Part One

Ramon V. del Rosario College of Business

Commercial Law Department

Taxation Law

GENERAL
PRINCIPLES
 Agenda
01 Prayer

02 Attendance

03 Lecture / Discussion

04 Forum

05 Conclusion
Concept & Purpose
of Taxation
Definition and Concept

a. Revenue Raising Measure*

The process or means by which the
sovereign, through its law-making body,
raises income to defray the necessary
expenses of government; a method of
apportioning the cost of government
among those who in some measure are

TAX
privileged to enjoy its benefits and must,
therefore, bear its burdens

b. As a Power*
i. It refers to the inherent power of the
state to demand enforced contributions
for public purpose.
ii. Is described as a destructive power
which interferes with the personal and
property rights of the people and takes
from them a portion of their property for
the support of the government.
 Inherent in
Sovereignty*
The power to tax is an attribute
of sovereignty. It is a power
emanating from necessity
because it imposes a necessary
burden to preserve the State’s
sovereignty.
Essentially a
Legislative Function
The power to tax is peculiarly
and exclusively legislativeand
cannot be exercised by the
exevutive or judicial branch of
the government.
x
Subject to constitutional
and inherent limitations
The power to tax is said to be the
strongest of all the powers of the
government. It is unlimited, plenary,
comprehensive and supreme. In the
absence of constitutional restrictions,
the principal checks on its abuse rest
on the responsibility of the Congress
to their constitutents.
 ELEMENTS
#1 #2 #3*

Enforced proportional contribution

from persons and properties Imposed by the State by virtue of its It is levied for the support of
-Its imposition is in no way dependent upon
sovereignty government
the will or assent of the person taxed. It is
not contractual,either express or implied, but
positive acts of government
Characteristics of
Taxing Power
01
It is comprehensive. Covers
persons, businesses, activities,
professions, rights, and
privileges.
02*
It is unlimited. A tax does not
cease to be valid merely because
it regulates, discourages, or even
definitely deters the activities
taxed. The power to impose taxes
is one so unlimited in force and
so searching in extent, that the
courts scarcely venture to
declare that it is subject to any
restrictions whatever, except
such as rest in the discretion of
the authority which exercises it.
03*
It is plenary or complete. Under
NIRC, the BIR may avail of certain
remedies to ensure the collection
of taxes. Taxes, being the
lifeblood of the government,
should be collected without
unnecessary hindrance, every
precaution must be taken not to
unduly suppress it.
04
It is supreme. It is supreme
insofar as the selection of the
subject of taxation is concerned,
but it does not mean that it is
superior to the other inherent
powers of the State.
Characteristics of
Tax
01
Enforced contribution
02
Proportionate in character
-Laid by some rule of apportionment
which is usually based on ability to pay
03
Levied for public purpose.
-Revenues derived from taxes cannot
be used for purely private purposes or
for the exclusive benefit of private
persons.
04
Generally payable in the form of money
– Although the law may provide
payment in kind (e.g. backpay
certificates under Sec. 2, R.A. No. 304,
as amended)
05
Personal to the taxpayer
06
Levied on persons, property, rights,
acts, privileges or transactions
07
Levied by the State which has control
over the subject to be taxed
08
Levied by the law-making body of the State.
-The power to tax is a legislative power but is
also granted to local governments, subject to
such guidelines and limitations as law may be
provided by law.
 ACTIVITY
Please read and digest the following cases:
Mandanas v. Purisima, G.R. No. 199802, July 03, 2018
Ermita-Malate Hotel and Motel Operators Association,
Inc. v. Mayor of Manila, G.R. No. L-24693, July 31, 1967
Angeles University vs. City of Angeles, G.R. No. 189999,
July 27, 2012
Tio v. Videogram Regulatory Board, G.R. No. 75697
(1987)
Pascual vs. Sec of Public Works, G.R. No. L-10405,
December, 29 1960

Contents: Facts, Issue & Ruling

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before 12pm, 13 May 2024 (Monday).