1.
A. Taxes are enforced proportional contributions from persons and properties. It is
imposed by the State by virtue of its sovereignty and it is levied for the support of the
government.
B. The power of taxation is the process by which the sovereign, through its
law-making body, raises revenue to defray the necessary expenses of the government.
It is a method apportioning the cost of government among those who in some
measures are privileged to enjoy its benefits and bear its burden.
C. The following are the characteristics of taxation:
1. Comprehensive- As it covers all persons, activities, businesses, professions,
rights and privileges
2. Unlimited- It is unlimited because the only limitation is the responsibility of
the legislature which imposes tax to the constituents to pay it. Tax does not
cease to be valid because it regulates, discourages, or even deters the ability to
tax.
3. Plenary- It is plenary because it is not incomplete, Under the NIRC, the BIR
may avail of certain remedies to ensure the collection of taxes.
4. Supreme- Although taxation is referred to as the strongest of all the powers of
the government, cannot be interpreted to mean that it is superior to their
inherent powers of the government, only that it is supreme insofar as the
selection of the subject of taxation is concerned.
2. The inherent constitutional limitations are the following:
1. Public Purpose- this is the purpose affecting the inhabitants of the State as a
community and not merely as individual
2. Territorial Jurisdiction- the tax laws of the State are enforced within its territorial
limits.
3. International comity- wherein the property of a foreign state or government may not
be taxed by another.
4. Non-delegation of the power to tax- the power to tax being legislative and cannot be
delegated
5. Exemption from taxation of government entities- government agencies performing
governmental functions are subject to tax unless expressly exempted.
6. Double Taxation- taxing a person, property or right twice within the same year by the
same taxing authority.
7. Due Process- the due process clause ensures that taxpayers are provided with fair
notice and an opportunity to be heard before being subjected to taxation.
8. Equal Protection- this clause prohibits the government from imposing taxes that
discriminate against specific individuals or groups based on their race, religion,
gender, or other protected characteristics.
3. A. If I were the lawyer of MS Development Corporation, my advice
4.
A. The Parish church must not be subjected to the payment of taxes.
The 1987 Constitution provides that non-stock corporation or association organized
and operated exclusively for religious, charitable, scientific, athletic, or cultural
purposes, or for the rehabilitation of veterans are exempt from income tax as long as
no part of its net income or asset shall belong to or inure the benefit of any member,
organizer, officer or any specific person.
Here, the owner of land is said to be the parish church and the entrance fee in in
question is used for the maintenance of the grounds and chapel. Therefore, it is
exempt from payment of taxes.
B. JQS Construction is not exempt from the payment of taxes. As a rule, domestic
corporations are subject to income tax. In this case, JQS is a corporation and therefore
not exempt from taxes.
