Inherent Limitations of Taxation

Inherent limitations on Power of Taxation:

A. Non Delegation of the power to Tax – the power to tax is purely legislative and it cannot be delegated by the legislature to the executive or judicial department of the government. Separation of the three branches of government.

B. Exemption from taxation of government entities. Government agencies performing essential government functions are exempt from tax unless expressly taxed while those performing proprietary functions are subject to tax unless expressly exempted. Government cannot tax itself.

C. Public Purpose – purpose affecting the inhabitants of the state as a community  and not merely as individuals. Financing educational activities, promotion of science, maintenance of roads and bridges, aid for victims of calamities, etc. etc.

D. Territorial Jurisdiction – the tax laws of the state are enforceable only within it’s territorial limits. Tax laws do not operate beyond the country’s territorial limits.

E. International comity – the property of a foreign State or government may not be taxed by another. Courteous and friendly agreement and interaction between nations.

 

 

 

Advertisements

About PAM Academy Founder

Newbie Mentor and one of the influential author in the Philippines setting. His also the founder of PAM Academy and Developer of PAM PSE TRACKER application.
This entry was posted in Taxation and tagged . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s