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TAX ATION
San Beda College of LAW – ALABANG
GENERAL PRINCIPLES
I. Concepts, Nature and Characteristics of
Taxation and Taxes.
Taxation Defined:
As a process, it is a means by which the
sovereign, through its law-making body, raises
revenue to defray the necessary expenses of the
government. It is merely a way of apportioning
the costs of government among those who in
some measures are privileged to enjoy its
benefits and must bear its burdens.
As a power, taxation refers to the inherent
power of the state to demand enforced
contributions for public purpose or purposes.
Rationale of Taxation - The Supreme Court
held:
“It is said that taxes are what we pay for
civilized society. Without taxes, the government
would be paralyzed for lack of the motive power
to activate and operate it. Hence, despite the
natural reluctance to surrender part of one’s
hard-earned income to the taxing authorities,
every person who is able must contribute his
share in the running of the government. The
government for its part is expected to respond in
the form of tangible and intangible benefits
intended to improve the lives of the people and
enhance their moral and material values. The
symbiotic relationship is the rationale of
taxation and should dispel the erroneous notion
that it is an arbitrary method of exaction by those
in the seat of power.
Taxation is a symbiotic relationship,
whereby in exchange for the protection that the
citizens get from the government, taxes are
paid.” (Commissioner of Internal Revenue vs
Allegre, Inc.,et al., L-28896, Feb. 17, 1988)
Purposes and Objectives of Taxation

1.Revenue – to provide funds or property with
which the State promotes the general welfare and
protection of its citizens.

2.Non-Revenue [PR2EP]
a.Promotion of General Welfare – Taxation
may be used as an implement of police power in
order to promote the general welfare of the
people. [see Lutz vs Araneta (98 Phil 148) and
Osmeňa vs Orbos (G.R. No. 99886, Mar. 31,
1993)]

b.Regulation – As in the case of taxes levied on
excises and privileges like those imposed in
tobacco or alcoholic products or amusement
places like night clubs, cabarets, cockpits, etc.
In the case of Caltex Phils. Inc. vs COA
(G.R. No. 92585, May 8, 1992), it was held that
taxes may also be imposed for a regulatory
purpose as, for instance, in the rehabilitation and
stabilization of a threatened industry which is
affected with public industry like the oil industry.
c.Reduction of Social Inequality – this is
made possible through the progressive system of
taxation where the objective is to prevent the
under-concentration of wealth in the hands of few
individuals.
d.Encourage Economic Growth – in the realm
of tax exemptions and tax reliefs, for instance,
the purpose is to grant incentives or exemptions
in order to encourage investments and thereby
promote the country’s economic growth.
e.Protectionism – in some important sectors of
the economy, as in the case of foreign
importations, taxes sometimes provide protection
to local industries like protective tariffs and
customs.
Taxes Defined
Taxes
are
the
enforced
proportional
contributions from persons and property levied by
the law-making body of the State by virtue of its
sovereignty for the support of government and
for public needs.
Essential Characteristic of Taxes [ LEMP3S ]

1.It is levied by the law-making body of the
State

The power to tax is a legislative power
which under the Constitution only Congress can
exercise through the enactment of laws.
Accordingly, the obligation to pay taxes is a
statutory liability.

2.It is an enforced contribution
A tax is not a voluntary payment or
donation. It is not dependent on the will or
contractual assent, express or implied, of the
person taxed. Taxes are not contracts but positive
acts of the government.

3.It is generally payable in money

TAX ATION
San Beda College of LAW – ALABANG
Tax is a pecuniary burden – an exaction to
be discharged alone in the form of money which
must be in legal tender, unless qualified by law,
such as RA 304 which allows backpay certificates
as payment of taxes.

4.It is proportionate in character - It is ordinarily
based on the taxpayer’s ability to pay.

5.It is levied on persons or property - A tax
may also be imposed on acts, transactions, rights
or privileges.

6.It is levied for public purpose or purposes Taxation involves, and a tax constitutes, a burden to provide income for public purposes.

7.It is levied by the State which has jurisdiction
over the persons or property. - The persons,
property or service to be taxed must be subject
to the jurisdiction of the taxing state.
Theory and Basis of Taxation
1.Necessity Theory
Taxes proceed upon the theory that the
existence of the government is a necessity; that
it cannot continue without the means to pay its
expenses; and that for those means, it has the
right to compel all citizens and properties within
its limits to contribute.
In a case, the Supreme Court held that:
Taxation is a power emanating from
necessity. It is a necessary burden to preserve the
State’s sovereignty and a means to give the
citizenry an army to resist aggression, a navy to
defend its shores from invasion, a corps of civil
servants to serve, public improvements designed
for the enjoyment of the citizenry and those
which come with the State’s territory and
facilities, and protection which a government is
supposed to provide. (Phil. Guaranty Co., Inc. vs
Commissioner of Internal Revenue, 13 SCRA
775).
2.The Benefits-Protection Theory
The basis of taxation is the reciprocal duty
of protection between the state and its
inhabitants. In return for the contributions, the
taxpayer receives the general advantages and
protection which the government affords the
taxpayer and his property.
Qualifications
Theory:

of

the

Benefit-Protection

a.It does not mean that only those who are able
to pay and do pay taxes can enjoy the privileges
and protection given to a citizen by the
government.
b.From
the
contributions
received,
the
government renders no special or commensurate
benefit to any particular property or person.
c.The only benefit to which the taxpayer is
entitled is that derived from his enjoyment of the
privileges of living in an organized society
established and safeguarded by the devotion of
taxes to public purposes. (Gomez vs Palomar, 25
SCRA 829)
d.A taxpayer cannot object to or resist the
payment of taxes solely because no personal
benefit to him can be pointed out as arising from
the tax. (Lorenzo vs Posadas, 64 Phil 353)
3.Lifeblood Theory
Taxes are the lifeblood of the government,
being such, their prompt and certain availability
is an imperious need. (Collector of Internal
Revenue vs. Goodrich International Rubber Co.,
Sept. 6, 1965) Without taxes, the government
would be paralyzed for lack of motive power to
activate and operate it.
Nature of Taxing Power

1.Inherent in sovereignty – The power of
taxation is inherent in sovereignty as an incident
or attribute thereof, being essential to the
existence of every government. It can be
exercised by the government even if the
Constitution is entirely silent on the subject.
a.Constitutional provisions relating to the power
of taxation do not operate as grants of the power
to the government. They merely constitute
limitations upon a power which would otherwise
be practically without limit.
b.While the power to tax is not expressly
provided for in our constitutions, its existence is
recognized by the provisions relating to taxation.
In the case of Mactan Cebu International
Airport Authority vs Marcos, Sept. 11, 1996, as an
incident of sovereignty, the power to tax has
been described as “unlimited in its range,
acknowledging in its very nature no limits, so that
security against its abuse is to be found only in
the responsibility of the legislative which imposes
the tax on the constituency who are to pay it.”

2.Legislative in character – The power to tax is
exclusively legislative and cannot be exercised by
the executive or judicial branch of the
government.

TAX ATION
San Beda College of LAW – ALABANG

3.Subject to constitutional and inherent
limitations – Although in one decided case the
Supreme Court called it an awesome power, the
power of taxation is subject to certain limitations.
Most of these limitations are specifically provided
in the Constitution or implied therefrom while the
rest are inherent and they are those which spring
from the nature of the taxing power itself
although, they may or may not be provided in the
Constitution.
Scope of Legislative Taxing Power [S2 A P K A
M]

1.subjects of Taxation (the persons, property or
occupation etc. to be taxed)
2.amount or rate of the tax
3.purposes for which taxes shall be levied
provided they are public purposes
4.apportionment of the tax
5.situs of taxation
6.method of collection
Is the Power to Tax the Power to Destroy?
In the case of Churchill, et al. vs
Concepcion (34 Phil 969) it has been ruled that:
The power to impose taxes is one so
unlimited in force and so searching in extent so
that the courts scarcely venture to declare that it
is subject to any restriction whatever, except
such as rest in the discretion of the authority
which exercise it. No attribute of sovereignty is
more pervading, and at no point does the power
of government affect more constantly and
intimately all the relations of life than through the
exaction made under it.
And in the notable case of McCulloch vs
Maryland, Chief Justice Marshall laid down the
rule that the power to tax involves the power
to destroy.
According to an authority, the above
principle is pertinent only when there is no power
to tax a particular subject and has no relation to a
case where such right to tax exists. This optquoted maxim instead of being regarded as a blanket authorization of the unrestrained use of
the taxing power for any and all purposes,
irrespective of revenue, is more reasonably
construed as an epigrammatic statement of the
political and economic axiom that since the
financial needs of a state or nation may outrun
any human calculation, so the power to meet
those needs by taxation must not be limited even
though the taxes become burdensome or
confiscatory. To say that “the power to tax is the
power to destroy” is to describe not the purposes

for which the taxing power may be used but the
degree of vigor with which the taxing power may
be employed in order to raise revenue (I Cooley
179-181)
•Constitutional Restraints Re: Taxation is
the Power to Destroy
While taxation is said to be the power to
destroy, it is by no means unlimited. It is equally
correct to postulate that the “power to tax is
not the power to destroy while the Supreme
Court sits,” because of the constitutional
restraints placed on a taxing power that violated
fundamental rights.
In the case of Roxas, et al vs CTA (April
26, 1968), the SC reminds us that although the
power of taxation is sometimes called the power
to destroy, in order to maintain the general
public’s trust and confidence in the Government,
this power must be used justly and not
treacherously. The Supreme Court held:
“The power of taxation is sometimes
called also the power to destroy. Therefore it
should be exercised with caution to minimize
injury to the proprietary rights of a taxpayer. It
must be exercised fairly, equally and uniformly,
lest the tax collector kill the ‘hen that lays the
golden egg’. And, in order to maintain the general
public’ trust and confidence in the Government
this power must be used justly and not
treacherously.”
The doctrine seeks to describe, in an
extreme, the consequential nature of taxation
and its resulting implications, to wit:
a.The power to tax must be exercised with
caution to minimize injury to proprietary rights of
a taxpayer;
b.If the tax is lawful and not violative of any of
the inherent and constitutional limitations, the
fact alone that it may destroy an activity or object
of taxation will not entirely permit the courts to
afford any relief; and
c.A subject or object that may not be destroyed
by the taxing authority may not likewise be
taxed. (e.g. exercise of a constitutional right)
Power of Judicial Review in Taxation
The courts cannot review the wisdom or
advisability or expediency of a tax. The court’s
power is limited only to the application and
interpretation of the law.
Judicial action is limited only to review
where involves:
1.The determination of validity on the tax in
relation to constitutional precepts or provisions.
2.The determination, in an appropriate case, of
the application of the law.

TAX ATION
San Beda College of LAW – ALABANG
Aspects of Taxation
1.Levy – determination of the persons, property
or excises to be taxed, the sum or sums to be
raised, the due date thereof and the time and
manner of levying and collecting taxes (strictly
speaking, such refers to taxation)

2.Collection – consists of the manner of
enforcement of the obligation on the part of those
who are taxed. (this includes payment by the
taxpayer and is referred to as tax administration)
The two processes together constitute the
“taxation system”.
Basic Principles of a Sound Tax System [FAT]
1.Fiscal Adequacy – the sources of tax revenue
should coincide with, and approximate the needs
of government expenditure. Neither an excess
nor a deficiency of revenue vis-à-vis the needs of
government would be in keeping with the
principle.

2.Administrative Feasibility – tax laws should
be capable of convenient, just and effective
administration.

3.Theoretical Justice – the tax burden should be
in proportion to the taxpayer’s ability to pay
(ability-to-pay principle). The 1987 Constitution
requires taxation to be equitable and uniform.
II. Classifications and Distinction
Classification of Taxes
A.As to Subject matter

B.As to Burden

1.Direct Taxes – taxes wherein both the
“incidence” as well as the “impact” or burden of
the tax faces on one person.
examples: income tax, community tax,
donor’s tax, estate tax

2.Indirect Taxes – taxes wherein the incidence
of or the liability for the payment of the tax falls
on one person, but the burden thereof can be
shifted or passed to another person.
examples: VAT, percentage taxes, customs
duties excise taxes on certain specific goods
Important
Points
to
Consider
regarding Indirect Taxes:
1.When the consumer or end-user of a
manufacturer product is tax-exempt, such
exemption covers only those taxes for which such
consumer or end-user is directly liable. Indirect
taxes are not included. Hence, the manufacturer
cannot claim exemption from the payment of
sales tax, neither can the consumer or buyer of
the product demand the refund of the tax that
the manufacturer might have passed on to him.
(Phil. Acetylene Co. inc. vs Commissioner of
Internal Revenue et. al., L-19707, Aug.17, 1987)

2.When the transaction itself is the one that is
tax-exempt but through error the seller pays the
tax and shifts the same to the buyer, the seller
gets the refund, but must hold it in trust for
buyer. (American Rubber Co. case, L-10963, April
30, 1963)

3.Where the exemption from indirect tax is given

fixed amount upon all persons of a certain class
within the jurisdiction of the taxing power without
regard to the amount of their property or
occupations or businesses in which they may be
engaged in.
example: community tax

to the contractee, but the evident intention is to
exempt the contractor so that such contractor
may no longer shift or pass on any tax to the
contractee, the contractor may claim tax
exemption on the transaction (Commissioner of
Internal Revenue vs John Gotamco and Sons, Inc.,
et.al., L-31092, Feb. 27, 1987)

2.Property Taxes – taxes on things or property

4.When

1.Personal, capitation or poll taxes – taxes of

of a certain class within the jurisdiction of the
taxing power.
example: real estate tax

3.Excise Taxes – charges imposed upon the
performance of an act, the enjoyment of a
privilege, or the engaging in an occupation.
examples: income tax, value-added tax,
estate tax or donor’s tax

the law granting tax exemption
specifically includes indirect taxes or when it is
clearly manifest therein that legislative intention
to exempt embraces indirect taxes, then the
buyer of the product or service sold has a right to
be reimbursed the amount of the taxes that the
sellers passed on to him. (Maceda vs
Macaraig,supra)

TAX ATION
San Beda College of LAW – ALABANG
C.As to Purpose

1.General/Fiscal/Revenue – tax imposed for the
general purposes of the government, i.e., to raise
revenues for governmental needs.
Examples: income taxes, VAT, and almost
all taxes

2.Special/Regulatory – tax imposed for special
purposes, i.e., to achieve some social or
economic needs.
Examples: educational fund tax under Real
Property Taxation
D.As to Measure of Application

1.Specific Tax – tax imposed per head, unit or
number, or by some standard of weight or
measurement and which requires no assessment
beyond a listing and classification of the subjects
to be taxed.
Examples: taxes on distilled spirits, wines,
and fermented liquors

examples: national internal revenue taxes,
customs duties

2.Municipal/Local Tax – tax imposed by Local
Government units.
examples: real estate tax, professional tax
•Regressive System of Taxation vis-à-vis
Regressive Tax
A regressive tax, must not be confused
with regressive system of taxation.
Regressive Tax: tax the rate of which
decreases as the tax base increases.
Regressive
System
of
Taxation:
focuses on indirect taxes, it exists when there are
more indirect taxes imposed than direct taxes.
Taxes distinguished from other Impositions
a.Toll vs Tax
Toll – sum of money for the use of
something, generally applied to the consideration
which is paid for the use of a road, bridge of the
like, of a public nature.

2.Ad Valorem Tax – tax based on the value of
the article or thing subject to tax.
example: real property taxes, customs
duties
E.As to Date

1.Progressive Tax – the rate or the amount of
the tax increases as the amount of the income or
earning (tax base) to be taxed increases.
examples: income tax, estate tax, donor’s
tax

2.Regressive Tax – the tax rate decreases as the
amount of income or earning (tax base) to be
taxed increases.
Note: We have no regressive taxes (this is
according to De Leon)

3.Mixed Tax – tax rates are partly progressive
and partly regressive.

4.Proportionate Tax – tax rates are fixed on a
flat tax base.
examples: real estate tax, VAT, and other
percentage taxes
F.As to Scope or authority imposing the
tax

1.National Tax – tax imposed by the National
Government.

Tax
1.demand
of
sovereignty
2.paid for the support
of the government
3.generally, no limit as
to amount imposed

4.imposed only by the
government

vs
Toll
1.demand
of
proprietorship
2.paid for the use of
another’s property
3.amount depends on
the cost of construction
or maintenance of the
public
improvement
used
4.imposed
by
the
government or private
individuals or entities

b.Penalty vs Tax
Penalty – any sanctions imposed as a
punishment for violations of law or acts deemed
injurious.
Tax
1.generally intended to
raise revenue
2.imposed only by the
government

vs
Penalty
1.designed to regulate
conduct
2.imposed
by
the
government or private
individuals or entities

c.Special Assessment vs Tax
Special Assessment – an enforced
proportional contribution from owners of lands
especially or peculiarly benefited by public
improvements.

TAX ATION
San Beda College of LAW – ALABANG
Tax
Assessment
1.imposed on persons,
property and excise
2.personal liability of
the person assessed

3.based on necessity as
well as on benefits
received
4.general
application
(see Apostolic Prefect
vs Treas. Of Baguio, 71
Phil 547)

vs

Special

1.levied only on land
2.not a personal liability
of the person assessed,
i.e. his liability is limited
only
to
the
land
involved
3.based
wholly
on
benefits
4.exceptional both as
time and place

Important
Points
to
Consider
Regarding Special Assessments:
1.Since special assessments are not taxes within
the constitutional or statutory provisions on tax
exemptions, it follows that the exemption under
Sec. 28(3), Art. VI of the Constitution does not
apply to special assessments.
2.However, in view of the exempting proviso in
Sec. 234 of the Local Government Code,
properties which are actually, directly and
exclusively used for religious, charitable and
educational purposes are not exactly exempt
from real property taxes but are exempt from the
imposition of special assessments as well.( see
Aban)
3 .The general rule is that an exemption from
taxation does not include exemption from special
assessment.
d.License or Permit Fee vs Tax
License or Permit fee – is a charge
imposed under the police power for the purposes
of regulation.
Tax
License/Permit Fee
1.enforced contribution
assessed by sovereign
authority
to
defray
public expenses
2.for revenue purposes
3.an exercise of the
taxing power
4.generally no limit in
the amount of tax to be
paid
5.imposed

also

on

vs
1.legal compensation or
reward of an officer for
specific purposes
2.for
regulation
purposes
3.an exercise of the
police power
4.amount is limited to
the necessary expenses
of
inspection
and
regulation
5.imposed on the right

persons and property
6.non-payment
does
not necessarily make
the act or business
illegal

to exercise privilege
6.non-payment makes
the act or business
illegal

Three kinds of licenses are
recognized in the law:
1.Licenses
for
the
regulation
of
useful
occupations.
2.Licenses for the regulation or restriction of nonuseful occupations or enterprises 3.Licenses for revenue only
Importance
of
the
distinctions
between tax and license fee:
1.Some limitations apply only to one and not to
the other, and that exemption from taxes may
not include exemption from license fees.
2.The power to regulate as an exercise of police
power does not include the power to impose fees
for revenue purposes. (see American Mail Line vs
City of Butuan, L-12647, May 31, 1967 and
related cases)
3.An extraction, however, maybe considered both
a tax and a license fee.
4.But a tax may have only a regulatory purpose.
5.The general rule is that the imposition is a tax if
its primary purpose is to generate revenue and
regulation is merely incidental; but if regulation is
the primary purpose, the fact that incidentally
revenue is also obtained does not make the
imposition
of
a
tax.
(see
Progressive
Development Corp. vs Quezon City, 172 SCRA
629)
e.Debt vs Tax
Debt is based upon juridical tie, created by
law, contracts, delicts or quasi-delicts between
parties for their private interest or resulting from
their own acts or omissions.
Tax
1.based on law
2.generally, cannot be
assigned
3.generally payable in
money
4.generally not subject
to
set-off
or
compensation
5.imprisonment is a
sanction
for
nonpayment of tax except
poll tax

vs
Debt
1.based on contracts,
express or implied
2.assignable
3.may be paid in kind
4.may be subject to
set-off or compensation
5.no imprisonment for
non-payment of debt

TAX ATION
San Beda College of LAW – ALABANG
6.governed by special
prescriptive
periods
provided for in the Tax
Code
7.does
not
draw
interest except only
when delinquent

6.governed
by
the
ordinary
periods
of
prescriptions
7.draws interest when
so stipulated, or in case
of default

General Rule: Taxes are not subject to set-off or
legal compensation. The government and the
taxpayer are not creditors and debtors or each
other. Obligations in the nature of debts are due
to the government in its corporate capacity, while
taxes are due to the government in its sovereign
capacity (Philex Mining Corp. vs CIR, 294 SCRA
687; Republic vs Mambulao Lumber Co., 6 SCRA
622)
Exception: Where both the claims of the
government and the taxpayer against each other
have already become due and demandable as
well as fully liquated. (see Domingo vs Garlitos, L18904, June 29, 1963)

4.Tariff – it may be used in 3 senses:
a.As a book of rates drawn usually in
alphabetical order containing the names of
several
kinds
of
merchandise
with
the
corresponding duties to be paid for the same.
b.As duties payable on goods imported or
exported (PD No. 230)
c.As the system or principle of imposing duties
on the importation/exportation of goods.

5.Internal Revenue – refers to taxes imposed by
the legislative other than duties or imports and
exports.

6.Margin Fee – a currency measure designed to
stabilize the currency.

7.Tribute – synonymous with tax; taxation
implies tribute from the governed to some form of
sovereignty.

8.Impost – in its general sense, it signifies any
tax, tribute or duty. In its limited sense, it means
a duty on imported goods and merchandise.

Pertinent Case:
Philex Mining Corp. vs Commissioner of
Internal Revenue
G.R. No. 125704, Aug. 28, 1998
The Supreme Court held that: “We have
consistently ruled that there can be no offsetting
of taxes against the claims that the taxpayer may
have against the government. A person cannot
refuse to pay a tax on the ground that the
government owes him an amount equal to or
greater than the tax being collected. The
collection of a tax cannot await the results of a
lawsuit against the government.”
f.Tax Distinguished from other Terms.

1.Subsidy – a pecuniary aid directly granted by
the government to an individual or private
commercial enterprise deemed beneficial to the
public.

2.Revenue – refers to all the funds or income
derived by the government, whether from tax or
from whatever source and whatever manner.

3.Customs Duties – taxes imposed on goods
exported from or imported into a country. The
term taxes is broader in scope as it includes
customs duties.

Inherent Powers of the State
1.Police Power
2.Power of Eminent Domain
3.Power of Taxation
Distinctions among the Three Powers
Taxation
PURPOSE
- levied for
the
purpose of
raising
revenue
AMOUNT OF
- no limit

Police
Power

- exercised
to promote
public
welfare thru
regulations
EXACTION
- limited to
the cost of
regulations,
issuance of
the license
or
surveillance
BENEFITS RECEIVED
- no special - no direct
or
direct benefits but
benefits
a
healthy
received
economic
but
the standard of
enjoyment
society
or

Eminent
Domain
taking
property
public use

of
for

- no exaction,
compensation
paid
by
the
government

- direct benefit
results in the
form
of
just
compensation

TAX ATION
San Beda College of LAW – ALABANG
of
the “damnum
privileges
absque
of living in injuria”
is
an
attained
organized
society
NON-IMPAIRMENT OF CONTRACTS
the contract - contracts may
impairment may
be be impaired
rule subsist impaired
TRANSFER OF PROPERTY RIGHTS
- taxes paid - no transfer - property is
become
but
only taken by the
part
of restraint on gov’t
upon
public
the exercise payment of just
funds
of property compensation
right exists
SCOPE
- affects all - affects all - affects only
persons,
persons,
the
particular
property
property,
property
and excise
privileges,
comprehended
and
even
rights
BASIS
public public -public
necessity
necessity
necessity,
and
the private property
right of the is
taken
for
state
and public use
the public to
selfprotection
and
selfpreservation
AUTHORITY WHICH EXERCISES THE POWER
- only by - only by the may
be
the
government granted
to
governmen or
its public service,
t
or
its political
companies, or
political
subdivisions public utilities
subdivision
s
III. Limitations on the Power of Taxation
Limitations, Classified

a.Inherent Limitations or those which restrict
the power although they are not embodied in the
Constitution [P N I T E]

1.Public Purpose of Taxes
2.Non-delegability of the Taxing Power
3.Territoriality or the Situs of Taxation
4.Exemption of the Government from taxes

5.International Comity
b.Constitutional
Limitations
or
those
expressly found in the constitution or implied
from its provision
1.Due process of law
2.Equal protection of law
3.Freedom of Speech and of the press
4.Non-infringement of religious freedom
5.Non-impairment of contracts
6.Non-imprisonment for debt or non-payment
of poll tax
7.Origin of Appropriation, Revenue and Tariff
Bills
8.Uniformity, Equitability and Progressitivity of
Taxation
9.Delegation of Legislative Authority to Fx Tariff
Rates, Import and Export Quotas
10.Tax Exemption of Properties Actually,
Directly, and Exclusively used for Religious
Charitable
11.Voting requirements in connection with the
Legislative Grant of Tax Exemption
12.Non-impairment of the Supreme Courts’
jurisdiction in Tax Cases
13.Tax exemption of Revenues and Assets,
including Grants, Endowments, Donations or
Contributions to Education Institutions
c. Other Constitutional Provisions related
to Taxation

1.Subject and Title of Bills
2.Power of the President to Veto an items in an
Appropriation, Revenue or Tariff Bill
3.Necessity of an Appropriation made before
money
4.Appropriation of Public Money
5.Taxes Levied for Special Purposes
6.Allotment to LGC
Inherent Limitations
A. Public Purpose of Taxes
1.Important Points to Consider:
a.If taxation is for a public purpose, the tax
must be used:
a.1) for the support of the state or
a.2) for some recognized objects of
governments or
a.3) directly to promote the welfare of
the community (taxation as an implement of
police power)

TAX ATION
San Beda College of LAW – ALABANG
b.The term “public purpose” is synonymous
with “governmental purpose”; a purpose
affecting the inhabitants of the state or
taxing district as a community and not
merely as individuals.
c. A tax levied for a private purpose
constitutes a taking of property without due
process of law.
d. The purposes to be accomplished by
taxation need not be exclusively public. Although
private individuals are directly benefited, the tax
would still be valid provided such benefit is only
incidental.
e. The test is not as to who receives the
money, but the character of the purpose for
which it is expended; not the immediate result of
the expenditure but rather the ultimate.
g. In the imposition of taxes, public purpose
is presumed.

2. Test in determining Public Purposes in
tax
a. Duty Test – whether the thing to be
threatened by the appropriation of public revenue
is something which is the duty of the State, as a
government.
b. Promotion of General Welfare Test –
whether the law providing the tax directly
promotes the welfare of the community in equal
measure.
Basic Principles of a Sound Tax System
(FAT)
a. Fiscal Adequacy – the sources of tax revenue
should coincide with, and approximate the needs
of government expenditure. Neither an excess
nor a deficiency of revenue vis-à-vis the needs of
government would be in keeping with the
principle.
b. Administrative Feasibility – tax laws should
be capable of convenient, just and effective
administration.
c. Theoretical Justice – the tax burden should
be in proportion to the taxpayer’s ability to pay
(ability-to-pay principle). The 1987 Constitution
requires taxation to be equitable and uniform.

B. Non-delegability of Taxing Power

1. Rationale: Doctrine of Separation of
Powers; Taxation is purely legislative,
Congress cannot delegate the power to
others.
2. Exceptions:
a. Delegation to the President (Art.VI. Sec.
28(2) 1987 Constitution)
The power granted to Congress under this
constitutional provision to authorize the President
to fix within specified limits and subject to such
limitations and restrictions as it may impose,
tariff rates and other duties and imposts include
tariffs rates even for revenue purposes only.
Customs duties which are assessed at the
prescribed tariff rates are very much like taxes
which are frequently imposed for both revenueraising and regulatory purposes (Garcia vs Executive Secretary, et. al., G.R. No. 101273, July
3, 1992)
b. Delegations to the Local Government
(Art. X. Sec. 5, 1987 Constitution)
It has been held that the general principle
against the delegation of legislative powers as a
consequence of the theory of separation of
powers is subject to one well-established
exception, namely, that legislative power may be
delegated to local governments. The theory of
non-delegation of legislative powers does not
apply in maters of local concern. (Pepsi-Cola
Bottling Co. of the Phil, Inc. vs City of Butuan, et .
al., L-22814, Aug. 28, 1968)
c. Delegation to Administrative Agencies
with respect to aspects of Taxation not legislative
in character.
example:
assessment
and
collection
3.Limitations on Delegation
a.
It
shall
not
contravene
any
Constitutional provisions or inherent limitations of
taxation;
b. The delegation is effected either by the
Constitution or by validly enacted legislative
measures or statute; and
c. The delegated levy power, except when
the delegation is by an express provision of
Constitution itself, should only be in favor of the
local legislative body of the local or municipal
government concerned.

TAX ATION
San Beda College of LAW – ALABANG

4.Tax
Legislation
vis-à-vis
Tax
Administration - Every system of taxation
consists of two parts:
a. the elements that enter into the
imposition of the tax [S2 A P K A M], or tax
regulation; and
b. the steps taken for its assessment and
collection or tax administration
If what is delegated is tax legislation, the
delegation is invalid; but if what is involved is
only tax administration, the non-delegability rule
is not violated.
C. Territoriality or Situs of Taxation
1.Important Points to Consider:
a.Territoriality or Situs of Taxation means
“place of taxation” depending on the nature
of taxes being imposed.
b.It is an inherent mandate that taxation
shall only be exercised on persons,
properties, and excise within the territory of
the taxing power because:
b.1) Tax laws do not operate beyond a
country’s territorial limit.
b.2) Property which is wholly and
exclusively within the jurisdiction of
another state receives none of the
protection for which a tax is supposed to
be compensation.
c.However, the fundamental basis of the
right to tax is the capacity of the government
to provide benefits and protection to the
object of the tax. A person may be taxed,
even if he is outside the taxing state, where
there is between him and the taxing state, a
privity of relationship justifying the levy.
2.Factors to Consider in determining
Situs of Taxation
a.kind and Classification of the Tax
b.location of the subject matter of the tax
c.domicile or residence of the person
d.citizenship of the person
e.source of income
f.place where the privilege, business or
occupation is being exercised
D. Exemption of the Government from Taxes
1.Important Points to Consider:
Reasons for Exemptions:
a.1) To levy tax upon public property
would render necessary new taxes on
other public property for the payment of

the tax so laid and thus, the government
would be taxing itself to raise money to
pay over to itself;
a.2) In order that the functions of the
government shall not be unduly impede;
and
a.3) To reduce the amount of money that
has to be handed by the government in
the course of its operations.
2.Unless otherwise provided by law, the
exemption applies only to government entities
through which the government immediately and
directly exercises its sovereign powers (Infantry
Post Exchange vs Posadas, 54 Phil 866)
3.Notwithstanding
the
immunity,
the
government may tax itself in the absence of any
constitutional limitations.
4.Government-owned
or
controlled
corporations,
when
performing
proprietary
functions are generally subject to tax in the
absence of tax exemption provisions in their
charters or law creating them.
E. International Comity
1.Important Points to Consider:
a.The property of a foreign state or
government may not be taxed by another.
b.The grounds for the above rule are:
b.1) sovereign equality among states
b.2) usage among states that when one
enter into the territory of another, there is an
implied understanding that the power does not
intend to degrade its dignity by placing itself
under the jurisdiction of the latter
b.3) foreign government may not be sued
without its consent so that it is useless to assess
the tax since it cannot be collected
b.4) reciprocity among states
Constitutional Limitations
1.Due Process of Law

a.Basis: Sec. 1 Art. 3 “No person shall be
deprived of life, liberty or property without
due process of law x x x.”
Requisites :
1. The interest of the public generally
as distinguished from those of a
particular
class
require
the
intervention of the state;
2. The means employed must be
reasonably
necessary
to
the
accomplishment for the purpose
and not unduly oppressive;

TAX ATION
San Beda College of LAW – ALABANG
3. The deprivation was done under
the authority of a valid law or of
the constitution; and
4. The deprivation was done after
compliance
with
fair
and
reasonable method of procedure
prescribed by law.
In a string of cases, the Supreme Court
held that in order that due process of law must
not be done in an arbitrary, despotic, capricious,
or whimsical manner.
2.Equal Protection of the Law

a.Basis: Sec.1 Art. 3 “ xxx Nor shall any
person be denied the equal protection of the
laws.
Important Points to Consider:
1. Equal protection of the laws
signifies that all persons subject to legislation
shall be treated under circumstances and
conditions both in the privileges conferred and
liabilities imposed
2. This
doctrine
prohibits
class
legislation which discriminates against some and
favors others.
b.Requisites for a Valid Classification
1. Must not be arbitrary
2. Must not be based upon substantial
distinctions
3. Must be germane to the purpose of law.
4. Must not be limited to exiting conditions
only; and
5. Must play equally to all members of a
class.
3.Uniformity,
Equitability
Progressivity of Taxation

and

a.Basis: Sec. 28(1) Art. VI. The rule of
taxation shall be uniform and equitable. The
Congress shall evolve a progressive system
of taxation.
b. Important Points to Consider:
1.
Uniformity
(equality
or
equal
protection of the laws) means all taxable articles
or kinds or property of the same class shall be
taxed at the same rate. A tax is uniform when the
same force and effect in every place where the
subject of it is found.
2.
Equitable means fair, just, reasonable
and proportionate to one’s ability to pay.
3.
Progressive system of Taxation
places stress on direct rather than indirect taxes,
or on the taxpayers’ ability to pay
4.
Inequality which results in singling out
one particular class for taxation or exemption

infringes no constitutional limitation. (see
Commissioner vs. Lingayen Gulf Electric, 164
SCRA 27)
5.
The rule of uniformity does not call for
perfect uniformity or perfect equality, because
this is hardly attainable.
4.Freedom of Speech and of the Press

a.Basis: Sec. 4 Art. III.

No law shall be
passed abridging the freedom of speech, of
expression or of the pressx x x “
b. Important Points to Consider:
1. There is curtailment of press
freedom and freedom of thought if a tax is levied
in order to suppress the basic right of the people
under the Constitution.
2. A business license may not be
required for the sale or contribution of printed
materials like newspaper for such would be
imposing a prior restraint on press freedom
3. However, an annual registration
fee on all persons subject to the value-added tax
does not constitute a restraint on press freedom
since it is not imposed for the exercise of a
privilege but only for the purpose of defraying
part of cost of registration.
5.Non-infringement of Religious Freedom

a.Basis:

Sec. 5 Art. III. “No law shall be
made respecting an establishment of religion
or prohibiting the free exercise thereof. The
free exercise and enjoyment of religious
profession
and
worship,
without
discrimination or preference, shall be forever
be allowed. x x x”
b. Important Points to Consider:
1. License fees/taxes would constitute a
restraint on the freedom of worship as they are
actually in the nature of a condition or permit of
the exercise of the right.
2. However, the Constitution or the Free
Exercise of Religion clause does not prohibit
imposing a generally applicable sales and use tax
on the sale of religious materials by a religious
organization. (see Tolentino vs Secretary of
Finance, 235 SCRA 630)
6.Non-impairment of Contracts

a.Basis: Sec. 10 Art. III. “No law impairing
the obligation of contract shall be passed.”
b.Important Points to Consider:
1.
A law which changes the terms of the
contract by making new conditions, or changing
those in the contract, or dispenses with those
expressed, impairs the obligation.

TAX ATION
San Beda College of LAW – ALABANG
2.
The non-impairment rule, however,
does not apply to public utility franchise since a
franchise is subject to amendment, alteration or
repeal by the Congress when the public interest
so requires.
7.Non-imprisonment for non-payment of
poll tax

a.Basis: Sec. 20 Art. III. “No person shall be
imprisoned for debt or non-payment of poll
tax.”
b. Important Points to Consider:
1. The only penalty for delinquency in
payment is the payment of surcharge in the form
of interest at the rate of 24% per annum which
shall be added to the unpaid amount from due
date until it is paid. (Sec. 161, LGC)
2.
The
prohibition
is
against
“imprisonment” for “non-payment of poll tax”.
Thus, a person is subject to imprisonment for
violation of the community tax law other than for
non-payment of the tax and for non-payment of
other taxes as prescribed by law.
8.Origin or Revenue, Appropriation and
Tariff Bills

a.Basis: Sec. 24 Art. VI. “All appropriation,
revenue or tariff bills, bill authorizing
increase of the public debt, bills of local
application, and private bills shall originate
exclusively in the House of Representatives,
but the Senate may propose or concur with
amendments.”
b. Under the above provision, the Senator’s
power is not only to “only concur with
amendments” but also “to propose
amendments”. (Tolentino vs Sec. of Finance,
supra)
9.Delegation of Legislative Authority to
Fix Tariff Rates, Imports and Export Quotas

a.Basis: Sec. 28(2) Art. VI “x x x The
Congress may, by law, authorize the
President to fix within specified limits, and
subject to such limitations and restrictions as
it may impose, tariff rates, import and export
quotas, tonnage and wharfage dues, and
other duties or imposts within the framework
of the national development program of the
government.
10.Tax Exemption of Properties Actually,
Directly and Exclusively used for Religious,
Charitable and Educational Purposes

a.Basis: Sec. 28(3) Art. VI. “Charitable
institutions, churches and parsonages or
convents appurtenant thereto, mosques,
non-profit cemeteries, and all lands, building,
and improvements actually, directly and
exclusively used for religious, charitable or
educational purposes shall be exempt from
taxation.”
b. Important Points to Consider:
1. Lest of the tax exemption: the use
and not ownership of the property
2. To be tax-exempt, the property
must be actually, directly and exclusively used for
the purposes mentioned.
3. The word “exclusively” means
“primarily’.
4. The exemption is not limited to
property actually indispensable but extends to
facilities which are incidental to and reasonably
necessary for the accomplishment of said
purposes.
5. The
constitutional
exemption
applies only to property tax.
6. However, it would seem that under
existing law, gifts made in favor or religious
charitable and educational organizations would
nevertheless qualify for donor’s gift tax
exemption. (Sec. 101(9)(3), NIRC)

11. Voting Requirements in connection
with the Legislative Grant for tax exemption
a.Basis: Sec. 28(4) Art. VI. “No law granting
any tax exemption shall be passed without
the concurrence of a majority of all the
members of the Congress.”
b. The above provision requires the
concurrence of a majority not of attendees
constituting a quorum but of all members of
the Congress.

12. Non-impairment of the
Courts’ jurisdiction in Tax Cases

Supreme

a.Basis: Sec. 5 (2) Art. VIII. “The Congress
shall have the power to define, prescribe, and
apportion the jurisdiction of the various
courts but may not deprive the Supreme
Court
of
its
jurisdiction
over
cases
enumerated in Sec. 5 hereof.”
Sec. 5 (2b) Art. VIII. “The Supreme
Court shall have the following powers: x x
x(2) Review, revise, modify or affirm on
appeal or certiorari x x x final judgments and
orders of lower courts in x x x all cases
involving the legality of any tax, impost,

TAX ATION
San Beda College of LAW – ALABANG
assessment, or toll or any penalty imposed in
relation thereto.”
13. Tax Exemptions of Revenues and
Assets, including grants, endowments,
donations or contributions to Educational
Institutions

a.Basis: Sec. 4(4) Art. XIV. “Subject to the
conditions prescribed by law, all grants,
endowments, donations or contributions used
actually,
directly
and
exclusively
for
educational purposes shall be exempt from
tax.”
b. Important Points to Consider:
1.
The exemption granted to non-stock, nonprofit educational institution covers income, property, and donor’s taxes, and custom duties.
2.
To be exempt from tax or duty, the revenue,
assets, property or donation must be used
actually, directly and exclusively for educational
purpose.
3.
In the case or religious and charitable
entities and non-profit cemeteries, the exemption
is limited to property tax.
4.
The said constitutional provision granting
tax
exemption
to
non-stock,
non-profit
educational institution is self-executing.
5.
Tax exemptions, however, of proprietary (for
profit) educational institutions require prior
legislative implementation. Their tax exemption is
not self-executing.
6.
Lands,
Buildings,
and
improvements
actually, directly, and exclusively used for
educational purposed are exempt from property
tax, whether the educational institution is
proprietary or non-profit.
c.Department of Finance Order No. 13787, dated Dec. 16, 1987 The following are some of the highlights of the
DOF order governing the tax exemption of nonstock, non-profit educational institutions: 1. The tax exemption is not only limited to
revenues and assets derived from strictly school
operations like income from tuition and other
miscellaneous feed such as matriculation, library,
ROTC, etc. fees, but it also extends to inciden...

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Keywords

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1947 1948 1949 1950 1951 1952 1953 1955 1956 1958 1961 1962 1963 1964 1965 1966 1967 1968 1969 1973 1974 1975 1979 1980 1983 1985 1986 1987 1988 1992 1993 1994 1995 1996 1997 1998 1999 2 2.ad 2.administrative 2.amount 2.as 2.assignable 2.basic 2.capitalization 2.collection 2.equal 2.factors 2.for 2.generally 2.he 2.however 2.imposed 2.in 2.indirect 2.it 2.legislative 2.licenses 2.may 2.municipal 2.municipal/local 2.non 2.not 2.paid 2.permissive 2.personal 2.power 2.property 2.regressive 2.revenue 2.same 2.special 2.special/regulatory 2.tax 2.the 2.unless 2.when 20 203 204 205 206 207 208 209 21 210 211 212 213 214 2142 215 2154 216 217 218 219 22 220 221 222 223 224 225 226 227 228 229 23 230 231 232 234 235 236.35 237 24 247 248 249 25 250 251 252 254 256 26 269 27 270 276 277 28 288 29 290 292 294 2b 3 3.1.2 3.1.4 3.amount 3.an 3.as 3.based 3.customs 3.excise 3.exemptions 3.freedom 3.generally 3.he 3.it 3.legislative 3.licenses 3.lifeblood 3.limitations 3.may 3.mixed 3.necessity 3.notwithstanding 3.power 3.purposes 3.same 3.subject 3.tax 3.territoriality 3.the 3.theoretical 3.transformation 3.uniformity 3.where 30 304 31 325 33 34 352 353 360 37 386 4 4.amount 4.apportionment 4.appropriation 4.but 4.double 4.evasion 4.exceptional 4.exemption 4.freedom 4.general 4.generally 4.government 4.imposed 4.it 4.may 4.non 4.proportionate 4.tariff 4.tax 4.the 4.treaties 4.when 4.within 40 43 434.65 460 466 47 486 49 490 498 5 5.an 5.avoidance 5.during 5.imposed 5.imprisonment 5.internal 5.international 5.it 5.no 5.non 5.principle 5.situs 5.tax 5.taxes 5.the 50 500 51 54 5431 547 56 564 58 6 6.allotment 6.constitutional 6.exemption 6.governed 6.it 6.margin 6.method 6.non 6.same 6.the 60 60126 622 629 630 64 66838 670 687 69 7 7.does 7.draws 7.it 7.non 7.origin 7.other 7.tax 7.the 7.tribute 70 71 7716 775 79 8 8.deductions 8.impost 8.origin 8.uniformity 81446 819 829 83736 861 866 87 872 8829 89 9 9.delegation 92585 946 95 96 969 98 99 99886 a.1 a.2 a.3 a.as a.basis a.constitutional a.doubts a.exemption a.express a.failure a.forward a.if a.inherent a.it a.kind a.persons a.promotion a.tax a.territoriality a.the a.toll a.total a.variance a.when a.where abad aban abandon abat abet abid abil ability-to-pay abl abolish abra abridg absenc absent absolut absqu abus acced accept accessori accompani accomplish accord account accredit accru accuraci acetylen achiev acknowledg acquitt act action activ actual ad add addit address adequaci adjac adjust administ administr admit advanc advantag advers advertis advis affect affidavit affidavit/report affirm afford aforesaid age agenc agent aggreg aggress agre agreement aid aim airport al alabang alca alcohol algu alien alik alleg allegr allow almost alon alphabet alreadi also alter altern although altogeth alway amend american amnesti among amount amus and/or anim annual annum anoth answer anyon anytim apostol apparatus appeal appear appel appli applic apport apprais appropri approv approxim appurten apr april 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broad broader bros brought build burden burdensom bureau busi butuan buyer c c.a c.as c.c c.department c.domicile c.exemptions c.however c.onward c.rationale c.reduction c.special c.tangible c.tax c.the ca cabaret cagayan calcul calendar call caltex came campus cancel cannot canteen canvass capabl capac capit caprici card care carmen carri case cash categor cathol caus caution ceas cebu cebu/cebu cement cemeteri certain certainti certif certiorari chair chairman chairmen challeng chang chapter charact characterist charg chargeabl charit charter chattel chief chines chui church churchil cigar cigarett cir circ circul circular circumst citi citizen citizenri civil claim class classic classif classifi claus clear clearest client club co coa cockpit code cogniz coincid cola coll collect collector colleg collud come comiti commenc commensur commerci commiss commission commit committe commod communiti compani compar compel compens compensatori compet complain complaint compli complianc 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happen harass hard hard-earn harsh head headquart health healthi heir held hen henc hereaft herebi herein hereinabov hereinaft hereof hermano hide high higher highest highlight hilado hold home hous household howev human hundr husband i.e ibid ic idea ii iii illeg illicit iloco imit immedi immun impact impair imped imperi implement impli implic import importation/exportation impos imposit impost imprescript impress imprison improp improv imput in inabl inact inadequ inasmuch inc incapac incent incid incident includ inclus incom incomplet inconsist increas increment indeb indebted independ indic indicia indirect indispens individu industri ineffect ineffici inequ inevit inexcus infantri inform infring inhabit inher inherit initi injunct injur injuri injuria injustic inquir inquiri insid insist inspect instal instanc instances/circumstances instead institut instrument insuffici insur intact intang integr intend intent interest intermedi intern interpret interprovinci interrupt intervent intim invalid invas inventori inventory-tak inventorytak invest investig investigatori invoic invok involv ir irregular irrespect issu issuanc item iv j jan januari jeopard jeopardi jockey john johnson joint jointaccount jr judgment judici juli june jurid jurisdict jurisprud just justic justifi k keep kei keir kept kill kind kind/s know knowledg known l l11622 l15470 l18904 l19627 l21108 l36181 la label lack laid land languag laps larg last later latter law law-mak lawsuit lay lead lealda leas least leav left legal legisl lemp3s leon leprosarium less lesse lessen lest letter levi lex lgc li liabil liabl liber liberti librari licens license/permit lie lien lieu life lifeblood lift light like likewis lim limit line lingayen liquat liquor list liter literatur litig live lladoc llane local locat logic long longer lopez lorenzo lose loss lost lot lower lumber lutz m macaraig maceda machineri mactan made mail main maintain mainten major make malfeas mambulao man manag mandamus mandat mandatori mani manifest manila manipul manner manufactur mar march marco market marshal maryland mater materi mathemat matia matricul matter maxim may mayb mayor mcculloch mean meant meantim meanwhil measur meet member memo memorandum mention meralco merchandis mere method might miguel mill million mind mine miner minim minimum minist minor minus miscellan miss mistak mistaken mobilia mode modifi monetari money moni monitor month moral moreov mortgag mortgage mosqu motion motiv movabl move mtcs much multin multipl municip must mutual n naga name nation natur navi nay nd necess necessari necessarili need negat neglect neglig neither net never nevertheless new newli newly-discov newspap ng night nirc non non-appl non-claim non-compli non-deduct non-deleg non-essenti non-exempt non-impair non-pay non-profit non-resid non-stock non-tax nondeduct none nonpay nonprofit nonstock nontax nonus normal nort nos nota notabl note noteworthi noth notic notice/demand notif notifi notion notwithstand nov novemb nowher nueva number oath object objection oblig obnoxi observ obstin obstruct obtain occup occupi occur oct offend offens offer offic offici offset often oil omiss omit one open oper opin opinion opportun opposit oppress opsf opt optquot orbo order ordin ordinari ordinarili organ origin orphanag osmeňa other otherwis outrun outsid overpaid overpay oversight overstat owe own owner ownership p p.d p1 p100 p25 p3 p381 p500 p7 p723 packag paid pain pal palanca palomar pan panay paper paragraph paralyz parsonag part partak parti participacion particular partnership pascoi pascor pass passag past patent patient pay payabl payer payment pd pdf peculiar pecuniari penal penalti pend peopl pepsi pepsi-cola per percent percentag perez perfect perform perhap period periods/statute perman permiss permit person personalti personam personnel pertin pervad peso petit petition petroleum phenomenon phil phil934 philex philippin phoenix phrase physic pilipina place plain plaintiff play plea plus po point polic polici polit poll portion portland posada posit possess possibl post postpon postul power pr2ep practic pray prayer prdc preacher preassess preced precept preclud prefect prefer prejudici preliminari premis premium prepar prerequisit prescrib prescript presenc present preserv presid press pressx presum presumpt presuppos prevail prevent previous price priest prima primari primarili principl print prior privat privileg priviti pro pro-form procedur proceed process procter produc product profess profession profit program progress progressit prohibit promot prompt promulg proof proper properti proport proportion propos proprietari proprietorship prosecut prosecutor prospect protect protest prove proven provid provinc provinci provis proviso public punish purchas pure purport purpos pursu pursuanc pursuant pursuit put qualif qualifi quantiti quarter quasi quasi-contract quasi-delict question quezon quorum quota r r.a ra raid rais rama rang rank rate rather ration rational raw rd rdo re re-evalu re-export reach real realiz realm realti reason reassign recal receipt receiv reciproc reclassif reclassifi recogn recommend reconsider reconsideration/reinvestigation record recoup recours recov recoveri recumb recurr redeem redempt redound reduc reduct refer refin reflect reform refund refus regard regardless region regist registr reglementari regress regul regular regulatori rehabilit rei reimburs reinvestig reject relat relationship releas relev reli relief reliev religi religion reluct remain remedi remind remiss remit remitt remov render renounc rent rental renunci rep repaid repeal repeat report repres republ request requir requisit resal rescind resid residu resist resold resolv resort respect respond respons rest restor restrain restraint restrict result ret retir retroact return reund rev revenu revenuerais revers review revis revoc revok reward ride right rigor riot road rodriguez roman room rotc roxa royalti rtc rubber rule run s2 safeguard said sale san sanction satisfact satisfi savellano say sc scarc schedul scheme scholarship school school-rel scope scra scrutini search seat sec sec.1 second secretari sect sectarian section sector secuir secur see seek seem seen segovia seiz seizur select self self-assess self-execut selfpreserv selfprotect sell seller senat send seng senior sens sent sentral separ sept septemb sequuntur serv servant servic set set-off settl settlement sever shall share sharehold shave sheet shift ship shore short shortag show shown sick sign signatur signifi silent silver similar simpli simultan sinc sinforo singl sit sita situat situs six sixti skill social societi sold sold/forfeited sole solicitor solutio someon someth sometim son sort sought sound sourc sovereign sovereignti spare speak special specif specifi speech spell spent spirit sponsor spread spring stabil stamp stand standard start state statement statu statut statutori step still stipul stock stock-in-trad store stress strict stricter string su subdivis subject submiss submit subordin subpoena subsect subsequ subserv subsist substanti substitut subtract succeed success suffici sugar suit suitabl sum summari summon superior superstructur superven supervis supervisori suppli support suppos suppress supra suprem surcharg sure sureti surrend surveil suspend suspens sustain suyac sweepstak sworn sy symbiot synonym system tag take taken tangibl tantamount tariff task tax tax-exempt taxabl taxat taxpay tc tcc teacher tempt ten tenant tend tender term termin territori test testimoni theoret theori thereaft therebi therefor therefrom therein thereof thereon thereto therewith therof thing third thirti though thought thousand threaten three throughout thru thus tie till time titl tmx tobacco togeth tolentino toll tonnag topic total trade tradit transact transcript transfer transferor transgress transmiss transport trea treacher treasur treasuri treat treati trial tribut true trust truth tuition tun turn twenti twenty-f twice 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