Taxation: Tax and Business E. Nonresident

1. Taxation is the process or means by which the sovereign, through its law-making body, imposes burdens upon subjects and objects within its jurisdiction for the purpose of raising revenues to carry out the legitimate objects of government. Taxes, on the other hand, are the enforced proportional contributions or charges from persons and property levied by the law-making body of the State by virtue of its sovereignty for the support of the government and all public needs.

2.
A. It is an enforced contribution.
B. It is generally payable in money.
C. It is proportionate in character.
D. It is levied on persons, property or the exercise of a right or privilege.
E. It is levied by the State which has jurisdiction over the subject or object of taxation.
F. It is levied by the law-making body of the State.
G. It is levied for public purpose or purposes.

3. A. Resident citizens
B. Nonresident citizens
C. Resident aliens
D. Nonresident aliens engaged in trade or business
E. Nonresident aliens not engaged in trade or business

4. A. Primary: Revenue or Fiscal Purpose
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. B. Secondary: Non-revenue Purposes
I. Regulatory purpose – Taxation is often employed as a device for regulation or control by means of which certain effects or conditions envisioned by the government may be achieved.
II. Compensatory purpose – Taxation is used in attaining some social or economic ends, irrespective of whether revenue is actually raised or