[ LCA ]
ocal governments (to be exercised by thelocal legislative bodies thereof) or political subdivisions
When allowed by the
When the delegation relates merely to
dministrative implementation that may call for some degree of discretionary powers under a set of sufficient standards expressedby law
Taxation may exceptionally be delegated, subject to suchwell-settled limitations as:
[ NEL ]
The delegation shall
ot contravene any constitutionalprovision or the inherent limitations of taxation
The delegation is
ffected either by the constitution orby validly enacted legislative measures or statute
The delegated levy power; except when the delegation isby an express provision of the constitution itself, shouldonly be in favor of the
ocal legislative body of the localor municipal government concerned.
The power of taxation, it has been said, may be delegated tolocal governments in respect of matters of local concern. Bynecessary implication, the legislative power to createpolitical corporations for purposes of local self-governmentcarries with it the power to confer on such localgovernmental agencies the power to tax. Local governmentsmay be permitted to tax subjects, which for the reason of public policy the State has not deemed wise to tax for generalpurposes.
Taxation is territorial
Taxation may be exercised only within the territorialjurisdiction of the taxing authority. Within the territorialjurisdiction, the taxing authority may determine the “place of taxation”
In fixing the tax situs, the following criteria are observed:a)For poll taxes, the possible tax situs is the residence of the tax payerb)For property taxes, the tax situs can only be where theproperty is situtatedc)For excise taxes, the tax situs can be the place :1)Where the privilege is exercised2)Where the taxpayer is a national of 3)Where he has his residenceIn the selection of the appropriate criteria, t eh taxingauthority is given wide latitude; among the circumstancesoften considered are the nature of the tax, the extent of thebenefit that may be derived by the taxpayer and equityprinciples.
Taxation is subject to international comity
The Philippine Constitution, indeed, has expressly adopted thegenerally accepted principles of international law as part of the law of the land.
Under international comity, a state must recognize thegenerally accepted tenets of international law, among whichare the principles of sovereign equality among states and of their freedom from suit without their consent, that limit theauthority of a government to effectively impose taxes on asovereign state and its instrumentalities, as well as on itsproperty held, and activities undertaken, in that capacity.
Exemption of the Government from Taxes
Reasons for Exemptions:1) To levy tax upon public property would render necessarynew taxes on other public property for the payment of the taxso laid and thus, the government would be taxing itself to raisemoney to pay over to itself;2) In order that the functions of the government shall not beunduly impede; and3) To reduce the amount of money that has to be handed bythe government in the course of its operations.
Unless otherwise provided by law, the exemption applies onlyto government entities through which the governmentimmediately and directly exercises its sovereign powers(Infantry Post Exchange vs Posadas, 54 Phil 866)
Notwithstanding the immunity, the government may tax itself in the absence of any constitutional limitations.
Government-owned or controlled corporations, whenperforming proprietary functions are generally subject to taxin the absence of tax exemption provisions in their charters orlaw creating them.
Taxation, being inherent in sovereignty, need not be clothedwith any constitutional authority for it to be exercised by asovereign state. Instead, constitutional provisions are meantand intended more to regulate and define, rather than grant,the power emanating therefrom.
Provisions Directly Affecting Taxation
1)No person shall be imprisoned for non-payment of a poll tax(Art 3, Sec 20)2)Taxation shall be uniform and equitable. The congress shallevolve a progressive system of taxation (Art 6, Sec 28 par 1)3)The congress may, by law, authorize the president to fix withinspecified limits and subject to such limitations and restrictionsas it may impose, tariff rates, imports and export quotas,tonnage and wharfage dues, and other duties or imposts withinthe framework of the national development program of thegovernment (Art 6 Sec 28 par 2)
Charitable institutions, churches, parsonages or conventsappurtenant thereto, mosques, and non-profit cemeteries andall lands, buildings and improvements actually, directly andexclusively used for religious, charitable or educationalpurposes shall be exempt from taxation (Art 6 Sec 28 par 3)5)No law granting any tax exemption shall be passed without theconcurrence of a majority of all the members of congress (Art6 Sec 28 par 4)6)All money collected on any tax levied for a special purposeshall be treated as a special fund and paid out for suchpurpose only. If the purpose for which a special fund wascreated has been fulfilled or abandoned, the balance if any,shall be transferred to the general funds of the government.(Art 6 Sec 29 par 3)7)The president shall have the power to veto any particular itemor items in an appropriation, revenue, or tariff bill, but theveto shall not affect the item or items to which he does notobject. (Art 6 Sec 27 par 2)
The Supreme Court shall have the power to “review, revise,reverse, modify or affirm on appeal or certiorari, as the law orthe Rules of Court may provide, final judgments and orders of the lower courts in
x x x
all cases involving the legality of any