Lesson 1 Flashcards
(47 cards)
an act, process, or means by which
the Sovereign (independent State) through its
law-making body (legislative branch of the
government) makes demand for revenue in
order to support its existence and carry out its
legitimate objectives.
Taxation
Taxes imposed primarily to
raise revenue to finance various activities of the
government in the promotion of the general
welfare and protection of the public.
Revenue Purpose
Taxation power could also
be exercised to regulate inflation, achieve
economic and social stability, and to serve as a
key instrument for social control.
Regulatory Purpose
Taxation power could also
be exercised to regulate inflation, achieve
economic and social stability, and to serve as a
key instrument for social control.
Compensatory Purpose
It exists coextensive with sovereignty. The government
can exercise the power even without any
provisions in the Constitution mentioning it
Inherent Power of Sovereignty
The law making body of the government and its political
subdivision exercises the power of taxation.
Essentially a Legislative Function
Taxes are public money, and it is appropriation to be valid must be for
the common good of the people, such that no
individual or particular entity shall primarily be
enriched or benefited from its use.
For Public Purpose
Without money, the government cannot dispense and exercise any of its people. In the
absence of the limitations provided by the
Constitution, the power of taxation is unlimited,
complete, and supreme.
The Strongest of All the Inherent Powers of the State
As a matter of international courtesy, property of a foreign
state may not be taxed by another state based
on the principle of sovereign equality among
states under international law.
Subject to International Comity
Taxes are contributions payable in money.
Generally Payable in Money
As a rule, tax laws do not operate beyond a country’s jurisdictional limits
unless there exists a privity of relationship
between the taxing State and the object of the
tax.
Territorial in Scope
The power to demand
enforced contribution for public purpose(s).
Power of Taxation
Power to take
private property for public use upon paying the
owner a just compensation to be ascertained
according to law
Power of Eminent Domain
Power to enact such laws in
relation to persons and property as may
promote public health, public morals, public
property and the general welfare of the people.
Police Power
- They are inherent powers of the state.
- They constitute the three ways by which the
state interferes with private rights and property. - They are legislative in nature and character.
- They presuppose an equivalent contribution.
- They all underlie and exist independently of the
Constitution. - They are all necessary attributes of sovereignty.
- The provisions in the Constitution are just
limitations on the exercise of these powers.
SIMILARITIES AMONG THE INHERENT POWERS OF THE
STATE
The government cannot
exist without any means to pay its expenses;
lifeblood of the government.
Principle of Necessity
Under the “benefits
received principle,” the collects taxes from the
subjects of taxation so that it can perform its
functions. The citizens, on the other hand,
contribute taxes so they may continuously be
sustained with security and benefits of the
organized society.
Reciprocal Duties
“No person shall be deprived of
life, liberty, or property without due
process of law, nor shall any person be
denied the equal protection of laws.
Due Process and Equal Protection of
Law
Due Process - any deprivation of life,
liberty, or property by the government
is with due process provided:
- Deprivation is done after
compliance with the
reasonable methods of
procedures prescribed by law.
Example: Give notice first
before selling one’s property at
public auction. - Deprivation is done under the
authority of a valid law (not
contrary to constitution) or of
the constitution itself.
Example: Law imposing tax for
private purpose is void.
All persons
subject to legislation shall be treated
alike under like circumstances and
conditions both in the privileges
conferred and liabilities imposed
Equal Protection of Law
“The rule of
taxation shall be uniform and equitable.
The congress shall evolve a progressive
system of taxation.”
● Uniformity in Taxation - all
taxable articles or properties of
the same class shall be taxed at
the same rate.
● Equity in Taxation - implies that
the amount of tax must be just
in the light of the taxpayer’s
ability to pay
Uniformity and Equality
“No person shall be
imprisoned for debt or non-payment of
a poll tax.” (Sec. 10, Art. III)
Non-impairment for non-payment of a
poll tax
No law impairing the
obligation of the contracts shall be
passed.” (Sec. 10, Art. III)
Non-impairment of the obligation of
contract
The free exercise and enjoyment of
religious profession and worship,
without discrimination or preference,
shall forever be allowed.”
Non-infringement of religious freedom
