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A. Taxes vs. Fees

This document discusses the distinction between taxes and fees, the doctrines established in relevant case law, and whether taxes can be subject to set-off. It distinguishes taxes, which are primarily for revenue, from fees, which are limited exactions to cover the costs of regulation. Case law establishes that the primary purpose of the imposition determines if it is a tax or fee. The document also distinguishes special assessments from taxes and discusses if taxes can be set-off against claims against the government.

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Mamerto Egargo Jr.
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49 views3 pages

A. Taxes vs. Fees

This document discusses the distinction between taxes and fees, the doctrines established in relevant case law, and whether taxes can be subject to set-off. It distinguishes taxes, which are primarily for revenue, from fees, which are limited exactions to cover the costs of regulation. Case law establishes that the primary purpose of the imposition determines if it is a tax or fee. The document also distinguishes special assessments from taxes and discusses if taxes can be set-off against claims against the government.

Uploaded by

Mamerto Egargo Jr.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

A. Taxes Vs.

Fees

1. Distinguish between taxes and fees

Generally speaking, taxes are for revenue, whereas fees are exactions for purposes of

regulation and inspection and are for that reason limited in amount to what is necessary to

cover the cost of the services rendered in that connection

2. What are the doctrines in the Progressive Development case?

The doctrines in this case are as follows:

A. Tax is often loosely used to include levies for revenue as well as levies for regulatory

purposes such that license fees are frequently called taxes although license fee is a legal

concept distinguishable from tax: the former is imposed in the exercise of police power

primarily for purposes of regulation, while the latter is imposed under the taxing power

primarily for purposes of raising revenues.

B. If the generating of revenue is the primary purpose and regulation is merely incidental, the

imposition is a tax; but if regulation is the primary purpose, the fact that incidentally revenue is

also obtained does not make the imposition a tax

C. To be considered a license fee, the imposition questioned must relate to an occupation

or activity that so engages the public interest in health, morals, safety and development

as to require regulation for the protection and promotion of such public interest; the

imposition must also bear a reasonable relation to the probable expenses of regulation,

taking into account not only the costs of direct regulation but also its incidental

consequences as well.
3. What is the doctrine in the Ferrer, Jr. Case?

B. Taxes vs. Special Assessments

1. Distinguish between Taxes and special assessments under Sec. 240 Of the Local

Government Code (“LGC”)

The distinctions between a special assessment and a tax are:

a). A special assessment can be levied only on land;

b). A special assessment cannot, as a rule, be made a personal liability of the persons

assessed;

c) A special assessment is based wholly on benefits; and

d) A special assessment is exceptional both as to time and locality. The imposition of a

charge on all property, real and personal, in a prescribed area, is a tax, not an

assessment, although the purpose is to make a local improvement on a street or

highway. A Charge imposed only on property owners benefited is a special assessment

rather than a tax.

2. Is the special assessment imposed in the Bacolod-Muria Milling Co. Inc. Case the same

with the special Assessment under Sec. 240 of the LGC?

No, in this case the  the levy for the Philsugin Fund is not so much an exercise

of the power of taxation, nor the imposition of a special assessment, but, the exercise

of the police power for the general welfare of the entire country.

C. Are taxes subject to set-off?

1. In General, may tax liabilities and any claim against the government be the subject of

set-off?

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