CHAPTER 1 INTRODUCTION TO

TAXATION
Taxation – a State power, a legislative process
and a mode of government cost distribution.
1. As a state power – an inherent power of
the State to enforce proportional
contribution from its subjects for public
purpose.
2. As a process – a process of laying taxes by
the legislature of the State to enforce
proportional contributions from its subjects
for public purpose.
3. As a mode of cost distribution – a mode by
which the State allocates its costs or
burden to its subjects who are benefited
by its spending.
The Theory of Taxation – gov’t provides a vast
array of public services: defense, public order
and safety, health, education, and social
protection among others.
- The government’s necessity for funding.
The Basis of Taxation – the gov’t provides benefit
to the people in the form of public services and
the people provide the funds that finance the
gov’t.
Public Services

Government People
Taxes