1.   Inherent power of the sovereign,   exercised thru the legislature,   to impose burdens upon the subject and object within its jurisdiction,   for the purpose of raising revenues to carry out the legitimate objectives of the government.

2. REVENUE OBJECTIVE - primary purpose is to raise revenue - e.g. E-VAT “ mounting budget deficit, revenue generation, inadequate fiscal allocation for education, increased emoluments for health workers…”

3. NON-REVENUE OBJECTIVE - taxation is employed as a device for regulation - e.g. Excise tax on alcohol products, tobacco products, amusement places like massage parlor, night clubs, cockpits

4. 1. 1. It is an enforced contribution 2. 2. It is generally payable in money 3. 3. It is proportionate in character 4. 4. It is levied on persons or property 5. 5. It is levied by the state which has jurisdiction over the person or property 6. 6. It is levied by the law-making body of the state 7. 7. It is levied for public purpose

5. like blood which acts as a support to every human organ so it could perform every duty inside the body, tax acts as the blood which supports government and state. “LIFEBLOOD THEORY” THEORY OF TAXATION

6. LORENZO vs. POSADAS G.R. No. L- 43082 ► The only benefit to which the taxpayer is entitled is that derived form the enjoyment of the privileges of living in an organized society established and safeguarded by the devotion of taxes to public purpose. The government promises nothing to the person taxed beyond what maybe anticipated from an administration of the laws for the general good.

7. BASIS OF TAXATION “BENEFITS-RECEIVED PRINCIPLE” reciprocal duties of protection and support between the state and its inhabitants

8. Some of the many functions of the government include expenditures on war, the enforcement of law and public order, protection of property, economic infrastructure (roads, enforcement of contracts, etc.), public works, social engineering, and the operation of government itself.

9. Most modern governments also use taxes to fund welfare and public services. These services can include education systems, health care systems, pensions for the elderly, unemployed benefits, and public transportation. Energy, water and waste management systems are also common public utilities.

10. Commissioner vs. Algue, Inc. It is said that taxes are what we pay for civilized society. Without taxes, the government would be paralyzed for lack of motive power to activate and operate it. Hence, despite the natural reluctance to surrender part of one’s hard earned income to the taxing authorities, every person who is able to must contribute his share in the running of the government. It is said that taxes are what we pay for civilized society. Without taxes, the government would be paralyzed for lack of motive power to activate and operate it. Hence, despite the natural reluctance to surrender part of one’s hard earned income to the taxing authorities, every person who is able to must contribute his share in the running of the government.

11. The government for its part, is expected to respond in the form of benefits intended to improve the lives of the people. This symbiotic relationship is the rationale of taxation and should dispel the erroneous notion that it is an arbitrary method of exaction by those in the seat of power. The government for its part, is expected to respond in the form of benefits intended to improve the lives of the people. This symbiotic relationship is the rationale of taxation and should dispel the erroneous notion that it is an arbitrary method of exaction by those in the seat of power. But even as we concede the inevitability and indispensability of taxation, it is a requirement in all democratic regimes that it be exercised reasonably and in accordance with the prescribed procedure. If it is not, then the taxpayer has a right to complain and the courts will come to his succor. But even as we concede the inevitability and indispensability of taxation, it is a requirement in all democratic regimes that it be exercised reasonably and in accordance with the prescribed procedure. If it is not, then the taxpayer has a right to complain and the courts will come to his succor.

12. 1. 1. It is inherent in sovereignty 2. 2. It is legislative in character 3. 3. It is subject to constitutional and inherent limitations

15. 1. 1. subjects/objects to be taxed 2. 2. purpose of the tax 3. 3. amount/rate of the tax 4. 4. manner and means of collection of the tax

16. 1. 1. FISCAL ADEQUACY - the sources of revenue should be sufficient to meet the demands of public expenditures

17. 2. 2. EQUALITY/THEORETICAL JUSTICE ay - tax burden should be in proportion to the taxpayer’s ability to pay

18. 3. 3. ADMINISTRATIVE FEASIBILITY - tax laws should be capable of convenient, just and effective administration