Page 11 - Taxation (TAX 112 A & B, BA-203)

Business, Transfer and Income Taxation

TAX 112 A & B, BA 203

Source: E.Valencia & G. Roxas, Income Taxation (2010)

Introduction Income Tax

The power of taxation proceeds upon the theory that the

existence of the government is a necessity. That it cannot continue

without means to pay its expenses; and that for those means it has the

right to compel all citizens and property within its limits to contribute.

The basis of taxation is found in the reciprocal duties of

protection and support between the State and its inhabitants. The

State receives taxes that it may be enabled to carry its mandates into

effect and perform the functions of government and the citizens pay the

portion of taxes demanded in order that he/she may, by means thereof,

be secured in the enjoyment of the benefits of an organized society.

*Read the comics strip in the next pages that illustrates the idea.