Basic Taxation

Atty. JRV

Topics:
A. Definition, Concept, and Purposes of Taxation
B. Characteristics of Taxation
C. Power of Taxation compared with Police Power and Power of Eminent Domain
D. Theory and Basis of Taxation
1. Lifeblood Theory
2. Necessity Theory
3. Benefits-Protection Theory (Doctrine of Symbiotic Relationship)
E. Nature of the Taxing Power
1. Taxation as an Inherent Attribute of Sovereignty
2. Taxation as Legislative in Character
F. Definition, Nature, and Characteristics of Taxes
G. Tax as distinguished from other forms of exactions
1. Debt
2. Toll
3. License fee
4. Special assessment
5. Tariff
H. Kinds of Taxes
1. As to burden or incidence
2. As to amount
3. As to tax rate
4. As to object or subject matter
5. As to purpose
6. As to scope or authority to impose
I. Principles of a Sound Tax System
1. Fiscal adequacy
2. Administrative feasibility
3. Theoretical justice
J. Inherent Limitations of the Power of Taxation
1. Public purpose
2. International comity
3. Territoriality (situs of taxation)
4. Exemption from taxation of government agencies and instrumentalities
5. Non-delegation of the power of taxation
K. Principle of Mobilia Sequuntur Personam
L. Constitutional Limitations of the Power of Taxation
1. Due process of law
2. Equal protection of the law
3. Uniformity and equality of taxation
4. Progressive system of taxation
5. Bills to originate from the House of Representatives
 6. Veto power of the President
7. President’s power to tax (Flexible Tariff clause)
8. Tax exemption of properties used for religious, charitable and educational purposes
9. Tax exemption granted to non-stock, non-profit educational institutions
10. Non-imprisonment for non-payment of poll tax
11. Taxation and Freedom of Religion
12. Taxation and Freedom of the Press
13. Grant of tax exemptions by Congress
14. Jurisdiction of the Supreme Court over tax cases
15. Grant of power to the local government units to create its own sources of revenue
16. Appropriation of public money
17. Non-impairment of obligations of contracts
18. Prohibition on use of tax levied for special purpose
M. Concept of Double Taxation
1. Double taxation in the strict sense (direct double taxation)
2. Double taxation in the broad sense (indirect double taxation)
3. International juridical double taxation
4. Modes of eliminating double taxation (tax treaty relief)
N. Aspects or Phases of Taxation
1. Levy
2. Assessment and Collection
3. Payment
O. Tax Avoidance and Tax Evasion
P. Tax Exemption and Tax Amnesty
Q. Construction and Interpretation of Tax Laws and Tax Exemptions
R. Inapplicability of Estoppel against the Government
S. Doctrine of Equitable Recoupment
T. Nature and Concept of Taxpayer’s Suit and Citizen’s Suit

Cases
1. Drugstores Association of the Philippines, Inc., et al. vs. National Council on Disability Affairs, et al.
(G.R. No. 194561, September 14, 2016)
2. Manila Memorial Park, Inc. and La Funeraria Paz-Sucat, Inc. vs. Secretary of DSWD (G.R. No.
175356, December 3, 2013)
3. Gerochi, et al. vs. Department of Energy, et al. (G.R. No. 159796, July 17, 2007)
4. Pambansang Koalisyon ng mga Samahang Magsasaka at Manggagawa sa Niyugan (PKSMMN), et al.
vs. Executive Secretary, et al. (G.R. Nos. 147036-37, April 10, 2012)
5. Francia vs. Intermediate Appellate Court (162 SCRA 753, G.R. No. 67649, June 28, 1988)
6. Domingo vs. Garlitos (8 SCRA 443, G.R. No. L-18994, June 29, 1963)
7. Diaz vs. Secretary of Finance (G.R. No. 193007, July 19, 2011)
8. Gomez vs. Palomar (25 SCRA 827, G.R. No. L-23645, October 29, 1968)
9. Tio vs. Videogram Regulatory Board (151 SCRA 208, G.R. No. L-75697, June 18, 1987)
10. Pascual vs. Secretary of Public Works (110 Phil. 331, December 29, 1960)
11. Planters Products, Inc. vs. Fertiphil Corporation (G.R. No. 166006, March 14, 2008)
12. Abakada Guro Party List vs. Ermita (G.R. No. 168056, September 1, 2005)
13. Mactan-Cebu International Airport Authority vs. City of Lapu-Lapu (G.R. No. 181756, June 15,
2015)
14. Tolentino vs. Secretary of Finance (235 SCRA 630, August 25, 1994)
15. Tolentino vs. Secretary of Finance (G.R. No. 115455, October 30, 1995)
16. British American Tobacco vs. Camacho (G.R. No. 163583, August 20, 2008 and April 15, 2009)
17. Sison vs. Ancheta (130 SCRA 654, G.R. No. L-59431, July 25, 1984)
18. Osmeña vs. Orbos, et al. (G.R. No. 99886, March 31, 1993)
19. Lung Center of the Philippines vs. Quezon City (G.R. No. 144104, June 29, 2004)
20. Commissioner of Internal Revenue vs. De La Salle University, Inc. (G.R. No. 196596, November 9,
2016)
21. Commissioner of Internal Revenue vs. S.C. Johnson and Sons, Inc. (G.R. No. 127105, June 25, 1999)
22. Deutsche Bank of AG Manila Branch vs. Commissioner of Internal Revenue (G.R. No. 188550,
August 19, 2013)
23. City of Manila vs. Coca-Cola Bottlers Philippines (G.R. No. 181845, August 4, 2009)
24. Nursery Care Corporation, et al. vs. Acevedo, et al. (G.R. No. 180651, July 30, 2014)
25. Mitsubishi Corporation – Manila Branch vs. Commissioner of Internal Revenue (G.R. No. 175772,
June 5, 2017)
26. Abaya vs. Ebdane (515 SCRA 720, G.R. No. 167919, February 14, 2007)
27. Gonzales vs. Marcos (65 SCRA 624, G.R. No. L-31685, July 31, 1975)