Chapter 1

• taxation - the exercise of the state's inherent power to impose through it's lawmaking body
• taxation - a charge or burden upon persons, properties or property rights, privileges, income and receipts from employment or business transactions or practice of profession
• raising revenue - primary purpose of taxation to defray the necessary expenses of the government
• special or regulatory purposes - a non revenue purpose for regulating a business
• to prevent harmful consumptions - levying heavy excise tax on cigars and cigarettes alcohols
• sin tax - tax for cigarettes and alcohols
• the power to tax is an essential and inherent attribute of sovereignty - no sovereign state can continue to exist without the means to pay its expenses and for the reason, it has the right to compel all citizens and properties within it's limits to contribute
• the power to tax is inherently legislative in character - the legislature can enact tax laws in order to raise revenues even without the grant of said power in the constitution
• the power to tax is the state's strongest power; hence it is sometimes called the power to destroy
• power of taxation - a means of raising revenue in order to defray the necessary expenses of the government
• power of taxation - strongest power of all the powers of government
• police power - to promote public health, public morals, public safety and and the general welfare of the people
• power of eminent domain - inherent power of the sovereign state to appropriate private property for public use upon observance of dude process of law and payment of just compensation
• lifeblood of the government theory - for without taxes, the government can neither exist nor endure and it would be paralyzed for lack power to activate and operate it
• Necessity theory - emanates from necessity for without taxes, the government cannot fulfill its mandate of promoting general welfare and well-being of the people
• Benefits-protection theory or symbiotic relationship theory - founded in the reciprocal duties of protection and support between the state and it's inhabitants
• situs of taxation - means place of taxation
• The basic rule is that the state where the subject to be taxed has a situs may rightfully levy and collect the tax and the situs is necessarily in the state which has jurisdiction or which exercises dominion over the subject in question. This is based on the theory that the tax laws of a state can have no extraterritorial operation
• Fiscal adequacy - simply means that the sources of revenue should be sufficient to meet the demands of public expenditures.
• Fiscal adequacy - requires that the revenues should be capable of expanding or contracting annually in response to variations of public expenditures
• Administrative feasibility - simply means that the tax system should be capable of being efficiently administered by the government and enforced with the least inconvenience to the taxpayers and to the tax administrators
• Theoretical justice or equality - means that the tax burden should he proportionate to the taxpayer's ability to pay.
• Levy or imposition of the taxes - refers to the act of the Legislative Department of the Government of enacting tax laws authorizing the imposition of taxes on persons, rights, and privileges, property or business.
• Levy - an exercise of the power to tax which is exclusively legislative in nature and character
• Assessment and collection of taxes - refers to acts of Executive Department of the Government thru its Administrative Agencies in charge of implementing and administering the assessment and collection of taxes.
• Assessment - refers to the act of government agency to determine the correct amount of taxes due to and payable by a taxpayer
• Collection - is the actual effort exerted by the government agency to effect the exaction of what is due from the taxpayer
• Payment of taxes - refers to the last stage of taxation wherein the taxpayer complies with its tax obligations by paying the correct amount of taxes due from him
• Taxes - refers to enforced proportional contributions exacted by the State upon persons and properties pursuant to its sovereignty in order to support the government and defray all the public needs.
• National taxes - are taxes being imposed and collected by the National Government.
• Local taxes - taxes imposed and collected by the different Local Government Units
• Yes - are customs duties also national taxes?
• According to Garcia v. Executive Secretary, customs duties is the nomenclature given to taxes imposed on the importation and exportation of commodities and merchandise to or from foreign country
• Personal, capitation, or poll tax - a tax of a fixed amount imposed upon persons or upon all the persons of a certain class, residing within specified territory, without regard to their property, occupation or business
• Property tax - tax assessed on properties of a certain class located within a certain territory on a specified date in proportion to its value
• Privilege tax - tax imposed upon performance of an act, the enjoyment of a privilege or for engaging in business or exercising a profession
• Direct tax - tax wherein both the incidence of or liability for the payment of the tax as well as the impact or burden of tax falls on the same person
• Indirect tax - tax wherein the incidence of or liability for the payment of the tax falls on one person but the burden or impact thereof can be shifted or passed on to another
• General or fiscal tax - tax which is levied for the general purpose of supporting the government
• special, regulatory or sumptuary tax - a tax which is levied for a special purpose to achieve some social or economic objectives