A. Stages or Aspects of Taxation C.

Requisites of a Valid Tax

The three stages or aspects of taxation are: 1. The tax should be within the jurisdiction of the taxing authority
1. Levy – This refers to the enactment of a law by Congress imposing 2. It must be for a public purpose
a tax
3. The rule of taxation must be uniform
2. Assessment and collection – This is the act of administration and
4. It guarantees against injustice to individuals, especially by way of
implementation of the tax law by the executive department through
notice and opportunity to be heard be provided.
the administrative agencies
5. It must not impinge on the inherent and Constitutional limitations on
3. Payment – This is the act of compliance by the taxpayer including
the power of taxation.
whatever remedies are available to him under the law
Note: Refund is one of the remedies of the taxpayer. It is not a
separate stage of taxation. It is deemed included in the stage of D. Tax as distinguished from other forms of exactions
payment.
E. Kinds of Taxes
F. Sources of Tax Laws
B. Definition, Nature and Characteristics of Taxes
The sources of tax laws are:
Taxes are enforced proportional contributions from persons and 1. Constitution;
property, levied by the state by virtue of its sovereignty for the support 2. NIRC as amended – RA 9648;
of the government and for all its public needs. 3. Tariff and Custom Code as amended – RA 8181;
4. Local Government Code;
5. Local Tax Ordinance/City/Municipal Tax Code;
Characteristics or elements (essential elements of a tax) 6. Tax Treaties/International Agreements;
1. Enforced contributions 7. Presidential Decree/ Executive Order;
2. Generally payable in money 8. Decisions of SC/CTA/CA; and
3. Proportional in character, since taxes are based on one’s ability to 9. Revenue Rules and Regulations, Rulings implemented by
pay the BIR
4. Levied on persons, property, or exercise of a right or privilege
5. Levied by the State having jurisdiction
6. Levied by the legislature G. Construction and Interpretation of
7. Levied for a public purpose
1. Tax Laws
8. Paid at regular periods or intervals
2. Tax Exemptions and Exclusions
3. Tax Rules and Regulations
4. Penal provisions of Tax Laws
5. Non-retroactive application to Taxpayers