Criteria for determining license fees

 
1.       Imposition must relate to an occupation or activity which involves the health, morals,
safety and development of the people and which needs regulation for the protection and
promotion of the public interest.
 
2.       Imposition must also bear a reasonable relation to the probable expenses of regulation,
taking into account the costs of direct regulation as well as the incidental expenses.
 
Instances when license fees could exceed cost of regulation, control or administration
 
1.       When the collection or the license fee is authorized under both the power of taxation and
police power
 
2.       When the license fee is collected to regulate a non-useful occupation
 
Special assessment v. tax
 
1.       A special assessment is an enforced proportional contribution from owners of lands
specially or peculiarly benefited by public improvements.
 
2.       A special assessment is levied only on land.
 
3.       A special assessment is not a personal liability of the person assessed; it is limited to the
land.
 
4.       A special assessment is based wholly on benefits, not necessity.
 
5.       A special assessment is exceptional both as to time and place; a tax has general
application.
 
Republic v. Bacolod Murcia, 17 SCRA 632
 
                     A special assessment is a levy on property which derives some special benefit from
the improvement. Its purpose is to finance such improvement. It is not a tax measure
intended to raise revenues for the government. The proceeds thereof may be devoted to
the specific purpose for which the assessment was authorized, thus accruing only to the
owners thereof who, after all, pay the assessment.
 
Some rules:
 
                     An exemption from taxation does not include exemption from a special assessment.
 
                     The power to tax carries with it the power to levy a special assessment.
 
*What is BIR?
The Bureau of Internal Revenue is an agency of Department of Finance. BIR collects
more than half of the total revenues of the government. Caesar Dulay is the current
Commissioner of BIR.
MANDATE
The Bureau of Internal Revenue shall be under the supervision and control of the
Department of Finance and its powers and duties shall comprehend the assessment
and collection of all national internal revenue taxes, fees, and charges, and the
enforcement of all forfeitures, penalties, and fines connected therewith, including the
execution of judgments in all cases decided in its favor by the Court of Tax Appeals and
the ordinary courts. The Bureau shall give effect to and administer the supervisory and
police powers conferred to it by this Code or other laws. (Section 2 of the National
Internal Revenue Code of 1997)

MISSION
We collect taxes through just enforcement of tax laws for nation-building and the
upliftment of the lives of Filipinos

VISION The Bureau of Internal Revenue is an institution of service excellence and

integrity.

GUIDING PRINCIPLE "Service Excellence with Integrity and Professionalism"

*What are the policies that govern BIR?

National Tax Law

I. 1987 Constitution

The 1987 Philippine Constitution sets limitations on the exercise of the power to tax.
The rule of taxation shall be uniform and equitable.
 All money collected on any tax levied for a special purpose shall be treated as a
special fund and paid out for such purpose only.
 The Congress may, by law, authorize the President to fix within specified limits, and
subject to such limitations and restriction
 The Supreme Court shall have the power to review, revise, reverse, modify or
affirm on appeal or certiorari, as the law or the Rules of Court may provide, final
judgments and orders of lower courts
*What is BIR?
The Bureau of Internal Revenue is an agency of Department of Finance. BIR collects
more than half of the total revenues of the government. Caesar Dulay is the current
Commissioner of BIR.
MANDATE
The Bureau of Internal Revenue shall be under the supervision and control of the
Department of Finance and its powers and duties shall comprehend the assessment
and collection of all national internal revenue taxes, fees, and charges, and the
enforcement of all forfeitures, penalties, and fines connected therewith, including the
execution of judgments in all cases decided in its favor by the Court of Tax Appeals and
the ordinary courts. The Bureau shall give effect to and administer the supervisory and
police powers conferred to it by this Code or other laws. (Section 2 of the National
Internal Revenue Code of 1997)

MISSION
We collect taxes through just enforcement of tax laws for nation-building and the
upliftment of the lives of Filipinos

VISION The Bureau of Internal Revenue is an institution of service excellence and

integrity.

GUIDING PRINCIPLE "Service Excellence with Integrity and Professionalism"

*What are the policies that govern BIR?

National Tax Law

I. 1987 Constitution

The 1987 Philippine Constitution sets limitations on the exercise of the power to tax.
The rule of taxation shall be uniform and equitable.
 All money collected on any tax levied for a special purpose shall be treated as a
special fund and paid out for such purpose only.
 The Congress may, by law, authorize the President to fix within specified limits, and
subject to such limitations and restriction
 The Supreme Court shall have the power to review, revise, reverse, modify or
affirm on appeal or certiorari, as the law or the Rules of Court may provide, final
judgments and orders of lower courts