GENERAL PRINCIPLES IN TAXATION

To provide funds or property with which to promote the general welfare and protection of its citizens and to enable it to finance public expenditure is the:

• Importance of taxation

• lifeblood theory

• primary purpose of taxation

• secondary purpose of taxation

The primary purpose of taxation is to

• promote unity

• protect local industries

• provide revenue to the State

• reduce inequalities

The existence of the government is a necessity

• benefit-received theory

• doctrine of symbiotic relationship

• lifeblood theory

• theory of relativity

As to subject matter, it is a tax imposed upon the performance of an act, the enjoyment of a privilege or the engaging in an occupation.

• ad valorem tax

• privilege tax

• personal, poll or capitation tax

• property tax

The basis of taxation is found on the reciprocal duties of protection and support between the State and its inhabitants. This theory is otherwise known:

• received-benefit theory

• benefit-received theory

• doctrine of symbiotic relationship

• lifeblood theory

Tax burden is based on taxpayer's ability to pay

• fiscal adequacy

• theoretical justice

• uniformity in taxation

• administrative feasibility

Generally, power of taxation can be exercised by

• BIR

• Senate and the House of Representatives

• Executive department thru Department of Finance

• Supreme Court of the Philippines

The imposition of tax is

• assessment

• collection

• levy

• payment

Restrictions on power of taxation based from the supreme law of the land

• inherent limitation

• constitutional limitation

• self-limitation

• self-restraing

It means the recognition or respect accorded by one jurisdiction within its territory over the law of another because they are sovereign equals.

• Exemption from taxation of government entities

• International comity

• Reciprocity

• Territoriality