1 Introduction to taxation

Taxation

The process by which the sovereign through its law-making body raises revenues to defray the necessary expenses of government

Theories of Cost Allocation

Principles explaining how government expenses are distributed among citizens, primarily through the Benefit-Received Theory and the Ability-to-Pay Theory

The Lifeblood Doctrine

The principle that taxes are the indispensable lifeblood of the government, without which it can neither exist nor endure

The Inherent Powers of the State

The three fundamental powers necessary for a government's existence: Taxation, Police Power, and Eminent Domain

Scope of Taxation

Comprehensive, unlimited, plenary, and supreme, subject only to constitutional and inherent limitations

Inherent Limitations

Restrictions on the taxing power arising from its very nature, including public purpose, non-delegability, territoriality, and international comity

Constitutional Limitations

Restrictions on the power of taxation expressly provided or implied in the Constitution, such as due process and equal protection

Stages of Taxation

The three distinct steps in levying and collecting taxes: Levy or Assessment, Assessment and Collection, and Payment

Situs of Taxation

The place or jurisdiction that has the legal power to levy and collect tax upon a person, property, or activity

Other Fundamental Doctrines in Taxation

Key rules governing tax law application, including non-compensation or set-off, prospective operation, and strict construction against the government

Double Taxation

Taxing the same subject, object, or property twice by the same jurisdiction for the same purpose within the same taxable period

Escape from Taxation

The methods by which taxpayers reduce or eliminate tax liabilities, categorized as tax evasion (illegal) or tax avoidance (legal)

Tax Amnesty and Tax Condonation

Tax amnesty is a general pardon waiving civil and criminal liabilities for past non-payment, while tax condonation is the forgiveness or cancellation of an existing tax obligation