Constitutional Law II (Prof.

Michael Vernon Guerrero Mendiola)

OUTLINE IN CONSTITUTIONAL LAW II

Prof. Michael Vernon Guerrero Mendiola
Arellano University School of Law
First Semester, SY 2013-2014

II-C Power of Taxation

A. Definition
1. Classification
D000 The Apostolic Prefect of the Mountain Province vs. El Tesorero de la Ciudad de Baguio,
GR L- 47252, 18 April 1941; En Banc, Imperial [J] (http://www.lawphil.net/judjuris/juri1941/apr1941/gr_l-
47252_1941.html) <
B. Purpose
1. Taxes
D101 Commissioner of Internal Revenue vs. Algue, GR L-28896, 17 February 1988; First
Division, Cruz [J] (http://www.lawphil.net/judjuris/juri1988/feb1988/gr_l_28896_1988.html) <
a. Taxation as implement of Police Power
[1] License fees for regulation viz taxes for revenue
[a] Amount allowed
2. Tariffs and Custom duties
D102 Commissioner of Customs vs. Makasiar, GR 79307, 29 August 1989; Third Division,
Cortes [J] (http://www.lawphil.net/judjuris/juri1989/aug1989/gr_79307_1989.html) <
C. Exercising Authority
1. National Government
2. Local Government
D. Limitations
1. Constitutional guarantees
a. Equal protection
2. Double taxation
D200 Punsalan vs. Municipal Board of the City of Manila, GR L-4817, 26 May 1954; En Banc,
Reyes [J] (http://www.lawphil.net/judjuris/juri1954/may1954/gr_l-4817_1954.html) <
E. Tax exemptions
1. Nature of use (actually, directly, and exclusively)
xxxx Herrera vs. Quezon City Board of Assessment Appeals, GR L-15270, 30 September
1961; En Banc, Concepcion [J] (http://www.lawphil.net/judjuris/juri1961/sep1961/gr_l-15270_1961.html) <
D201 Province of Abra vs. Hernando, GR L-49336, 31 August 1981; Second Division, Fernando
[CJ] (http://www.lawphil.net/judjuris/juri1981/aug1981/gr_49336_1981.html) <
D202 Abra Valley College Inc. vs. Aquino, GR L-39086, 15 June 1988; Second Division, Paras
[J] (http://www.lawphil.net/judjuris/juri1988/jun1988/gr_l_39086_1988.html) <
2. Institutions
a. Under the Constitution
(1) Religious
D203 Roman Catholic Bishop of Nueva Segovia vs. Provincial Board of Ilocos Norte,
GR 27588, 31 December 1927; En Banc, Avanceña [CJ]
(http://www.lawphil.net/judjuris/juri1927/dec1927/gr_l-27588_1927.html) <
(a) License fees
D204 American Bible Society vs. City of Manila, GR L-9637, 30 April 1957; Second
Division, Felix [J] (http://www.lawphil.net/judjuris/juri1957/apr1957/gr_l-9637_1957.html) <
(b) Assessment for gift tax
D205 Lladoc vs. Commissioner of Internal Revenue, GR L-19201, 16 June 1965; En
Banc, Paredes [J] (http://www.lawphil.net/judjuris/juri1965/jun1965/gr_l-19201_1965.html) <
(2) Charitable
D206 Lung Center of the Philippines vs. Quezon City, GR 144104, 29 June 2004; En
Banc, Callejo Sr. [J] (http://www.lawphil.net/judjuris/juri2004/jun2004/gr_144104_2004.html) <
(a) Hospitals
(b) Donations for charitable institutions
xxxx Commissioner of Internal Revenue vs. Bishop of the Missionary District of the
Philippine Islands for the Protestant Episcopal Church in the USA, GR L-19445, 31
August 1965; En Banc, Regala [J] (http://www.lawphil.net/judjuris/juri1965/aug1965/gr_l-
19445_1965.html) <
[1] Non-essential goods as donation
(3) Educational
(4) Combination
D207 Young Men's Christian Association of Manila vs. Collector of Internal Revenue,
GR L-7988, 19 January 1916; En Banc, Moreland [J]
(http://www.lawphil.net/judjuris/juri1916/jan1916/gr_l-7988_1916.html) <

Copyright (c) 2012. Berne Guerrero – 1

 Constitutional Law II (Prof. Michael Vernon Guerrero Mendiola)

(a) Caveat on American jurisprudence

F. Construction and Burden of Proof
1. Tax Exemptions
a. Special assessments
2. Tax Deductions

Copyright (c) 2012. Berne Guerrero – 2