statutory construction (tax laws)

TAX LAWS(STRICT AND LIBERAL CONSTRUCTION

AND INTERPRETATION OF STATUTES)

THE POWER OF TAXATION It is the inherent power of

the state to raise revenues to defray the expenses of the government or for any public purpose.

can be done through the imposition of burdens on persons, properties, services, occupations or transactions.

It is based on necessity and the reciprocal duties of protection and support between the state and those that are subject to its authority.

Who may exercise this power?

The Power to Destroy

Taxation is a destructive power which interferes with the personal and property rights of the people and takes from them a portion of their property for the support of the government.

Republic vs Pastors (Spouses)

The Decision:

The respondents has paid almost the equivalent amount of what was assessed.

The respondent were granted amnesty under PD 213. Not mere exemptions.

Exceptions made through Rev. Reg. 7-73 on the coverage of PD 213 is null and void.

By accepting the payment as evidenced by O.R. 1052388. The Gov’t waived it’s right to collect further payment, under the principle of estoppel.

A. Statutory construction of Tax Laws in case of doubts.

Tax statutes must be construed strictly against the government and liberally in favor of the taxpayer, for taxes, being burdens, are not to be presumed beyond what the applicable statute expressly and clearly declares.

Resins Inc. vs Auditor General

The Decision:

The petitioner has no right for refund.

There’s a fundamental difference between “urea formaldehyde” which is a finished product and “urea and formaldehyde” which are raw materials.

a refund undoubtedly partakes of a nature of an exemption, it cannot be allowed unless granted in the most explicit and categorical language.

B. Statutory construction of Tax Laws in case of doubts.

Any claim for exemption from a tax statute is strictly construed against the taxpayer and liberally in favor of the state.