abella notes

8/13/2019 Abella Notes

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(n section 2, !ommonwealth +ct /0 provides for an increase of the existing tax on the manufacture of

sugar, on a graduated basis, on each picul of sugar manufactured9 while section & levies on owners or

persons in control of lands devoted to the cultivation of sugar cane and ceded to others for a

consideration, on lease or otherwise a tax e*uivalent to the difference between the money value of the

rental or consideration collected and the amount representing 12 per centum of the assessed value of

such land.

laintiff, ;alter )ut:, in his capacity as #udicial +dministrator of the (ntestate


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-rom the point of view we have taen it appears of no moment that the funds raised under the Sugar

Stabili:ation +ct, now in *uestion, should be exclusively spent in aid of the sugar industry, since it is that

very enterprise that is being protected. (t may be that other industries are also in need of similar

protection9 that the legislature is not re*uired by the !onstitution to adhere to a policy of 7all or none.7 +s

ruled in 6innesota ex rel. earson vs. robate !ourt, &53 8. S. 25, =4 ).


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&. Subject to inherent and constitutional limitations

4. @ases

Life &lood Doctrine ' government can neither exist nor endure without taxation. Taxes are thelifeblood of the government and their prompt and certain availability is an imperious need. the collection oftaxes must be without hindrance if the state is to maintain its orderly existence. The government>s abilityto solve and protect the people depends largely upon taxes. Taxes are what we pay for a civili:ed society.

CIR v Pineda : the eldest son of the deceased who is an heir and holder%transferee of property belongingto the taxpayer is to be treated

1. +s an ?s possession to satisfy the income tax assessment.

The second remedy tax lien$ is the avenue the government too in this case to collect the tax.

The @(" should be given in instances lie the case at bar, the necessary discretion to avail itself the mostexpeditious way to collect the tax because taxes are the lifeblood of the government and their prompt andcertain availability is an impenous need.

Vera v Fernandez : the statute of non%claims under sec / rules 0= of the rules of court does not apply totaxation. The reason for the more liberal treatment of claims for taxes against a decedent>s estate isbecause taxes are the lifeblood of the government>s ability to serve the people for whose benefit taxes arecollected.

CIR v VTA and Citytrust : The Bovernment is not bound by the errors committed by its agents. +lthoughit may generally be estopped through the affirmative acts of public officers acting within their authority,their neglect of omission of public duties will not and should not produce that effect. Bovernment cannotand must not be estopped particularly in matters involving taxes. Taxes are the lifeblood of the nation

through which the government agencies continue to operate and with which the state exercises itsfunctions for the welfare of its constituents.

CIR v Algue : Taxes are the lifeblood of the government and so should be collected without unnecessaryhindrance. n the other hand, such collection should be made in accordance with law as anyarbitrariness will negate the very reason for the government itself. (t is therefore necessary to reconcilethe apparently conflicting interests of the authorities and the taxpayers so that the real purpose of taxationwhich is the promotion of common good may be achieved.

Reyes v Alanzor : Cerily, taxes are the lifeblood of the government ad so should be collected withoutunnecessary hindrance. ?owever, such collection should be made in accordance with law as anyarbitrariness will negate the very reason for the government itself. (t is therefore necessary to reconcilethe apparently conflicting interests of the authorities and the taxpayers so that the real purpose of

taxation, which is the promotion of common goods may be achieved. !onse*uently, it stands to reasonthat those who are burdened by the government by its "ental -ree:ing )aws under the same principle ofsocial justice should not now be penali:ed by the same government by the imposition of excessive taxesas such would eventually result in the forfeiture of their properties.

!MCA v CIR : Since taxes are the lifeblood of the nation, a claim of statutory exemption from taxationshould be manifested and unmistaable from the language of the law on which it is based. The claimedexemption must expressly be granted in a statute stated in a language too clear to be mistaen. Taxexemptions cannot be merely implied from the provisions of the law.


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Marcos v CA : the approval of the court sitting in probate or as a settlement tribunal over the deceasedestate is not a mandatory re*uirement in the collection of estate taxes. The enforcement of tax laws andthe collection of taxes are of paramount importance for the sustenance of the government. Taxes are thelifeblood of the government and should be collected without unnecessary hindrance.

P"C#M v CIR: !laims for refund or tax credit should be exercised within the time fixed by law. The @("sfunctions should not be unduly delayed or hampered by incidental matters.

#ecessity %heory

Taxation is a power predicated upon necessity. (t is a necessity burden to preserve the state>ssovereignty and a means to give the citi:enry an army to resist aggression

&enefits (rotection %heory

The basis of the power of the State to demand and receive taxes is the reciprocal duty of support andprotection. The citi:en supports the state by paying the portion secured in the enjoyment of the benefits ofan organi:ed society. The obligation to pay taxes is involuntary and compulsory in exchange for theprotection and benefits on receives from the government.

Doctrine of Symbiotic )elationship

Taxes are what we pay for a civili:ed society. ;ithout taxes, the government would be paraly:ed for lacof the motive power to activate and operate it. ?ence, despite the natural reluctance to surrender part ofone>s hard%earned income to the taxing authorities, every person who is able to must contribute his sharein the burden of running the government. The government for its part is expected to respond in the form oftangible and intangible benefits intended to improve the lives of the people and enhance their materialand moral values.

/. urpose of taxation1. "aise revenue primary$2. "egulation police power, sin taxes$

&. romotion of Beneral ;elfare police power to strengthen an industry$4.


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&. romotion of general welfare%+s an implement of police power%)ut: v +raneta % S! upheld the validity of the Sugar +djustment +ct which imposed a tax on

milled sugar since the purpose of the law was to strengthen an industry that is undeniably vital to theeconomy % the sugar industry.

% smena v rbos % ;hile the funds collected under the S- are referred to as taxes, they areexacted in the exercise of the police power of the State. -rom such fund, amounts are drawn to reimburseoil companies when appropriate situations arise lie increases in, as well as under%recovery of the cost ofcrude oil importation.

4. "eduction of social ine*uity% This is made possible through the progressive system of taxation where the objective is to

prevent the undue concentration of wealth in the hands of few individuals. rogressivity is eystoned onthe principle that those who are able to pay should shoulder the bigger portion of the tax burden.s tax, estate tax

% Taxes under '("! are either proportionate of progressive. The latter is mandated by the!onstitution to evolve$. rogressive means the tax rate increases as the tax base increases.

/.


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. Taxation v ther (nherent owers of the State

ower to Tax olice ower ower of

abella notes

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