Taxation

Week 1
Inherent Power of States
• Power of Taxation
• Power of Eminent Domain
• Police Power
Limitations of Power of Taxation
• Due Process of the Law
• Equal Protection of Law
• Non-imprisonment for non-payment of a debt or a poll tax
• Non-impairment of the Provision on Obligations and Contract
• No Public money or property shall be appropriated for a religious or
private purposes
• No law granting any exemption shall be passed without the
concurrence of a majority of all the members of Congress
Purposes of Taxation
• Primary- It is means to raise revenue for the use and support of the
government
• Secondary- It is a mean to contend or promote the general welfare,
social and economic development of a country
Basic Principles of Sound Tax System
• Fiscal Adequacy
• Equality or Theoretical Justice
• Administrative Feasibility
Classification of Taxes
• As to Subject Matter
• Personal Tax
• Property Tax
• Excise Tax
• As to Scope or Authority
• National Tax
• Local Tax
• As to purposes
• General Tax
• Special Tax
Classification of Taxes
• As to determination of Amounts
• Specific Tax
• Ad-valorem Tax
• As to Graduation or Rates
• Progressive Tax
• Regressive tax
• Proportionate Tax