Name: Ma. Yvonne M.
Villojan  Comprehensive – as it covers persons, businesses,
Course/blk: MM 2-I
Subject: Taxation
1. What is taxation?
Taxation is the act of making people and organizations
pay taxes.
Taxation is how a government collects money (taxes) in
order to financially support itself. Governments use the
money collected from citizens to pay
for welfare programs, the military, roads and bridges,
government employees, science programs, public
schools, and the many other services a government is
responsible for. Almost every country on Earth has
some form of taxation system.
Taxation is not voluntary, even if the taxpayer doesn’t
directly benefit from the tax they pay. You cannot
refuse to pay taxes without consequences. In most
countries, you will be jailed or suffer another
punishment for not paying taxes.
2. What are the nature and scope of taxation?
Nature: Inherent powers of a sovereign, power of eminent
domain, and police power.
Scope:
activities, profession, rights, and privileges.
 Unlimited – in the absence of limitations prescribe by
law or the constitution, the power of tax is unlimited
and comprehensive.
 Plenary – as it complete, BIR may avail of certain
remedies to ensure the collection of taxes.
 Supreme – so far as the selection of the subject of
taxation.
3. What are the different inherent limitations of taxation?
 Public purpose
 Territorial jurisdiction
 International comity
 Non – delegation to the power to tax
 Exemption from taxation of government entities
 Double taxation
4. What are the different constitutional limitations of
taxation?
 Due process of law
 Equal protection of the laws

 Rule of uniformity and equity in taxation

5. What are the basic principles of sound tax system?

 Fiscal adequacy

 Equity or theoretical justice

 Administrative feasibility