Podcast
Questions and Answers
What is not a subject of taxation?
What is not a subject of taxation?
- Persons (correct)
- Public Properties
- Business
- Transactions
What doctrine justifies that courts cannot issue injunctions against the government's effort to collect taxes?
What doctrine justifies that courts cannot issue injunctions against the government's effort to collect taxes?
- The lifeblood theory
- The ability to pay theory
- Imprescriptibility of taxes (correct)
- The doctrine of estoppel
What is the correct statement about taxation and exemption?
What is the correct statement about taxation and exemption?
- Taxation is the exception, exemption is the rule
- Tax statues are construed in favor of the government
- Exemption is construed in favor of the taxpayer
- The power to tax includes the power to exempt (correct)
What is not a public purpose of taxation?
What is not a public purpose of taxation?
What best describes the scope of taxation?
What best describes the scope of taxation?
What is the point at which tax is levied also known as?
What is the point at which tax is levied also known as?
What is the correct description of the nature of taxation?
What is the correct description of the nature of taxation?
What is NOT a correct statement about taxation?
What is NOT a correct statement about taxation?
What is the relationship between the power to tax and the power to license?
What is the relationship between the power to tax and the power to license?
What is NOT a way to mitigate international double taxation?
What is NOT a way to mitigate international double taxation?
Flashcards
Imprescriptibility of taxes
Imprescriptibility of taxes
A principle stating that courts cannot prevent the government from collecting taxes.
Power to tax includes the power to exempt
Power to tax includes the power to exempt
The idea that the government can choose to exempt some entities or activities from taxation.
Nature of taxation
Nature of taxation
The power to tax is a fundamental power of government.
Situs of taxation
Situs of taxation
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Public purpose of taxation
Public purpose of taxation
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License
License
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Constitutional limitation
Constitutional limitation
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Scope of taxation
Scope of taxation
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Mitigating international double taxation
Mitigating international double taxation
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Relationship between tax and license
Relationship between tax and license
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Study Notes
Taxation Overview
- Taxation is the power to enforce proportional contribution from the people for the support of the government
Key Theories
- The Lifeblood Doctrine: taxes are indispensable to the existence of the state
- Doctrine of Equitable Recoupment: taxes are a means of recovering public expenditures
Taxation Principles
- Taxation is a sovereign power inherent in government
- Taxation is an essentially legislative function
- Taxation is subject to inherent and constitutional limitations
- Taxation is generally for public purpose
Taxation Scope
- Comprehensive: includes all persons, properties, and transactions
- Supreme: the power to tax is superior to other government powers
- Unlimited: the government has the power to tax without limits
- Discretionary: taxation is subject to the government's discretion
Tax Exemption
- The power to tax includes the power to exempt
- Exemption is construed against the taxpayer and in favor of the government
- Tax statues are construed in favor of the government in case of doubt
Public Purpose
- Public education is a public purpose
- National defense is a public purpose
- Transportation is a public purpose
- Public purpose is a legitimate reason for taxation
International Taxation
- International double taxation can be mitigated by:
- Providing allowance for tax credit
- Provision of reciprocity provisions in tax laws
- However, provision of tax exemptions is not a means of mitigating international double taxation
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Description
Test your knowledge on income taxation with this quiz covering chapter 1, including topics such as taxation concepts and incidence of taxation. Find out how much you know about taxation basics!
