Taxation Law Memory Aid - San Beda - San Beda College of...

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San Beda College of Law 1 M EMORY A ID IN T AXATION L AW TAXATION LAW I. GENERAL PRINCIPLES POWER OF TAXATION TAXATION – power by which the sovereign through its law-making body raises revenue to defray the necessary expenses of government from among those who in some measure are privileged to enjoy its benefits and must bear its burdens. Two Fold Nature of the Power of Taxation 1. It is an inherent attribute of sovereignty 2. It is legislative in character Extent of Taxing Power Subject to constitutional and inherent restrictions, the power of taxation is regarded as comprehensive, unlimited, plenary and supreme. S COPE OF L EGISLATIVE T AXING P OWER 1. Amount or rate of tax 2. Apportionment of the tax 3. Kind of tax 4. Method of collection 5. Purpose/s of its levy, provided it is for public purpose 6. Subject to be taxed, provided it is within its jurisdiction 7. Situs of taxation TAXES – enforced proportional contributions from the persons and property levied by the law-making body of the State by virtue of its sovereignty in support of government and for public needs. C HARACTERISTICS OF T AXES 1. forced charge; 2. pecuniary burden payable in money; 3. levied by the legislature; 4. assessed with some reasonable rule of apportionment; (see theoretical justice) 5. imposed by the State within its jurisdiction; 6. levied for a public purpose. R EQUISITES OF A V ALID T AX 1. should be for a public purpose 2. the rule of taxation shall be uniform 3. that either the person or property taxed be within the jurisdiction of the taxing authority 4. that the assessment and collection of certain kinds of taxes guarantees against injustice to individuals, especially by way of notice and opportunity for hearing be provided 5. the tax must not impinge on the inherent and Constitutional limitations on the power of taxation T HEORIES AND B ASES OF T AXATION 1. Lifeblood Theory Taxes are what we pay for civilized society. Without taxes, the government would be paralyzed for lack of the motive power to activate and operate it. Hence, despite the natural reluctance to surrender part of one's hard-earned income to the taxing authorities, every person who is able to must contribute his share in the running of the government. (CIR v. Algue, Inc.) 2. Necessity Theory The power to tax is an attribute of sovereignty emanating from necessity. It is a necessary burden to preserve the State's sovereignty and a means to give the citizenry an army to resist an aggression, a navy to defend its shores from invasion, a corps of civil servants to serve, public improvements designed for T AXATION L AW C OMMITTEE C HAIRPERSON : Charmaine Torres A SST . C HAIRPERSON : Rhohail Castro EDP : Rachelle Saya S UBJECT H EADS : Jemina Sy, Casiano Ilagan, Jr., Ryan Co, Edwin Torres :M EMBERS : Marita Lourdes Azur, Edizer Enriquez, Christian Cabrera, Jhundee Guillermo
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San Beda College of Law 1 M EMORY A ID IN T AXATION L AW the enjoyment of the citizenry and those which come within the State's territory, and facilities and
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