Professional Documents
Culture Documents
revenue
to
defray
the
necessary
expenses
of
the
persons
and
government.
Taxes Defined
Are
enforced
proportional
contribution
from
Importance of Taxes
Taxes are important because they are the Life Blood of the
Government.
I.
Taxation
A. Theory and basis of taxation (3)
1. Necessity Theory
2. Benefit Protection Theory
3. Life Blood Theory
necessary.
Benefits Protection Theory state demands and receive
taxes so that it may be enabled to carry its mandate into
effect and perform the functions of the government and to
be secured in the enjoyment of the benefits of organized
society.
public needs
Administrative Feasibility taxes should be capable of
1. Purpose
Taxation
Raising revenue
Police Power
Promote general
2. Amount of
No limit
welfare
Cover the cost of
exaction
regulation,
issuance of the
license or
surveillance
3. Benefits
General benefit
Direct benefit
received
4. Non
Rule subsists
impairment of
contracts
5. Transfer of
apply
Taxes paid become
No transfer, only
Property
restraint on the
Rights
funds
exercise of property
right exists
1. Nature of the
power
Raise
Taxation
public
Eminent Domain
Taking of private
revenue
exercised
2. Compensation
General benefit
use
Direct benefit
received
3. Non
This is not so in
impaired
Eminent Domain
impairment
contracts
4. Persons
affected
Applies
persons,
to
all
properties
Only
particular
property
and excises
E. Taxes distinguished from other impositions
a. Toll
Demand ownership
TAXES
Demand
b. Penalty
sovereignty
Civil liability
commission
c. Compromise
Penalty
d. Special
Assessment
crime
Amount
of
the
that
is
collected in violations
of Tax Code
Levied only on land
Imposed on
persons, property
and excises
constitutional
e. License Fee
Emanates
from
police power
Purpose
exemption
Levied in the
excise of the
is
regulatory
taxing power
Purpose is to
raise revenue
f.
Margin Fee
g. Debt
Stabilize currency
An
obligation
created
by
contract
No person
shall
An
obligation
imposed
by
law
Non-payment
be imprisoned for
of local tax is
non-payment
liable
of
debt
Are due
corporate capacity
Sum of money
due
for
criminal
in
its
prosecution
Are due to the
government in
upon
in
contract
its
sovereign
capacity
Imposts levied
by
the
government
for its support
or
some
special
purposes
Taxes are not subject to set-off or compensation because
government and tax payers are not mutually debtors and
creditors of each other and a claim for a tax is not a debt,
demand, contract of judgment as is allowable to set off.
the exaction.
Courts power in taxation is limited only to the application
and interpretation of the law.
I.
II.
A.
1.
2.
3.
4.
the
purposes
Income derived from public utility or from exercise
thereof
Real properties owned by the Government
XPN: Beneficial use is granted for consideration or a
taxable person
against
impairment
of
obligations
and
contracts
- Alter or change the terms or effect of the contract and
thus in contemplation of the law, weaken the rights of
one or all of the parties.
5. Prohibition against imprisonment for non-payment of a
poll tax
- Poll tax a tax fixed amount on individuals residing
within a specified territory
6. Prohibition against taxation of real property used for
religious, charitable and educational entities
7. Prohibition against taxation of the revenue and assets of
non-stock, non-profit educational institutions
8. Restrictions on the appropriate of proceeds of taxation
9. Prohibition against infringement of religious freedom
TAX REMEDIES
A. Tax remedies
1. Importance
G.R: No injunction to restrain tax collection
The law of the NIRC provides that no court shall have the
authority to grant injunction to restrain the collection of
any national internal revenue tax, fee or charged imposed
by this Code.
XPN: when the collection of the tax may jeopardize the
interest of the Government or taxpayer.
assessment.
Preassessment notice (PAN) shall not be required in the
following cases
a. Deficiency tax is result of mathematical error
b. Discrepancy between tax withheld and the amount
actually remitted
c. Carried over and automatically applied the same
amount claimed against the estimated tax liabilities of
the succeeding taxable year
d. Excise tax due on excisable articles has not been paid
e. An article locally purchased or imported by an exempt
person has been sold, traded or transferred to non-
exempt persons.
The taxpayer shall be informed in writing of the LAW and
FACTS on which assessment is made; otherwise the
documents,
the taxpayer may appeal to the Court of Tax of Appeals
B. COMPROMISE