TAX REVIEWER

GENERAL
PRINCIPLES:
BY: Rene Callanta
DEFINITION OF TAXATION
Taxation is the inherent power
of the sovereign, exercised
through the
legislature, to impose burdens upon
the subjects and objects within its
jurisdiction,
for the purpose of raising
revenues to carry out the
legitimate objects of the
government.
TAXES
Enforced proportional contributions
from properties and persons levied by
the
State by virtue its sovereignty for
the support of the government and
for public
needs.
BASIS OF TAXATION
> GOVERNMENTAL NECESSITY
* The existence of the government
depends upon its capacity to perform
its
two (2) basic functions:
A.. to serve the people
B.. to protect the people
THEORY OF TAXATION
>RECIPROCAL DUTIES OF
SUPPORT AND PROTECTION
1) Support on the part of the
taxpayers
2) Protection and benefits on the part
of the government
BENEFITS RECEIVED PRINCIPLE
(CIR vs. ALGUE)
Despite the natural reluctance to
surrender part of ones hard earned
income
to the taxing authority, every person
who is able to must contribute his
share
in the running of the government.
The government is expected to
respond in the form of tangible or
intangible
benefits intended to improve the
lives of the people and enhanced
their
material and moral values.
In return for his contribution, the
taxpayer receives the general
advantages
and protection which the government
affords the taxpayer and his property.
One is compensation or consideration
for the other. Protection for support
and
support for protection.
However, it does not mean that only
those who are able to
pay taxes can enjoy the privileges
and protection
 given to a citizen by the
government.
LORENZO vs. POSADAS
> The only benefit to which the
taxpayer is entitled is that derived
form the
enjoyment of the privileges of living
in an organized society established
and
safeguarded by the devotion of
taxes to public purpose. The
government
promises nothing to the person taxed
beyond what maybe anticipated from
an
administration of the laws for the
general good.
> Taxes are essential to the existence
of the government. The
obligation to pay taxes rests not
upon the privileges enjoyed by
or the
protection afforded to the citizen by
the government, but upon the
necessity
of money for the support of the State.
For this reason, no one is allowed to
object to or resist payment of taxes
solely because no personal benefit to
him
can be pointed out as arising from the
tax.
ESSENTIAL ELEMENTS OF A
TAX
1) It is an enforced contribution
2) It is generally payable in money
3) It is proportionate in character
4) It is levied on persons, property, or
the exercise of a right or privilege