CHERRY RHOSE M.

CUREG July 5, 2014

TAXES OVER PRIVACY RIGHTS
Taxation is the inherent power of the sovereign, exercised through the legislature, to
impose burdens upon subjects and objects within its jurisdiction for the purpose of raising
revenues to carry out the legitimate objects of government.
In Bull v. United States, (295 U.S. 247, 15 APTR 1069, 1073) it was held that the power of
taxation is essential because the government can neither exist nor endure without taxation. Taxes
are the lifeblood of the government and their prompt and certain availability is an imperious
need. The collection of taxes must be made without any hindrance if the state is to maintain its
orderly existence.
According to Sec. 2 of the National Internal Revenue Code of 1997, the Bureau of Internal
Revenue is mandated by law to assess and collect all national internal revenue taxes, fees and
charges, and to enforce all forfeitures, penalties and fines connected therewith, including the
execution of judgments in all cases decided in its favor by the Court of Tax Appeals and the ordinary
courts.
The BIR wants to expand its taxpayer database for taxpayers because of their low tax
compliance. In fact, pursuant to Revenue Memorandum Order (RMO) No. 4-2013, the audit priority
targets of the BIR for 2013 includes professionals and sole proprietorships. Doctors and other
professionals are mandated to declare their professional fee.
However, this may sound bias and the doctor-patient relationship will be prejudiced. In a
motion filed by the Integrated Bar of the Philippines (IBP), they asked for the nullification of the
new regulation. For the IBP, the unconstitutionality of RR 4-2014 springs from the fact that: (a.) the
regulation is in violation of separation of powers as the Executive encroaches upon the prerogative
of the Supreme Court; (b.) the means prescribed by the regulation has no reasonable connection to
its objective of eliminating tax evasion and promote transparency; (c.) the regulation is not covered
by the rule-making power of the Secretary of Finance; and (d.) the regulation is an intrusion into
privacy rights.
The BIR, given its resources and capabilities, can deal with the problem of tax related cases.
The power of taxation is the most absolute of all powers of the government [Sison v. Ancheta 130
SCRA 654]. It has the broadest scope of all the powers of government because in the absence of
limitations. It is considered as unlimited, plenary, comprehensive and supreme.
However, in Roxas v. CTA, [23 SCRA 276] it was held that the power of taxation should be
exercised with caution to minimize injury to the proprietary rights of the taxpayer. It must be
exercised fairly, equally, and uniformly, lest the tax collector kill the hen that lays the golden egg.
Nonetheless, the BIRs efforts to increase revenue collection and curb tax evasion are highly
laudable. But it must be within the bounds of the law because certain rights are not just worth
compromising despite clear intentions.