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Taxation Law - Docx Draft

Taxation is the enforced contribution by governments to raise revenue for public purposes, characterized as both an inherent and legislative power of the State. It is an essential attribute of sovereignty, allowing governments to impose taxes without needing explicit constitutional authority, while the specifics of taxation are determined through legislative processes. The scope of legislative power in taxation includes determining the amount, rate, and subjects of taxation, which can involve both natural and juridical persons.

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25 views2 pages

Taxation Law - Docx Draft

Taxation is the enforced contribution by governments to raise revenue for public purposes, characterized as both an inherent and legislative power of the State. It is an essential attribute of sovereignty, allowing governments to impose taxes without needing explicit constitutional authority, while the specifics of taxation are determined through legislative processes. The scope of legislative power in taxation includes determining the amount, rate, and subjects of taxation, which can involve both natural and juridical persons.

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alyssamarie.montecillo.22
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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TAXATION LAW

Nature of Taxation
Taxation
- mode or the imposition of enforced The nature of the State’s power to tax is two-
proportional contributions to raise revenues for fold. It is both an inherent and a legislative
public purposes. power.
- it is a mode by which governments make
exactions for revenue in order to support their 1. Inherent attribute of sovereignty
existence and carry out their legitimate The power to tax is an attribute of sovereignty
objectives. and is inherent in the State. It is a power
Taxation may refer to either or both the power emanating from necessity because it imposes a
to tax or the act or process by which the taxing necessary burden to preserve the State's
power is exercised. sovereignty.
It is an essential and inherent attribute of
Sources of Taxation sovereignty, belonging as a matter of right to
1. Constitution every independent government, without being
2. Statutes expressly conferred by the people.
- National Internal Revenue Code, as
amended It does not need constitutional conferment.
- Tariff and Customs Code Constitutional provisions do not give rise to the
- Local Government Code power to tax but merely impose limitations on
- Local tax ordinances / City or municipal tax what would otherwise be an invincible power.
codes
3. Judicial decisions from past 2. Legislative in character
4. Revenue Regulation - BIR It is inherently legislative in nature and
character in that the power of taxation can only
Statutes be exercised through the enactment of law. It is
Written laws passed by a legislative body or legislative in nature since it involves the
congress. promulgation of laws. The legislature
determines the coverage, object, nature, extent,
Ordinance and situs [CONES] of the tax to be imposed.
Sanggunian Laws are written laws enacted by Such power is exclusively vested in the
LGU’s legislature except where the Constitution
provides otherwise

POLICE POWER EMINENT DOMAIN It is based on the principle that taxes are a
The inherent power of The inherent power of grant of the people who are taxed, and the
the state to enact laws the state to take grant must be made by the immediate
and to promote private property for representative of the people, and where the
general welfare. public use with just people have laid the power, there it must
compensation remain and be exercised.

Scope of legislative power in taxation


1. The determination of:
a) Amount or Rate of tax
b) Subjects of taxation

Persons.
Residence
Natural Citizens &
Persons Nonreside
Aliens nce
Persons

Stock
Juridical Corpora
Persons tions
Non-stock

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