CONSTI Article 6 Section 28 Flashcards
Section 28. The rule of taxation shall be uniform and equitable. The Congress shall evolve a progressive system of taxation.
The Congress may, by law, authorize the President to fix within specified limits, and subject to such limitations and restrictions as it may impose, tariff rates, import and export quotas, tonnage and wharfage dues, and other duties or imposts within the framework of the national development program of the Government.
Charitable institutions, churches and personages or convents appurtenant thereto, mosques, non-profit cemeteries, and all lands, buildings, and improvements, actually, directly, and exclusively used for religious, charitable, or educational purposes shall be exempt from taxation.
No law granting any tax exemption shall be passed without the concurrence of a majority of all the Members of the Congress.
Uniformity in taxation means that persons or things belonging to the same class shall be taxed at the same rate
Equitable - Which means that the tax burden must be imposed according to the taxpayer’s capacity to pay
Equality in taxation - requires tax imposed to be determined on the basis of the value of the property
To be progressive - The tax system should be suited to the social conditions of the people
The rule of taxation shall be uniform and equitable.
The principle that “the rule of taxation shall be uniform and equitable” is a fundamental concept in many legal systems, including the Philippines. This principle ensures that taxes are applied fairly and consistently across all taxpayers. Here’s a breakdown of what it means:
Uniformity: This means that taxes should be applied in the same manner to all individuals or entities within the same class. For example, if a certain tax rate is set for a specific income bracket, everyone within that bracket should be taxed at the same rate.
Equity: This principle ensures that the tax burden is distributed fairly among taxpayers. It often involves progressive taxation, where those with higher incomes pay a higher percentage of their income in taxes compared to those with lower incomes. This aims to reduce inequality and ensure that everyone contributes their fair share based on their ability to pay.
In the context of the Philippines, this principle is enshrined in the 1987 Constitution, specifically in Article VI, Section 28, which states: “The rule of taxation shall be uniform and equitable. The Congress shall evolve a progressive system of taxation”.
The Congress shall evolve a progressive system of taxation, meaning
A progressive system of taxation is designed to impose a higher tax rate on individuals or entities with higher incomes, while those with lower incomes pay a lower tax rate. This system aims to reduce income inequality by ensuring that those who earn more contribute a larger share of their income to taxes. Here are some key points about progressive taxation:
Educational, Charitable and Religous institutions are now exempted, but only if they?
or their lands, improvements and buildings are actually, directly and exclusively devoted to their basic purposes.
The tax exemption granted by the constitution to non-stock, non-profit educational institutions is conditioned only on the ACTUAL, DIRECT, and EXCLUSIVE use of their assets, revenues and income for educationa purposes not subject to limitations
Explain ACTUALLY, DIRECTLY and EXCLUSIVELY used
Angeles University Foundation (AUF) v. City of Angeles
Under the 1973 and 1987 Constitutions and Rep. Act No. 7160 in order to be entitled to the exemption, the petitioner is burdened to prove, by clear and unequivocal proof, that (a) it is a charitable institution; and (b) its real properties are ACTUALLY, DIRECTLY and EXCLUSIVELY used for charitable purposes. “Exclusive” is defined as possessed and enjoyed to the exclusion of others; debarred from participation or enjoyment; and “exclusively” is defined, “in a manner to exclude; as enjoying a privilege exclusively.” If real property is used for one or more commercial purposes, it is not exclusively used for the exempted purposes but is subject to taxation. The words “dominant use” or “principal use” cannot be substituted for the words “used exclusively” without doing violence to the Constitutions and the law. Solely is synonymous with exclusively.1âwphi1
What is meant by actual, direct and exclusive use of the property for charitable purposes is the direct and immediate and actual application of the property itself to the purposes for which the charitable institution is organized. It is not the use of the income from the real property that is determinative of whether the property is used for tax-exempt purposes.32 (Emphasis and underscoring supplied.)
Petitioner failed to discharge its burden to prove that its real property is actually, directly and exclusively used for educational purposes. While there is no allegation or proof that petitioner leases the land to its present occupants, still there is no compliance with the constitutional and statutory requirement that said real property is actually, directly and exclusively used for educational purposes. The respondents correctly assessed the land for real property taxes for the taxable period during which the land is not being devoted solely to petitioner’s educational activities. Accordingly, the CA did not err in ruling that petitioner is likewise not entitled to a refund of the real property tax it paid under protest.
WHEREFORE, the petition is DENIED. The Decision dated July 28, 2009 and Resolution dated October 12, 2009 of the Court of Appeals in CA-G.R. CV No. 90591 are AFFIRMED.
Bills v Tax exemption
Bills are ordinarily passed with the support of only simple majority, or a majority of those present and voting. Tax exemption requires an absolute majority of the entire membership of the Congress because a tax exemption represents a witholding of the power to tax and consequent loss of revenue to the government
An example of a law providing for a tax exemption is?
The local government code, which states that properties owned by the Republic of the Philippines are exempt from real property tax
A statute granting tax exemption is strictly construed againts?
the person or entity claiming the exemption. Tax exemptions are never presumed and are strictly construed againts the taxpayer and liberally in favor of the taxing authority.
if the intention of the legislature is open to doubt, then the intention of the legislature must be resolved in favor of
the state.
Tax amnesty
is a general pardon or the intentional overlooking by the state of its authority to impose penalties on persons otherwise guilty of evasion or violation of a revenue or tax law. It is an absolute forgiveness or waiver by the government of its right to collect what is due it and to give tax evaders who wish to relent a chance to start with a clean state. A tax amnesty, much like a tax exemption, is never favored nor presume in law. The grant of a tax amnesty is akin to a tax exemption; thus, it must be construed strictly againts the taxpayer and liberally in favor of the taxing authority
A tax amnesty is a government program that allows taxpayers who owe back taxes to settle their tax liabilities without facing penalties, interest, or legal prosecution. This program is typically offered for a limited time and aims to encourage delinquent taxpayers to come forward and pay their overdue taxes
