1. Regressive Taxes states that tax rate increases as the tax base increases.

2. Debt is generally based on contract, is assignable and may be paid in kind.

3. Taxes are enforced proportional contributions from persons levied by the law-
making body of the State by virtue of its sovereignty.
4. Under inherent limitation, the territoriality discusses that state may tax persons
and property under its jurisdiction.
5. Tax avoidance is a completely illegal in nature.
6. Tax avoidance is completely legal in nature.
7. Under Tax Avoidance, the tax payer minimizes the activity wherein tax is
imposed.
8. Just as the penalties of criminal law can be avoided by not committing a crime,
taxes cab be avoided by not engaging in those activities that are taxed.
9. Under declaration of sale and overstatement of expenses are best example of
tax avoidance.
10. Tax evasion occurs when the taxpayer resorts to unlawful means to lessen or to
get away with his tax liability.
11. The imposition of tax requires legislative intervention. In the Philippines, it is
the barangay that levies taxes.
12. Tax imposed must be proportionate to taxpayer’s ability to pay.
13. Under Police Power, the state has the power to take private property for public
use upon payment of just compensation.
14. Taxes are the lifeblood of government.
15. Special assessment is levied only on land, is not a personal liability of the
person assessed.
16. Taxation is indispensable and inevitable price for civilized society; without
taxes, the government would be paralyzed.
17. Ability to Pay Theory presupposes that the more benefit on receives from the
government, the more taxes he should pay.
18. Benefit Received Theory- presupposes that the less benefit on receives from
the government, the more taxes he should pay.
19. Religious or charitable entities, non –profit cemeteries, churches, and mosque
are exempt from tax.
20. Residence of the Tax Payers is not part of Situs of Taxation.
21. Income tax is a tax on all yearly profits arising from property, profession, trade
or business or is a tax on a person’s income, emoluments and profits and the
like.
22. Assessment and collection of all national internal revenue taxes, fees and
charges is one of the functions of BIR.