TAX

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

1. Delegation to the President(Sec. 28(2) of Art. VI)

2. Delegation to local government units (Sec. 5,

Art X)
3. Delegation to administrative agencies

Theory and Basis of Taxation

Lifeblood Theory (Necessity
theory)
Taxes are the lifeblood of the government and their prompt and
certain availability is an imperious need. The collection of taxes
must be made without hindrance if the state is to maintain its
orderly existence.

Benefits-Protection Theory (Symbiotic

Relationship
Doctrine)
It involves the power of the State to demand and receive
taxes based on the reciprocal duties of support and
protection between the State and its citizen. Thus, every
person who is ABLE must contribute his share in the burden
of running the government and the govt should respond in
the form of tangible and intangible benefits intended to

Characteristics of Taxation
Comprehensive it covers persons, businesses,
activities, professions, rights and privileges.

Unlimited it is so unlimited in force and searching in

extent that courts scarcely venture to declare that it is
subject to any restrictions, except those that such rests in
the discretion of the authority which exercises it.

Plenary it is complete.

Under the Tax Code, the BIR

may avail of certain tax remedies to ensure the
collection of taxes.

Supreme it is supreme insofar as the selection of the

subject of taxation is concerned.

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)

PRINCIPLES OF A SOUND TAX

SYSTEM
1. Fiscal Adequacy

2. Theoretical Justice

3. Administrative
Feasibility

The general stages of the budget cycle

Agencies and
depts report
on
expenditure to
DBM/COA

Starts from Budget call

up to the time the Pres
submits its proposed
budget to Congress

budget
formulation

budget

budget
legislation

accountablity

Govt agencies & depts

implement programmes
and spend the funds

Starts from the

time the HoRs
Speaker receives
the Presidents
budget up to the
Presidents
enactment of the
GAA

budget
execution
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