UNIVERSITY OF BATANGAS

COLLEGE OF LAW
TAXATION 1
ASSIGNMENT FOR NOVEMBER 11, 20131
I. Definition of Taxation
1.

Vera vs. Fernandez, L-31364, March 30, 1979, 89 SCRA 199

II. Underlying basis of taxation

A. Taxation and the Lifeblood Doctrine
2. NPC vs. Cabanatuan, GR No. 149110, April 9, 2003
3. Cebu Portland Cement vs. CTA, GR No. L-29059, December 15, 1987, 156
SCRA 535
4. Commissioner vs. Pineda, 21 SCRA 105
5. CIR vs. Algue, Inc. et. al., 158 SCRA 9
6. CIR vs. Metro Star Superama, Inc., G.R. No. 185371, December 08, 2010
7. CIR vs. CTA, 234 SCRA 348
8. CIR vs. Manila Bankers Life Insurance Corporation, G.R. No. 169103, March 16,
2011
9. PBC vs. CIR, 302 SCRA 250
B. Theories on Taxation
1. Necessity Theory
10. Phil. Guaranty Co., Inc. vs. Commissioner, 13 SCRA 775
11. CIR vs. BPI, GR No. 134062, April 17, 2007
12. NPC vs. Cabanatuan, GR No. 149110, April 9, 2003
2. Benefits Protection Theory
13. CIR vs. Algue, Inc., 158 SCRA 9
C. Liabilities Involved
III. Characteristics of the states power to tax
A. Taxation as an inherent attribute of sovereignty
14. Mactan Cebu International Airport Authority vs. Marcos, 261 SCRA 667 (1996)
15. Pepsi Cola Bottling Company of the Philippines, Inc. vs. Municipality of Tanauan,
Leyte, 69 SCRA 460
B. Taxation as Legislative in Character
IV. Aspects, Processes, Phases of Taxation
A. Levy/Imposition
16. Tolentino vs. Sec. of Finance, 235 SCRA 630
A.1. Scope of the legislative power to tax
1. Discretion as to purposes for which taxes shall be levied
17. Lutz vs. Araneta, 98 Phil 148
2. Discretion as to the subjects of taxation
1

Refer to the list of references on the last page of this assignment. Read the cases in the original.

18. Gomez vs. Palomar et al 25 SCRA 827

3.
4.
5.
6.

Discretion as to the amount or rate of tax

Discretion as to the manner, means and agencies of collection of taxes
Assessment and Collection
Payment

A.2. Power to tax is the power to destroy.

A.3. Judicial Review on Taxation
19. Antero Sison, Jr. vs. Ancheta et. al, 130 SCRA 654
20. Carlos Superdrug Corp., et. al., GR No. 166494, June 29, 2007
V. Purposes of Taxation
A. The primary purpose of taxation is to raise revenues.
B. Secondary or non-revenue purposes
21. Tio vs. Videogram Regulatory Board, 151 SCRA 208
22. Caltex Phils. Vs. Commission on Audit, 208 SCRA 726
23. CIR vs. Central Luzon Drug Corp, 456 SCRA 414, 445
VI. Extent of the Taxing Power
Taxation is unlimited, comprehensive, plenary and supreme.
24. FELS Energy, Inc. vs. The Province of Batangas, et. al., GR No. 168557,
February 16, 2007
25. Mactan Cebu International Airport Authority vs. Marcos, et. al., 261 SCRA
667
VII. Principles of a sound tax system
VIII. Taxation distinguished from other inherent powers and imposition
a. distinguished from police power
a. purpose, amount of exaction, benefits received, superiority of contracts,
transfer of property rights
b. distinguished from power of eminent domain
a. purpose, compensation, persons affected
c. distinguished from other impositions
a. special assessment, license, toll, penalty, debt
26. PDC vs. Quezon City, 172 SCRA 629
27. Gerochi vs. Department of Energy, 527 SCRA 696, 715-717
28. Francia vs. Intermediate Appellate Court, et. al. 162 SCRA 753
29. Philex Mining Corp. Vs. CIR 294 SCRA 687
REQUIRED TEXTBOOK:
Philippine Income Tax Law by Victorino C. Mamalateo
REFERENCES:
1. Reviewer on Taxation, Victorino C. Mamalateo
2. Tax Law and Jurisprudence, Vitug and Acosta
3. Tax Principles and Remedies by Dimaampao