San Beda College of Law
4. Non-impairment of Contracts
beimpairedContractsmay beimpairedContracts maybe impaired
5. Transfer of Property Rights
Taxes paidbecome partof publicfunds
transferbut onlyrestraint inits exerciseTransfer iseffected infavor of theState
All persons,property andexcisesAll persons,property,rights andprivileges
Global SystemSchedular System
A systememployed wherethe tax systemviewsindifferently thetax base andgenerally treats incommon allcategories of taxable income of the individual.A system employedwhere the income taxtreatment varies andis made to depend onthe kind or categoryof taxable income of the taxpayer.A system whichtaxes allcategories of income exceptcertain passiveincomes andcapital gains. Itprescribes aunitary butprogressive ratefor the taxableaggregate incomesand flat rates forcertain passiveincomes derivedby individuals.A system whichitemizes the differentincomes and providesfor varied percentagesof taxes, to beapplied thereto.
Motor vehicle registration feesare now considered revenue or taxmeasures.
(Pal v. Edu, G.R No. L-41383, August 15,1988)
This case reversed the doctrinepreviously held in Republic v. PhilippineRabbit Bus Lines, Inc., 32 SCRA 211, tothe effect that motor vehicleregistration fees are regulatoryexactions and not revenue measures.
The tax imposed on videogramestablishments is not only regulatory buta revenue measure because the earningsof such establishments have not beensubject to tax depriving the governmentof an additional source of income.
(Tiov. Videogram Regulatory Board, 151SCRA 208)
The “coconut levy funds” wereall raised under the state’s taxing andpolice powers.The state’s concern to make it astrong and secure source not only in thelivelihood of the significant segment of the population, but also of exportearnings, the sustained growth of whichis one of the imperatives of theeconomic growth.”
Philippine CoconutProducers Federation, Inc. Cocofed v.Presidential Commission on Good Government (178 SCRA 236, 252)
1.Public purpose is always presumed.2.If the law is clear, apply the law inaccordance to its plain and simpletenor.
A statute will
be construed asimposing a tax
it does soclearly, expressly andunambiguously.
In case of doubt, it is construed moststrongly against the Government,and
in favor of thetaxpayer.
Provisions of a taxing act are
tobe extended by implication.
Tax laws operate prospectively
the purpose of the legislatureto give retrospective effect isexpressly declared or may beimplied from the language used.
Tax laws are
andprevail over a general law.
1.Not political in character2.Civil in nature, not subject to expost facto law prohibitions3.Not penal in character
EDP : Rachelle Saya
:JeminaSy, Casiano Ilagan, Jr., Ryan Co, Edwin Torres
: Marita Lourdes Azur, Edizer Enriquez, Christian Cabrera, JhundeeGuillermo