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General Principles
General Principles
(A) is one of direct duplicate taxations wherein two (2) taxes must be
imposed on the same subject matter, by the same taxing authority,
within the same jurisdiction, during the same period, with the same
kind or character of tax, even if the purposes of imposing the same
are different.
(B) is forbidden by law; and therefore, it is a valid defense against the
validity of a tax measure.
(C) means taxing the same property twice when it should be taxed
only once; it is tantamount to taxing the same person twice by the
same jurisdiction for the same thing.
(D) exists when a corporation is assessed with local business tax as a
manufacturer, and at the same time, value-added tax as a person
selling goods in the course of trade or business.
DOUBLE TAXATION
Bar Question in 1996-1997 (3 questions)-2014-2015-2016
(a] Can the CIR of the Philippines also tax the same shares?
Explain. (2.5%)
[b] Explain the concept of double taxation. (2.5%)
LIMITATIONS ON THE POWER OF TAXATION
Bar Question in 1997-2000-2001-2009 (2 questions)
The House of Representatives introduced HB 7000 which
envisioned to levy a tax on various transactions. After the bill was
approved by the House, the bill was sent to the Senate as so
required by the Constitution. In the upper house, instead of a
deliberation on the House Bill, the Senate introduced SB 8000
which was its own version of the same tax. The Senate deliberated
on this Senate Bill and approved the same. The House Bill and the
Senate Bill were then consolidated in the Bicameral Committee.
Eventually, the consolidated bill was approved and sent to the
President who signed the same. The private sectors affected by
the new law questioned the validity of the enactment on the
ground that the constitutional provision requiring that all revenue
bills should originate from the House of Representatives had been
violated. Resolve the issue.
LIMITATIONS ON THE POWER OF TAXATION
Bar Question in 1997-2000-2001-2009 (2 questions)
Justice Holmes once said: The power to tax is
not the power to destroy while this Court (the
Supreme Court) sits." Describe the power to
tax and its limitations. (5%)
Power of taxation has the broadest scope of all the
powers of government because in the absence of
limitations, it is considered as unlimited, plenary,
comprehensive and supreme. It is the Court's role to see
to it that the exercise of the power does not transgress
these INHERENT and CONSTITUTIONAL limitations.
LIMITATIONS ON THE POWER OF TAXATION
Bar Question in 1997-2000-2001-2009 (2 questions)
TERRITORIAL IN OPERATION
•Government entities
Taxation is subject to are generally tax-
international comity exempt.
LIMITATIONS ON THE POWER OF TAXATION
Bar Question in 1997-2000-2001-2009 (2 questions)