Payment of just compensation.

RA 8974. this law refer to the determination of initial just compensation while the hearing for just
compensation is still pending. This law applies only if the project is a national government
infrastructure like the national highway.
Solicitor General vs. Ayala Land Inc.
The issue of prohibition for parking fees collection. The collection was held by the Supreme
Court as valid since if it would be prohibited, it would amount to taking of Ayalas property without
payment of just compensation.
There should be no taking of private property without payment of just compensation. The need for the
determination of the court is limited to the value of the just compensation.
Until when can you collect from the government?
Republic vs. Lim (cited in p 84 of Cruz)
A lot was subject to expropriation by the government, while there is still non-payment,
the owner used it as collateral when he loaned money from a third person. When he was not able to pay
the money, the creditor took over the property but the government opposed. The owner said that he has
the right to recover since he was not yet paid the just compensation.
Question: Can he recover the property?
Ans: The non-payment of just compensation does not necessarily follow that you could recover the
payment (general rule) however; in this case, the SC said that there has to be payment since the govt is
already enjoying the property. Payment should be within 5 years from the finality of the judgement in
the expropriation proceedings or else the owner shall have the right to recover the expropriated
property, this is in keeping with just and equity.
What if the property expropriated was not used for the purpose it was intended? Can the owner
recover?
Ans. It depends on the kind of expropriation. If the expropriation is absolute, no conditions, the owner
cannot recover the property even if it is not use for the intended purpose. If there is a condition
stipulated in the expropriation, the owner have the right to recover.
551 SCRA 320: The right to recover of the previous owners who were able to prove the commitment of
the government to allow them to repurchase their land. Recovery means payment of the improvements
introduced to the property and the current market value.
Every expropriation requires appropriation but the amount awarded by the court may not be enough in
accordance with the amount appropriated by Congress. The owner only receives what has been
appropriated. There will be no transfer of ownership yet but in the meantime the owner has to pay for
the taxes or else it will be forfeited by the government. Once the government has the full ownership the
owner is entitled of: a) reimbursement of the taxes paid, b) payment of interest.
Anyone may be affected by taking and they should be compensated too.
Ex: In a contract of lease, the leassee will be affected if his contract will be terminated or shortened if
the govt expropriates the land he leases thus, he too is entitled of just compensation.
taxation power - power of the state to raise revenue for the support of the government
basis for this exercise - because of the necessity of the government because it is necessary

to have a government
- there cannot be a state without a government and you cannot have a government without a financial
support
CORRUPTION!- even in barangays as well as in the national government
-as seen on government hospitals and schools
we are compelled to pay taxes. in fact, if you don't pay taxes, you can be put to jail
the exemption is only in the non-payment of community tax
regarding the petition of exorbitant taxes to the extent of healing the business,
the Supreme Court said for as long as this court sits, the power of taxation should never
be used by the government to destroy anybody's property or business because if you kill
the business and destroy the property, it's like killing the duck that lays golden eggs
because afterall taxation is to raise revenues unless taxation is used by the police power
to promote public welfare by perhaps repudating any business that is noxious, or
repudating any property which is not totally harmful but could be a threat to the promotion
of general welfare
otherwise, according to the SC, it should not be confiscatory, should not amount to taking
without due process of law
double taxation - is the taxing of a subject matter, could be a person or taking by the same
taxing authority in the same tax experience for the same purpose
-is there any provision against double taxation? the law is silent
but prejudicial as when the same person shall be paying for it
for example a table the one owns - it is taxed as property tax and for its tableness
leasing such table, one receive income, that income is part of the table, that is subject to tax
*it is not the table now that has been taxed but the earning accruing from the table
- here double taxation , the same table being subject to tax
excise tax - for one's enjoyment to the use of the table, now subject to the same taxing authority
hence there are 3 taxes already
is that prohibited by the constitution? it is not...since it is not double taxation since it is taxed
for different purposes although the same taxing authority
SEE CASE OF ________
- earning dollars as income abroad being taxed there and also taxed here since he is a citizen of the
phils
- same income taxed but of the different taxing authority
the law is silent on the matter, hence it is understood that it is not a prohibition, hence one cannot say
that it is unconstitutional
it becomes only unconstitutional when it becomes discriminatory, meaning im the only one being taxed
by owning the table
for being violative of the equal protection clause
uniform, equitable and progressive form of taxation in the philippines

uniform - because taxes are imposed upon same persons with the same circumstances based on earning
capacity subject to different rates
equitable - in the sense that it depends on the financial capacity of the person
*persons earning 30,000 - taxed the same (UNIFORM)
*persons earning nothing - not taxed (EQUITABLE)
progressive - as the income increases, there is a corresponding increase in the rate of the tax
- as the tax base increases, the tax rate also increases
- directly proportionate
THIS IS IN CONSONNANCE WITH THE EQUAL PROTECTION CLAUSE
whether you are subject to tax or not, how should the doubt be resolved?
- construed against the taxpayer, you are not exempt, you must pay taxes
- only exempt when there is an express grant of exemption which can be constitutional or
statutory grant
constitutional grant - specific provisions in the constitution
what are exempt from taxation ? (art. VI, sec.28 (3)) charitable institutions, churches,
-exclusively. directly, actually used for religious, charitable or educational purposes
SEE LUNG CENTER CASE - lung center is a hospital, a charitable insitution, they lease some
portions,
and they were exempt over those areas saying that they are a charitable constitution
- exemption should only on property tax
- ruling is that those portions are not exempt since the exemtion should only be on properties
which are exclusively, directly or actually used for charitable purposes
example: church is exempt from property tax

Church is exempt from property tax the land where it was built because it is directly,
exclusively used for religious purpose
Q: You own a land and lease it to someone to make a chapel, is the land where the chapel was
built exempt from tax?
o A: Yes, because the land was actually, directly and exclusively used for religious
purposes but the income you earn from the lease of land is taxable (income tax)
Exemption is limited only to property tax

Educational Purposes

Exempt not only property but also revenues and assets of educational institution
that are non-stock, non-profit
o ie: USC
Q: What about business/proprietary educational institutions?
o ie: growing numbers of nursing schools before for business purposes

Statutory grant of tax exemptions Congress grants the exemption; concurrence of

the majority of the members, voting separately
Revocable? Depends;
o if it is gratuitous (no considerations) yes;
o if it is onerous (exemption of valuable consideration) no
Tax Treaties made by President
grant is only local needed 2/3 votes of Senate to make it valid
Summary:
taxation in relation to due process must not be confiscatory
taxation in relation to equal protection clause uniform, equitable and progressive
taxation in relation to non-impairment clause only to the grant of tax exemption
with valuable consideration (non-revocable)