Bulsaw3 - Chapter 1

BUSLAW 3 – Chapter 1

A. Concept, Nature and Characteristics

Meaning of Taxation

* Act if laying tax

* Power of government to impose a burden in order to earn revenue

* Inherent power of the state to demand enforced contributions for public purpose/s

* Revenues for carrying out legitimate objectives of the government

* Government & taxes = symbiotic relationship

Purpose and Scope of Taxation

Primary purpose if to raise revenue to provide funds/property for the general welfare and protection of citizens.

Secondary purpose:

1. Reduce social inequality

2. Utilized to implement the police power of the state

3. Used to protect local industries

4. Utilized by government to encourage growth of local businesses

Scope of taxes:

1. Comprehensive

2. Unlimited

3. Plenary

4. Supreme

Theory and Basis of Taxation

1. Existence of Government (Necessity Theory)

A necessity: It cannot continue without a means to pay its expenses (means: has a right to compel all citizens and property within its limits to contribute)

2. Reciprocal duties of state and inhabitants (Relationship Theory)

Benefits-received Principles

* Compensation or consideration for taxpayer and general advantages and protection from government

* Protection for support, support for protection

3. Public purpose requirement for lawful taxation

Protection in the enjoyment of his rights is a duty owed by the state to every citizen

A tax is a compulsory payment to the government

* No special privileges are given to taxpayers

* Only advantage is enjoyment of living in an organized society established and safeguarded by taxes to public purpose

* A person cannot resist tax solely if it does not benefit him

* Taxation is a tax imposition for public purpose

4. Lifeblood Theory

Without tax, the government will be paralyzed for lack of motive to activate and operate; detriment to society

Without it, the nation will not survive

Nature and Power of...