Module 3

Question 1

is embodied in the country’s Constitution and the laws enacted by the legislative department

Answer 1

Philippine Fiscal Framework

Question 2

Three elements of Fiscal Framework

Answer 2

Taxation
Budgeting
Accounting and Auditing

Question 3

The Philippine Constitution is silent on the matter of the power of the state to impose taxes. But this power being inherent in the sovereignty, there seems to be no need for its provision in the fundamental law.

Answer 3

Taxation

Question 4

is defined as the financial plan of the government. it is designed to accomplish the political, economic, and social objectives of the government as well as to carry out its administrative policies

Answer 4

Budgeting

Question 5

the art of recording, classifying, and summarizing, in a significant manner, and in terms of money, transactions and events.

Answer 5

Accounting

Question 6

is the examination of information by a third party.

Answer 6

Auditing

Question 7

is defined as the financial plan of the government. It is designed to accomplish the political, economic, and social objectives of the government as well as to carry out its administrative policies

Answer 7

Budget

Question 8

This limitation proceeds from the constitutional provision that “no person shall be deprived of life, liberty, or property without due process of law.” A person may be deprived of his life, liberty or property if the requirements of due process are observed. There is due process if the deprivation of life, liberty or property is done under the authority of a law that is valid and is in accordance
with the prescribed methods or procedure.

Answer 8

Due Process of Law

Question 9

The requirement on the equal protection of law also springs from the due process clause of the Constitution. The power signifies that all persons subject to legislation shall be treated equal under like circumstances and conditions both in the privileges conferred and liabilities imposed.

Answer 9

Equal Protection of Law

Question 10

The constitutional provision that the rule of taxation shall be uniform and equitable and that Batasang Pambansa shall evolve a progressive system of taxation is merely a concomitant of the equal protection guarantee.

Answer 10

Uniformity and Equality

Question 11

The rule requires uniform application and operation, without discrimination of the
implementation of the tax laws regardless of the place and of the subject levied with tax.

Answer 11

Uniformity of Operation Throughout the Tax Unit

Question 12

Uniformity in taxation implies equality in burden. This springs from the premise that when legislation imposes a single tax upon all persons, properties, or transactions, inequality would result if not all persons, properties, and transactions are similarly treated.

Answer 12

Equality in Burden

Question 13

The law provides that no person shall be imprisoned for debt or non-payment of a poll tax.

Answer 13

Non-Imprisonment for Debt

Question 14

The prohibition on impairment of obligation and contract means that the law cannot alter the relationship that results from a contract without the consent of each of the parties thereto.

Answer 14

Non-Impairment of Contractual Obligations

Question 15

It is provided in the Constitution that no law shall be made respecting an establishment of religion, or prohibiting the free exercise thereof, and the free exercise and enjoyment of religion and worship. It has been held that the imposition of license fees (or tax) on the distribution and sale of bibles and other religious literature not for purpose of profit by a non-stock, non-profit corporation is illegal for it violates the above constitutional guarantee. Freedom of religion carries with it the right to disseminate religious beliefs and information.

Answer 15

Non-Infringement of Religious Freedom

Question 16

The Constitution provides that no public money or property shall ever be appropriated or used directly, or indirectly, for any religious purposes. This provision is based on the requirement that taxes can only be levied for public purposes. The Batasang Pambansa is without power to appropriate funds for a private purpose like the construction of feeder roads on lands owned by a private person, However, if the public is the beneficiary, the expense therefor is justified.

Answer 16

Non-Appropriation for Religious Purposes

Question 17

This limitation is based on the constitutional provision that “charitable institutions, churches, personages or convent, masque and non-profit cemeteries, and other real or personal properties that are exclusively used for religious or charitable purposes are exempt from taxation. This exemption applies only to the use of property and not the ownership thereof. The exemption extends to facilities which are necessary for the accomplishment of said purposes as in the case of a hospital, a school for training nurses, a nurses’ home, etc.

Answer 17

Non-Taxation of Religious or Charitable Entities and Properties

Question 18

Aside from the limitations explained above, there is also a provision in the constitution that “no law granting any tax exemption shall be passed without the concurrence of a majority of the members of the Batasang Pambansa. This requirement is intended to prevent indiscriminate grant of tax exemptions. Another limitation concerns the power of the Prime Minister to veto any particular item or items in an appropriation, revenue or tariff bill. The veto power may effect only item or items to which the Prime Minister objects.

• The other limitation is on the part of the Batasang Pambansa. The Batasang Pambansa cannot take away from the Supreme court the power given to the latter by the Constitution as the final arbiter of tax cases.

Answer 18

Other Constitutional Limitations

Question 19

is synonymous with “governmental purposes.” It means a purpose affecting the inhabitants of the state as a community and not merely as individuals. The test of rightful taxation is to determine if proceeds of the tax are used:

Answer 19

Public Purposes

Question 20

The power of taxation being purely legislative, the Batasang Pambansa cannot delegate the power to others. This is based on the doctrine of separation of powers which still underlines our forms of government.

Answer 20

Delegation of Taxing Powers

Question 21

Government agencies and instrumentalities are generally exempt from taxation. This is due to the fact that the government cannot tax itself. This immunity also rests upon the fundamental principle that taxes are necessary in order that the functions of the government will not be impeded.

Answer 21

Exemptions of Government Agencies or Instrumentalities

Question 22

A state may not tax property outside its borders or lay an excise or privilege tax upon the exercise or enjoyment of a right or privilege in another state derived from the laws of that state and therein exercised and enjoyed. The reason is that tax laws and all of the country’s laws for that matter do not operate beyond the country’s territorial boundaries.

Answer 22

Limitations of Territorial Jurisdiction

Question 23

is designed either to supplement the items of appropriation authorized in the general appropriations Jaw or to authorize funds for new programs or activities which have not been included in the budgetary act.”

Answer 23

special appropriations bill

Question 24

principal office which is charged with the formulation and implementation of tax policies

Answer 24

Ministry of Finance

Question 25

offices that are created to protect the interest of taxpayers

Answer 25

Court of Tax Appeals and Court of Bodies of Appeals and Assessments (CBAA)

Question 26

NEDA

Answer 26

National Economic Development Authority

Question 27

DBCC

Answer 27

Development Budget Coordination Committee