As defined by Cooley, taxation is the process or means by which the sovereign, through its law-making body, raises income to defray the necessary expenses of government. It is expressed in another way as a method of apportioning the cost of government among those who in some measure are privileged to enjoy its benefits and must, therefore, bear its burdens. In order to finance the necessary expenses of the government, there is a need to collect money from those people under its jurisdiction who are also the ones benefiting from the said expenditures. Taxation is the imposition of a mandatory levy on the citizens and/or the businesses of a country by their government. In almost every country, the government derives a majority of its revenues for financing public services from taxation. Most individuals will feel the impact of quite a number of taxes during their lifetimes. In addition, taxes have become a powerful instrument for policy makers around the world to use in attaining economic and social goals. Also, taxation is a system of raising money to fund the government for them to be able to finance activities and projects. The government requires payment from the citizen to pay government officials like police, soldiers, public school teachers, and government workers including the president, his cabinet, the senate, the congress and many more. The money collected is also used to build roads, bridges, highways and other infrastructure, to operate hundreds of public schools and hospitals around the country, to provide help to the poor, to endow elders and children with medical care and for hundreds of other purposes. Without taxation, government could not also exist because they will have no money to use to fund their activities. The money collected through taxation is called tax. TAX is defined as the lifeblood of the state. It is an enforced proportional contribution levied by the law making body of the state to raise revenue to support the indispensable and all the necessary expenses of the government. It is enforced in the sense that it is mandated by the law to those who are covered by it. It is also proportional because theoretically, it is proportioned as to the ability of the person to pay through a certain rule of apportionment. It is to raise revenue where the heart of taxation is to earn income for the government. Our country is currently in the phase of development trying to enhance the lives of its people. In relation, there must be an effective system devised to ensure that the government is collecting enough money to support its expenditures. As of today, there is a big fiscal problem that our economy is facing and the government needs to effectively collect and manage its revenue. In this research, The Philippine Tax System is discussed and other related information relating to the Philippine Tax System.
HISTORY OF TAXATION IN THE PHILIPPINES
Tribute and Cedula
The tribute (buwis) may be paid in any kind. It was fixed at 8 reales and later, increased to 15. Ten reales goes to the government, 1 to the town community chest and 3 to the Church. Another one real was for tithes (diezmo prediales). Also collected is the bandala, an annual enforced sale and requisitioning of goods such as rice. Custom duties and income tax are also collected. Later, they imposed Cedula personal or personal identity paper, wherein all indios are required to pay for personal identification. Indios from the age of 18 to 60 are obliged to pay. Forced Labor (Polo y Servicio)
Polo is the forced labor for 40 days of men ranging from 18 to 20 years of age who were obligated to give personal service to community projects. One could be exempted from polo by paying the falla, a daily fine of one and a half real. In 1884, it was reduced to 15 days. Encomienda System
The encomienda system is a land management system similar to the...