Define taxation​

Taxation is the inherent power of the sovereign, exercised through the legislature, to
impose burdens upon subjects and objects within its jurisdiction to raise revenues for
legitimate governmental purposes. It involves the act of levying taxes to defray
necessary governmental expenses​.
Distinguish the theory and basis of taxation

●​ Theory: The existence of government is necessary, and it cannot function without

resources. Taxation is a mechanism through which it compels contributions to fund its
expenses.
●​ Basis: The reciprocal duties of protection and support between the State and its
citizens (Benefit-Received Principle). Citizens pay taxes in exchange for protection
and services provided by the government​.

Theories of government cost allocation

●​ Lifeblood Theory: Taxes are the lifeblood of the government, necessary to sustain
its functions and provide societal benefits.
●​ Benefit-Received Principle: Taxpayers receive benefits and protection in return for
their contributions. However, it is not contingent on receiving direct or proportional
benefits​.

Differentiate vertical and horizontal equity

●​ Vertical Equity: Requires taxpayers with greater ability to pay to contribute more. It
reflects fairness in the tax system relative to individuals' economic standing.
●​ Horizontal Equity: Mandates that taxpayers in similar circumstances pay the same
amount in taxes​.

Discuss the lifeblood doctrine​

The lifeblood doctrine emphasizes that taxes are vital to a government’s operations
and must be collected without unnecessary hindrance. Without taxes, governance
would fail due to a lack of resources​.
Enumerate and explain the inherent powers of the state

●​ Taxation: Power to impose taxes to support the government and public needs.
●​ Police Power: Enforce laws to promote public welfare, health, and safety.
●​ Eminent Domain: Take private property for public use, with just compensation​.

Distinguish three powers of the state and enumerate their similarities

●​ Similarities: All are inherent in sovereignty, serve public interest, and involve
property or persons within the state's jurisdiction​.

Scope of the power of taxation​

It is broad, unlimited, and plenary. The legislature decides the purpose, amount,
manner, and agencies for taxation. However, it must comply with constitutional and
inherent limitations​.
Distinguish substantive due process from procedural due process
●​ Substantive Due Process: Ensures laws are fair, reasonable, and just.
●​ Procedural Due Process: Requires proper legal procedures when the government
acts to deprive an individual of life, liberty, or property​.

Equality vs. uniformity in taxation

●​ Equality: Tax burden is proportionate to a taxpayer's ability to pay.

●​ Uniformity: Implies all taxable items of the same class are taxed at the same rate
without discrimination​.

Non-payment debt vs. non-payment of tax consequences

●​ Non-payment of debt: Primarily contractual and may result in civil actions or

penalties.
●​ Non-payment of tax: May result in criminal liability, including imprisonment (except
poll tax)​.

Institutions exempt from real property tax

●​ Charitable institutions, churches, mosques, non-profit cemeteries, and properties

used exclusively for religious, charitable, or educational purposes​.

Constitutional limitations also classified as inherent limitations

●​ Public purpose
●​ Prohibition against delegation of taxing power
●​ Exemption of government entities
●​ International comity
●​ Territorial jurisdiction​.

Stages of the exercise of taxation power

●​ Levy or imposition: Legislative act.

●​ Assessment and collection: Administrative processes​.

Concept of situs​
Situs determines where taxation is applied, depending on the subject, residence, or
location of property or activity​.
Marshall Doctrine vs. Holmes Doctrine

●​ Marshall Doctrine: Focuses on strict adherence to legal text and framework.

●​ Holmes Doctrine: Considers broader societal impacts and realistic applications​.

Doctrine of strict construction of tax laws​

Tax exemptions are strictly construed against the taxpayer and in favor of the taxing
authority. Ambiguities must be resolved against exemption claims​.
Double taxation, its elements, and types

●​ Elements: Taxing the same person, property, or transaction by the same authority for
the same purpose and period.
●​ Types: Direct and indirect double taxation​.

Categories of escapes from taxation

●​ Legal (Avoidance): Shifting, capitalization, transformation, and exemption.

●​ Illegal (Evasion): Using fraudulent means to reduce or avoid taxes​.

Tax amnesty vs. tax condonation

●​ Tax Amnesty: General pardon for past tax liabilities, often given through law or
regulation.
●​ Tax Condonation: Cancellation of specific tax obligations, usually granted for
equitable reasons​

Non-assignment of taxes​
Non-limitation – Taxes cannot generally be assigned, but this is not specifically
classified as a limitation of taxing power.
Territoriality of taxation​
Inherent Limitation – Tax laws cannot operate beyond a state’s territorial limits​.
Taxes must be for public use​
Inherent Limitation – The purpose of taxation must always be public in nature​.
Exemption of the property of religious institutions from income tax​
Constitutional Limitation – Exemption applies to properties used exclusively for
religious purposes (real property tax exemption, not income tax)​.
Exemption of the revenues and assets of non-profit, non-stock educational
institutions​
Constitutional Limitation – Revenues and assets used for educational purposes
are exempt from taxes and duties​.
Non-delegation of the taxing power​
Inherent Limitation – Taxing power, being legislative in nature, cannot be delegated​.
Non-appropriation for religious purposes​
Constitutional Limitation – Public funds cannot be used for the benefit or support of
religious purposes​.
The requirement of absolute majority in the passage of a tax exemption law​
Constitutional Limitation – A majority of all Members of Congress must concur in
granting tax exemptions​.
Non-imprisonment for non-payment of tax or debt​
Non-limitation – General debts and poll tax have specific rules, but this is not an
inherent or constitutional limitation​.
Taxpayers under the same circumstance should be treated equally both in
terms of privilege and obligations​
Constitutional Limitation – Equal protection clause and the rule of uniformity and
equity in taxation​.
Exemption from property taxes of religious, educational, and charitable entities​
Constitutional Limitation – Real properties used exclusively for these purposes are
tax-exempt​.
Government income and properties are not objects of taxation​
Inherent Limitation – Government entities are generally exempt from taxation​.
Each local government shall have the power to create its own sources of
revenue​
Non-limitation – This is not a limitation but a delegated power provided by
Congress​.
Imprescriptibility in taxation​
Non-limitation – Prescriptive periods for tax liabilities are set by law, but this is not a
limitation on taxing power.
Non-impairment of obligation and contracts​
Constitutional Limitation – Tax statutes cannot impair contractual obligations​.
Guarantee of a proportional system of taxation​
Constitutional Limitation – The Constitution mandates a progressive system of
taxation​.
International courtesy​
Inherent Limitation – Taxation must respect principles of international comity​.
Non-impairment of the jurisdiction of the Supreme Court to review tax cases​
Constitutional Limitation – The Supreme Court retains jurisdiction over tax cases​.
The government is not subject to estoppel​
Non-limitation – This principle protects the government in enforcing its taxing
powers but is not classified as a limitation.
Imprisonment for non-payment of poll tax​
Constitutional Limitation – Prohibited under the Constitution​

There should be direct receipt of benefit before one could be compelled to pay
taxes​
False – Taxation is based on the benefit-received principle, but there is no
requirement for direct or proportional benefit​.
Eminent domain involves confiscation of prohibited commodities to protect the
well-being of the people​
False – Eminent domain involves taking private property for public use with just
compensation, not confiscation​.
Horizontal equity requires consideration of the circumstances of the taxpayer​
True – Horizontal equity ensures that taxpayers in similar circumstances are taxed
equally​.
Taxes are the lifeblood of the government​
True – Taxes are essential to sustain government functions, as emphasized by the
lifeblood doctrine​.
Taxation is a mode of apportionment of government cost to the people​
True – Taxation is a method of distributing the costs of governance among citizens​.
The exercise of taxation power requires constitutional grant​
False – Taxation is inherent in sovereignty and does not require express
constitutional grant​.
Taxation is inherent in sovereignty​
True – The power to tax is inherent to the existence of a state​.
Police power is the most peer power of the government; its exercise needs to
be sanctioned by the constitution​
False – Police power is inherent in sovereignty and does not need explicit
constitutional sanction​.
All inherent powers presuppose an equivalent form of compensation​
False – Taxation does not require compensation, unlike eminent domain which
mandates just compensation​.
The reciprocal duty of support between the government and people
underscores the basis of taxation​
True – The benefits-received principle reflects the symbiotic relationship between the
government and taxpayers​.
The scope of taxation is regarded as comprehensive, plenary, unlimited, and
supreme​
True – Taxation is broad, but subject to inherent and constitutional limitations​.
The constitutional exemption of religious, charitable, and non-profit
cemeteries, churches, and mosques refers to income tax and real property tax​
False – The exemption applies only to real property taxes, not income taxes​.
Taxation under the same circumstances should be taxed differently​
False – The principle of uniformity in taxation requires similar circumstances to be
taxed equally​.
Taxation is subject to inherent and constitutional limitation​
True – Taxation is constrained by both inherent and constitutional limitations​.
International comity connotes courtesy between nations​
True – International comity is the principle of mutual respect and courtesy between
states​.
Collection of taxes in the absence of a law is violative of the constitutional
requirement for due process​
True – Taxes must be imposed by law, and collection without legal basis violates due
process​.
No one should be imprisoned for non-payment of tax​
False – Non-payment of poll tax cannot result in imprisonment, but imprisonment is
allowed for other tax violations​.
The lifeblood doctrine requires the government to override its obligations and
contracts when necessary​
False – The lifeblood doctrine emphasizes the necessity of taxes but does not justify
overriding obligations or contracts​.
2/3 of all members of Congress is required to pass a tax exemption law​
False – A majority of all members of Congress is required to pass a tax exemption
law​.
The government should tax itself​
False – Government entities and properties are generally exempt from taxation​.
Based on the document identify this sentence ​
​
The court cannot issue injunction against the government efforts to collect taxes is justified
by ____
The point at which truck is levied is also called____
which of the following inappropriately describe the nature of taxation, inherent in
sovereignty, essentially a legislative function, subject to inherent and constitutional limitation,
generally for public purpose
Which is correct? 1. tax condonation is a general pardon granted by the government;2. the
bir has five deputy commissioners; 3. the Government can still collect tax in disregard of the
constitutional limitation because taxes are the life blood of the government; 4. the president
of the philippines can change tariff or imposed without necessity of calling congress to pass
a law for that purpose
Identify if both of these are true or false: 1. the power of tax includes the power to exempt;
2. the power to license includes the power to tax
Which is not an object of taxation? persons, business, transactions, public properties,
the power to enforce proportional contribution from the people of the support of the
government is?
this theory underscores that taxes are in dispensable to the existence of the state
which is not a public purpose? public education, national defense, transportation
Which does not properly describe the scope of taxation? comprehensive, supreme,
discretionary, unlimited
what are the secondary purpose of taxation
Which limitation of taxation is the concept of situs of taxation based?
Which tax exemption is irrevocable? tax exemption based on contract,. based on
constitution, based on law
This refers to the privilege of immunity from the tax burden which others are subject to
what is the basis of taxation? reciprocal duties of support and protection, constitutionality,
public purpose, necessity
what is the primary purpose of taxation? to enforce contribution from its subject for public
purpose, to raise revenue, to achieve economic and social stability, to regulate the conduct
of business or profession
that all taxable articles or properties of the same class will be taxed at the same rate
underscores
the constitutional exemption of religious or charitable institution refers only to
The agreement among nations who lessen tax burden of the respective subject is called?
the constitutional exemption of non-stock non-profit educational institution refers to?
If shiel is from other country but earn money with interest earned in the Philippines, where
would shiel be liable for her tax?