How taxation came to life?

Co-exists with the creation of government.

  • It is an inherent power by which the sovereign state raises revenues for the use and support of the government.
  • Taxation is the lifeblood of the government without it the nation will die.
  • Taxation is government and government is taxation. Neither one can exist without the other. The success of one is the success of the other.

    How is the power exercised?

    *Legislative in function (enactment of tax laws)

    1. Purpose of the imposition
    2. Principles of sound taxation system
    3. Scope of the power of taxation

* Collection of the tax which is administrative in character.

Power of taxation:

  • Co-exists with the creation of government.
  • Life blood of its continued existence.
  • Without such power, the government will die.
  • Government and taxation had become one and the same.
  • Neither one can exist without the other.
  • The success of one is the success of the other.
  • Exercised in a very democratic way.
  • Taxpayers elect their representatives to the law making body of the government.
  • Congress enacts tax laws.
  • Sovereignty of the people, for the people, and by the people.
  • Basically a legislative function.
  • The delegated power is something formidable.
  • Scope: comprehensive, plenary, unlimited, supreme (CPUS).
  • Could be abused, principal check is their conscience of responsibility to their constituents.
  • Subject to inherent and constitutional limitations.

Taxation is the act of laying a tax, i.e., the process or means by which the sovereign, through its lawmaking body, raises revenue to defray the necessary expenses of government.

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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.
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