●Power to taxis exclusively legislative in nature

●
Power to taxis exclusively legislative in nature
·
The power to taxis peculiarly and exclusively legislative and cannot be exercised by the executive or judicial branches of the government. Hence, only Congress can impose taxes.
Matters within the competence of the legislature
1.
The subject or object to be taxed.
2.
The purpose of the tax so long as it is a public purpose.
3.
The amount or rate of the tax.
4.
The manner, means, and agencies of collection of the tax.
Inherent Limitations
1.
Purpose must be public in nature.
2.
Prohibition against delegation of the taxing power
3.
Exemption of government entities, agencies and instrumentalities
4.
International comity
5.
Limitation of territorial jurisdiction
Reasons for exempting governmental entities
-
Government will be taxing itself to raise money for itself.
-
Immunity is necessary in order that governmental functions will not be impeded.
Government entities are exempt from income tax
1.
Government Service Insurance System (GSIS)
2.
Social Security System (SSS)
3.
Philippine Health Insurance Corporation (PHIC)
4.
Philippine Charity Sweepstakes Office (PCSO)
5.
Philippine Amusement and Gaming Corporation
(PAGCOR)
Prohibition against taxation
●
Prohibition against appropriation of proceeds of taxation for the use, benefit, or support of any church
●
Prohibition against taxation of real property actually,
directly and exclusively used for religious, charitable and educational purposes
●
Prohibition against taxation of the revenues and assets of non-stock, nonprofit educational institutions
●
Taxation of proprietary educational institutions
SITUS IN TAXATION
- place of taxation
-
State or political unit which has jurisdiction to impose a particular tax.
1.
Nature of the tax;
2.
Subject matter thereof (i.e. person, property, actor activity;
3.
Possible protection and benefit that may accrue both to the government and the taxpayer;
4.
Residence or citizenship of the taxpayer and
5.
Source of the income.