PSU SCHOOL OF LAW

TAX LAW 1
1ST SEM, SY 20-21

DISCUSSION GUIDE ON GENERAL PRINCIPLES

I. Definition, Basis and Theories of Taxation

• Lifeblood Doctrine

• Camp John Hay Development Corporation v. CBAA, 706 SCRA 547

• Vera v. Fernandez, 89 SCRA 199
• CIR v. Algue, Inc., 158 SCRA 9
• YMCA v. CIR, 298 SCRA 83
• Marcos II v. CA, 273 SCRA 47
• Reyes v. Almanzor, 196 SCRA 322

II. Nature of the Taxing power

A. Taxation as an Inherent Attribute of Sovereignty

B. Taxation as Legislative in Character

III. Aspects, Processes, Phase of Taxation

A. Levy/ ImpositionScope of the Legislative Power to Tax

• Lutz v. Araneta, 98 Phil. 148

• Gomez v. Palomar, 25 SCRA 827
• Punsalan v. Mun. Board of the City of Manila, 95 Phil. 46

Is the Power to Tax the Power to Destroy?

Judicial Review of Taxation

B. Assessment and Collection

C. Payment

IV. Purpose of Taxation

V. Extent of the Taxing Power

VI. Principles of a Sound Tax System

VII. Taxation Distinguished from Other Inherent Powers and Impositions

• Francia v. IAC, 162 SCRA 753

• Domingo v. Garlitos, 8 SCRA 443
• Philex Mining Corp. v. CIR, 294 SCRA 687

VIII. Limitations on the Taxing Power

A. Inherent Limitations

• Gomez v. Palomar, 25 SCRA 827

• Lutz v. Araneta, 98 Phil. 148
• Tio v. VRB, 151 SCRA 208
• City Baguio v. De Leon, 25 SCRA 938
• Bagatsing v. Ramirez, 74 SCRA 306
• Pascual v. Secretary of the Public Works, 110 Phil. 331
• CIR v. BOAC, 149 SCRA 395
• Atlas Consolidated Mining and Development Corp. v. CIR, 524 SCRA 73
• Board of Assessment Appeals of Laguna v. CTA, 8 SCRA 224
• Pepsi Cola Bottling Co. y City of Butuan, 24 SCRA 789
• Pepsi Cola Bottling Co, v. Municipality of Tanuan, 69 SCRA 460
• Osmeña v. Orbos, 220 SCRA 703
• Villegas v. Hiu Chiong Tsai Pao Ho, 86 SCRA 270
• Standard Oil Company of New York v. Posadas, 55 Phil. 715
• National Development Co. v. Cebu City, 215 SCRA 382
• ESSO Standard Eastern, Inc. v. Acting Commissioners of Customs, 18 SCRA 488

B. Constitutional Limitations

1. Due Process of Law

• Carlos Superdrug Corp. v. DSWD, 526 SCRA 130

• Reyes v. Almanzor, 196 SCRA 322 Commissioner of Internal Revenue v. CA, 261 SCRA 236

2. Equal Protection of the Law

• Gomez v. Palomar, 25 SCRA 827

• Eastern Theatrical Co. v. Alfonso 83 Phil. 852
• Manila Race Horse Trainers Assn., Inc. v. De la Fuente 88 Phil. 60
• Punsalan v. Mun. Board of the City of Manila, 95 Phil, 46
• Association of Custom Brokers, INC v. Mun. Board, city Manila, 93 Phil. 107
• Ormoc Sugar Co., Inc. v. Treasurer of Ormoc City, 22 SCRA 603

3. Uniformity of Taxation

• Kapatiran ng mga Naglilingkod sa Pamahalaan ng Pilipinas v. Tan, 163 SCRA 371

4. Progressive Taxation

5. Non- Impairment Clause

• Casanovas v. Hord, 8 Phil. 125

• Tolentino v. Secretary of Finance, 235 SCRA 630
• Cagayan Electric Power and Light Co., Inc. v. CIR, 138 SCRA 629

6. Non-Imprisonment for Non-Payment of Poll Tax

7. Bills to Originate from the House of Representatives

• Tolentino v. Secretary of Finance, 235 SCRA 630

8. Veto Power of the President

9. President’s Power to Tax

10. Taxation and Freedom of the Press

• Tolentino v. Secretary of Finance, 235 SCRA 630

11. Taxation and Freedom of Religion

12. Tax Exemption of Properties Used for Religious, Charitable, and Educational purposes

• Abra Valley College, Inc. v. Aquino, 162 SCRA 106

• Rey Lladoc v. CIR, 14 Phil. 292
• YMCA of Manila v. Collector of Internal Revenue, 33 Phil. 217
• Province of Abra v. Hernando 107 SCRA 104

13. Tax Exemptions Granted to Non-Stock, Non-Profit Educational Institutions

14. Appropriation of Public Money

15. Grant of Tax Exemptions

• Misamis Oriental Association of Coco Traders, Inc. v. Department of Finance Secretary 238 SCRA 63

16. Local Taxation

• Villanueva v. City of Iloilo 26 SCRA 578

• Pepsi-Cola Bottling Co. v. Mun. of Tanuan, Leyte, 69 SCRA 460
• Pepsi-Cola Bottling Co. v. City of Butuan, 24 SCRA 789

17. Special Fund

• Osmeña v. Orbos, 220 SCRA 703

18. Supreme Court’s Jurisdiction Over Tax Cases

IX. Kinds of Taxes differentiated

X. Concept of Double Taxation

XI. Tax Evasion and Tax Avoidance

• Ungab Doctrine Sustained in CIR v. Pascor, 309 SCRA 402

XII. Doctrine of Imprescriptibility

XIII. Nature and Prospectively of Tax Laws

XIV. Taxpayer’s Suit, Requisites