Ad valorem tax - ANSWER-A tax imposed as a fixed proportion of the property's value,
such as VAT, income tax, donor's tax, and estate tax.
.Administrative Feasibility - ANSWER-A tax system requiring informed stakeholders,
clear taxation targets, and minimal complexity for effective enforcement.
.ASPECTS of Taxation - ANSWER-Aspects refer to 'stages or phases' that are included
or embodied in the term 'taxation' such as: 1. Levying or imposition of the tax which is a
legislative act or function. 2. Assessment or determination of the correct amount of
applicable tax. 3. Collection of the tax levied which is essentially administrative in
character. The national agency charged with the function of collecting internal revenue
taxes is the Bureau of Internal Revenue.
.Authority - ANSWER-1. Power to Tax - Government only. 2. Police Power -
Government only. 3. Eminent Domain - May be granted to public service/utility
companies.
.Benefits Received Theory - ANSWER-Taxation basis on reciprocal duties between
State and citizens.
.Debt - ANSWER-Based on a contract, payable in money, and may draw interest,
distinct from taxes.
.Delegated authority of President to impose tariff rates, import and export quotas,
tonnage and wharfage dues - ANSWER-Delegated by Congress through a law (subject
to Congressional limits and restrictions) within the framework of national development
program.
.Direct tax - ANSWER-A tax whose burden falls on the person who cannot shift it to
another, with both the liability and burden resting on the same person (e.g., income tax).
.DISTINCTIONS AMONG THE THREE (3) INHERENT POWERS - ANSWER-1. Nature:
Power to enforce contributions to raise gov't funds (Taxation), Power to make and
implement laws for the general welfare (Police Power), Power to take private property
for public use with just compensation (Eminent Domain). 2. Authority: Government only
for Taxation and Police Power, May be granted to public service/utility companies for
Eminent Domain. 3. Purpose: Support of the government (Taxation), Promotion of
general welfare through regulation (Police Power), The taking of private property for
public use (Eminent Domain). 4. Persons Affected: Community or a class of individuals
for Taxation and Police Power, Applies to all persons, property and excises that may be
, subject thereto for Eminent Domain. 5. Scope: Plenary, comprehensive, supreme for
Taxation, Broader in application, General power to make and implement law for Police
Power, Merely a power to take private property for public use for Eminent Domain. 6.
Effects: Contribution becomes part of public fund for Taxation, No transfer or title. There
may just be a restraint on property. The injurious use of property for Police Power,
There is a transfer of title to property for Eminent Domain. 7. Benefits Received: In form
of protection and benefits received from government for Taxation, No direct and
immediate benefit but only such as may arise from the maintenance of a healthy
economic standard of society for Police Power, Market value of property taken for
Eminent Domain. 8. Amount of imposition: No limit for Taxation, Sufficient to cover cost
of the license and the necessary expenses of police surveillance and regulation for
Police Power, No imposition. The owner is paid equivalent to the fair value of his
property for Eminent Domain.
.Doctrine of Symbiotic Relationship - ANSWER-Taxes paid for benefits of a civilized
society.
.Double Taxation - ANSWER-Can be direct (same authority, purpose, subject, etc.) or
indirect (broad sense, not constitutionally prohibited).
.Due process of law - ANSWER-There must be a valid law and the measure should not
be unconscionable and unjust as to amount to confiscation of property. Tax statute must
not be arbitrary as to find no support in the Constitution. The power to tax should not be
harsh, oppressive or confiscatory. This limitation is also known as the right to notice and
hearing.
.Effect of incidental benefit to private interest - ANSWER-Tax purposes need not be
exclusively public; incidental private benefits are acceptable if the primary purpose is
public.
.Equal protection of laws - ANSWER-All persons subject to legislation shall be treated
alike under similar circumstances and conditions both in the privileges conferred and
liabilities imposed. The doctrine does not require that persons or properties different in
fact be treated in law as though they were the same. What it prohibits is class legislation
which discriminates against some and favors others. As long as there are rational or
reasonable grounds for so doing, Congress may group persons or properties to be
taxed and it is sufficient if all members of the same class are subject to the same rate
and the tax is administered impartially upon them.
.ESSENTIAL ELEMENTS of a Tax - ANSWER-a. It is an enforced contribution.
Payment of tax is not voluntary payment or donation, but an enforced contribution,
exacted pursuant to legislative authority. b. It is generally payable in money. It is a
pecuniary burden payable money which must be in legal tender. c. It is proportionate in
character. Payment of taxes should be based on the ability to pay theory or theoretical
justice. The use of a graduated tax rates is in consonance with this rule. d. It is levied on
persons, property, or the exercise of a right or privilege (subjects or objects of taxation).
such as VAT, income tax, donor's tax, and estate tax.
.Administrative Feasibility - ANSWER-A tax system requiring informed stakeholders,
clear taxation targets, and minimal complexity for effective enforcement.
.ASPECTS of Taxation - ANSWER-Aspects refer to 'stages or phases' that are included
or embodied in the term 'taxation' such as: 1. Levying or imposition of the tax which is a
legislative act or function. 2. Assessment or determination of the correct amount of
applicable tax. 3. Collection of the tax levied which is essentially administrative in
character. The national agency charged with the function of collecting internal revenue
taxes is the Bureau of Internal Revenue.
.Authority - ANSWER-1. Power to Tax - Government only. 2. Police Power -
Government only. 3. Eminent Domain - May be granted to public service/utility
companies.
.Benefits Received Theory - ANSWER-Taxation basis on reciprocal duties between
State and citizens.
.Debt - ANSWER-Based on a contract, payable in money, and may draw interest,
distinct from taxes.
.Delegated authority of President to impose tariff rates, import and export quotas,
tonnage and wharfage dues - ANSWER-Delegated by Congress through a law (subject
to Congressional limits and restrictions) within the framework of national development
program.
.Direct tax - ANSWER-A tax whose burden falls on the person who cannot shift it to
another, with both the liability and burden resting on the same person (e.g., income tax).
.DISTINCTIONS AMONG THE THREE (3) INHERENT POWERS - ANSWER-1. Nature:
Power to enforce contributions to raise gov't funds (Taxation), Power to make and
implement laws for the general welfare (Police Power), Power to take private property
for public use with just compensation (Eminent Domain). 2. Authority: Government only
for Taxation and Police Power, May be granted to public service/utility companies for
Eminent Domain. 3. Purpose: Support of the government (Taxation), Promotion of
general welfare through regulation (Police Power), The taking of private property for
public use (Eminent Domain). 4. Persons Affected: Community or a class of individuals
for Taxation and Police Power, Applies to all persons, property and excises that may be
, subject thereto for Eminent Domain. 5. Scope: Plenary, comprehensive, supreme for
Taxation, Broader in application, General power to make and implement law for Police
Power, Merely a power to take private property for public use for Eminent Domain. 6.
Effects: Contribution becomes part of public fund for Taxation, No transfer or title. There
may just be a restraint on property. The injurious use of property for Police Power,
There is a transfer of title to property for Eminent Domain. 7. Benefits Received: In form
of protection and benefits received from government for Taxation, No direct and
immediate benefit but only such as may arise from the maintenance of a healthy
economic standard of society for Police Power, Market value of property taken for
Eminent Domain. 8. Amount of imposition: No limit for Taxation, Sufficient to cover cost
of the license and the necessary expenses of police surveillance and regulation for
Police Power, No imposition. The owner is paid equivalent to the fair value of his
property for Eminent Domain.
.Doctrine of Symbiotic Relationship - ANSWER-Taxes paid for benefits of a civilized
society.
.Double Taxation - ANSWER-Can be direct (same authority, purpose, subject, etc.) or
indirect (broad sense, not constitutionally prohibited).
.Due process of law - ANSWER-There must be a valid law and the measure should not
be unconscionable and unjust as to amount to confiscation of property. Tax statute must
not be arbitrary as to find no support in the Constitution. The power to tax should not be
harsh, oppressive or confiscatory. This limitation is also known as the right to notice and
hearing.
.Effect of incidental benefit to private interest - ANSWER-Tax purposes need not be
exclusively public; incidental private benefits are acceptable if the primary purpose is
public.
.Equal protection of laws - ANSWER-All persons subject to legislation shall be treated
alike under similar circumstances and conditions both in the privileges conferred and
liabilities imposed. The doctrine does not require that persons or properties different in
fact be treated in law as though they were the same. What it prohibits is class legislation
which discriminates against some and favors others. As long as there are rational or
reasonable grounds for so doing, Congress may group persons or properties to be
taxed and it is sufficient if all members of the same class are subject to the same rate
and the tax is administered impartially upon them.
.ESSENTIAL ELEMENTS of a Tax - ANSWER-a. It is an enforced contribution.
Payment of tax is not voluntary payment or donation, but an enforced contribution,
exacted pursuant to legislative authority. b. It is generally payable in money. It is a
pecuniary burden payable money which must be in legal tender. c. It is proportionate in
character. Payment of taxes should be based on the ability to pay theory or theoretical
justice. The use of a graduated tax rates is in consonance with this rule. d. It is levied on
persons, property, or the exercise of a right or privilege (subjects or objects of taxation).
