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Questions and Answers
What are the three inherent powers of the state?
The three inherent powers of the state are police power, power of taxation, and eminent domain.
What are the essential characteristics/elements of tax?
The essential characteristics/elements of tax are compulsory payment, enforced contribution, and imposition by the government.
What is the distinction between tax and toll?
Tax is a compulsory payment imposed by the government, while toll is a fee charged for using a particular facility or service.
What is the distinction between tax and penalty?
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Why does the government impose taxes?
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Study Notes
Inherent Powers of the State
- The state has three inherent powers: taxation, eminent domain, and police power.
Characteristics of Tax
- A tax must be a compulsory payment to the government.
- A tax must be imposed under the authority of law.
- A tax must be levied by a competent authority.
- A tax must be paid by the person on whom it is imposed.
- A tax must be for public purpose only.
Distinction between Tax and Toll
- A tax is a compulsory payment for general public revenue, whereas a toll is a payment for a specific service or benefit.
- A tax is levied by the government, whereas a toll is levied by a private entity.
Distinction between Tax and Penalty
- A tax is a payment for a public purpose, whereas a penalty is a payment for a wrongdoing.
- A tax is levied under the tax laws, whereas a penalty is levied under the penal laws.
Purpose of Imposing Taxes
- The government imposes taxes to generate revenue for public expenditure.
- The government imposes taxes to redistribute wealth and income.
- The government imposes taxes to influence economic behavior and achieve social objectives.
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Description
Test your knowledge of the principles of taxation and tax laws in this quiz. Explore topics such as income taxation, distinction of tax, distinguishing tax from toll and penalty, and more. Challenge yourself and learn about the essential characteristics and elements of tax.
