Page 7 - Taxation (TAX 112 A & B, BA-203)
P. 7

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
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