Choose the correct answer. Tax laws – (1%)
(A) may be enacted for the promotion of private enterprise or business for as long as it gives incidental advantage to the public or the State
(B) are inherently legislative; therefore, may not be delegated
(C) are territorial in nature; hence, they do not recognize the generally-accepted tenets of international law
(D) adhere to uniformity and equality when all taxable articles or kinds of property of the same class are taxable at the same rate
Suggested answer only. Not an official answer and not legal advice.
(D) Tax laws adhere to uniformity and equality when all taxable articles or kinds of property of the same class are taxable at the same rate. Under Section 28(1), Article VI of the 1987 Constitution (City of Baguio v.
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Quick check
What does the constitutional requirement of uniformity in taxation mean?
Uniformity in taxation requires that all subjects belonging to the same class are taxed at the same rate.
Why is a tax measure enacted primarily to benefit a private business constitutionally invalid?
The inherent power of taxation requires that tax revenues be collected and spent strictly for public purposes.
Which entity is constitutionally authorized to exercise delegated taxing power in the Philippines?
The 1987 Constitution explicitly authorizes the delegation of local taxing power to local government units.
Does the territorial nature of Philippine tax law exclude the recognition of international comity?
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Which exception permits administrative agencies to issue revenue regulations enforcing tax laws?
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Learn more about these topics
1. Uniformity in Taxation
Under Section 28(1), Article VI of the 1987 Constitution, the rule of taxation shall be uniform and equitable. Uniformity requires that all taxable articles or kinds of property of the same class shall be taxed at the same rate within the same taxing jurisdiction. It does not demand absolute equality across different classes of subjects or objects, provided that the statutory classification is reasonable, germane to the purpose of the law, applies equally to all members of the same class, and is not arbitrary or discriminatory.
2. Public Purpose Rule
Taxation is an inherent power of the State exercised exclusively for public purposes. Revenue generated through taxes must be devoted to government operations, public services, or general welfare. A tax measure enacted primarily for the promotion or financial benefit of a private enterprise or private business is constitutionally invalid. Incidental or indirect public benefit resulting from the private advantage conferred is insufficient to satisfy the fundamental requirement that tax revenue must be exacted and expended strictly for public purposes.
3. Delegated Taxing Power
Although the power of taxation is inherently legislative and non-delegable under the doctrine of separation of powers, certain exceptions are constitutionally recognized. Legislative taxing power may be validly delegated to local government units under Article X of the Constitution to foster local autonomy, to the President under tariff and flexible tax provisions, and to administrative agencies for executive implementation through administrative rules. Delegated administrative tax issuances must remain within statutory boundaries and cannot exceed, restrict, or modify legislative tax enactments.