Académique Documents
Professionnel Documents
Culture Documents
2. As to scope
3. As to purpose
4. As to Effect
5. As to amount of
Imposition
6. As to benefits
received
7. As to relation to the
constitution
TAXATION
Government only or its
political subdivision
EMINENT DOMAIN
Government or its
political subdivision or
public service company
or utilities
Sample. Telephone
companies
(PANTELCO), water
district and electric
companies (AKELCO)
Only a particular
property owner
For public use
Transfer of right to
property
No amount impose,
only the payment of
market values
Just compensation is
given to the owner of
the expropriated
property
Inferior to nonimpairment clause
POLICE POWER
Government only or
its political subdivision
Page 1 of 9
Page 2 of 9
8.) Constitutional Requirement on the Subject and Title of Bills (Sec.26 Par.1 of Art.
6)
9.) Veto Power of the President (Sec 27 par.2 Art. 6)
10.) Uniformity and Equitability (Sec.28 par.1 Art.6)
11.) Progressive system of Taxation (Sec. 28 par.1 Art.6)
12.) Presidents Power to Tax (Sec.28 par.2 Art.6)
13.) Exemption from real property taxes (Art VI, Sec 28 (3), 1987 Constitution)
14.) Tax Exemptions (Sec.28. par.4 of Art. 6)
Sample Case John Hay vs. Lim
More importantly, the nature of most of the assailed privileges is one of tax exemption. It is the
legislature, unless limited by a provision of the state constitution, that has full power to exempt any
person or corporation or class of property from taxation, its power to exempt being as broad as its
Page 3 of 9
15.)
16.) No appropriation or use of public money (Sec.29 par.3 Art.6)
17.) Special Fund (Sec.29 par.3 Art.6)
18.) Non-impairment of Sovereign Courts, Jurisdiction over tax cases (Sec.5 of Art.8)
Sample Case Mactan Cebu Internation Airport (MCIA) vs. Hon. Marcos
The power to tax is primarily vested in the Congress; however, in our jurisdiction, it may be
exercised by local legislative bodies, no longer merely by virtue of a valid delegation as before, but
pursuant to direct authority conferred by Section 5, Article X of the Constitution. 22 Under the latter, the
exercise of the power may be subject to such guidelines and limitations as the Congress may provide
which, however, must be consistent with the basic policy of local autonomy.
There can be no question that under Section 14 of R.A. No. 6958 the petitioner is exempt from the
payment of realty taxes imposed by the National Government or any of its political subdivisions,
agencies, and instrumentalities. Nevertheless, since taxation is the rule and exemption therefrom the
exception, the exemption may thus be withdrawn at the pleasure of the taxing authority. The only
exception to this rule is where the exemption was granted to private parties based on material
consideration of a mutual nature, which then becomes contractual and is thus covered by the nonimpairment clause of the Constitution. 23
The LGC, enacted pursuant to Section 3, Article X of the constitution provides for the exercise by
local government units of their power to tax, the scope thereof or its limitations, and the exemption
from taxation.
The supreme court held that the real properties of MIAA are owned by the Republic of the
Philippines and thus exempt from real estate tax. A government instrumentality like MIAA falls under
Section 133(o) of the Local Government Code, which states xxx, the exercise of the taxing
powers of provinces, cities, municipalities, and barangays shall not extend to the levy of the
following: xxx (o) Taxes, fees or charges of any kind on the National Government, its agencies and
instrumentalities and local government units.
Page 4 of 9
9.
1.
2.
3.
4.
5.
6.
7.
Page 5 of 9
Tax
Based on special or direct benefit
Tax can be paid annually
Exemption granted under Article 6 Section 28
paragraph 2 does not apply
(Presidents power to tax)
Levied not only on land.
Imposed regardless of public improvements
Contribution of a taxpayer for the support of the
government.
Special Assessment is in the nature of a tax upon property levied according to benefits conferred on the
property. The whole theory of a special assessment is based on the doctrine that the property against
which it is levied derives some special benefit from the improvement.
Sample: If you have a land however it is inaccessible, then the government constructed a road which
eventually made the same accessible. The effect makes the value of your land increase. In such case, the
government may impose a special assessment for you as the property owner because of the benefit
brought by the construction of the road.
Note: The power to levy such assessments is undoubtedly an exercise of the taxing power, but the
exercise of the taxing power in imposing an assessment does not necessarily make the assessment a tax.
License Fee or Regulatory Fee
A license fee is paid before the start of business
(sample payment of business permit)
A license fee may be surrendered with or without
consideration
Non-payment of license fee makes the business
illegal
Levied under the police power of the state.
Tax
A tax is normally paid after the start/operation of
business
Taxes cannot be surrendered except for lawful
consideration
Non-payment of tax does not make the business
illegal but a ground for criminal prosecution
Imposed under the taxing power of the state for
purposes of revenue.
Page 6 of 9
Toll
Paid for the use of anothers property.
Demand of proprietorship
Amount paid depends upon the cost of
construction or maintenance of the public
improvement used
Imposed by the government or by private
individuals or entities.
Tax
Paid for the support of the government
Demand of sovereignty
Generally, no limit on the amount collected as long
as it is not excessive, unreasonable or confiscatory
Toll Sample. Mag agi ka sa Express ways hay gabayad ka dahil ana it private entities ron.
Tariff
A kind of tax imposed on articles which are traded
internationally
Tax
All embracing term to include various kinds of
enforced contributions upon persons for the
attainment of public purposes
Tax
Violation of tax laws may give rise to imposition of
penalty.
Generally intended to raise revenue
May be imposed only by the government
Debt
Generally based on contract, express or implied.
Assignable
May be paid in kind (dacion en pago)
Tax
Based on laws
Generally cannot be assigned
Generally paid in money
Page 7 of 9
Note: internal revenue taxes cannot be the subject of compensation. Government and taxpayer are not
mutually creditors and debtors of each other' under Article 1278 of the Civil Code and a "claim for taxes
is not such a debt, demand, contract or judgment as is allowed to be set-off.
Sample case Melecio R. Domingo v. Lorenzo c. Garlitos
The court having jurisdiction of the estate had found that the claim of the estate against the
Government has been recognized and an amount of P262,200 has already been appropriated for the
purpose by a corresponding law. (R.A. 2700) Under the above circumstances, both the claim of the
Government for inheritance taxes and the claim of the intestate for services rendered have already
become overdue and demandable as well as fully liquidated. Compensation, therefore, takes place by
operation of law, in accordance with the provisions of Articles 1279 and 1290 of the Civil Code, and both
debts are extinguished to the concurrent amount.
TAX PURSUIT is in a case where the act complaint of directly enforces the illegal disbursement
of public funds derived from taxation.
Requisites
1.) The money is being extracted and spent in violation of specific constitutional protections against
causes of legislative power
2.) The money is being neglected to any improper purpose
3.) The petitioner seeks to restrain respondents from wasting public funds thru the enforcements
of an invalid or unconstitutional law
Sample Case Pascual vs. Sec. of Public Works et.al.
Note: also applicable in Inherent Limitations of Tax Power under Public Purpose)
Nevertheless, in the case of Pascual v. Secretary of Public Works which challenges the law appropriating
a certain amount for the construction of a feeder road on a land owned by a private individual, the Court
held the law to be an invalid imposition since it results in the promotion of a private enterprise, it
benefits the property of a particular individual. The provision that the land shall thereafter be donated to
the government does not cure this defect. The rule is that, if the public advantage or benefit is merely
incidental in the promotion of a particular enterprise, such defect shall render the law invalid. On the
other hand, if what is incidental is the promotion of a private enterprise, the tax law shall be deemed "for
a public purpose."
12. FORMS OF TAX ESCAPE
1.) Shifting transfer of burden to tax payer. (but cannot be paid by direct taxes)
Sample: VAT in fast food
Page 8 of 9
Page 9 of 9