 Taxing authority

- a government agency responsible for the

intake of government revenue, including
taxes and sometimes non-revenue tax.
- depending on the jurisdiction, revenue
services may be charged with tax
collection, investigation of tax evasion, or
carrying out audits.
 Public Schools
 Police protection
 Health and Welfare benefits
 Operation of the Local government
 The power to impose a tax, fee, or charge
or to generate revenue under this Code
shall be exercised by the Sanggunian of the
local government unit concerned through
an appropriate ordinance.

* Congress can’t take the power of LGU’s to

tax. They can only issue guidelines and
limitations.
 CONSTITUTIONAL LIMITATIONS

 INHERENT LIMITATIONS

 STATUTORY LIMITATIONS
 A statute limitation is a time period
established by law.
 Legislation that sets a timeframe within
which affected parties must take action to
enforce their rights or to seek redress after
a damage or injury.
* For Example :
 These limitations are those that emanate
from the very nature of the power of
taxation. They are very basic and built in
with that power.
 PEOPLE – the state cannot tax the people
who are not citizens of the Philippines.
 TERRITORY – the stat cannot tax the people
who are not in it’s territory.
 SOVEREIGNTY – the state cannot tax the
people for other purposes.
 GOVERNMENT – the state cannot tax gov’t.
agencies as they are subject to tax
exemption.
 INTERNATIONAL RECOGNITION – the state
cannot tax other states.
 LEVY FOR PUBLIC PURPOSE
- the impelling reason for the imposition
of tax must be the welfare of the public in
general.
 TERRITORIAL JURISDICATION
- a state as a rule can only impose and
implement tax laws and rules within its
jurisdiction in accordance with its wishes.
 NON-DELEGATION OF LEGISLATIVE
POWER TO TAX
- the power to tax being legislative in
nature may not be delegated.
 INTERNATIONAL COMITY
- The property of foreign state may not be taxed by
another.
 EXEMPTION OF GOVERNMENT ENTITIES
- Government agencies performing governmental
functions are exempt from taxation.
- are those provided for in the constitution or
implied from it’s provisions
 Observance of due process of law and
equal protection of the laws. (sec, 1, Art. 3)
 Rule of uniformity and equity in taxation.
(sec 28(1)Art VI)
 No imprisonment for non-payment of poll
tax (sec. 20, Art III)
 Non-impairment of obligations and
contracts, sec 10, Art III .
 Prohibition against infringement of
religious freedom Sec 5, Art III.
 Prohibition against appropriations for
religious purposes, sec 29, (2) Art. VI.
 Exemption of all revenues and assets of
non-stock, non-profit educational
institutions used actually, directly, and
exclusively for educational purposes from
income, property and donor’s taxes and
custom duties (sec. 4 (3 and 4) art. XIV.
 Concurrence by a majority of all members of
Congress in the passage of a law granting
tax exemptions. Sec. 28 (4) Art. VI.
 Congress may not deprive the Supreme
Court of its jurisdiction to review, revise,
reverse, modify or affirm on appeal or
certiorari, final judgments and orders of
lower courts in all cases involving the legality
of any tax, impost, assessment or any
penalty imposed in the relation thereto.
QUESTIONS /
CLARIFICATIONS /
COMMENTS