Seminars Schedules

Nature and scope of taxation power


By nature, power of taxation is inherent upon the existence of the State. Once the State comes to life, then, the power likewise comes to exist. The reason is that the State cannot survive without such power in the same manner that the humans cannot survive without air to breathe the air is inherent for human’s survival. Its main purpose is to raise revenue so that the Government can run its agencies; construct infrastructures for public use like roads or highways, bridges, air/sea ports, government offices; compensate its citizens employed to render public service; defend the integrity of the State against invasion of foreign countries; protect and improve the environment for a better earth to live; etc.

Notably, Philippines is a democratic country where each can freely act as compared to communism where citizens are placed at the virtue of the State. They are made to work mandatorily so their government will earn out of them to support the government or to do a particular project that their government will no longer pay for the manpower in getting it done. In our case, we can freely choose our own calling or profession and enjoy with it. Our government does not dictate us, much, less influence. It only regulates such professions to protect the general public in its exercise. In this aspect, our government does not directly earn though the use of its citizens the way communism does. As such, our government has to raise revenue to continue its mandate.

Considering such nature, its scope is described as unlimited, plenary, and comprehensive. In general, Congress can freely choose to tax anything, anytime, at any amount and at any one it deemed appropriate.

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