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1/28/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 130

654 SUPREME COURT REPORTS ANNOTATED
Sison, Jr. vs. Ancheta

*
No. L-59431. July 25, 1984.

ANTERO M. SISON, JR., petitioner, vs. RUBEN B.
ANCHETA, Acting Commissioner, Bureau of Internal
Revenue; ROMULO VILLA, Deputy Commissioner, Bureau
of Internal Revenue; TOMAS TOLEDO, Deputy
Commissioner, Bureau of Internal Revenue; MANUEL
ALBA, Minister of Budget, FRANCISCO TANTUICO,
Chairman, Commissioner on Audit, and CESAR E. A.
VIRATA, Minister of Finance, respondents.

Taxation; Constitutional Law; The Constitution sets forth the
restrictions to the power to tax.—The power to tax moreover, to
borrow from Justice Malcolm, “is an attribute of sovereignty. It is
the strongest of all the powers of government.” It is, of course, to
be ad-

_______________

* EN BANC.

655

VOL. 130, JULY 25, 1984 655

Sison, Jr. vs. Ancheta

mitted that for all its plenitude, the power to tax is not
unconfined. There are restrictions. The Constitution sets forth
such limits. Adversely affecting as it does property rights, both
the due process and equal protection clauses may properly be
invoked, as petitioner does, to invalidate in appropriate cases a
revenue measure. If it were otherwise, there would be truth to the
1803 dictum of Chief Justice Marshall that “the power to tax
involves the power to destroy.” In a separate opinion in Graves v.
http://www.central.com.ph/sfsreader/session/000001613b1c20868b3fa76b003600fb002c009e/t/?o=False 1/14

An obvious example is where it can be shown to amount to the confiscation of property.” characterized it as “a flourish of rhetoric [attributable to] the intellectual fashion of the times [allowing] a free use of absolutes. or is not for a public purpose. as here. Justice Frankfurter. Absent such a showing. This is merely to adhere to the authoritative doctrine that where the due process and equal protection clauses are invoked.ph/sfsreader/session/000001613b1c20868b3fa76b003600fb002c009e/t/?o=False 2/14 . The State is free to select the subjects of taxation and inequalities consequent to its exercise infringe no constitutional limitation.—The equal protection clause is. after referring to it as an “unfortunate remark. Ancheta Same. Same. does not suffice. is arbitrary does not suffice to invalidate said tax statute. 656 656 SUPREME COURT REPORTS ANNOTATED Sison. He alleges arbitrariness. or. Same. Justice Holmes’s pen: ‘The power to tax is not the power to destroy while this Court sits. A mere allegation. It then becomes the duty of this Court to say that such an arbitrary act amounted to the exercise of an authority not conferred. inspired by the noble concept of approximating the ideal of http://www. That would be a clear abuse of power. it is subject to attack on due process grounds. Considering that petitioner here would condemn such a provision as void on its face. Jr. Justice Frankfurter could rightfully conclude: “The web of unreality spun from Marshall’s famous dictum was brushed away by one stroke of Mr.” This is merely to emphasize that it is not and there cannot be such a constitutional mandate. vs. he has not made out a case. It has also been held that where the assailed tax measure is beyond the jurisdiction of the state. Same. which sets different income tax schedules for fixed income earners and business or professional income earners.1/28/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 130 New York. That properly calls for the application of the Holmes dictum. Same. There must be a factual foundation of such unconstitutional taint.—It is undoubted that the due process clause may be invoked where a taxing statute is so arbitrary that it finds no support in the Constitution. considering that they are not fixed rules but rather broad standards. of course.central. Same.’ ” So it is in the Philippines. there is a need for proof of such persuasive character as would lead to such a conclusion. A bare allegation that Batas 135.com. Due process clause may be invoked where a tax statute is so arbitrary as to find no support in Constitution. in case of a retroactive statute is so harsh and unreasonable. the presumption of validity must prevail.—The difficulty confronting petitioner is thus apparent.

1984 657 http://www. They do not relate to abstract units A. firms and cor- 657 VOL. because this is hardly attainable. decided in 1940.’ and laws are not abstract propositions. As clarified by Justice Tuason.ph/sfsreader/session/000001613b1c20868b3fa76b003600fb002c009e/t/?o=False 3/14 . * * *. wisdom.B.” This requirement is met according to Justice Laurel in Philippine Trust Company v. or exemption infringe no constitutional limitation.—Petitioner likewise invoked the kindred concept of uniformity. when the tax “operates with the same force and effect in every place where the subject may be found.’ ” Same.central. 130.” He likewise added: “The rule of uniformity does not call for perfect uniformity or perfect equality. through Justice J.com.” Hence the constant reiteration of the view that classification if rational in character is allowable. JULY 25. addressed to the attainment of specific ends by the use of specific remedies. in these words of Justice Frankfurter: “The equality at which the ‘equal protection’ clause aims is not a disembodied equality. Uniformity in taxation quite similar to the standard of equal protection. According to the Constitution: “The rule of taxation shall be uniform and equitable. It did not arise until nine years later. but are expressions of policy arising out of specific difficulties. Yatco. Araneta. There is. and it has been repeatedly held that ‘inequalities which result from a singling out of one particular class for taxation. it is inherent in the power to tax that a state be free to select the subjects of taxation. The taxing power has the authority to make reasonable and natural classifications for purposes of taxation.L. in a leading case of Lutz V. where “the differentiation” complained of “conforms to the practical dictates of justice and equity” it “is not discriminatory within the meaning of this clause and is therefore uniform. The Fourteenth Amendment enjoins ‘the equal protection of the laws. As a matter of fact. B and C. when the Supreme Court held: “Equality and uniformity in taxation means that all taxable articles or kinds of property of the same class shall be taxed at the same rate.” There is quite a similarity then to the standard of equal protection for all that is required is that the tax “applies equally to all persons.” The problem of classification did not present itself in that case. Reyes. went so far as to hold “at any rate. which is of the very essence of the idea of law. as well as realism.1/28/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 130 the laws’s benefits being available to all and the affairs of men being governed by that serene and impartial uniformity. Same. The Constitution does not require things which are different in fact or opinion to be treated in law as though they were the same. this Court. however.

To repeat.      Antero M. Jr. There is no legal objection to a broader tax base or taxable income by eliminating all deductible items and at the same time reducing the applicable tax rate. The facts are stated in the opinion of the Court.” Same. Taxpayers who are recipients of compensation income are set apart as a class. Taxpayers may be classified into different categories. what misled petitioner is his failure to take into consideration the distinction between a tax rate and a tax base. Same. Ancheta porations placed in similar situation.—Apparently. the discernible basis of classification is the susceptibility of the income to the application of generalized rules removing all deductible items for all taxpayers within the class and fixing a set of reduced tax rates to be applied to all of them. In the case of the gross income taxation embodied in Batas Pambansa Blg.ph/sfsreader/session/000001613b1c20868b3fa76b003600fb002c009e/t/?o=False 4/14 . As there is practically no overhead expense. Sison for petitioner and for his own behalf. these taxpayers are not entitled to make deductions for income tax purposes because they are in the same situation more or less.1/28/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 130 Sison. it is enough that the classification must rest upon substantial distinctions that make real differences. PETITION to review the decision of the Acting Commissioner of Internal Revenue.: The success of the challenge posed in1 this suit for declaratory relief or prohibition proceeding on the validity of _______________ 1 Petitioner must have realized that a suit for declaratory relief must be filed with Regional Trial Courts. FERNANDO. Taxpayers may be classified into different categories where it rests on real differences. while continuing the system of net income taxation as regards professional and business income. vs. http://www. There is ample justification then for the Batasang Pambansa to adopt the gross system of income taxation to compensation income. C. there is no uniformity in the costs or expenses necessary to produce their income. On the other hand. 135.com. It would not be just then to disregard the disparities by giving all of them zero deduction and indiscriminately impose on all alike the same tax rates on the basis of gross income.central.J.      The Solicitor General for respondents. in the case of professionals in the practice of their calling and businessmen.

500 but not overP 5. Ancheta Section 1 of Batas Pambansa Blg. (e) dividends and share of individual partner in the net profits 2 of taxable 3 partnership. Acting Commissioner. Virata. (f) adjusted gross income. Par.000 but not over P P 875 + 11% of excess over P 20. Francisco Tantuico. Bureau of Internal Revenue. Jr. and Cesar E.1/28/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 130 658 658 SUPREME COURT REPORTS ANNOTATED Sison. (b) taxable net income. A. determined in accordance with the following schedule: Not over P2. 135.000 Over P 10. (c) royalties. 3 The respondents are Ruben B. The challenge is thus aimed at paragraphs (a) and (b) of Section 1 further Amending Section 21 of the National Internal Revenue Code of 1977.000 40. 135 depends upon a showing of its constitutional infirmity.000 but not over 10. Bureau of Internal Revenue. Deputy Commissioner. Tomas Toledo. and other winnings.com. Commissioner on Audit. vs.500 0% Over P 2. 4 Petition. prizes.ph/sfsreader/session/000001613b1c20868b3fa76b003600fb002c009e/t/?o=False 5/14 .000 but not over P P 3.000 Over P 20. Petitioner as taxpayer alleges that by virtue thereof. “he would be unduly discriminated against by the imposition of higher rates of tax upon his income arising from the exercise of his profession vis-a-vis those which are imposed 4 upon fixed income or salaried individual taxpayers.000 P 25 + 3% of excess over P 5.000 60.” He characterizes the above section as ar- _______________ 2 Batas Pambansa Blg.000 Over P 40. Section 21 (1981). (d) interest from bank deposits and yield or any other monetary benefit from deposit substitutes and from trust fund and similar arrangements.central. Chairman. Parties.000 http://www.075 + 15% of excess over P 40. (a) reads: ‘‘(a) On taxable compensation income. 1.—A tax is hereby imposed upon the taxable compensation income as determined in Section 28 (a) received during each taxable year from all sources by every individual.000 but not over P P 175 + 7% of excess over P 10. Manuel Alba. The assailed provision further amends Section 21 of the National Internal Revenue Code of 1977. whether a citizen of the Philippines. Romulo Villa. par.000 1% Over P 5. Minister of Finance. Minister of Budget. Deputy Commissioner. Bureau of Internal Revenue. which provides for rates of tax on citizens or residents on (a) taxable compensation income.000 20. Ancheta.

or an alien residing in the Philippines determined in accordance with the following schedule: Not over P10.ph/sfsreader/session/000001613b1c20868b3fa76b003600fb002c009e/t/?o=False 6/14 .—A tax is hereby imposed upon the taxable net income as determined in Section 29 (a) received 659 VOL. For petitioner.000 Over P 30.” The prayer is for the dismissal of the petition for lack of merit. This Court finds such a plea more than justified.000 250.000 100. after two extensions were granted the8 Office of the Solicitor General.” The answer then affirmed: “Batas Pambansa Big. The petition must be dismissed.675 + 29% of excess over P P500. vs. oppressive and capricious in character. (b) reads: “(b) On taxable net income. 130. JULY 25.1/28/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 130 Over P 60. whether a citizen of the Philippines.000 but not over P 13. Such an answer. 1984 659 Sison. _______________ during each taxable year from all sources by every individual. opinions or conclusions on the part of the petitioner. Jr.675 + 24% of excess over P P250.000 but not over P 39. 1982.500 + 45% of excess over http://www.000 5% Over P 10. in a resolution of January 26. do not support petitioner’s stand. therefore.500 + 30% of excess over P 30.000 Over P500. The authorities and cases cited.central. The Court. was filed on May 28.000 but not over P 49.000 P100. 1982. Ancheta bitrary amounting to 5 class legislation. the truth [for them] being9 those stated [in their] Special and Affirmative Defenses. 135 is a valid exercise of the State’s power to tax.com.000 but not over P 6.000 Over P250.000 Over P150.000 Par.000 P150.000 P 122.000 but not over P 3.175 + 35% of excess over P 500.000 30.075 + 19% of excess over P 60.000 Over P100. there is a transgression 6 of both the equal protection and due process clauses of the Constitution 7 as well as of the rule requiring uniformity in taxation. The facts as alleged were admitted but not the allegations which to their mind are “mere arguments. required respondents to file an answer within 10 days from notice. while correctly quoted 10 or paraphrased.000 but not over P P 500 + 15% of excess over P 10.

’ continue to lose their well- defined boundaries and to be absorbed within activities that the government must undertake in its sovereign capacity if it is to11meet the increasing social challenges of the times. Mendoza. taxes being the lifeblood of the government. He was assisted by Assistant Solicitor General Eduardo D. 6.1/28/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 130 P500. The Constitution sets forth such limits. and only ‘because it was better equipped to administer for the public welfare than is any private individual or group of individuals. Ancheta 1. The Batasang Pambansa shall evolve a progressive system of taxation. 13It is the strongest of all the powers of government. to borrow from Justice Malcolm. liberty or property without due process of law. an inherent prerogative. par.central.000 Over P500. Montenegro and Solicitor Erlinda B.000 + 60% of excess over P500. Statement. Jr. Masakayan. par. par. vs. The reason was so clearly set forth by retired Chief Justice Makalintal thus: “The areas which used to be left to private enterprise and initiative and which the government was called upon to enter optionally. Section 7. 4.com.000 5 Ibid. Section 1 of the Constitution reads: “No person shall be deprived of life. 1-6. It is the source of the bulk of public funds. It is manifest that the field of state activity has assumed a much wider scope. their 12 prompt and certain availability is of the essence. The power to tax.” It is.000 P150. to be admitted that for all its plenitude. (1) of the Constitution reads: “The rule of taxation shall be uniform and equitable.” 7 Article VII. “is an attribute of sovereignty. The power to tax moreover. 6 Article IV. 9 Answer. 660 660 SUPREME COURT REPORTS ANNOTATED Sison.000 P197. pars. 2. of course.” Hence the need for more revenues. There are restrictions. nor shall any person be denied the equal protection of the laws. has to be availed of to assure the performance of vital state functions. 10 Ibid. the power to tax is not unconfined. To paraphrase a recent decision. http://www.” 8 It was filed by Solicitor General Estelito P.ph/sfsreader/session/000001613b1c20868b3fa76b003600fb002c009e/t/?o=False 7/14 .

4 Wheaton 316. Ancheta phasize that it is not and there cannot be such a constitutional mandate. 489. both the due process and equal protection clauses may properly be invoked. 12 Cf. In any case therefore where it can be demonstrated that the challenged statutory provision—as petitioner here alleges—fails to abide by its command. per Castro. 130. Confederation of Unions in Government Corporation and Offices. 1979. vs. Justice Frankfurter. Jr. Justice Frankfurter could rightfully conclude: “The web of unreality spun from Marshall’s famous dictum was brushed away by one stroke of Mr. JULY 25. 1984 661 Sison. 252. there would be truth to the 1803 dictum of Chief Justice Marshall that14 “the power to tax involves the power to destroy. Justice Holmes’s pen: The power to tax17 is not the power to destroy while this Court sits. 40 Phil.com. The inquiry thus is centered on the question of whether the imposition of a higher tax http://www. after referring to it as an “unfortunate remark. Vera v.1/28/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 130 Adversely affecting as it does property rights. 262 (1919).’ ” So it is in the Philippines. 16 Ibid.” This is merely to em- _______________ 11 Agricultural Credit and Cooperative Financing Administration v. 662. March 30. This Court then is left with no choice. Fernandez.” 15 In a separate opinion in Graves v. then this Court must so declare and adjudge it null. as petitioner does. to invalidate in appropriate cases a revenue measure. 15 306 US 466 (1938). If it were otherwise.” characterized it as “a flourish of rhetoric [attributable to] the intellectual fashion 16 of the times [allowing] a free use of absolutes. J. L-31364. 661 VOL. New York. 30 SCRA 649. The Constitution as the fundamental law overrides any legislative or executive act that runs counter to it. Trinidad.ph/sfsreader/session/000001613b1c20868b3fa76b003600fb002c009e/t/?o=False 8/14 . November 29. 14 McCulloch v. Maryland.central. 13 Sarasola v. 3. L-21484. 1969. 89 SCRA 199.

39 Phil. The difficulty confronting petitioner is thus apparent. Likewise referred to is O’Gorman and Young v. Jr. 5. 102. 315 (1967). Daet.com.S. 18 Cf. 18 the presumption of validity must prevail. or is not for a public purpose. or. Hartford Fire Insurance Co. there is a need for proof of such persuasive character as would lead to such a conclusion. Salaveria. vs. Hon. It has also been held that where the assailed tax measure is beyond the jurisdiction of the state. in case of a retroactive statute is so harsh and unreasonable.1/28/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 130 rate on taxable net income derived from business or profession than on compensation is constitutionally infirm. He alleges arbitrariness. There must be a factual foundation of such unconstitutional taint. 111 (1918) and Eboña v. considering that they are not fixed rules but rather broad standards. http://www. Ermita-Malate Hotel and Motel Operators Association v. 369 (1950). 662 662 SUPREME COURT REPORTS ANNOTATED Sison. Considering that petitioner here would condemn such a provision as void on its face. It then becomes the duty of this Court to say that such an arbitrary act amounted to the _______________ 17 Ibid. 490.ph/sfsreader/session/000001613b1c20868b3fa76b003600fb002c009e/t/?o=False 9/14 . A mere allegation. v. Ancheta exercise of an authority not conferred That properly calls for the application of the Holmes dictum. It is undoubted that the due process clause may be invoked where a taxing statute is so arbitrary that it finds no support in the Constitution. he has not made out a case. does not suffice. 4. City Mayor. 85 Phil. 127 Phil. That would be a clear abuse of power. U. 306.. 282 US 251. as here. 328 (1931). This is merely to adhere to the authoritative doctrine that where the due process and equal protection clauses are invoked.central. An obvious example is where it can be shown to amount to the confiscation of property. Absent such a showing. 19 it is subject to attack on due process grounds.

January 31. JULY 25. those that fall within a class should be treated in the same fashion. 934 (1956). 1984 663 Sison. which is of the very essence of _______________ 19 Cf. 127 SCRA 329. 1984. 70 Phil. G.R. Manila Gas Co. L-21064. 339.com. Wells Fargo Bank and Union Trust Co. de Fernandez. v. Jr. to avoid the charge that there is a denial of this constitutional mandate whether the assailed act is in the exercise of the police power or the power of eminent domain is to demonstrate “that the governmental act assailed. 130. The equal protection clause is. The applicable standard 6. Republic v. whatever restrictions cast on some 20 in the group equally binding on the rest. both in the privileges conferred and the liabilities imposed. vs. discrimination that finds no support in reason. Ancheta http://www. The Land Tenure Administration. Favoritism and undue preference cannot be allowed. For the principle is that equal protection and security shall be given to every person under circumstances.central. or at the very least. No. Juinio.M. It suffices then that the laws operate equally and uniformly on all persons under similar circumstances or that all persons must be treated in the same manner. Tuason and Co. Oasan Vda. The former deals with an eminent domain proceeding and the latter with a suit contesting the validity of a police power measure. 99 Phil. 20 The excerpt is from the opinion in J. 50908. 31 SCRA 413. v. Collector of Internal Revenue. 325 (1940). the conditions not being different.ph/sfsreader/session/000001613b1c20868b3fa76b003600fb002c009e/t/?o=False 10/14 .1/28/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 130 Now for equal protection. 435 and reiterated in Bautista v. inspired by the noble concept of approximating the ideal of the laws’s benefits being available to all and the affairs of men being governed by that serene and impartial uniformity. Collector. 663 VOL.” That same formulation applies as well to taxation measures. 62 Phil. v. far from being inspired by the attainment of the common weal was prompted by the spirit of hostility. If law be looked upon in terms of burden or charges. which if not identical are analogous. 1970. February 18. of course. 895 (1936).

through Justice J. Reyes. The Fourteenth Amendment enjoins ‘the equal protection of the laws. this Court. 420 (1940). as well as realism. but are expressions of policy arising out of specific difficulties.” This requirement is met according to Justice 25 Laurel in Philippine Trust Company v.com. however. 147 (1940). 1. There is. and it has been repeatedly held that ‘inequalities which result from a singling out of one particular class for taxation.” Hence the constant reiteration of the view that classification if rational in character is allowable. According to the Constitution: “The 24 rule of taxation shall be uniform and equitable.central.’ and laws are not abstract propositions. http://www.B. Yatco. in a leading case of Lutz V.’ ” 7. The Constitution does not require things which are different in fact or opinion to21 be treated in law as though they were the same.L. first sentence of the Constitution. Petitioner likewise invoked the kindred concept of uniformity. 23 Ibid. As a matter 22 of fact. par. 310 US 141. 25 69 Phil. addressed to the attainment of specific ends by the use of specific remedies.ph/sfsreader/session/000001613b1c20868b3fa76b003600fb002c009e/t/?o=False 11/14 . 426. Section 17.” He likewise added: “The rule of uniformity does not call for perfect uniformity or perfect 27 equality. 148 (1955). 424. it is inherent in the power to tax that a state be free to select the subjects of taxation. They do not relate to abstract units A. Araneta. wisdom. decided in 1940. or 23exemption infringe no constitutional limitation. 24 Article VIII. 22 98 Phil. when the Supreme Court held: “Equality and uniformity in taxation means that all taxable articles or kinds of property of _______________ 21 Tigner v. It did not arise until nine years later. when the tax “operates with the same force and effect 26 in every place where the subject may be found. 26 Ibid. in these words of Justice Frankfurter: “The equality at which the ‘equal protection’ clause aims is not a disembodied equality. Texas. because this is hardly attainable.” The problem of classification did not present itself in that case. 27 Ibid. went so far as to hold “at any rate.1/28/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 130 the idea of law. B and C. 153.

As there is practically no overhead expense. in the case of professionals in the practice of their calling and businessmen. On the other hand. Further on this point. Apparently. As clarified by Justice Tuason.” There is quite a similarity then to the standard of equal protection for all that is required is that the tax “applies equally to all persons. these taxpayers are not entitled to make deductions for income tax purposes because they are in the same situation more or less. Taxpayers who are recipients of compensation income are set apart as a class. there is no uniformity in the costs or expenses necessary to produce their income. Taxpayers may be classified into different categories. where “the differentiation” complained of “conforms to the practical dictates of justice and equity” it “is not discriminatory within the meaning29 of this clause and is therefore uniform. There is ample justification then for the Batasang Pambansa to http://www. it is enough that the classification must rest upon substantial distinctions that make real differences. There is no legal objection to a broader tax base or taxable income by eliminating all deductible items and at the same time reducing the applicable tax rate.com. It would not be just then to disregard the disparities by giving all of them zero deduction and indiscriminately impose on all alike the same tax rates on the basis of gross income. Ancheta the same class shall be taxed at the same rate. firms 30 and corporations placed in similar situation.ph/sfsreader/session/000001613b1c20868b3fa76b003600fb002c009e/t/?o=False 12/14 . 135.central. Jr. what misled petitioner is his failure to take into consideration the distinction between a tax rate and a tax base. vs.1/28/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 130 664 664 SUPREME COURT REPORTS ANNOTATED Sison. The taxing power has the authority to make reasonable and natural 28 classifications for purposes of taxation. the discernible basis of classification is the susceptibility of the income to the application of generalized rules removing all deductible items for all taxpayers within the class and fixing a set of reduced tax rates to be applied to all of them.” 8. * * *. In the case of the gross income taxation embodied in Batas Pambansa Blg. To repeat.

1/28/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 130 adopt the gross system of income taxation to compen- _______________ 28 Eastern Theatrical Co. J. vs. In fact. 29 Manila Race Horse Trainers Asso. in the result. 93 Phil. Gutierrez. JULY 25. while continuing the system of net income taxation as regards professional and business income. Jr. WHEREFORE. This is a frivolous suit. Jr.           Aquino. Nothing can be clearer.. (2) the force of controlling doctrines on due process. 30 Uy Matias v. Guerrero. 300 (1953). 60. De la Fuente.. J.. Jr..com.           Makasiar. JJ. Escolin. 862 (1949). 88 Phil. 130. the reverse will most likely be the case.      Plana. 852. those who file returns on the basis of net income will pay less taxes because they can claim all sorts of deductions justified or not. v.      Abad Santos. than that the petition is without merit.. Concepcion. Alfonso. v. concur. 1984 665 Sison. Relova. 65 (1951). J... therefore. considering the (1) lack of factual foundation to show the31 arbitrary character of the assailed provision. http://www.ph/sfsreader/session/000001613b1c20868b3fa76b003600fb002c009e/t/?o=False 13/14 . 665 VOL. equal protection. Costs against petitioner. City of Cebu. While the tax rates for compensation income are lower than those for net income such circumstance does not necessarily result in lower tax payments for those receiving compensation income. Ancheta sation income.central. J.      Teehankee. I vote for dismissal. 83 Phil. and uniformity in taxation and (3) the reasonableness of the distinction between compensation and taxable net income of professionals and businessmen—certainly not a suspect classification. Melencio- Herrera. In the result. the petition is dismissed. De la Fuente and Cuevas. The petitioner has no cause of action for prohibition. did not take part. 9.

De la Cruz without delay. All rights reserved. (Roxas vs. 21 SCRA 105. Inc. (Collector of Internal Revenue vs.1/28/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 130 Petition dismissed.central. Court of Tax Appeals.) ——o0o—— © Copyright 2018 Central Book Supply. (Commissioner of Internal Revenue vs. Notes. Yuseco. 3 SCRA 313. 31 public respondents refuted with other figures that argue against his submission. http://www.) Taxes are the lifeblood of government and their prompt and certain availability is an imperious need. absent an admission in the answer.ph/sfsreader/session/000001613b1c20868b3fa76b003600fb002c009e/t/?o=False 14/14 .com.—Taxes being the chief source of revenue for the Government to keep it running must be paid immediately and _______________ While petitioner cited figures to sustain his assertion. 666 666 SUPREME COURT REPORTS ANNOTATED De la Cruz vs.) The power of taxation should be exercised with caution to minimize injury to the proprietary rights of a taxpayer. One reason for requiring declaratory relief proceedings to start in regional trial courts is precisely to enable petitioner to prove his allegation. Pineda. 23 SCRA 276.