PRINCIPLES: Taxation, General Principles, 2010-2011 Cases

TAXATION

Taxes are the lifeblood of the government; Taxation is an inherent attribute of sovereignty; The legislature wields the power to define that tax shall be imposed, why it should be imposed, how much tax shall be imposed, against whom (or what) it shall be imposed and where it shall be imposed. Chamber of Real estate and Builders’ Associations, Inc. vs. Romulo, 614 SCRA 605. (2010)

           

It is well-settled that where the language of the law is clear and unequivocal, it must be given its literal application and applied without interpretation; The general rule of requiring adherence to the letter in construing statutes applies with particular strictness to tax laws and provisions of a taxing act are not to be extended by implication; Recording of the information in the Official Registry Book of the Bureau of Internal Revenue (BIR) is a mandatory requirement before a taxpayer may be excluded from the coverage of the Voluntary Assessment Program (VAP). Commissioner of Internal Revenue vs. Ariete, 610 SCRA 464. (2010)

Taxes, being burdens, are not to be presumed beyond what the applicable statute expressly and clearly declares; While it is true that taxes are the lifeblood of the government, it has been held that their assessment, and collection should be in accordance with the law as any arbitrariness will negate the very reason for government itself. Commissioner of Internal Revenue vs. Filinvest Development Corporation, 654 SCRA 56. (2011)

Uniformity in taxation requires that all subjects or objects of taxation, similarly situated, are to be treated alike both in privileges and liabilities. Commissioner of Internal Revenue vs. Fortune Tobacco Corporation, 658 SCRA 289. (2011)