L.
Interpretation of Statutes - In case of doubt, tax statutes are
construed strictly against the
a. Penal statutes - government and liberally in favor of the
are those acts of the Legislature which taxpayer.
prohibit certain acts and establish -Taxes being burdens, they are not to be
penalties for their violations; or those presumed beyond what the statute
that define crimes, treat of their nature, expressly and clearly declares.
and provide for their punishment. -Tax statutes offering rewards are
liberally construed in favor of informers.
General rule:
Prospective- No felony shall be punishable
by any penalty not prescribed by law Exception:
prior to its commission. [Article 21,
Revised Penal Code]
- The rule of strict construction as
Exception :
against the government is not applicable
Retroactive if favorable to the accused - Penal where the language of the tax statute is
Laws shall have a retroactive effect plain and there is no doubt as to the
insofar as they favor the persons guilty legislative intent. In such case, the
of a felony, who is not a habitual words employed are to be given their
criminal, as this term is defined in Rule 5 ordinary meaning.
of Article 62 of this Code, although at - Tax statutes are to receive a
the time of the publication of such laws reasonable construction with a view to
a final sentence has been pronounced carrying out their purpose and intent.
and the convict is serving the same. They should not be construed as to
[Article 22, Revised Penal Code] permit the taxpayer to easily evade the
payment of tax. Thus, good faith of the
Exception to the Exception: taxpayer is not a sufficient justification
for exemption from the payment of
Habitual delinquent and/ or expressly stated in surcharges imposed by the law
the law itself that it cannot be applied for failing to pay tax within the period
retroactively - A person shall be deemed to required.
be a habitual delinquent, if within a - A tax statute should be construed to
period of ten years from the date of his avoid the possibilities of tax evasion.
release or last conviction of the crimes
of serious or less serious physical Tax Exemption and Exclusion
injuries, robo, hurto, estafa or
falsification, he is found guilty of any of Generalrule:
said crimes a third time or oftener.
[Article 62, par. 5, Revised Penal Exemptions are not favored and are
construed strictissimi juris [by the most
Code]
strict right or law] against the taxpayer.
b. Tax Statutes
- An exemption from the common
Generalrule: burden cannot be permitted to exist
upon vague implication or inference
No person or property is subject to - The fundamental theory is that all
taxation unless within the terms or plain taxable property should bear its share of
import of a taxing statute. the cost and expense of government.
Exception:-
When the law itself expressly provides
for a liberal construction, that is, in case
of doubt, it shall be resolved in favor of
exemption
-When the exemption is in favor of the
government itself or its agencies
because the general rule is that they are
exempt from tax.
-When the exemption refers to religious,
charitable and educational institutions.
C. Labor Statutes
General rule:
New labor code
Article 3. Declaration of basic policy. The
State shall afford protection to labor, promote
full employment, ensure equal work
opportunities regardless of sex, race or creed
and regulate the relations between workers
and employers. The State shall assure the
rights of workers to self-organization,
collective bargaining, security of tenure, and
just and humane conditions of work.
Article 4. Construction in favor of labor. All
doubts in the implementation and
interpretation of the provisions of this Code,
including its implementing rules and
regulations, shall be resolved in favor of labor.
