Tax 008

1. Like other statutes, tax laws operate prospectively, whether they enact, amend or repeal, unless
the purpose of the legislature to give retrospective effect is expressly declared or may be implied
from the language used.
2. Unless a statute imposes a tax clearly, expressly and unambiguously, what applies is the equally
well-settled rule that the imposition of a tax cannot be presumed. Where there is doubt, tax laws
must be construed strictly against the government and in favor of the taxpayer.
3. In the exercise of the power of taxation, the State can tax anything at any time. A person may
refuse to pay on the ground that he will not receive a benefit from the tax.
4. In case of ambiguity, tax laws shall be interpreted liberally in favor of the government.
5. An assessment of a deficiency is not necessary to a criminal prosecution for willful attempt to
defeat and evade the income tax.
6. BIR Rulings are the official position of the Bureau to queries raised by taxpayers and other
stakeholders relative to clarification and interpretation of tax laws.
7. Unless and until the position is reversed, the taxpayer can rely upon the ruling as issued. In the
event of reversal, it cannot apply retroactively if prejudicial to the taxpayer except in those cases
provided for under the law.
8. Bills are laws in the making. They pass into law when they are approved by both houses and the
President of the Philippines.
9. All of them are correct.
10. The law on prescription being a remedial measure should be interpreted in a way conducive to
bringing about the beneficent purpose of affording protection to the taxpayer within the
contemplation of the Commission which recommended the approval of the law.
11.