Tax is a duty imposed to a person by mere

fact of his membership in the body politic

and his enjoyment of the benefits available
from such membership.
Taxes are imposed for the purpose of
revenue in order to promote the duty of the
government to protect its sovereign and to
render them benefits by means of public
projects and services.
Taxes are for the purpose of revenue while
licenses are for the purpose of regulation.
Tax applies to all kinds of exaction monies. It
covers tangible personal properties owned
by persons domiciled in its territory.
It cannot be allowed to confiscate but may
be allowed to destroy if it serves an
implementation of police power. Tax has a
power to destroy because it can function as
an instrument of police power in prohibiting
certain things or enterprises that is a threat
to public welfare. Taxes can be imposed in
order to cripple and dissolve business
institutions etc that are found to engage in
illegal or prohibited functions.
Function
It is inherent in the national legislature and
may now be exercised by the local legislative
bodies.
ART X SEC 5 Constitution:
Each local government unit shall have the
power to create its own source of revenue
and levy taxes fees and charges, subject to
guidelines I the limitations as the congress
may provide, consistent with the basic policy
of local autonomy.
there must be a statutory grant to impose
lawfully a tax.
the rule of taxation must be equitable and
uniform.
Uniformity:
Belonging in the same clase ---- > taxed at
the same rate.
Local -> same with other local goods.
Imported -> same with other imported
goods.

All subjects or objects of taxation, similarly

situated, are to be treated alike both in
privileges and liabilities
Taxes should be proportioned among the
people according to their capacity to pay.
Double taxation
The same property is taxed twice by the
same taxing jurisdiction for the same
purpose and during the same taxing period.
Match phil vs treasurer of city of manila
Double taxation is taxing the same property
twice when it should be taxed only once.
Direct duplicate taxation.
TAXES CAN BE IMPOSED BY TWO DIFFERENT
JURISDICTIONS, ONE BY NATIONAL GOVT AND
THE OTHER BY THE CITY GOVERNMENT.
Public purpose
1. Devoted only to a public purpose.
2. Revenues from taxes cannot be used for
private purposes.
3. Cannot be used for exclusive benefit of
private persons.
As for the number 3 taxes paid to war
veterans are sustainable on the ground
that they will encourage emulation of
services by others assured that their
own patriotism will be acknowledged
and awarded by a grateful government.
Scholarships for the poor and deserving
students and for those gifted citizens
are also justified because they promote
public welfare.
Gaston v Republic Planters Bank
There is 1.00 php generated per picul of
sugar proceeds and is used to purchase
as bank investment which directly
benefit private persons.
Coconut levy fund. Forced exactions
decreed under P.D. 232, 276 and 582.
Exemptions
ART 6 sec 23(3)

Charitable institutions
Churches
Mosques
Nonprofit cemeteries, lands, building
for the religious, charitable and
educational purposes.
Lung Center of the Philippines vs.
Quezon City
Portions of the hospital used for direct and
exclusive charitable purposes are exempt
from taxes and not those that are leased to
private entities and individuals.
Solely is synonymous with exclusively.

ALSO
Revenues and assets used by non- stock or
non- profit educational institutions directly
and exclusively for educational
purposes are exempt from taxes.
Laws granting tax exemptions require
the concurrence of a majority of all
Members of the Congress.
Taxes can be granted gratuitously but
can be validly revoked without case.
Casanova v. Hord