INTRODUCTION TO TAXATION

Which theory in taxation states that without taxes, a government would be paralyzed for lack of power to activate and operate it, resulting in its destruction?

• Power to destroy theory

• Lifeblood theory

• Sumptuary theory

• Symbiotic doctrine

This is an inherent limitation on the power of taxation.

• Rule on uniformity and equity in taxation.

• Due process of law and equal protection of the laws.

• Non-impairment of the jurisdiction of the Supreme Court in tax cases.

• Tax must be for the public purpose.

The process or means by which the sovereign, through its law-making body raises income to defray the expenses of the government.

• Toll

• Taxation

• License fee

• Assessment

This power is superior to the non-impairment clause and is broader in application because it is a power to make and implement laws.

• Power of Taxation

• Power of Eminent Domain

• Power of Recall

• Police Power

Taxation as distinguished from police power and power of eminent domain.

• Property is taken to promote the general welfare.

• Maybe exercised only by the government.

• Operates upon the whole citizenry.

• There is generally no limit as to the amount that may be imposed

The following are constitutional limitations, except

• No imprisonment for non-payment of poll tax.

• Non-impairment of the obligation of contracts.

• Rule of uniformity and equity in taxation.

• Exemption from income tax of charitable institutions, cemeteries, churches, personage or convents appurtenant thereto, as well as all lands, buildings and improvements actually, directly and exclusively used for religious, charitable and educational purposes

A tax must be imposed for public purpose. Which of the following is not a public purpose?

• National defense

• Public education

• Improvement of the sugar and coconut industries.

• Improvement of a subdivision road

The power to acquire private property upon payment of just compensation for public purpose

• Power of taxation

• Power of Eminent domain

• Police power

• Power of recall

Persons or things belonging to the same class shall be taxed at the same rate.

• Simplicity in taxation

• Equality in taxation

• Reciprocity in taxation

• Uniformity in taxation

It literally means “place of taxation”; the country that has the power and jurisdiction to levy and collect the tax.

• Basis of taxation

• Scope of taxation

• Situs of taxation

• Theory of taxation