14.

INHERENT LIMITATIONS
a. Public Purpose
Pascual vs. Secretary of Public Works, ​GR No. L-10405, Dec. 29, 1960
Tio v. Videogram Regulatory Board​, G.R. 75697, June 1987
b. Inherently Legislative
General Rule: No delegation of the power to tax
Exceptions:
1) Authority of the President on tariff rates (Sec. 28[2], Art. VI, 1987 Constitution,
Sec. 401 of the Tariff and Customs Code)
2) Power of LGUs to Tax
3) Implementation by administrative agencies

Pepsi Cola Bottling Co. of the Phils. vs. Municipality of Tanauan​, GR No. L-31156
dated February 27, 1976
Abakada Guro Party List vs. Executive Secretary​, GR No. 168056 dated September
1, 2005
Garcia vs. The Executive Secretary​, GR No. 101273 dated July 3, 1992
CIR vs. CA​, GR No. 119761 dated August 29, 1996
c. Territorial (Situs) of Taxation
d. International Comity
Sec. 2, Art. II of the 1987 Constitution
Sec. 37(b)(7)(a) of the NIRC
Sec. 159 of the Local Government Code

e. Exemption of the Government

GOCCs – Sec. 27(C) of the NIRC
Sec. 133(o) of the Local Government Code
Manila International Airport Authority vs. CA​, GR No. 155650 dated July 20, 2006
Board of Assessment of Appeals of Laguna vs. CTA​, G.R. No. L-18125, May 31, 1963
15. CONSTITUTIONAL LIMITATIONS
a. Due Process and Equal Protection (Art. III, Sec. 1, 1987 Constitution)
Tan vs. Del Rosario​, GR No. 109280 dated October 3, 1994
PAGCOR vs. The BIR​, GR No. 172087 dated March 15, 2011
Victorias Milling Co., Inc. vs. Municipality of Victoria​, G.R. No. L-21183, September
27, 1968
b. Prohibition against imprisonment for non-payment of poll tax (Art. III, Sec. 20, 1987
Constitution)
c. Uniformity and Equality of Taxation (Art. III, Sec. 28[1], 1987 Constitution)
Tolentino vs. Secretary of Finance​, GR No. 115455 dated October 30, 1995
Abakada Guro Party List vs. Executive Secretary​, GR No. 168056 dated September
1, 2005
Tan vs. Del Rosario​, GR No. 109280 dated October 3, 1994
d. Non-impairment of contracts (Art. III, Sec. 10, 1987 Constitution)
Grant of Franchise (Art. XII, Sec. 11, 1987 Constitution)
 Meralco vs. Province of Laguna​, GR No. 131359 dated May 5, 1999
Smart Communications, Inc. vs. City of Davao​, GR No. 155491 dated September 16,
2008
e. Infringement of Religious Freedom (Art. III, Sec. 5, 1987 Constitution)
American Bible Society vs. City of Manila​, GR No. L-9637 dated April 30, 1957
Tolentino vs. Secretary of Finance​, GR No. 115455 dated October 30, 1995
f. Infringement of Press Freedom (Art. III, Sec. 4, 1987 Constitution)
Tolentino vs. Secretary of Finance​, GR No. 115455 dated October 30, 1995
g. Exemption of Religious, Charitable and Educational Institutions from property tax
(Art. VI, Sec. 28[3], 1987 Constitution)
CIR vs. CA​, GR No. 124043 dated October 14, 1998
Lung Center of the Philippines vs. Quezon City​, GR No. 144104 dated June 29, 2004
Province of Abra vs. Hernando​, G.R. No. L-49336, August 31, 1981
h. Exemption of non-stock, non-profit educational institutions from tax (Art. XIV, Sec.
4[3], 1987 Constitution)
Sec. 27(B) and Sec. 30, NIRC
CIR vs. De La Salle University, Inc​., GR No. 196596, November 9, 2016
i. Prohibition on use of tax levied for special purpose (Art. VI, Sec. 29, 1987
Constitution)
Osmena vs. Orbos​, GR No. 99886 dated March 31, 1993
j. Origin of Appropriation, Revenue and Tariff Bills (Art. VI, Sec. 24, 1987 Constitution)
Tolentino vs. Secretary of Finance​, GR No. 115455 dated October 30, 1995
k. Grant of Tax Exemption (Art. VI, Sec. 28, 1987 Constitution)
l. Non-impairment of Supreme Court’s jurisdiction (Art. VIII, Sec. 2 and 5, 1987
Constitution)