Taxation
Taxation
Taxation
-
Is the act of laying a tax i.e., the
process of means by which the sovereign, through its law-making body, raises
revenues to defray the necessary expenses of government. Expressed in another
way, it is a method of apportioning the cost of government among those who in
some measures are privileged to enjoy the benefits, and must bear its burden.
Importance and
purpose of taxation
-
The purpose of taxation on the part of
the government is to provide funds with which to promote the general welfare
and protection of its citizens, and to enable it to finance its multifarious
activities.
Taxes
-
Taxes are enforced proportional
contributions from persons and property levied by the law-making body of the
state by virtue of its sovereignty for the support of the government and all
public needs.
Characteristics of
Tax
-
It is an enforced contribution
- A tax is not a voluntary payment or donation, and its imposition is in no way
dependent upon the will or assent of the persons taxed.
-
It is generally payable in money –
Unless qualified by law, the terms “taxes or “tax” are usually understood to be
a pecuniary burden – exaction to be discharged alone in money, which must be in
legal tender.
-
It is proportionate in character
– A tax is laid by some rule of appointment according to which the persons or
property share the public burden. It is ordinarily based on the ability to pay.
-
It is levied on persons or
property – A tax be imposed on acts or transactions or
contracts. In each case however, it is only a person who pays the tax.
-
It is levied by the state which
has jurisdiction over the person or property – The persons
and property must be subject to the jurisdiction of the taxing state. This is
necessary in order that the tax can be enforced. The taxing power of a state
necessarily stops at its boundary lines.
-
It is levied by the law-making
body of the State – The power to tax is a legislative
power which only the legislative body can exercise through the enactment of
statutes or ordinances. The power to tax is also granted by the constitution
and by law to local government units like the provinces, cities,
municipalities, and barangays, but the power to of the latter is subject to
such limitations as may be provided by law.
-
It is levied for public purposes
– Taxation involves and a tax constitutes, a charge or burden imposed to
provide income for public purposes – the support of the government, the
administration of the law, or the payment of public expenses.
