Beruflich Dokumente
Kultur Dokumente
1.
2.
3.
4.
5.
Public service
You cannot use public funds to promote an individuals interest, even if it may incidentally result to the benefit of the public
Rationale: tax can be levied against one class of individuals in favor of another class; you can ruin one class while favoring the other
If it is for a private purpose, it is robbery because government takes property of another and then gives it in favor of another person.
public purpose includes indirect public advantage
o if an individual directly enjoys the tax, it is still valid as long as there is a link to public purpose
If purpose of the tax is not stated, it is presumed that it is created for a public purpose
Examples (presumption of public purpose)
o Pensions of war veterans assurance that a persons patriotism will be acknowledged and rewarded
o Unemployment relief
o Support for the handicapped
o Care for the aged
o Scholarships for poor but deserving citizens
o Tax on sugar
o Oil Price Stabilization Fund oil industry is imbued with public interest, and a dramatic increase in oil prices will result to
economic crisis
The public purpose must exist at the time the law was enacted.
Non-Delegable Powers:
a. Selection of property or transaction to be taxed
b. Determination of purposes
c. Rate of taxation
d. Rules of taxation
General rule: A state may not tax property lying outside its borders or lay an excise or privilege tax upon the exercise or enjoyment of a
right or privilege derived from the laws of another state and therein exercised or enjoyed.
Taxation is an act of sovereignty which could only be exercised within states territorial boundaries.
Taxes are paid for the protection and services provided by the taxing authority which could not be provided outside the territorial limits
of the taxing power.
Situs of taxation: situs is latin term which means situation, location or place.
Determination of situs: (S-NCR-L)
o (S) Subject matter of the tax- Situs may depend on what is being taxed: excise/privilege, business, occupation, person, act or activity.
o
o
o
o
(N) Nature/kind/ classification of the tax- situs may depend on what tax is being levied: income tax, import duty, sales tax or real
property tax.
(C) Citizenship of the tax payer- situs may depend on which state the taxpayer is a citizen of, or probably an alien, dual citizen,
stateless or refugee.
(R) Residenxe of the taxpayer- situs may depend on the residence of the taxpayer: resident, non- resident.
(L) Location of the property- situs may depend on the palce the thing or property is located: within the Philippines or outside the
Philippines.
F. GOVERNMENT EXEMPTION
Always remember that Exemption is the rule and taxation is the exception.
Definition of Terms
o RP (Republic of the Philippines) corporate government entity through which the functions of government are exercised
throughout the Philippines.
o NG (National Government) entire machinery of the central government as distinguished from different forms of local
government
o GOCC (Government-Owned and Controlled Corporations) any agency organized as a stock or non-stock corporation
o GA (Government Agency) any of the various units of the government including a department, bureau, office, instrumentality,
or GOCC, or LGU or a distinct unit therein.
G. INTERNATIONAL COMITY
IC (Incorporation Clause)
o The Philippines adopts the generally accepted principles on international law as part of the law of the land.
o The Philippines adheres to the policy of peace, equality, justice, freedom,
cooperation, and amity with all nations.