WHAT IS TAXATION

It is the mode by which governments make exactions for revenue in order to support their
existence and carry out legitimate objectives

One of the inherent powers of a State.

A.

THEORY AND BASIS OF TAXATION

B.

Lifeblood Taxes are the lifeblood of the State through which the government continues to operate
Doctrine and with which the State effects its functions for the welfare of its constituents

Benefits- It is said that taxes are what we pay for civilized society. Without taxes, the government
Protection would be paralyzed for lack of the motive power to activate and operate it. Hence,
Theory despite the natural reluctance to surrender part of one's hard earned income to the taxing
authorities, every person who is able to must contribute his share in the running of the
government. The government, for its part, is expected to respond in the form of tangible
and intangible benefits intended to improve the lives of the people and enhance their
moral and material values. This symbiotic relationship is the rationale of taxation and
should dispel the erroneous notion that it is an arbitrary method of exaction by those in
the seat of power. [Comm. V. Algue, G.R. No. L-28896 February 17, 1988]

Necessity The power to tax is an attribute of sovereignty. It is a power emanating from necessity. It
Theory is a necessary burden to preserve the State's sovereignty and a means to give the
citizenry an army to resist an aggression, a navy to defend its shores from invasion, a
corps of civil servants to serve, public improvement designed for the enjoyment of the
citizenry and those which come within the State's territory, and facilities and protection
which a government is supposed to provide. [Phil. Guaranty Co. vs. Commissioner, L-
22074, April 30, 1965]

Scope and The power to impose taxes is so unlimited in force and so searching in extent, that the
Limitations courts scarcely venture to declare that it is subject to any restrictions whatsoever, except
such as rest in the discretion of the authority which exercises it. No attribute of
sovereignty is more pervading, and at no point does the power of the government affect
more constantly and intimately all the relations of life than through the exactions made
under it. [Churchill vs. Tait]

It is, of course, to be admitted 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 properly rights, both the due process and equal protection clauses may properly be
invoked, all petitioner does, to invalidate in appropriate cases a revenue measure.

The remedy of a suit to recover back the tax after it is paid, is provided by statute, and a
suit to restrain its collection is forbidden. The remedy so given is exclusive, and no other
remedy can be substituted for it. That taxes must be collected promptly is a policy
deeply entrenched in our tax system. Thus, no court is allowed to grant injunction to
restrain the collection of any internal revenue tax.

A.

DIFFERENCE OF INHERENT POWERS

 B.

TAX POLICE POWER EMINENT DOMAIN

AUTHORITY Government or political Government or Government or

subdivision political public utilities/public
subdivision service companies

PURPOSE Income generation Promote general Taking of private

welfare via property for public
regulations purpose

PERSONS Community of class of Community or Owners of private

AFFECTED individuals class of property
individuals

AMOUNT No limit (XPN: Inherent and Only to the cost of Just compensation
Consti limitations) regulation to the owner

BENEFITS No direct benefit No direct benefit Just compensation

RECEIVED

NON- Tax laws generally do not Contracts may be Contracts may be

IMPAIRMENT impair contracts unless impaired impaired
OF government is a party to a
CONTRACTS contract granting tax
exemption for a consideration

PROPERTY Taxes are part of public No taking of Private property

RIGHTS property property but only becomes property of
restriction of use the State

SCOPE All persons, property, All persons, Private property

activities property, activities

A.

PRINCIPLES OF SOUND TAX SYSTEM

B.

FISCAL ADEQUACY THEORETICAL JUSTICE ADMINISTRATIVE

FEASIBILITY

Sources of revenue must be Fair to the average Operate with the least
adequate to meet the needs of taxpayer and based on inconvenience to the
government expenditures ability to pay taxpayer

CONSTITUTIONAL LIMITATIONS
A.

BILL OF RIGHTS

B.
DUE EQUAL UNIFORMITY NON- NON-
PROCESS PROTECTION OF TAXATION IMPAIRMENT IMPRISONMENT
(an application OF FOR NON-
of the Equal CONTRACTS PAYMENT OF
Protection POLL TAX
Clause)
The opportunity of a The equal protection Uniformity in taxation GR: Valid contracts “No person shall be
person to be heard; clause under the means that all taxable may not be impaired by imprisoned for debt or
the reasonable Constitution means articles or kinds of the State non-payment of a poll
connection between that "no person or property of the same XPN: Void contracts,
tax”
the subject of the class of persons shall class shall be taxed at which are against the
law and the means be deprived of the the same rate. Different law, public policy,
used to attain the same protection of articles may be taxed at public morals, etc. Poll Tax - fixed amount
goals of such laws which is enjoyed different amounts imposed on a person
subject by other persons or provided that the rate is As to tax residing in a certain
other classes in the uniform on the same A franchise charter is in territory or area (ex.
The distinction same place and in like class everywhere with the nature of a private Community Tax or
between statutory circumstances all people at all times. contract, the imposition Cedula)
privileges and of another franchise tax
vested rights must However, valid on the corporation by
be borne in mind for classification may be the local authority
persons have no done on the grounds would constitute an
vested rights in of: impairment of the
statutory privileges. (a) The classification is contract between the
Hence, no violation germane to the government and the
of due process if purposes of the law corporation
what was taken (b) The classification is
away is a statutory based on substantial HOWEVER, in a
privilege and real differences number of cases, the
(c) Applies not only to legislature can take
The due process present conditions but away the exemption
clause is violated if also to future given to corporations
a tax serves a conditions similar to by a franchise charter
private rather than a those in the present with a law to that effect,
public purpose, (d) Applies to all the since a franchise is
involves members of the same likewise provided by
extraterritorial class legislation
taxation, or uses
arbitrary methods.
However, a tax
doesn't violate due
process simply
because it results in
injury rather than
benefit to a
particular taxpayer.

A.

IMPOSITION OF TARIFFS

B.

“The Congress may, by law, authorize the President to fix within specified limits, and subject
to such limitations and restrictions as it may impose, tariff rates, import and export quotas,
tonnage and wharfage dues, and other duties or imports within the framework of the National
development program of the Government”

A.
 CHARITABLE INSTITUTIONS

B.

Art. VI Sec 28 (3) “Charitable institutions, churches

and personages or convents appurtenant thereto,
mosques, non-profit cemeteries, and all lands,
buildings, and improvements actually, directly, and
exclusively used for religious charitable, or
educational purposes shall be exempt from
taxation.” (PERTAINS ONLY TO THE
ASSETS/PROPERTIES)

Assets, on the other hand, are the tangible

and intangible properties owned by a
person or entity

Art. XIV Sec. 4 (3) “Charitable institutions,

churches and personages or convents appurtenant
thereto, mosques, non-profit cemeteries, and all
lands, buildings, and improvements actually,
directly, and exclusively used for religious
charitable, or educational purposes shall be
exempt from taxation.” (PERTAINS NOW TO THE
INCOME/REVENUE)

Revenues consist of the amounts earned

by a person or entity from the conduct of
business operations

RULES in applying both exemptions:

An educational institution, when used in

laws granting tax exemptions, refers to the
school system; it includes a college or an
educational establishment; it refers to the
hierarchically structured and chronologically
graded learnings organized and provided
by the formal school system.




An institution does not lose its charitable

character, and consequent exemption from
taxation, by reason of the fact that those
recipients of its benefits who are able to pay
are required to do so, where no profit is
made by the institution and the amounts so
received are applied in furthering its
charitable purposes, and those benefits are
refused to none on account of inability to
pay therefor.




When a non-stock, non-profit educational

institution proves that it uses its revenues
actually, directly, and exclusively for
educational purposes, it shall be exempted
from income tax, VAT, and LBT. On the
other hand, when it also shows that it uses
its assets in the form of real property for
educational purposes, it shall be exempted
from RPT




The crucial point of inquiry then is on the

use of the assets or on the use of the
revenues. These are two things that must
be viewed and treated separately. But so
long as the assets or revenues are used
actually, directly and exclusively for
educational purposes, they are exempt
from duties and taxes.




PLEASE TAKE NOTE: BOTH Assets and

Revenues need to be ACTUALLY,
DIRECTLY, and EXCLUSIVELY USED for
charitable, educational, etc. purposes
(Systems Plus, Lung Center)

Since 1973 and 1987 Constitution

are more restrictive




What is meant by actual, direct and

exclusive use of the property for
charitable purposes is the direct and
immediate and actual application of
the property itself to the purposes
for which the charitable institution is
 organized.

TWO KINDS OF EDUCATIONAL INSTITUTION

(as provided in CIR vs. DLSU)

NON- STOCK, NON-PROFIT PROPRIETARY

The tax exemption granted to non-stock,
non-profit educational institutions is conditioned
only on the actual, direct and exclusive use of their
revenues and assets for educational purposes.
A plain reading of the Constitution would show that
Article XIV, Section 4 (3) does not
require that the revenues and income must have
also been sourced from educational activities or
activities related to the purposes of an educational
institution. The phrase all revenues is unqualified
by any reference to the source of revenues. Thus,
so long as the revenues and income are used
actually, directly and exclusively for educational
purposes, then said revenues and income shall be
exempt from taxes and duties
Tax exemptions may also be granted to
proprietary educational institutions,
these exemptions may be subject to
limitations imposed by Congress.
A proprietary educational institution is
entitled only to the reduced rate of 10%
corporate income tax. The reduced rate
is applicable only if: (1) the proprietary
educational institution is nonprofit and
(2) its gross income from unrelated
trade, business or activity does not
exceed 50% of its total gross income.
These limitations DO NOT APPLY to
non-stock, non-profit institutions.

A.

GRANT OF TAX EXEMPTIONS

B.

Art. VI Sec. 28 (4) “No law granting any tax exemption shall be passed without the
concurrence of a majority of all the members of the Congress.”

Tax exemptions as a general rule are construed strictly against the grantee and liberally in
favor of the taxing authority. The burden of proof rests upon the party claiming exemption to
prove that it is in fact covered by the exemption so claimed. The party claiming exemption
must therefore be expressly mentioned in the exempting law or at least be within its purview
by clear legislative intent.

A.

ALL MONIES COLLECTED FOR A SPECIAL PURPOSE

B.

Art. 6 Sec. 29 (3) “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. If the purpose for which a special fund
was created has been fulfilled or abandoned, the balance, if any shall be transferred to the
general funds of the Government.”
 A.

LINE-ITEM VETO POWER OF THE PRESIDENT

B.

VETO POWER OF THE PRESIDENT

GR: The President may only veto a bill itself and
not specific provisions only

XPN: Line-item veto power: (Sec. 27 (2) 1987

Constitution) The President shall have the power
to veto any particular item or items in an
appropriation, revenue, or tariff bill, but the veto
shall not affect the item or items to which he does
not object.

ITEM - refers to the particulars, the details, the

distinct and severable parts of the bill. It is an
indivisible sum of money dedicated to a stated
purpose. An ‘item’ of an appropriation bill
obviously means an item which in itself is a
specific appropriation of money, not some
general provision of law, which happens to be put
into an appropriation bill. (Gonzales vs.
Macaraig)

Can the President veto separate ITEMS

of an appropriation bill? YES.

PROVISIONS - Understood in the normal sense.

These are the qualifications, conditions,
limitations or restrictions on expenditure of funds.
(Supra)

Can the President veto provisions of an

appropriation bill? DEPENDS (Gonzales,
Philconsa)

APPROPRIATE PROVISION INAPPROPRIATE PROVISION

A provision which Congress can include in an
appropriations bill must "relate specifically to
some particular appropriation therein" and "be
limited in its operation to the appropriation to
which it relates”
Can it be vetoed separately: NO
Any provision which does not relate to any
particular item, or which extends in its
operation beyond an item of appropriation.
Also to be included are unconstitutional
provisions and provisions which are
intended to amend other laws, because
 clearly these kinds of laws have no place
 in an appropriations bill.

Inherent in the power of appropriation is Can it be vetoed separately: YES.

the power to specify how the money shall
be spent. The said provisos, being
appropriate provisions, cannot be vetoed
separately. (Philconsa)
 general appropriation bill, such

When the legislature inserts
inappropriate provisions in a
provisions must be treated as
"items" for purposes of the
Governor's item veto power over
general appropriation bills.
(Philconsa)

A.

POWER OF THE SUPREME COURT ON TAX ISSUES

B.

Review, revise, reverse, modify, or affirm on appeal or certiorari, as the law or the Rules of
Court may provide, final judgements and orders of the lower courts in:

(a) All cases in which the constitutionality or validity of any treaty, international or executive
agreement, law, presidential decree, proclamation, order, instruction, ordinance, or regulation
is in question.
(b) All cases involving the legality of any tax, impost, assessment, or toll, or any penalty
imposed in relation thereto.
(c) All cases in which the jurisdiction of any lower court is in issue.
(d) All criminal cases in which the penalty imposed is reclusion Perpetua or higher.
(e) All cases in which only an error or question of law is involved.

A.

LOCAL GOVERNMENT UNITS

B.

“Local government units shall have a just share, as determined by law, in the national taxes
which shall be automatically released to them.”

A.

FREEDOM OF RELIGIOUS WORSHIP

B.
“ No law shall be made respecting an establishment of religion, or prohibiting the free exercise
thereof. The free exercise and enjoyment of religious profession and worship, without
discrimination or preference, shall forever be allowed. No religious test shall be required for
the exercise of civil or political rights.”

The constitutional guarantee of the free exercise and enjoyment of religious profession and
worship carries with it the right to disseminate religious information. Taxation cannot be used
to impair the exercise of such activity.

INHERENT LIMITATIONS (SPINE)

SITUS/TERRITORIALITY Taxing power is limited to the persons or property within the jurisdiction
of a state or government.

PUBLIC PURPOSE Power to tax must be exercised for public welfare, public interest, public
good. The effects of said tax must redound to public benefit.

INTERNATIONAL COMITY A State must recognize the generally-accepted principles of

international law, some of which limit the power of the government to
impose taxes on a sovereignty and its instrumentalities

NON-DELEGABILITY/ Power to Tax is a power that rests exclusively within the Legislature, as
INHERENTLY LEGISLATIVE provided by the Constitution.

As a general rule, it cannot be delegated further, save for certain limited

exceptions:
(a) President
(b) Admin agencies
(c) LGUs

EXEMPTION OF THE Taxing the government (or any of its instrumentalities) would result in
GOVERNMENT an absurd situation where “money is taken from one pocket then
transferred to another”

However, GOCCs can still be subjected to tax

CLASSIFICATION OF TAXES
A.

ACCORDING TO BURDEN

B.

DIRECT INDIRECT

When the person being taxed is the one When the liability of the tax falls to one person but
actually and directly liable the burden is passed to another

Income taxes VAT

A.

ACCORDING TO GRADATION

B.
 PROGRESSIVE REGRESSIV MIXED PROPORTIONAL
E

Rate of which increases as Based on a fixed percentage of the

the tax bases/bracket amount of the property, receipts
increases or other basis to be taxed

TAX VS OTHER FORMS OF EXACTIONS

TAX SPECIAL LEVY TOLL LICENSE DEBTS
FEES

NATURE Taxing Benefits Exercise of Right of Police Contractual

power obtained by the Ownership (usually Power Obligation
private owner of by private person)
land

PURPOS Generate Contribution of For the use of a Regulation Fulfillment of

E income private owner to certain property, of an obligation to
improvements reimbursement of activity or another
made by gov’t on costs incurred to privilege
his land construct the
property, and
income by private
person

SCOPE All Only on land Property (usually Right to Object under

persons, roads) exercise an contract
property, activity or
activities privilege

AMOUNT No ceiling Depending on Fixed amount, Only As agreed

as to the benefit determined by necessary by the
amount received private person to carry out parties
the
regulation

OTHER DOCTRINES OF TAXATION

Prospectivity of Tax Taxes may be imposed retroactively but unless expressed by law, taxes must
Laws only be imposed prospectively.

Internal revenue laws are not political in nature and as such were continued in
force during the period of enemy occupation and in effect were actually enforced
by the occupation government.

Retroactive application of tax laws is allowed if legislative intent is clear. A

statute should be considered as prospective in its operation, whether it enacts,
amends, or repeals x x x, unless the language of the statute clearly demands or
expresses that it shall have a retroactive effect.

Imprescriptibility of Unless otherwise provided by tax law itself, taxes are imprescriptible.
Taxes
Where, however, the taxpayer, although not required, files a return and declares
his tax liability, then the prescriptive periods may become operative.

The law on prescription; being a remedial measure, should be liberally construed

in order to afford such protection. As a corollary, the exceptions to the law on
prescription should perforce be strictly construed.
Double Taxation In order to constitute double taxation in the objectionable or prohibited sense

the same property must be taxed twice when it should be taxed but once;




both taxes must be imposed on the same property or subject-matter,




for the same purpose, by the same State, Government, or taxing

authority,




within the same jurisdiction or taxing district,




during the same taxing period, and




they must be the same kind or character of tax."

Double taxation becomes obnoxious only where the taxpayer is taxed twice for
the benefit of the same governmental entity.

POWER TO TAX IS The doctrine seeks to describe, in an extreme, the consequential nature of
THE POWER TO taxation and its resulting implications to wit:
DESTROY
a.

the power to tax must be exercised with caution to minimize injury to the
propriety rights of a taxpayer; but

b.
c.

if the tax is lawful and not violate of any of the inherent and constitutional
limitations, the fact alone that it may destroy an activity or object of
taxation will not entirely permit the courts to afford any relief; and

d.
e.

a subject or object that may not be destroyed by the taxing authority may
 not likewise be taxed.

f.

Thus a tax may not be imposed on the exercise of a fundamental right since to
otherwise permit it would amount to destroying that fundamental right.

The power to tax is not the power to destroy while this Court sits
- Justice Holmes

Escape from Taxation Most common ways used by taxpayer in escaping from taxation

1.

Tax avoidance

2.

The tax saving device within the means sanctioned by law.




Should be used by the taxpayer in good faith and at arms length.

1.

Tax Evasion

2.

A scheme sussed outside of those lawful means and, when availed of, it
usually subjects the taxpayer to further or additional civil or criminal
liabilities

A tax evader breaks the law, the tax avoider sidesteps it.

Doctrine of Equitable The doctrine of equitable recoupment means that when a refund of a tax illegally
Recoupment or erroneously collected or overpaid by a taxpayer is barred by the statute of
limitations and a tax is being presently assessed against said taxpayer, said
present tax may be recouped or set-off against the tax, the refund of which has
been barred.

The same thing would have been true where the government has failed to collect
a tax within the period of limitation and said collection is already barred, and the
 taxpayer has to its credit a tax illegally or erroneously collected or overpaid,
whose refund is not yet barred, the government need not make refund of all the
tax illegally or erroneously collected, but it may set off against it the tax whose
collection is barred by the statute of limitations.

Set-off of Taxes Taxes are not subject to set off or legal compensation.

Requisites of legal compensation

a.

that each one of the obligors be bound principally, and that he be at the
same time a principal creditor of the other;

b.
c.

that both debts consist in a sum of money, or if the things due are
consumable, they be of the same kind, and also of the same quality if the
latter has been stated;

d.
e.

that the two debts be due;

f.
g.

that they be liquidated and demandable; and

h.
i.

that over neither of them there be any retention or controversy,

commenced by third persons and communicated in due time to the
debtor.

j.

Taxpayer Suit It is only when an act complained of, which may include a legislative enactment,
directly involves the illegal disbursement of public funds derived from taxation
that the taxpayer’s suit may be allowed.

Compromises As a general principle, a tax compromise may be entered into and made binding
when (a) the subject matter thereof is not expressly prohibited from being
compromised, and (b) the public official entering into it is authorized by law.

ESCAPE FROM TAXATION

TAX AVOIDANCE TAX EVASION

DEFINITION Tax saving device within the
means sanctioned by law. This
method should be used by the
taxpayer in good faith and at arms
length
Scheme used outside of those lawful
means and when availed of, it usually
subjects the taxpayer to further or
additional civil or criminal liabilities.
 REQUISITE (1) the end to be achieved, i.e., the
S payment of less than that known by the
taxpayer to be legally due, or the non-
payment of tax when it is shown that a
tax is due;

(2) an accompanying state of mind which

is described as being “evil,” in “bad faith,”
“willfull,”or “deliberate and not accidental”;
and

(3) a course of action or failure of action

which is unlawful

FAILURE TO FILE RETURNS:

1. That the accused was a person
required to make of file a return;
2. That the accused failed to make or file
a return at the time required by law; and
3. That the failure to make or file a return
was willful.

WILLFUL BLINDNESS DOCTRINE

The taxpayer’s deliberate refusal or avoidance to verify the contents of his or her ITR and
other documents constitutes "willful blindness" on his or her part. Taxpayers cannot simply
invoke reliance on mere representations of their accountants or authorized representatives in
order to avoid liability for failure to pay the correct taxes.

LOCAL TAXATION
A. Local Autonomy - Local autonomy refers to various activities through which a self-governing body representing the residents
within a certain regional boundary carries out its political and administrative decision making while maintaining relative
independence from the central government.

Nature and source of local taxing power

Ø Source: Local government taxation in the Philippines is based on the constitutional grant of the power to tax to
the local governments.

SEC. 5 - Each local government unit shall have the power to create its own sources of revenues and
to levy taxes, fees, and charges subject to such guidelines and limitations as the Congress may
provide, consistent with the basic policy of local autonomy. Such taxes, fees, and charges shall
accrue exclusively to the local governments.

SEC. 129 - Power to Create Sources of Revenue. – Each local government unit shall exercise its
power to create its own sources of revenue and to levy taxes, fees, and charges subject to the
provisions herein, consistent with the basic policy of local autonomy. Such taxes, fees, and charges
shall accrue exclusively to the local government units.

NATURE OF THE TAXING POWER OF LGUs

1. Not inherent but a direct grant

Ø The taxing power of provinces, cities, municipalities, and barangay neither inherent nor a mere
delegation by the legislative body but a direct grant from the constitution.
 2. Limited

Ø It is neither plenary nor absolute. The authority of the legislature over the taxing authority of the local
governments is merely to limit the exercise thereof.

3. Legislative

Ø It may be exercised by the local legislative bodies

Ø SEC. 132 - Local Taxing Authority. – The power to impose a tax, fee, or charge or to generate
revenue under this Code shall be exercised by the sanggunian of the local government unit concerned
through an appropriate ordinance.

4. Territorial

Ø It can only be exercised within the territorial jurisdiction of the LGU.

A. Fundamental Principles (Section 130, LGC)

a. Uniformity in taxation

Ø Taxation shall be uniform in each local government unit

b. Local exactions shall

(i) equitable and based on taxpayer’s ability to pay;

(ii) be for public purposes;

(iii) not be unjust, excessive, oppressive, or confiscatory;

(iv) not to be contrary to law, public policy, national economic policy, or in the restraint of trade

c. Collection shall not be let to private persons

Ø The collection of local taxes, fees, charges and other impositions shall in no case be let to any private
person

d. Revenue collections shall accrue exclusively to LGUs

Ø The revenue collected pursuant to the provisions of this Code shall inure solely to the benefit of, and be
subject to the disposition by, the local government unit levying the tax, fee, charge or other imposition unless
otherwise specifically provided herein

e. System of taxation must be progressive

Ø Each local government unit shall, as far as practicable, evolve a progressive system of taxation

A. Common limitations on Taxing Power

***Section 133 of the Local Government Code of 1991 (“LGC”)

Section 133. Common Limitations on the Taxing Powers of Local Government Units. - Unless otherwise provided herein, the
exercise of the taxing powers of provinces, cities, municipalities, and barangays shall not extend to the levy of the following:

(a) Income tax, except when levied on banks and other financial institutions;
(b) Documentary stamp tax;
(c) Taxes on estates, inheritance, gifts, legacies and other acquisitions mortis causa, except as otherwise provided
herein;
(d) Customs duties, registration fees of vessel and wharfage on wharves, tonnage dues, and all other kinds of
customs fees, charges and dues except wharfage on wharves constructed and maintained by the local government
unit concerned;
(e) Taxes, fees, and charges and other impositions upon goods carried into or out of, or passing through, the
territorial jurisdictions of local government units in the guise of charges for wharfage, tolls for bridges or otherwise,
or other taxes, fees, or charges in any form whatsoever upon such goods or merchandise
(f) Taxes, fees or charges on agricultural and aquatic products when sold by marginal farmers or fishermen;
(g) Taxes on business enterprises certified to by the Board of Investments as pioneer or non-pioneer for a period of
six (6) and four (4) years, respectively from the date of registration;
(h) Excise taxes on articles enumerated under the national Internal Revenue Code, as amended, and taxes, fees or
charges on petroleum products;
(i) Percentage or value-added tax (VAT) on sales, barters or exchanges or similar transactions on goods or
services except as otherwise provided herein;
(j) Taxes on the gross receipts of transportation contractors and persons engaged in the transportation of
passengers or freight by hire and common carriers by air, land or water, except as provided in this Code
(k) Taxes on premiums paid by way or reinsurance or retrocession;
(l) Taxes, fees or charges for the registration of motor vehicles and for the issuance of all kinds of licenses or
permits for the driving thereof, except tricycles;
(m) Taxes, fees, or other charges on Philippine products actually exported, except as otherwise provided herein;
(n) Taxes, fees, or charges, on Countryside and Barangay Business Enterprises and cooperatives duly registered
under R.A. No. 6810 and Republic Act Numbered Sixty-nine hundred thirty-eight (R.A. No. 6938) otherwise known
as the "Cooperative Code of the Philippines" respectively; and
(o) Taxes, fees or charges of any kind on the National Government, its agencies and instrumentalities, and local
government units.