7/21/2019 Taxation

http://slidepdf.com/reader/full/taxation-56dac13f27944 1/1

Taxation  – Government’s way of financing their expenditure by imposing charges on citizens and

corporate entities.

The process of collecting tax is taxation. This is imposed so that the government can spend for various

 projects around the country.

Lifeblood Doctrine  – It constitutes the theory of taxation which provides that the existence of government is a necessity! that government cannot continue without means to pay its expenses! and that

for these means it has a right to compel its citizens and property within its limits to contribute.

"i#e blood which supports every human organ in order to perform its duty inside the body tax acts as the

 blood which supports the government and the state.

Situs of Taxatim  – "iterally means the place of taxation or the country that has jurisdiction to levy a

 particular tax on persons property rights or business.

Kinds of Taxes

Excise Tax – is directly imposed by the law – ma#ing body of a government on merchandise products or 

certain types of transactions including carrying on a profession or business obtaining a license or transferring property. It is a fixed and absolute charge that does not depend upon the taxpayer’s financial

status or the value that the taxed property has to the taxpayer.

Property Tax – it ta#es the taxpayer’s wealth into account as represented by the taxpayer’s income or the

 property he or she owns.

Limitations in Taxation

$ublic purposes of taxes

 %on & 'elegability of the taxing power

Territoriality or situs of taxation

Tax exemption of the government

International (omity