I.

INTRODUCTION TO TAXATION

A. TAXATION, TAXES DEFINED

Taxation is the inherent power of the sovereign exercised through the legislature
to impose burdens upon subjects and objects within its jurisdiction for the purpose
of raising revenues to carry out the legitimate objects of the government.

The power of taxation is the power of the sovereign to impose burdens on

subjects and objects within its jurisdiction.

In Manila Memorial Park VS DSWD (GR No. 175356) 2013 , the 20% senior citizen’s
discount is deductible from gross income under the police power.

1. XXX
2. XXX
3. Cases

a. CIR VS Algue, Inc., GR No. L- 28896, 17 February, 1998

 Taxes are the lifeblood of the government and so should be
collected without the unnecessary hindrance. On the other hand,
such collection should be made in accordance with law as any
arbitrariness will negate the very reason for government itself.
b. CIR VS Tokyo Shipping Co., Ltd, GR No. 68252
 A claim for refund is in the nature of a claim for exemption and
should be construed in strictissimi juris against the taxpayer.
c. BPI Family Savings Bank VS CA, GR No. 122480
 If a taxpayer suffered a net loss in a subsequent year, incurring
no tax liability to which a previous year’s tax credit could be
applied, there is no reason for the Bureau of Internal Revenue to
withhold the tax refund which rightfully belongs to the taxpayer.
d. De Borja VS Gella, GR No. L- 18330, 31 July 1963
e. Philippines Airlines VS Secretary of Finance, GR No. 115852, 30
October 1995