Chapter 1 Introduction to Taxation - Flashcards

A set of practice flashcards covering key concepts from Chapter 1: Introduction to Taxation, including definitions, doctrines, and constitutional principles.

What is taxation?

Taxation is a state power, a legislative process, and a mode of cost distribution.

What is taxation as a state power?

Taxation is the inherent power of the State to enforce proportional contributions from its subjects for public purpose.

What is taxation as a process?

Taxation is the process of levying taxes by the legislature to enforce proportional contributions from its subjects for public purpose.

What is taxation as a mode of cost distribution?

Taxation is a method by which the State allocates its costs or burden to its subjects who are benefited by its spending.

What is the Lifeblood Doctrine in taxation?

Taxes are essential to the government; their prompt and certain availability is necessary for government functioning (labeled in cases like CIR v. Algue and Vera v. Fernandez).

What is the Benefit Received theory in tax cost allocation?

The more benefit a person receives from government, the more taxes they should pay.

What is the Ability to Pay theory in tax cost allocation?

Taxes should reflect the taxpayer's ability to sacrifice; those with greater capacity pay more, even if they benefit less.

What is Vertical equity in taxation?

The greater the tax base (e.g., higher income), the greater the ability to pay, so higher taxes are expected.

What is Horizontal equity in taxation?

Taxpayers in similar circumstances should pay similarly; differences in circumstances (like expenses) affect tax liability; net concept.

What are the Inherent Powers of the State besides taxation?

Police power and Eminent domain. These are natural, inseparable, and inherent to government.

What does situs mean in taxation?

The place of taxation or tax jurisdiction that determines where a tax can be levied on a tax object.

What are the main stages of taxation?

Levy (imposition) and Assessment/Collection.

What is territoriality of taxation?

Tax obligations are enforceable within the state's territorial jurisdiction; generally no taxation of foreign subjects abroad; with exceptions for income and transfer taxes for residents and certain taxpayers.

What is international comity in taxation?

Mutual courtesy/reciprocity between nations; governments do not tax other governments; treaties may override domestic laws; embassies/foreign staff often exempt.

What is the public purpose requirement in taxation?

Taxation must be exercised for the public good and not to advance private interests.

What is the government exemption in taxation?

The government may be exempt from taxes, but typically does not tax itself; government income from essential functions is often exempt, while income from profits of government enterprises is taxable.

What does non-delegation of taxing power mean?

Legislative taxing power is vested in Congress and generally non-delegable, though there are exceptions for local governments, tariff adjustments, and expedient administrative actions.

What is substantive due process in taxation?

Tax laws must be for public purpose, enacted by valid authority, and applied with jurisdiction; assessments must have a legal basis.

What is procedural due process in taxation?

Taxpayers must receive notice and hearing; assessments/collections follow statutory time limits (e.g., 3 years to file, 5 years to collect in certain cases).

What is equal protection of the law in taxation?

Taxpayers in similar circumstances must be treated equally; exemptions or treatments must be justified by the same standards.

What is the uniformity rule in taxation?

Taxation should be uniform and equitable; classifications must reflect substantial distinctions, and similarly situated taxpayers are treated alike.

What is the progressive system of taxation?

Tax rates should increase as the tax base increases; the Constitution favors progressivity to align with ability to pay and wealth distribution.

What is the rule on non-imprisonment for non-payment of debt or poll tax?

In general, individuals should not be imprisoned for inability to pay debt; for poll tax, the basic community tax is protected, while non-payment of the additional community tax can be punished.

What is the Free Worship Rule?

The government does not tax religious worship; revenues from religious activities are exempt, though income from commercial activities by religious groups may be taxable.