Student
Examination paper
“Come all for this greatness”
...100% Correct Ans...
TAX2601 Principles of Taxation
Inherent power
ans>> Means a power existing as a natural or basic part of every sovereign State, without
being conferred or granted by the people or the Constitution
1. Power to Tax
2. Police Power
3. Eminent Domain
ans>> Three Inherent Powers of the State
Power to Tax
ans>> · Act of levying or imposing a tax
· Process by which the sovereign through its legislative branch raises income to defray
expenses of the government
· Power to impose burdens on subjects and objects
· Interferes with personal and property rights
Police Power
ans>> · The power of the State to enact laws in relation to persons and property so as to
promote public health, public moral, public safety and general welfare of the people
Eminent Domain
ans>> · The power of the State or those to whom the power has been delegated to take
private property for public use upon paying the owner a just compensation to be ascertained
according to law
1. inherent
,2. independent of the constitution
3. interfere with private rights and property
4. legislative in nature & character
5. presuppose an equivalent compensation received, directly or indirectly, by the persons
affected
ans>> Similarities of the inherent powers
To raise revenues / funds to defray necessary expenses of the government
ans>> Primary purpose of taxation
a. Regulatory purpose
b. Compensatory purpose
ans>> Secondary purpose of Taxation
Regulatory purpose
ans>> Taxation is employed as a devise for regulation or control by means of which certain
effects or conditions envisioned by the government may be achieved
· Reduction of social inequality
· Economic growth
· Protect local industries against unfair competition
ans>> Compensatory purposes
1. Inherent
2. Legislative
3. Inherent & Constitutional limitations
4. Public purpose
5. Strongest inherent power
6. International treaty / Comity
7. Payable in money
8. Territorial
ans>> Nature and characteristics of Taxation
Comprehensive
Unlimited
Plenary
Supreme
ans>> Scope of Taxation
Power to destroy
, ans>> The power to tax includes the power to ___________
Taxes
ans>> are enforced proportional contributions from persons and property, levied by the
State by virtue of its sovereignty for the support of the government and for all its public
needs
a. Forced charge, imposition, or contribution
b. Pecuniary burden payable in money
c. For public purpose
d. Legislative authority
e. Territorial & legal jurisdiction of the State
f. In accordance with some reasonable rule of apportionment
ans>> Essential characteristics of Tax
1. Necessity Theory
2. Lifeblood Doctrine
3. Benefits-Protection Theory
ans>> Theory and Basis of Taxation
Necessity Theory
ans>> The theory that the existence of government is a necessity, or the power of taxation
is a power predicated upon necessity
Lifeblood doctrine, because it deprives the government of funds.
ans>> Taxes are the lifeblood of the government without which it can neither exist nor
endure
Benefits-protection Theory
ans>> Basis of taxation is the reciprocal duties of "protection and support" between the
State and its inhabitants
Doctrine of Symbiotic Relationship
ans>> means taxes are what we pay for a civilized society
Inherent power
ans>> Means a power existing as a natural or basic part of every sovereign State, without
being conferred or granted by the people or the Constitution
1. Power to Tax
Examination paper
“Come all for this greatness”
...100% Correct Ans...
TAX2601 Principles of Taxation
Inherent power
ans>> Means a power existing as a natural or basic part of every sovereign State, without
being conferred or granted by the people or the Constitution
1. Power to Tax
2. Police Power
3. Eminent Domain
ans>> Three Inherent Powers of the State
Power to Tax
ans>> · Act of levying or imposing a tax
· Process by which the sovereign through its legislative branch raises income to defray
expenses of the government
· Power to impose burdens on subjects and objects
· Interferes with personal and property rights
Police Power
ans>> · The power of the State to enact laws in relation to persons and property so as to
promote public health, public moral, public safety and general welfare of the people
Eminent Domain
ans>> · The power of the State or those to whom the power has been delegated to take
private property for public use upon paying the owner a just compensation to be ascertained
according to law
1. inherent
,2. independent of the constitution
3. interfere with private rights and property
4. legislative in nature & character
5. presuppose an equivalent compensation received, directly or indirectly, by the persons
affected
ans>> Similarities of the inherent powers
To raise revenues / funds to defray necessary expenses of the government
ans>> Primary purpose of taxation
a. Regulatory purpose
b. Compensatory purpose
ans>> Secondary purpose of Taxation
Regulatory purpose
ans>> Taxation is employed as a devise for regulation or control by means of which certain
effects or conditions envisioned by the government may be achieved
· Reduction of social inequality
· Economic growth
· Protect local industries against unfair competition
ans>> Compensatory purposes
1. Inherent
2. Legislative
3. Inherent & Constitutional limitations
4. Public purpose
5. Strongest inherent power
6. International treaty / Comity
7. Payable in money
8. Territorial
ans>> Nature and characteristics of Taxation
Comprehensive
Unlimited
Plenary
Supreme
ans>> Scope of Taxation
Power to destroy
, ans>> The power to tax includes the power to ___________
Taxes
ans>> are enforced proportional contributions from persons and property, levied by the
State by virtue of its sovereignty for the support of the government and for all its public
needs
a. Forced charge, imposition, or contribution
b. Pecuniary burden payable in money
c. For public purpose
d. Legislative authority
e. Territorial & legal jurisdiction of the State
f. In accordance with some reasonable rule of apportionment
ans>> Essential characteristics of Tax
1. Necessity Theory
2. Lifeblood Doctrine
3. Benefits-Protection Theory
ans>> Theory and Basis of Taxation
Necessity Theory
ans>> The theory that the existence of government is a necessity, or the power of taxation
is a power predicated upon necessity
Lifeblood doctrine, because it deprives the government of funds.
ans>> Taxes are the lifeblood of the government without which it can neither exist nor
endure
Benefits-protection Theory
ans>> Basis of taxation is the reciprocal duties of "protection and support" between the
State and its inhabitants
Doctrine of Symbiotic Relationship
ans>> means taxes are what we pay for a civilized society
Inherent power
ans>> Means a power existing as a natural or basic part of every sovereign State, without
being conferred or granted by the people or the Constitution
1. Power to Tax
