shall be imprisoned for mere inability to pay debt.
• Non-impairment of obligation and contract


  It should not set aside its obligations from contracts by the exercise of its taxation power.
• Free worship rule


  The Philippine government adopts free exercise of religion and does not subject its exercise to taxation.
• Exemption of religious or charitable entities


  The Constitutional exemption from property tax applies for properties actually, directly and exclusively used for charitable, religious and educational purposes.
• Non-appropriation of public funds or property for the benefit of any church, sect or system of religion.


  This constitutional limitation is intended to highlight the separation of religion and the State.
• Exemption from taxes of the revenues and assets of non-profit, non-stock educational institutions


  The Constitution recognizes the necessity of education in state building by granting tax exemption on revenues and assets of non-profit educational institutions.
• The majority of the congress


  What is the required vote for the passage of a law granting tax exemption?
• Non-diversification of tax collections


  Tax collections should be used only for public purpose. It

  should never be diversified or used for private purpose.
• Non-impairment of the jurisdiction of the Supreme Court to review tax cases


  all cases involving taxes can be raised to and be finally decided by the Supreme Court of the Philippines.
• The Theory of Taxation


  It provides a variety of services including defense, public order and safety, health (pandemic), education, and social protection among others.
• Benefit received theory


  principle of taxation refers to a theory of income tax fairness whereby citizens who use or benefit from certain government goods and services pay taxes for them in equal measure.
• Ability to pay theory


  the more income you have the more ability you will pay taxes.
• Levy or imposition


  This process involves the enactment of a tax law by Congress and is called impact of taxation. Also referred as the legislative act in taxation.
• *Situs of taxation


  is the place of taxation. Situs rules serve as frames of reference in gauging whether the tax object is within or outside the tax jurisdiction of the taxing authority.
• Marshall Doctrine


  The power to tax involves the power to destroy
• Holme's Doctrine


  Taxation power is not the power to destroy while the court sits.
• Prospectivity of tax laws


  Tax laws are generally prospective in operation.
• Non-compensation or set off


  Taxes are not subject to automatic set-off or compensation.
• Non assignment of taxes


  Tax obligations cannot be assigned or transferred to another entity by contract.
• Doctrine of estoppel


  Under the doctrine of estoppel, any misrepresentation made by one party toward another who relied therein in good faith will be held true and binding against that person who

  made the misrepresentation.
• Judicial Non-interference


  Generally, courts are not allowed to issue injunction against the

  government pursuit to collect tax as this would unnecessarily defer tax collection.