TAXATION REVIEWER
Commissioner V Pineda
- Manuel B. Pineda is liable for paying the tax up to the value of the assets he owns because he
is the first-born child as his father’s successor he was liable for paying the whole amount of
tax left behind as a share of the inheritance.
-
- YES, Pineda is liable for the assessment as an heir and as a holder-transferee of property
belonging to the estate/taxpayer.
Cebu Portland Cement vs. CTA 156 SCRA 535
Commissioner of Internal Revenue vs Algue Inc GR No L-28896
- this was reasonable proportion, considering that it was the payees who did practically
everything, from the formation of the vegetable oil investment corporation to the actual
purchase by it of the sugar estate properties.
- Yes. The Supreme Court upheld the ruling of the Court of Tax Appeals and allowed the
deduction claimed by Algue Inc.
Sisson Jr. vs Ancheta
- Whether BP 135 violates the due process and equal protection clauses, and the rule on
uniformity in taxation.
The petition must be dismissed. There is a need for proof of such persuasive character as
would lead to a conclusion that there was a violation of the due process and equal protection
clauses. Absent such showing, the presumption of validity must prevail. Equality and
uniformity in taxation means that all taxable articles or kinds of property of the same class
shall be taxed at the same rate. The taxing power has the authority to make reasonable and
natural classifications for purposes of taxation.
PEPSI COLA VS TANAUAN
- According to the law there is no double taxation because This is in accordance with the
constitutional policy of granting local governments the greatest amount of autonomy in terms
of local taxation, a principle that is expressed in the Local Tax Code.
Tio Vs. Video gram Regulatory Board
- The Supreme Court held that PD No. 1987 is constitutional.
The tax provision of PD No. 1987 is not a rider.
In fact, said provision is not allied and germane to, and is reasonably necessary for the
accomplishment of, the general object of the decree
The tax imposed is not harsh and oppressive, confiscatory, and in restraint of trade.
The levy of the 30% tax is for a public purpose. It was imposed primarily to answer the need
for regulating the video industry,
The Decree does not constitute an undue delegation of legislative power.
Victoria’s millings
Vs.
PPA (Philippine
Ports Authority)
- No, the fees and charges PPA collects are not for the use of the wharf that petitioner owns but
for the privilege of navigating public waters, of entering and leaving public harbours and
berthing on public streams of waters.
MACEDA vs. ENERGY REGULATORY BOARD et. Al.
- The petitioner Original additionally claims that if the price increase will be used to augment
the OPSF this will constitute illegal taxation.
-
Phil. Petroleum Corporation v. Municipality of Pililia
- No. it is the law-making body, and not an executive like the mayor, who can make an
exemption.
Gomez vs. Palomar
- No. To begin with, it is settled that the legislature has the inherent power to select the
subjects of taxation and to grant exemptions.
Luzon Stevedoring
Co. vs. CTA 163
SCRA 647
- NO, the instant petition is without merit. The amendatory provisions of
Republic Act 3176, limits tax exemption from the compensating tax to imported items to be
used by the importer himself as operator of passenger or cargo vessel or both, whether
coastwise or oceangoing, including, engines and spare parts of said vessel. Here, the
"tugboats" of the petitioner are not a "cargo vessels" because they are mainly employed for
towing and pulling purposes, not in carrying or transporting passengers or cargoes.
National Power Corp. vs.
Albay 186 SCRA 198
- The petition is DENIED. No costs. The auction sale of the petitioner's properties to answer for
real estate taxes accumulated between June 11, 1984 through March 10, 1987 is hereby
declared valid.
Lozano vs. Energy
Regulatory Board 192
SCRA 363
- No. The court gathers that: as of June 30, 1990, the Oil Price Stabilization Fund has incurred a
deficit of P6.1 billion; the exchange rate has fallen toP28.00 to ＄1.00; the country’s balance of
payments is expected to reach ＄1 billion; our trade deficit is at ＄2.855 billion as of the first 9
months of the year.
Taxation
A mode by which governments make exactions for revenue in order to support their existence and
carry out their legitimate objectives
The power to tax or the act or process by which the taxing power is exercised
PRINCIPLES OF A SOUND TAX SYSTEM
1. Fiscal Adequacy-The sources of tax revenue should coincide with , and approximate the needs
of, government expenditures. Neither an excess nor a deficiency of revenue vis-à-vis the
needs of government would be in keeping the principle.
2. Theoritical justice-The tax system should be fair to the average taxpayer and based upon his
ability to pay.(sec.28 Art. VI , 1987 Constitution
3. Administrative Feasibility-the tax system should be capable of being properly and efficiently
administered by the government and enforced with the least inconvenience to the taxpayer.
SCOPE AND LIMITATION OF TAX
- Sison vs. Ancheta, “The power to tax x x x, to borrow from Justice Malcolm, is an attribute of
sovereignty. It is the strongest of all the powers of the government
The Constitution sets forth such limits x x x. The Constitution as the fundamental law
overrides any legislative or executive act that runs counter to it.
It is also undoubted that the due process clause may be invoked where a taxing statute is arbitrary
that it finds no support in the Constitution. An obvious example is where it can be shown to amount
to the confiscation of property. That would be a clear abuse of power. It then becomes the duty of
this Court to say that such an arbitrary act amounted to the exercise of an authority not conferred.
It has also been held that where the assailed tax measure is beyond the jurisdiction of the state or is
not for a public purpose, or, in case a retroactive statute is so harsh and unreasonable, it is subject to
attack on due process grounds ( Reiterated in Reyes vs. Almanzar, 196 SCRA 322)
In Commissioner vs. Algue,Inc. the SC expressed. “It is said that taxes are what we pay for civilized
society. Without taxes, the government would be paralyzed for lack of the motive power to acitivate
and operate it. Hence despite the natural reluctance to surrender part of one’s hard-earned income to
the taxing authorities, every person who is able must contribute his share in the running of the
government, for its part is expected to respond in the form of tangible and intangible benefits
intended to improve the lives of the people and enhance their moral and material values.
Inherent Limitations
- 1. Taxation is for a public purpose.-The proceeds of the tax must be used
A.)for the support of the State
B.)for some recognized objects of government or directly to promote the welfare of the
community.
Taxation is inherently legislative
- Along with police power (for public good or welfare) and eminent domain(for public use), taxation
(for revenue) is an inherent power of sovereignty (Luzon Stevedoring Co. vs. CTA). It follows that is
also legislative in character and a legislative prerogative.(NPC vs. Albay). These powers are not
inherent in, but merely delegated by constitutional mandate or by law to, local governments.
Legislative taxing power includes the authority :
- A. to determine the nature(kind)
. object(purpose)
.extent(amount or rate)
. coverage(subjects and objects)
situs(place of the tax imposition)
B. to grant tax exemptions or condonations
C. to specify or provide for the administrative as well as judicial remedies that either the government
or the taxpayer may avail themselves of in the proper implementation of the tax measure.
