TAXES

the enforced proportional contributions from persons and property levied

by the lawmaking body of the State by virtue of its sovereignty for the
support of government and for all public needs (1 Cooley 62)
lifeblood of the government and their prompt and certain availability are an
imperious need
government would be paralyzed without tax
ESSENTIAL CHARACTERISTICS OF TAXES
1) it is a forced charged, imposition or contribution. It is not contractual,
either express or implied, but positive acts of the government.
2) it is based on taxpayers ability to pay
3) it is a pecuniary burden payable in money, but backpay certificates may
be used in payment of tax
4) it is imposed by the State n persons, property, or exercises within its
jurisdiction, in accordance with the principle of territoriality
5) it is levied by th legislative body of the State. Taxes are obligations
created by law
6) it is levied for a public purpose
7) it is personal to the tax payer
II Nature of Taxation
the primary purpose of taxation is to RAISE REVENUES
- to raise revenue to promote the general welfare and protection of its
citizens

 REGULATORY
- the power of taxation may be used as an implement of the police power of
the State through the imposition of taxes with the end in view of regulating a
particular activity
taxation is said to be COMPREHENSIVE as it covers persons, businesses,
activities, professions, rights and privileges.
UNLIMITED tax does not cease to be valid merely because it regulates,
discourages, or even definitely deters the activities taxes.
PLENARY, as it is complete. Under the NIRC, the BIR may avail of certain
remedies to ensure the collection of taxes.
SUPREME. Although taxation is referred to as the strongest of all the powers
of the government, cannot be interpreted to mean that it is superior to their
inherent powers of the government, only that it is supreme insofar as the
selection of the subject of taxation is concerned.
III PRINCIPLES of SOUND TAX SYSTEM
1) FISCAL ADEQUACY sources of revenue must be adequate to meet
government expenditures and other public needs. This is in consonance with
the doctrine that taxes are the lifeblood of the government.
2) THEORETICAL JUSTICE a sound tax system must take into consideration
the taxpayers ability to pay.
3) ADMINISTRATIVE FEASIBILITY tax laws must be capable of effective and
efficient enforcement. They must not obstruct business growth and economic
development.