-Considered as one of the most outstanding inventions in the entire history of mankind.

- Expedites the exchange of goods and services within the country and outside the country. anything that is commonly used and generally accepted as a medium of exchange or as a standard of value (Kent, 1970) anything= includes all forms of money.past and presentlike stones, shells, metals, paper, demand deposits, etc

Generally accepted = people are willing to exchange their goods and services with it.

Functions of Money: 1. Medium of exchangemeans we can exchange our money with goods and services **Barter before..

2.

Standard of Value - money measures the value of a product or service.. Such economic values are stated in monetary terms as PRICES.. -exchange of goods or services can only take place if the value of the good or service has been established. 3. Store Value- money not spent constitutes as savings. - some people keep their money for speculative planned purpose..

The development of money---

TAXATION
Power of the State to impose charge or burden upon persons, property, or property rights, for the use and support of the government and to enable it to discharge its appropriate functions.

Purpose of Taxation
To raise revenues from all possible sources to support

government expenditures and services and to promote the general well- being and protection of its citizens. Taxes safeguard newly- opened industries by extending tax exemptions to pioneering and new industries and other enterprises. Shields domestic producers by levying a much higher custom duties on imported goods.

Canons of taxation (principles of a sound tax system)

Fiscal adequacy- the taxes collected by the BIR must be sufficient enough to fund the necessary government expenditures and basic services .. Administrative feasibility- the payment of taxes must be taxpayer- friendly.that is tax laws must be capable of simple, just, and effective administrationpayment of taxes must be accessible and convenient. Theoretical justice- refers to the ability to pay principle ..tax burden must be in proportion to the taxpayers level of income..

Legal foundations/ Basis of Taxation

1. the Constitution
Statutes BIR regulations Judicial decisions on tax cases by the SC Local government ordinances Observance of international agreements Administrative rulings and opinions

Thank you for listening!