ATI
O
Taxation
-refers to the power
of the State by
which the sovereign
through its lawmaking
body
raises revenue to
defray the expenses
of the government.
GENERAL RULE:
Power to tax cannot be
delegated
The
power
of
taxation, being purely legislative,
Congress cannot delegate such
power. This limitation arises from
the doctrine of separation of
powers
among
the
three
branches of government.
to the non-delegation rule
Exceptions
Characteristics of Taxation
Comprehensive it covers persons, businesses,
activities, professions, rights and privileges.
Plenary it is complete.
ASPECTS OF TAXATION
(Processes/Phases)
A. LEVY/IMPOSITION
- refers to the enactment of tax laws or statutes covering:
a. Discretion as to the purposes for which taxes shall be
levied (purpose must be public in character)
b. Discretion as to subjects of taxation (within its taxing
jurisdiction)
c. Discretion as to amount or rate of tax
d. Discretion as to the manner, means and agencies of
collection of taxes.
B. ASSESSMENT AND COLLECTION administrative in
character, therefore, can be delegated.
C. PAYMENT this signifies an act of compliance by the
taxpayer.
PURPOSES OF TAXATION
A. PRIMARY
To raise revenue
B. SECONDARY
1. Reduction of social inequality by adopting a progressive
system of taxation.
2. Encourage the growth of local industries.
3. Protect our Local Industry as against unfair
competition.
4. As an implement of the police power of the State
(Regulatory Measure)
2. Theoretical Justice
3. Administrative
Feasibility
budget
formulation
budget
budget
legislation
accountablity
budget
execution
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