TAXATION (Aug 14 Class Notes)

Chapter 1: General Principles

Legal tender – official money in the country

Jurisdiction of the state over persons & objects

Natural or juridical persons

Object: real or personal / immovable or movable

Territorial jurisdiction:

G/R: all persons and obejcts found within the territory is subject to tax.

XPN: if fall under the exemptions

Extraterritorial jurisdiction:

G/R: Yes, they can be subject to tax. Exercises its personal jurisdiction (ex: filipino working abroad). The basis
is privity between the State and its citizens to which the State has the duty to give protection and the citizen
is to bring support. This is in consonance with the symbiotic relationship.

*Note: OFW income are not taxed outside the Philippines.

The power of tax can be used to implement the police power. (Regulatory Tax Power or Sumptuary Power)

As the police power includes the power to regulate persons or property.

Proportionate character: