LESSON 1: WHAT IS THE SOURCE OF THE POWER OF TAXATION?
How does a state acquire the power of taxation?

State
o A community of persons more or less numerous
o Permanently occupying a definite portion of territory
o Having a government of their own to which the great body of inhabitants
render habitual obedience
o Enjoying freedom from external control

Elements of the State (first four is traditional definition)
o People
 The mass of population living within the state
 The inhabitants of the state
 It is the entire body of those citizens of the state who are vested
with political power for political purposes
Nationality
Race (lahi)
To determine the nationality,
we need to look at the
physical attributes of the
person, which is not
important to power of
taxation. Unless, that national
is a citizen of the state.
-
-
Citizenship
Allegiance to the government
Subject to power of taxation
(power = allegiance)

Example: Filipinos with green cards are not a citizen of the
Philippines, thus, they are not subjected to the power of taxation.

Example: If the Filipino citizen has not renounced his citizenship
and is only living or working in another country, then he is still
subjected to the power of taxation (OFW).

Example: Immigrants has the intention to leave the Philippines and
renounce their citizenship, then they are not subjected to the power
of taxation in the Philippines.

Who are Filipino Citizens? (Section 1, Article 4 of the 1987
Constitution)
 Those who are citizens of the Philippines at the time of the
adoption of this Constitution

Those whose fathers or mothers are citizens of the
Philippines

Those born before January 17, 1973, of Filipino mothers,
who elected Filipino citizenship upon reaching the age of
majority
o Old Civil Code: Mothers has no rights to acquire
properties and process their status. If a Filipino
woman marries a foreigner, then the child’s
citizenship will follow its father. To acquire the
mother’s citizenship, the child must elect officials upon
reaching the age of majority. However, if the
foreigner’s country states that the citizenship is based
on the location of birth, then the child will be stateless.

Those who are naturalized in accordance with law
o Foreigners who manifested their interest into having a
Filipino citizenship through good conduct
o No good conduct = no citizenship

Types of Filipino Citizens
 Natural born
 Naturalized

Principles used in determining citizenship
 Jus sanguinis – blood relations (example: Philippines)
 Jus soli or Jus loci – location of birth (example: America)

Kinds of Naturalization
 Judicial naturalization (application) – court judgment
pursuant to the “Revised Naturalization Act”, the applications
are filled with the proper regional trial court which will render
the decree of naturalization