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SUPREMECOURTREPORTSANNOTATEDVOLUME130
654
EN BANC.
655
655
mitted 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 property rights, both
the due process and equal protection clauses may properly be
invoked, as petitioner does, to invalidate in appropriate cases a
revenue measure. If it were otherwise, there would be truth to the
1803 dictum of Chief Justice Marshall that the power to tax
involves the power to destroy. In a separate opinion in Graves v.
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656
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the lawss benefits being available to all and the affairs of men
being governed by that serene and impartial uniformity, which is
of the very essence of the idea of law. There is, however, wisdom,
as well as realism, in these words of Justice Frankfurter: The
equality at which the equal protection clause aims is not a
disembodied equality. The Fourteenth Amendment enjoins the
equal protection of the laws, and laws are not abstract
propositions. They do not relate to abstract units A, B and C, but
are expressions of policy arising out of specific difficulties,
addressed to the attainment of specific ends by the use of specific
remedies. The Constitution does not require things which are
different in fact or opinion to be treated in law as though they
were the same. Hence the constant reiteration of the view that
classification if rational in character is allowable. As a matter of
fact, in a leading case of Lutz V. Araneta, this Court, through
Justice J.B.L. Reyes, went so far as to hold at any rate, it is
inherent in the power to tax that a state be free to select the
subjects of taxation, and it has been repeatedly held that
inequalities which result from a singling out of one particular
class for taxation, or exemption infringe no constitutional
limitation.
Same Same Uniformity in taxation quite similar to the
standard of equal protection.Petitioner likewise invoked the
kindred concept of uniformity. According to the Constitution: The
rule of taxation shall be uniform and equitable. This requirement
is met according to Justice Laurel in Philippine Trust Company v.
Yatco, decided in 1940, when the tax operates with the same
force and effect in every place where the subject may be found.
He likewise added: The rule of uniformity does not call for perfect
uniformity or perfect equality, because this is hardly attainable.
The problem of classification did not present itself in that case. It
did not arise until nine years later, when the Supreme Court held:
Equality and uniformity in taxation means that all taxable
articles or kinds of property of the same class shall be taxed at the
same rate. The taxing power has the authority to make
reasonable and natural classifications for purposes of taxation, * *
*. As clarified by Justice Tuason, where the differentiation
complained of conforms to the practical dictates of justice and
equity it is not discriminatory within the meaning of this clause
and is therefore uniform. There is quite a similarity then to the
standard of equal protection for all that is required is that the tax
applies equally to all persons, firms and cor
657
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Petitioner must have realized that a suit for declaratory relief must be
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658
658
0%
1%
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Over P500,000
Par. (b) reads: (b) On taxable net income.A tax is hereby imposed upon
the taxable net income as determined in Section 29 (a) received
659
659
5%
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Over P500,000
deprived of life, liberty or property without due process of law, nor shall
any person be denied the equal protection of the laws.
7
Article VII, Section 7, par. (1) of the Constitution reads: The rule of
10
Ibid, par. 6.
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660
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Cf. Vera v. Fernandez, L31364, March 30, 1979, 89 SCRA 199, per
Castro, J.
13
14
15
16
Ibid, 489.
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Ibid, 490.
18
City Mayor, 127 Phil. 306, 315 (1967) U.S. v. Salaveria, 39 Phil. 102, 111
(1918) and Eboa v. Daet, 85 Phil. 369 (1950). Likewise referred to is
OGorman and Young v. Hartford Fire Insurance Co., 282 US 251, 328
(1931).
662
662
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(1936) Wells Fargo Bank and Union Trust Co. v. Collector, 70 Phil. 325
(1940) Republic v. Oasan Vda. de Fernandez, 99 Phil. 934 (1956).
20
The excerpt is from the opinion in J.M. Tuason and Co. v. The Land
663
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22
23
Ibid, 153.
24
25
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26
Ibid, 426.
27
Ibid, 424.
664
664
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29
(1951).
30
665
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666
666
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