This document contains notes on taxation law from Atty. Roberto A. Demigillo. Some key points include:
1) The rule of uniform taxation requires all property of the same class to be taxed alike.
2) Congress has the power to classify subjects of taxation but must impose uniformity within each class.
3) Indirect taxes that are regressive are allowed under the Constitution as long as direct taxes are preferred and indirect taxes are minimized.
This document contains notes on taxation law from Atty. Roberto A. Demigillo. Some key points include:
1) The rule of uniform taxation requires all property of the same class to be taxed alike.
2) Congress has the power to classify subjects of taxation but must impose uniformity within each class.
3) Indirect taxes that are regressive are allowed under the Constitution as long as direct taxes are preferred and indirect taxes are minimized.
This document contains notes on taxation law from Atty. Roberto A. Demigillo. Some key points include:
1) The rule of uniform taxation requires all property of the same class to be taxed alike.
2) Congress has the power to classify subjects of taxation but must impose uniformity within each class.
3) Indirect taxes that are regressive are allowed under the Constitution as long as direct taxes are preferred and indirect taxes are minimized.
1. UNIFORMITY MEANS THAT ALL PROPERTY BELONGING TO SAME
CLASS SHALL BE TAXED ALIKE.
2. THE RULE OF UNIFORM TAXATION DOES NOT DEPRIVE CONGRESS
OF THEPOWER TO CLASSIFY SUBJECTS OF TAXATION AND ONLY DEMANDS UNIFORMITY WITHIN THE PARTICULAR CLASS.
3. THE CONSTITUTION DOES NOT PROHIBIT THE IMPOSITION OF
INDIRECT TAXES, WHICH ARE REGRESSIVE. THE PROVISION SIMPLY MEANS THAT DIRECT TAXES ARE TO BE PREFERRED AND INDIRECT TAXES SHOULD BE MINIMIZED AS MUCH AS POSSIBLE. OTHERWISE, SALES TAXES, WHICH THE OLDEST FORM OF INDIRECT TAXES, WILL BE PROHIBITED. THEMANDATE OF CONGRESS IS NOT TO PRESCRIBE BUT TO EVOLVE A PROGRESSIVE SYSTEM OF TAXATION . TOLENTINO VS SEC. OF FINANCE.
4. THE PRIMARY USE OF THE LOT AND BUILDING IS THE TEST TO
DETERMINEIF THEY ARE EXEMPT FROM TAX AND NOT FOR MERE INCIDENTAL USE. THE PHRASE ‘EXCLUSIVELY USED FOR EDUCATIONAL PURPOSES’ EXTENDS TO FACILITIES WHICH ARE INCIDENTAL TO AND REASONABLE NECESSARY FOR THE ACCOMPLISHMENT OF THE MAIN PURPOSE. ABRA VALLEY COLLEGE V. AQUINO.
5. A CHARITABLE INSTITUTION DOES NOT LOSE ITS CHARACTER AS
SUCH AND ITS EXEMPTION FROM TAXES SIMPLY BECAUSE IT DERIVES INCOME FROM PAYING PATIENTS OR RECEIVING SUBSIDIES FROM THE GOVERNMENT SO LONG AS THE MONEY IS DEVOTED ALTOGETHER TO THE CHARITABLE OBJECT WHICH IT IS INTENDED TO ACHIEVE. HOWEVER, THE POTIONS OF ITS REAL PROPERTY THAT ARE LEASED TO PRIVATE ENTITIES ARE NOT EXEMPT FROM REAL PROPERTY TAXES AS THESE ARE NOT ACTUALLY, DIRECTLY AND EXCLUSIVELY USED FOR CHARITABLE PURPOSE. LUNG CENTER V QUEZON CITY.
6. THE POWER TO GRANT TAX EXEMPTION IS VESTED IN CONGRESS
AND TO A CERTAIN EXTENT IN LOCAL LEGISLATIVE BODIES.
7. TAX IS CONSIDERED FOR PUBLIC PURPOSE IF THE PROCEEDS
THEREOF ARE USED FOR THE SUPPORT OF GOVERNMENT OR FOR SOME ORGANIZED OBJECT OF GOVERNMENT OR FOR THE WELFARE OF THE COMMUNITY. 2
8. THE REQUIREMENT OF TERRITORIALITY IN TAXATION MEANS
THAT THE POWER TO TAX OPERATES ONLY WITHIN THETERRITORIAL JURISDICTION OF THE TAXING AUTHORITY. IT CANNOT BE EXERCISED BEYOND THE BOUNDARIES EXCEPT UNDER CERTAIN CIRCUMSTANCES. . MANILA GAS V. COLLECTOR.
9. THETAXABLE SITUS OF REAL PROPERTIES IS THE PLACE WHERE
THE PROPERTY IS SITUATED. HOWEVER, WITH RESPECT TO INTANGIBLE PERSONAL PROPERTIES, THE SITUS FOLLOWS THE DOMICILE OF THE OWNER UNDER THE PRINCIPLE OF MOBILIA SEQUANTUR PERSONAM.
10. COOPERATIVES INCLUDING THEIR MEMBERS, DESERVE A
PREFERENTIAL TAX TREATMENT BECAUSE OF THE VITAL ROLE THEY PLAY IN THE ATTAINMENT OF ECONOMIC DEVELOPMENT AND SOCIAL JUSTICE. DUMAGUETE CREDICT COOPERATIVE V CIR.
11. CONTRACTUAL TAX EXEMPTIONS IN THE REAL SENSE OF THE
TERM AND WHERE THE NON IMPAIRMENT CLAUSE OF THE CONSTITUTION CAN RIGHTLY BE INVOKED, ARE THOSE AGREED TO BY THE TAXING AUTHORITY IN CONTRACTS, SUCH AS THOSE CONTAINED IN GOVERNMENT BONDS OR DEBENTURES, LAWFULLY ENTERED INTO BY THEM UNDER ENABLING LAWS IN WHICH THE GOVERNMENT, ACTING INITS PRIVATE CAPACITY, SHEDS ITS CLOAK OFAUTHORITY AND WAIVES ITS GOVERNMENTAL IMMUNITY.
12. CONTRACTUAL TAX EXEMPTIONS ARE NOT TO BE CONFUSED
WITH TAX EXEMPTIONS GRANTED UNDER FRANCHISES.
13. EXEMPTIONS FROM TAXATION ARE CONSTRUED IN STRICTISSIMI
JURIS AGAINST THE TAXPAYER AND LIBERALLY IN FAVOR OF THE TAXING AUTHORITY PRIMIARILY BECAUSE TAXES ARE THE LIFEBLOOD OF THE OGVERNMENT AND THEIR PROMPT AND CERTAIN AVAILABILITY IS AN IMPERIOUS NEED. PROVINC OF TARLAC V FERNANDO ALCANTARA.
14. WHEN ADDITIONAL TAXES ARE LAID ON THE SAME SUBJECT BY
THE SAME TAXING JURISDICTION DURING THE SAME TAXING PERIOD AND FOR THE SAME PURPOSE, THERE IS DOUBLE TAXATION.
15. THE MIAA IS NOT A GOVERNMENT OWNED OR CONTROLLED
CORPORATION BUT AN INSTRUMENTALITY OF THE NATIONAL GOVERNMENT AND THUS EXEMPT FORM LOCAL TAXATION. THE REAL PROPERTIES OF MIAA ARE OWNED BY THE REPUBLIC OF THE PHILIPPINES AND THUS EXEMPT FROM REAL ESTATE TAX.
16. READ CITY ASSESSOR OF CEBU CITY V ASSOCIATION OF