149777275 Aban Tax 1 Reviewer pdf
TAX ATION
San Beda College of LAW – ALABANG
GENERAL PRINCIPLES
I. Concepts, Nature and Characteristics of
Taxation and Taxes.
Taxation Defined:
As a process, it is a means by which the sovereign, through its law-making body, raises revenue to defray the necessary expenses of the government. It is merely a way of apportioning the costs of government among those who in some measures are privileged to enjoy its benefits and must bear its burdens.
As a power, taxation refers to the inherent power of the state to demand enforced contributions for public purpose or purposes.
Rationale of Taxation - The Supreme Court held: “It is said that taxes are what we pay for civilized society. Without taxes, the government would be paralyzed for lack of the motive power to activate and operate it. Hence, despite the natural reluctance to surrender part of one’s hard-earned income to the taxing authorities, every person who is able must contribute his share in the running of the government. The government for its part is expected to respond in the form of tangible and intangible benefits intended to improve the lives of the people and enhance their moral and material values. The symbiotic relationship is the rationale of taxation and should dispel the erroneous notion that it is an arbitrary method of exaction by those in the seat of power.
Taxation is a symbiotic relationship, whereby in exchange for the protection that the citizens get from the government, taxes are paid.” (Commissioner of Internal Revenue vs
Allegre, Inc.,et al., L-28896, Feb. 17, 1988)
Purposes and Objectives of Taxation
1.Revenue – to provide funds or property with which the State promotes the general welfare and protection of its citizens.
2.Non-Revenue [PR2EP]
a.Promotion of General Welfare – Taxation may be used as an implement of police power in order to promote the general welfare of the people. [see Lutz vs Araneta (98 Phil 148) and
Osmeňa vs Orbos (G.R. No. 99886, Mar. 31,
1993)]
b.Regulation – As in
San Beda College of LAW – ALABANG
GENERAL PRINCIPLES
I. Concepts, Nature and Characteristics of
Taxation and Taxes.
Taxation Defined:
As a process, it is a means by which the sovereign, through its law-making body, raises revenue to defray the necessary expenses of the government. It is merely a way of apportioning the costs of government among those who in some measures are privileged to enjoy its benefits and must bear its burdens.
As a power, taxation refers to the inherent power of the state to demand enforced contributions for public purpose or purposes.
Rationale of Taxation - The Supreme Court held: “It is said that taxes are what we pay for civilized society. Without taxes, the government would be paralyzed for lack of the motive power to activate and operate it. Hence, despite the natural reluctance to surrender part of one’s hard-earned income to the taxing authorities, every person who is able must contribute his share in the running of the government. The government for its part is expected to respond in the form of tangible and intangible benefits intended to improve the lives of the people and enhance their moral and material values. The symbiotic relationship is the rationale of taxation and should dispel the erroneous notion that it is an arbitrary method of exaction by those in the seat of power.
Taxation is a symbiotic relationship, whereby in exchange for the protection that the citizens get from the government, taxes are paid.” (Commissioner of Internal Revenue vs
Allegre, Inc.,et al., L-28896, Feb. 17, 1988)
Purposes and Objectives of Taxation
1.Revenue – to provide funds or property with which the State promotes the general welfare and protection of its citizens.
2.Non-Revenue [PR2EP]
a.Promotion of General Welfare – Taxation may be used as an implement of police power in order to promote the general welfare of the people. [see Lutz vs Araneta (98 Phil 148) and
Osmeňa vs Orbos (G.R. No. 99886, Mar. 31,
1993)]
b.Regulation – As in