What is the basis of taxation in the Philippines?

What is the 2 basis of taxation?

These are: (1) the belief that taxes should be based on the individual’s ability to pay, known as the ability-to-pay principle, and (2) the benefit principle, the idea that there should be some equivalence between what the individual pays and the benefits he subsequently receives from governmental activities.

What is the main purpose of taxation in the Philippines?

Revenue or fiscal: The primary purpose of taxation on the part of the government is to provide funds or property with which to promote the general welfare and the protection of its citizens and to enable it to finance its multifarious activities.

What is the basis of taxation quizlet?

Terms in this set (59) Taxation. it is the inherent power by which the sovereign through its law-making body raises revenue to defray the necessary expenses of government.

What is income tax based on?

Since governments cannot operate without revenue, most charge you an income tax which is generally based on how much money you earn in a year. Most of the money you receive is income and subject to the tax.

What is the main purpose of taxation?

The most basic function of taxation is to fund government expenditures. Varying justifications and explanations for taxes have been offered throughout history. Early taxes were used to support the ruling classes, raise armies, and build defenses. Often, the authority to tax stemmed from divine or supranational rights.

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What is taxation and its purpose?

taxation, imposition of compulsory levies on individuals or entities by governments. Taxes are levied in almost every country of the world, primarily to raise revenue for government expenditures, although they serve other purposes as well. … In modern economies taxes are the most important source of governmental revenue.

What are the main objectives of taxation?

The primary goal of a national tax system is to generate revenues to pay for the expenditures of government at all levels. Because public expenditures tend to grow at least as fast as the national product, taxes, as the main vehicle of government finance, should produce revenues that grow correspondingly.