Topic: Limitations

1. Mactan Cebu International Airport vs Marcos

A claim of exemption from tax payment must be clearly shown and based on language in the law too plain
to be mistaken.

The power to tax is primarily vested in the Congress; however, in our jurisdiction, it may be
exercised by local legislative bodies, no longer merely by virtue of a valid delegation as before,
but pursuant to direct authority conferred by Section 5, Article X of the Constitution. 22 Under
the latter, the exercise of the power may be subject to such guidelines and limitations as the
Congress may provide which, however, must be consistent with the basic policy of local
autonomy.
There can be no question that under Section 14 of R.A. No. 6958 the petitioner is exempt from
the payment of realty taxes imposed by the National Government or any of its political
subdivisions, agencies, and instrumentalities. Nevertheless, since taxation is the rule and
exemption therefrom the exception, the exemption may thus be withdrawn at the pleasure
of the taxing authority. The only exception to this rule is where the exemption was granted
to private parties based on material consideration of a mutual nature, which then becomes
contractual and is thus covered by the non-impairment clause of the Constitution.23

2. Tanada vs Tuvera
The clear object of the above-quoted provision is to give the general public adequate notice of
the various laws which are to regulate their actions and conduct as citizens. Without such
notice and publication, there would be no basis for the application of the maxim "ignorantia
legis non excusat."

3. CIR vs YMCA
The income is not exempt from tax. Under NIRC, the income received by civic league or clubs
not organized for profit are exempt from tax in respect to income received by them. The
exemption does not apply to income derived from any of their properties or any activities
conducted for profit regardless of the disposition made of such income. Because taxes are the
lifeblood of the nation, strict interpretation in construing tax exemptions should be applied.
Exemption “must be granted in a statute stated in a language too clear to be mistaken.”
4. LLadoc vs CIR
what the Collector assessed was a donee's gift tax; the assessment was not on the properties themselves. It did
not rest upon general ownership; it was an excise upon the use made of the properties, upon the exercise of
the privilege of receiving the properties. Manifestly, gift tax is not within the exempting provisions of the
section just mentioned. A gift tax is not a property tax, but an excise tax imposed on the transfer of property
by way of gift inter vivos, the imposition of which on property used exclusively for religious purposes, does
not constitute an impairment of the Constitution. As well observed by the learned respondent Court, the phrase
"exempt from taxation," as employed in the Constitution (supra) should not be interpreted to mean
exemption from all kinds of taxes. And there being no clear, positive or express grant of such privilege by law, in
favor of petitioner, the exemption herein must be denied.

5. American Bible Society vs City of Manila

The constitutional guaranty of the free exercise and enjoyment of religious profession and worship carries
with it the right to disseminate religious information. Any restraint of such right can only be justified like other
restraints of freedom of expression on the grounds that there is a clear and present danger of any substantive evil
which the State has the right to prevent." (Tañada and Fernando on the Constitution of the Philippines, Vol. I, 4th ed.,
p. 297). In the case at bar the license fee herein involved is imposed upon appellant for its distribution and sale of
bibles and other religious literature.

6. Pepsi Cola Bottling Co vs Mun of Tanuan Leyte

In delegating the authority, the State is not limited to the exact measure of that which is exercised by itself.
When it is said that the taxing power may be delegated to municipalities and the like, it is meant that there
may be delegated such measure of power to impose and collect taxes as the legislature may deem
expedient. Thus, municipalities may be permitted to tax subjects which for reasons of public policy the
State has not deemed wise to tax for more general purposes.

4
Double taxation becomes obnoxious only where the taxpayer is taxed twice for the benefit of the same
governmental entity or by the same jurisdiction for the same purpose, but not in a case where one tax is
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imposed by the State and the other by the city or municipality. 17

7. CIR vs Mistubishi Metal Corp

The contract between Eximbank and Mitsubishi is entirely different. It is complete in itself, does not appear
to be suppletory or collateral to another contract and is, therefore, not to be distorted by other
considerations aliunde.
It is too settled a rule in this jurisdiction, as to dispense with the need for citations, that laws granting
exemption from tax are construed strictissimi juris against the taxpayer and liberally in favor of the taxing
power. Taxation is the rule and exemption is the exception. The burden of proof rests upon the party
claiming exemption to prove that it is in fact covered by the exemption so claimed, which onus petitioners
have failed to discharge.
8. Abakada Guro Party List vs Executive Secretary
The principle of uniform taxation is upheld, emphasizing that Congress has the power to classify subjects of taxation but
demands uniformity within a particular class.

The provision is not deemed as a delegation of legislative power but rather a delegation of the
ascertainment of facts that trigger the enforcement of the increased rate.

Congress did not delegate the power to tax but the mere implementation of the law. The intent and will
to increase the VAT rate to 12% came from Congress and the task of the President is to simply execute
the legislative policy. That Congress chose to do so in such a manner is not within the province of the
Court to inquire into, its task being to interpret the law.

9. La Sallian Educational Innovators Foundation vs CIR

Based on jurisprudence and tax rulings, a taxpayer shall be granted with this tax exemption after proving that: (1) it
falls under the classification of non-stock, non-profit educational institution; and (2) the income it seeks to
be exempted from taxation is used actually, directly and exclusively for educational purposes.

No less than the 1987 Constitution expressly exempt all revenues and assets of non-stock, non-profit educational
institutions from taxes provided that they are actually, directly and exclusively used for educational purposes.
Clearly, non-stock, non-profit educational institutions are not required to pay taxes on all their revenues and assets if
they are used actually, directly and exclusively for educational purposes.

10. Asian Transmission vs CIR