PHILIPPINE

TAXATION
Purpose, Nature &
Scope of Taxation
 PURPOSES OF TAXATION
• To raise revenue
• To meet its economic and
social objectives.
–Regulatory purpose
–Compensatory purpose
• General welfare, Reduction of
social inequality, Economic
growth and Protectionism
 NATURE OF TAXATION
> Inherent power of
sovereignty
> Essentially a
legislative function
>For public purpose
 NATURE OF TAXATION
• The strongest from all the
inherent power of the
state
• Territorial in Operation
• Subject to constitutional
and inherent limitations
SCOPE OF TAXATION
• IN THE ABSENCE OF
LIMITATIONS: TAXATION
POWER IS UNLIMITED AND
COMPREHENSIVE.

• IF THERE IS LIMITATION:
LIMITATION IS THE SENSE
OF RESPONSIBILITY OF
MEMBERS OF LIGISLATURE
TO THEIR CONSTITUENTS.
SCOPE OF LEGISLATIVE
TAXING POWER
• Purpose for which taxes will
be levied for public purpose
• Amount or rate of tax
• Subject of Taxation
• Situs of the tax
SCOPE OF LEGISLATIVE
TAXING POWER
• Kind of taxes to be collected
• Apportionment of the tax
• Method of tax collection
BASIS OF TAXATION

• Necessity (existence of
government)

• Reciprocal Duties
(Benefit-Protection
Principle)
INCOME TAXATION

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