Taxation

-is the power by which the sovereignty raises revenue to defray the expenses of the
government. It is a way of apportioning the cost of government among those who in
some measure are privileged to enjoy its benefits and must bear its burden.

- the power of TAXATION is inherent in the state, being an attribute of

sovereignty. As an incident of sovereignty, the power to tax has been
described as unlimited in its range, acknowledging in its very nature no
limits, so that security against its abuse is to be found only in the
responsibility of the legislature which imposes the tax on the constituency
who are to pay it (Mactan Cebu Airport Authority vs Marcos) .
- the power to tax in considered as inherent in a sovereignty state because it is
a necessary attribute of sovereignty. Without this power, no sovereign state
can exist nor endure. No sovereign state can continue to exist without the
means to pay its expenses, and for those means, it has the right to compel all
citizens and property within the limits to contribute, hence the emergence of
the power to tax.
The power to tax includes the authority to:
1.) determine the :
a. nature(kind)
b. object (purpose)
c. Extent (amount or rate)
d. coverage (subjects and objects)
e. apportionment of the tax (general or limited Aplication)
f. Situs(place) of imposition; and
g. method of collection
2.) grant tax exemptions or condonations; and
3.) specify or provide for the administrative as well as judicial remedies that either
the government or the taxpayers may avail themselves in the proper
implementation of tax measures.

To be valid, an admin issuance, such as E.O must comply with the ff req.
1. authorized by the legislature;
2.promulgated in accordance with the prescribed procedure;
3. within the scope of authority given by the legislative;
4. must be reasonable.

3 Aspects of taxation
1. levy- enactment of laws by the congress
2. assessment- act of administration and implementation of the tax law by the
executive department through the administrative agencies
3. collection- act of compliance by the taxpayer, including such option, schemes or
remedies as may be legally available to him.

Theories
1. lifeblodd theory
2. benefits-protection theory

TAXES are the ENFORECED PROPORTIONAL CONTRIBUTIONS from persons and

property levied by the law making body of the State by virtue of its sovereignty for
the support of government an all public needs.

Characteristics or attributes of taxes

1. it is forced charge, imposition or contribution;
2. assessed with the reasonable rule of apportionment which means that
conformably mandate for congress to evolve a progressive tax system, taxes must be
based on taxpayers ability to pay.
3. it is a pecuniary burden payable in money, but back pay certificate may be used
as payment of tax
4. imposed by state on person, property, or excises within the jurisdiction, in
accordance with the principle of territoriality
5. it is levied by the legislative body of the state.
6. it is levied for public purpose
7. it is personal to taxpayer.

3 elements of tax
1. it is enforced proportional contribution from persons and properties;
2. imposed by state by virtue of its sovereignty
3. levied for the support of the government
(republic vs cocofed)