Questions and Answers
What is the definition of taxation according to Aban?
Taxation is the power by which the sovereign raises revenue to defray the necessary expenses of the government.
Which of the following are considered inherent powers of the State? (Select all that apply)
Taxation is solely a legislative power.
False
What are the three basic concepts of taxation?
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Which of the following is an object of taxation?
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What is the significance of the power to tax described in the text?
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Study Notes
Definition of Taxation
- Taxation is a sovereign power to raise revenue for government expenses.
- Imposed by government authority on property, individuals, or transactions for public purposes.
- State raises income through its law-making body to support necessary government functions.
- Inherent power exercised via legislative authority to impose financial burdens within jurisdiction.
Basic Concepts of Taxation
- Taxation is a power of the State to collect funds for public use.
- It involves processes including creation, enforcement, and collection of tax laws.
- Functions as a means for State survival and operational capability.
Nature and Characteristics of Taxation
- Taxation arises as an inherent and legislative power.
- Subject to constitutional and inherent limitations even as a fundamental power.
- Exists independently of constitutional provisions; innate to state formation.
Inherent Powers of the State
- Three inherent powers include:
- Police Power
- Power of Eminent Domain
- Power of Taxation
- The power to tax is extensive, plenary, and a crucial tool for governmental authority.
Objects of Taxation
- Persons: Tax examples include poll tax and community tax certificate.
- Property: Encompasses real property tax, applicable to owners or beneficial users.
- Privileges/Rights: Includes income tax, excise tax, and other business taxes.
Case Study: Tio v. Videogram Regulatory Board
- Involves a challenge to the constitutionality of PD 1987, which regulates the videogram industry.
- Section 10 mandates a 30% tax on sales or rentals of videograms.
- Claim by Valentin Tio that the tax is harsh and violates due process.
Court Ruling in Tio v. Videogram Regulatory Board
- It was determined that taxes may regulate or deter activities without losing validity.
- The power to tax is considerable and seldom subject to judicial restrictions.
- Legislative authority provides a safeguard against unreasonable and oppressive taxation practices.
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Description
This quiz covers the fundamental concepts of taxation, including its definition and purpose in raising revenue for government expenses. Explore key terms and principles that form the basis of taxation laws as described in various legal texts.
