DONNA ROSE S.

FEGI BSA 2-A

1. DEFINE TAXATION AS;

A. STATE POWER

Taxation is an inherent power of State to enfore a proportional contribution from its subjects for
public purpose.

B. PROCESS

Taxation is process of levying taxes by the legislature of the State to enforce proportional
contribution from its subject for punlic purpose.

C. MODE OF COST DISTRIBUTION

Taxation is a mode by wgich the State allocates its costs or burden to its subjectwho are
benifited by its spending.

2. THEORY OF TAXATION

Every government provides a vast array of public services including defense, public order and
safety health, education and social protection among others. A system of government is indespensable
to evry society. Without it, the people will not relish the benifits of a civilized and orderly society.
However, a government cannot exist without a system of funding. The government's necessity for
funding is the theory of taxation.

3. BASIC OF TAXATION

The government provides benifits to the people in the form of public services and the people
provide the funds that finance the government. This mutuality of support between the people and the
government is referred to as the basis of taxation.

4. Give your opinion on "receipt of benefits is conclusively presumed" Explain;

In my opinion the taxes are being payed from the taxepayers are being allocate in various
department that can benifit all the citizens. These benefits can be in the form of daily free usage of
public infrastructures, access to public health or educational services, the protection and security of
person and property or simply the comfort of living in a civilized and peaceful society which is
maintained by the government.

5. DEFINE THEORIES OF COST ALLOCATION;

Taxation is a mode a allocating government cost or burden to the people. In distributing the cost
or burden, the government regards the folloeing general considerations in the exercise of its taxation
power:
A. BENIFITS RECEIVED THEORY

The benefits received theory presupposes that the more benefit one receives from the
government, the more taxes he should pay.

B. ABILITY TO PAY THEORY

The ability to pay theory presupposes that taxation should also consider the taxpayer's ability to
pay. Taxpayers should be required to contribute based on their relative capacity to sacrifice for the
support of the government.

In short, tjose who have more should be taxed more even if they benefit less from the government.
Those who have less shall contribute less even if they receive more of the benefits from the
government.

6. VERTICAL VS. HORIZONTAL EQUITY

Vertical Equity proposes that the extent of one's ability to pay is directly proportional to the
level of his tax base and Horizontal Equity requires consideration of the particular circumstance of the
taxpayer.

7. EXPLAIN THE LIFEBLOOD DOCTRINE

Taxes are the lifeblood of the government and their promt and certain availability are an
imperious need. Upon taxation depends the government's ability to serve the people for whose benefit
taxes are collected. Their are five implication of the lifeblood doctrine in taxation;

1. Tax is imposed even in the absence of a Constitutional grant.

2. Claims for tax exemption are contrued against taxpayers.

3. The government reserves the right to choose the objects of taxation.

4. The courts are not allowed to interfere with the collection of taxes.

5. In income taxation:

a. Income received in advanced is taxable upon receipt.

b. Deduction for capital expenditures and prepayments is not allowed as it effectively defers the
collection of income tax.

c. A lower amount of deduction is preferred when a claimable expense is subject to limit.

d. A higher tax base is preferred when the tax object has multiple tax bases.

8. EXPLAIN : Inheret power of the state.

 As being inherent, it means that as long as the state exists, this power can never be taken away.

The Inherent powers of the state are as follows:

A. Taxation power - is the power of the State to enforce proportional contribution from its subjects to
sustain itself.

B. Police Power - is the general power of the State to enact laws to protect the well-being of the people.

C. Eminent Domain - is the power of the State to take private property for public use after paying just
compensation.

9. EXPLAIN: " inferior to the Non-impairment clause " of the constituition and " Superior to the Non-
Impairment clause" of the constituition.

10. SHORT ANSWER

a. (5 inherent limitations)

1.Territoriality of taxation

2. International comity

3. Public Purpose

4. Exemption of the government

5. Non-delegation of the taxing power

b. (16 constitutional limitations)

11. DIFFERENTIATE: LEVY OR IMPOSITION VS. ASSESSMENT AND COLLECTION.

12. EXPLAIN 5 EXAMPLES SITUS OF TAXATION.

13. MANNY PACQUIAO CASE; DOUBLE TAXATION OR NOT? SUPPORT YOUR OPINION.

14. EXPLAIN 3 ESCAPES OF TAXATION THAT WILL RESULT TO LOSS OF GOVERNMENT REVENUE.

15. DIFFERENTIATE: TAX AMNESTY AND TAX CONDONATION.