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Fundamentals of Taxation

A. Concepts, Nature, Characteristics of Taxation and Taxes

1. Meaning of taxation
2. Purpose and scope of taxation
3. Meaning of taxes
4. Essential characteristics of tax
5. Theory and basis of taxation
6. Nature of the power of taxation
7. Aspects of taxation
8. Extent of the of the legislative power to tax
9. Non-revenue objectives of taxation
10. Basic principles of a sound tax system

B. Classifications and Distinctions

1. Classification of taxes
2. Regressive / progressive system of taxation
3. Tax distinguished from toll
4. Tax distinguished from penalty
5. Tax distinguished from special assessment
6. Tax distinguished from license or permit fee
7. Importance of the distinctions
8. Tax distinguished from debt
9. Taxes not generally subject to set-off
10. Tax distinguished from other terms
11. Concept of power of eminent domain
12. Concept of police power
13. Similarities among taxation, eminent domain, and police power
14. Distinctions among the three powers
15. Taxation and public finance

C. Limitations on the Power of Taxation

1. Limitations classified
2. Enumeration of the limitations
3. Requirement of due process of law
4. Requirement of equal protection of the laws
5. Requirement of uniformity and equity in taxation
6. Prohibition against imprisonment for non-payment of poll tax
7. Prohibition against impairment of obligation of contracts
8. Prohibition against infringement of religious freedom
9. Prohibition against appropriation for religious purposes
10. Prohibition against taxation of religious charitable, and educational entities, etc.
11. Prohibition against taxation of non-stock, non-profit educational institutions
12. Other constitutional limitations
13. Requirement of public purpose
14. Prohibition against delegation of taxing power
15. Exemption of government agencies or instrumentalities
16. Limitation of international comity
17. Limitation of territorial jurisdiction

D. Situs of Taxation and Double Taxation

1. Meaning of situs of taxation

2. Situs of subjects of taxation
3. Multiplicity of situs
4. Meaning of doubles taxation
5. Instances of double taxation in its broad sense
6. Constitutionality of double taxation

E. Forms of Escape from Taxation

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1. In general
2. Meaning of shifting
3. Meaning of impact of taxation
4. Meaning of incidence of taxation
5. Relations among impact, shifting, and incidence of a tax
6. Direct tax cannot be shifted
7. Kinds of shifting
8. Meaning of capitalization
9. Meaning of transformation
10. Meaning of tax evasion
11. Factors in tax evasion
12. Evidence to prove tax evasion
13. No proceeds in tax evasion
14. Meaning of tax avoidance
15. Tax avoidance not punishable by law
16. Distinction between tax evasion and tax avoidance

F. Exemption from Taxation

1. Meaning of exemption from taxation

2. Nature of power to grant tax exemption
3. Rationale of tax exemption
4. Grounds for tax exemption
5. Equity not a ground for tax exemption
6. Nature of tax exemption
7. Kinds of tax exemption
8. Exemptions provided for in the Constitution
9. Exemptions provided for in the Tax Code
10. Exemptions provided for under special law
11. Construction of tax exemption statutes
12. Tax amnesty

G. Nature, Construction, Application, and Sources of Tax Laws

1. Nature of internal revenue law

2. Construction of tax laws
3. Application of tax laws
4. Mandatory and directory provisions of tax laws
5. Sources of tax laws
6. Existing tax laws
7. Authority of Secretary of Finance to promulgate rules and regulations
8. Nature of power to make regulations
9. Necessity and function of regulations
10. Validity and effectivity of regulations
11. Force and effect of regulations
12. Administrative interpretations and opinions
13. Weight given to administrative interpretation
14. Power of Secretary of Finance to revoke rulings of his predecessor
15. Non-retroactivity of repeal of regulations or rulings
16. Decisions of the Supreme Court and Court of Tax Appeals