This document discusses the nature and limitations of taxation. It notes that taxation is an inherent power of government that is exercised legislatively, subject to constitutional and inherent limitations. Some key limitations are that taxes can only be levied for public purposes, only on persons and properties within a government's jurisdiction, and the legislative power to tax cannot be delegated without express permission. The document also outlines various constitutional limitations on taxation related to due process, uniformity, presidential veto power, and exemptions for religious/charitable entities. Finally, it discusses the theory of taxation being based on reciprocal duties of government protection and support of the people in exchange for public funding through taxes.

1. NATURE OF TAXATION

2. 1. INHERENT POWER
a.Eminent Domain
b.Police Power
c.Taxation

3. 2. LEGISLATIVE
•This means that tax laws must
first be enacted before taxes can
be imposed.

4. 3. SUBJECT TO
CONSTITUTIONAL AND
INHERENT LIMITATIONS
•The power of taxation is considered
plenary (absolute or supreme), subject
only to constitutional and inherent
limitations.
•This means that the government can tax
anything or anyone within its jurisdiction.

5. INHERENT LIMITATIONS
ON THE POWER OF
TAXATION

6. A. PURPOSE
•Taxes can only be levied for
public purposes

7. B. TERRITORIAL
JURISDICTION
•The government may levy taxes
only on persons and properties
within its jurisdiction.

8. C. NON-DELEGATION OF
LEGISLATIVE POWER TO TAX
•The power to create tax laws rests with
the congress (Congressmen and Senators)
and this power cannot be delegated,
except as expressly allowed by law
(delagation to the President, LGU and
administrative bodies)

9. D. TAX EXEMPTION TO
GOVERNMENT ENTITIES

10. E. INTERNATIONAL
COMITY
•The government may not tax the
property belonging to a foreign
government

11. CONSTITUTIONAL
LIMITATIONS ON THE POWER
OF TAXATION

12. A. DUE PROCESS AND EQUAL
PROTECTION OF THE LAWS

13. B. RULE OF UNIFORMITY AND
EQUITY IN TAXATION
•Items A and B protect the taxpayer
from promulgation of tax laws that
are unconstitutional, unjust or
unreasonable

14. C. PRESIDENT’S POWER TO
VETO TAX BILLS

15. D. A LAW GRANTING ANY TAX
EXEMPTION NEEDS THE
CONCURRENCE OF THE MAJORITY
OF THE MEMBERS OF THE
CONGRESS

16. E. SUPREME COURTS POWER TO
MAKE FINAL JUDGEMENT ON
TAX CASES
•Items C to E protect the taxpayers
from potential abuse by the congress
of its power to promulgate tax laws.

17. F. NON-IMPRISONMENT FOR
NON-PAYMENT OF POLL TAX
•Poll Tax - a tax levied on every adult,
without reference to income or
resources.

18. G. EXEMPTION OF RELIGIOUS,
CHARITABLE, OR EDUCATIONAL
ENTITIES, NON PROFIT CEMETERIES
AND CHURCHES FROM PROPERTY
TAXATION

19. H. EXEMPTION OF REVENUES AND
ASSETS OF NON STOCK, NON
PROFIT EDUCATIONAL
INSTITUTIONS FROM TAXATION

20. THEORY AND BASIS
OF TAXATION

21. A. RECIPROCAL DUTIES OF
PROTECTION AND SUPPORT
•The government protects the welfare
of its people, in return the people
support its government.

22. B. BENEFITS RECEIVED
• Taxes are use for the benefit of
the public