Characteristics or nature of the State’s power to tax

  1. It is inherent in sovereignty, hence, it may be exercised although not expressly granted by the Constitution.
  2. It is legislative in character, hence, only the legislature can impose taxes (high prerogative of sovereignty).
  3. It is subject to constitutional and inherent limitations, hence, it is not an absolute power that can be exercised by the legislature anyway it pleases.

Scope of the power of taxation: CPUS

The power of taxation is comprehensive, plenary, unlimited and supreme. This power is, however, subject to inherent and constitutional limitations.

Matters within the competence of the legislature to determine:

  1. The subject matter or object to be taxed.
  2. The purpose of the tax so long as it is a public purpose.
  3. The amount or rate of the tax.
  4. The manner, means and agencies of collection of the tax.
  5. The exemptions from the imposition.

Processes included or embodied in the term taxation:

  1. Levying or imposition of tax which is a legislative act.
  2. Collection of the tax levied which is essentially administrative in character.

Questions to Answer;

  1. Which of the following is not a basic principle of a sound taxation system?

A. It should be capable of being effectively enforced.

B. It must be a progressive tax.

C. It must be sufficient to meet government expenditures and other public needs.

D. It should be exercised to promote public welfare.

2 .  Which one of the following is not a characteristic of the State’s power to tax?

A. It is inherent in sovereignty

B. It is based on the ability to pay

C. It is legislative in character

D. It is subject to constitutional and inherent limitations

I would like to invite you to join my exclusive groups of aspiring CPAs for my upcoming project “CPA Dream Academy”.CPA DREAM ACADEMY or sign up for flashcards free http://eepurl.com/coJBmf

CPA Mentor,

JONATHAN RUIZ CPA, MIB

 

Advertisements

About Jonathan Ruiz CPA

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