Page 7 - Taxation (TAX 112 A & B, BA-203)
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Business, Transfer and Income Taxation
TAX 112 A & B, BA 203
Source: E.Valencia & G. Roxas, Income Taxation (2010)
Introduction Income Tax
Taxes are the enforced proportional contributions levied
by law-making body of the state by virtue of its sovereignty upon the
person, property and transactions within its jurisdiction for the
support of all public needs.
Essential Characteristics of Tax
1. It is an enforced contribution
2. Payable in the form of money
3. Laid by rule of apportionment “ability to pay”
4. Levied on person, property, acts, privileges, or transactions
5. Levied by the state which has jurisdiction or control over the
subject to be taxed
6. Levied by the law-making body
7. Levied for public purposes