TAXATION

Question 1

What is Taxation

Answer 1

Taxation is the process or means by which the sovereign (independent state), through its law-making body (the legislature), imposes burdens upon subjects and objects within jurisdiction for the purpose of raising revenues to carry out legitimate objects to the government.

Question 2

Taxation may be defined as:

Answer 2

A state of power, a legislative process, and a mode of government of distribution

Question 3

______ to enforce a proportional contribution from its subjects for public purposes

Answer 3

AS A STATE POWER

Question 4

_____LEVYING taxes by the legislature of the states to enforce a proportional contributions from its subjects for public purpose

Answer 4

as a process

Question 5

____the states allocates its costs or burden to its subjects who are benefited by its spending

Answer 5

as a mode of cost distribution

Question 6

What are the Inherent power of state

Answer 6

1. Taxation
2. Police Power
3. Eminent Domain

Question 7

What is taxation power

Answer 7

the power of the state to enforce proportional contribution fro its subjects to sustain itself

Question 8

What is police power

Answer 8

the general power of the state to enact laws to protect the well being of the people

Question 9

What eminent domain

Answer 9

the power of the state to take private property for public use after paying just compensation

Question 10

what are the two theories of cost allocation

Answer 10

1. benefit received theory
2. ability to pay theory

Question 11

what it the benefit received theory

Answer 11

presuppose that the more benefit one receives from the government, the taxes he should pay

Question 12

what is the ability o pay theory

Answer 12

presuppose that the taxation should consider the ability of the taxpayer to pay

Question 13

what are the aspects of ability to pay theory

Answer 13

1. vertical equity
2. horizontal equity

Question 14

____proposes that the extent of one’s ability to pay is directly proportional tot he level of his tax base

Answer 14

vertical equity

Question 15

____requires consideration of the particular circumstance of the taxpayer

Answer 15

horizontal equity

Question 16

The ______ expresses that without taxes, a government cannot exist or endure, as taxes are necessary for a government to fulfill its functions and mandate to promote public welfare.

Answer 16

Lifeblood Doctrine

Question 17

What are the Stages of Taxation

Answer 17

Stages of Taxation
1. Levy or Imposition or Impact of Taxation
2. Assessment and Collection of tax or Incidence of Taxation

Question 18

What are the 3 branches of PH Government

Answer 18

1. Legislative
2. Executive
3. Judicial

Question 19

What are the Nature or Characteristics of the Power of Taxation

Answer 19

1. For public purpose
2. Inherently legislative in nature
3. Subject to international comity or treaty
4. Not absolute being subject to constitutional and inherent limitations
5. Exaction payable in money
6. Territorial

Question 20

Purpose of Taxation

Answer 20

1. Primary purpose – to raise revenue
2. Secondary purposes
   a.) Regulatory
   b.) Compensatory

Question 21

what are the Modes of Cost Allocation

Answer 21

1. Benefit Received Theory
2. Ability to Pay Theory
   a.) Vertical equity
   b.) Horizontal equity

Question 22

What are The Scope of Taxation

Answer 22

1. Businesses 5. Acts
2. Interests 6. Persons
3. Transactions 7. Properties
4. Rights 8. Privileges

Question 23

Two kinds of the Limitations of Taxation

Answer 23

1. Inherent Limitations
2. Constitutional Limitations

Question 24

What are the inherent limitations

Answer 24

1. Territoriality of taxation
2. International comity
3. Public purpose
4. Exemption of the government*
5. Non-delegation of the taxing power*

Question 25

What are Constitutional Limitation

Answer 25

1. Due process of law. 2. Equal protection of the law. 3. Uniformity rule in taxation. 4. Progressive system of taxation. 5. Non- imprisonment for non-payment of debt or poll tax. 6. Non – impairment of obligation and contract. 7. Free worship rule. 8. Exemption of religious or charitable entities, non-profit cemeteries, churches and mosque from property taxes. 9. Non- appropriation of public funds or property for the benefit of any church, sect or system of religion. 10. Exemption from taxes of the revenues and assets of non-profit, non-stock educational institutions. 11. Concurrence of a majority of all members of Congress for the passage of a law granting tax exemption. 12. Non- diversification of tax collections 13. Non-delegation of the power of taxation 14. Non-impairment of the jurisdiction of the supreme court to review tax cases 15. The requirement that appropriations, revenue. tariff bills shall originate exclusively in the House of Representatives 16. The delegation of taxing power to local government units

Question 26

Fundamental Doctrines of Taxation

Answer 26

1. Marshall Doctrine 2. Holme’s Doctrine 3. Prospectivity of tax laws 4. Non-compensation or set off 5. Non-assignment of taxes 6. Imprescriptibility in taxation 7. Doctrine of estoppel 8. Judicial Non-interference 9. Strict Construction of Tax Laws

Question 27

whAT ARE THE FACTORS THAT DETERMINE THE SITUS OF TAXATION

Answer 27

1. Nature, Kind of Classification of Tax Type 2. Subject Matter of the Tax 3. Citizenship of the taxpayer 4. Residence of the taxpayer 5. Sources of income 6. Place of exercise, business or occupation being taxed 7. Place where income producing activity was held or done

Question 28

application of situs of taxation

Answer 28

1. persons 2. community development tax 3. business tax 4. privilege or occupation tax 5. real property tax 6. personal property tax (tangible & intagible) 7. Income 8. Transfer taxes 9. Franchise taxes 10. corporation taxes

Question 29

what are the elements of double taxation

Answer 29

1. primary elements: same objects 2. secondary elements: * same type of tax *same purpose of tax * same jurisdiction *same tax period

Question 30

Types of Double Taxation

Answer 30

1. Direct 2. Indirect