TAXATION

General
 POLICE POWER – power to regulate LIFE, LIBRETY and PROPERTY.
PEOPLE
- Most PERVASIVE (from womb to tomb), LEAST LIMITABLE (all activities may
be regulated as compared to taxation), and MOST DEMANDING.
Princicples - LEGAL MAXIM: SALUS POPULI EST (the ultimate law is the welfare of the
people
- LIMITATION: (1)must be for the GENERAL WELFARE
TERRITORY
*STATE ---- (2)Constitution’s “DUE PROCESS clause”—“no person shall be
GOVERNMENT deprived of life, liberty and property without due process of law.
SOVEREIGNTY * SUBJECT/INTENT- must be LEGAL and for GENERAL WELFARE
* METHOD- appropriate manner of regulating or enforcing
INHERENT POWERS OF THE *no just compensation required
SOVEREIGN STATE
 EMINENT DOMAIN – power to TAKE PRIVATE PROPERTY.
- 2 PHASES: (1)TAKING- property can be taken first then subsequently paid (does not mean physical taking– but
the benefits; e.g. airport built near a poultry– property space above and below is yours)
*Who determines if reason is for public purpose? Us (public) with legislature.
(2)PAYMENT- title will not transfer unless there is payment of *JUST COMPENSATION.
*Who determines the fair value? Judge/Judiciary, i.e. JC + Opportunity cost.
*When is fair value measured? G.R.: at the time of taking, except if there is a reasonable
delay or when due to an unreasonable delay, fair value shall me measured at payment date.
- LIMITATION: (1)must be for PUBLIC PURPOSE (roads, hospitals, etc.): benefits should be available to the
infinite public, direct or indirect (e.g. sugar industry)
(2)requires JUST COMPENSATION: full monetary equivalent of the property taken
* SUBJECT/INTENT- must be LEGAL and for PUBLIC PURPOSE
* METHOD- appropriate manner of enforcing good deed

 TAXATION

- *National: NIRC, TRAIN

*Local: RPT (Mayor- Executive; Sanggunian- Legislative) – LGC
Process-
*International: passesand
Customs legislative undertaking
Tariffs Codes through
(President enactment
has the power inof tax laws
relation to by the Congress.
foreign affairs and creates laws,
Means- a way of apportioning gov’t costs among those privileged to enjoy its benefits.
while customs
Power- demand executes)
contributions to support gov’t; taxation- power, tax- fruit of the
- Taxationpower.
is INHERENT (need not have a Constitutional Grant)
- MAIN PURPOSE: to RAISE REVENUE from taxes (non-negotiable) for PUBLIC PURPOSE
*Other purposes: (1)regulate

(2)Social Justice – for the MARGINALIZED

“Taxation is theand the OPPRESSED
power (“those who Doctrine
to DESTROY”-Marshall have less(e.g.
in lifehigher
should
have more in laws”; taxation serves
taxes as an EQUALIZER.)
on cigarette businesses to destroy its industry)
- IMPORTANCE: LIFEBLOOD Doctrine “Taxation is NOT the power to DESTROY as long as the Supreme Court
- BASIS: BENEFITS RECEIVED Theory (Symbiotic) exists”-Holmes Doctrine
- LIMITATIONS: (1)INHERENT: S P I N E
(2)CONSTITUTIONAL: prevailing; mother of all laws

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