136371540 valencia roxas income taxation individuals
TRANSCRIPT
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MARY JOY P. JUNIO, CPA
Notre Dame of Midsayap College
Midsayap, Cotabato
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The
Concept of Taxation
INHERENT POWERS OF THE STATE POLICE EMINENT
DOMAIN
TAXATION
The Power to
protect citizensand provide forsafety and
welfare society.
The power to takeprivate property(with justcompensation)for public use.
The power toenforcecontributions tosupport thegovernment, andother inherentpowers of thestate.
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Power
Co-extensive with sovereignty to demand contributions for public purposes to support the government
Process
It passes a legislative act through the enactment of tax lawsby the Congress which will be implemented by the Executivebranch through the BIR
Means
A way of collecting and apportioning the cost of governmentamong those who are privileged to enjoy its benefits
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•Inherent power of sovereignty•Essentially a legislative function•For public purpose•Territorial in operation•Tax exemption of government•The strongest among the
inherent powers•Subject to constitutional andinherent limitations
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•Taxation is as old as government itself. Itsexistence commences with the fourelements of a state- people, territory,sovereignty and government.•From the moment a state is born, itautomatically possesses the power tocollect taxes from its inhabitants.•
The government having sovereignty canenforce contributions upon its citizenseven without a specific provision in theConstitution authorizing it.
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The law-making body of thegovernment and its political
subdivisions exercise the power oftaxation. The powers to enact lawsand ordinances, and to impose and
collect taxes are given to theCongress.
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PUBLICPurpose
The tax revenues are for a public
purpose if utilized for the benefit of thecommunity in general. An alternativemeaning is that tax proceeds should beutilized only to attain the objectives of
government.Public use is no longer confinedto the traditional notion of use by thepublic but held synonymous with publicinterest, public benefit, public welfare,and public convenience. (Commissionerof Internal Revenue v. Central LuzonDrug Corporation, G.R. No. 159647,
April 16, 2005)
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Territorial in
Operation As a rule, the power to tax can only be
exercised within the territorial jurisdiction of a taxing authority except
when there exists a privity ofrelationship between the taxing Stateand the object of tax.
Where privity of relationship exists, thestate can still exercise its taxing powersover its citizens outside its territory.
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Tax
Exemption
of the
Government
The State immunity fromtaxation is inherent in itspower to impose tax.
Tax exemption applies onlyto government entitiesthrough which the
government immediately anddirectly exercises itsgovernmental functions.
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Taxation power is the
strongest of all inherent powers ofthe government because, withoutmoney, the government can
neither survive nor dispense anyof its other powers and functionseffectively.
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Subject to
Inherent
Limitations
Inherent
Limitations•Taxes may be levied only for
public purpose•Being inherently legislative,taxation may not be
delegated•Tax power is limited toterritorial jurisdiction of theState•Taxation is subject tointernational comity•Government entities are
generally exempt
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Subject toConstitutional
Limitations
Constitutional
Limitations•Due process of law•
Equal protection of law•Rule of uniformity and equity•President’s power to veto separateitems in revenue or tariff bill•No public money shall be
appropriated for religious purposes•Majority of all the members of theCongress granting tax exemption•The Congress may not deprive theSupreme Court of its jurisdiction in
all cases involving the legality of anytax•No imprisonment for nonpaymentof poll tax•Tax collection shall be generally be
treated as general funds