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Tax v Debt
II.
Tax v Toll
III.
IV.
V.
Tax v Penalty
VI.
Tax v Tarif
VII.
VIII.
Tax v Subsidy
IX.
Tax v Revenue
DOCTRINES OF TAXATION
I.
Impressibility of taxes
GENERAL RULE: the right to assess and collect are
imprescriptible (CIR v Ayala Securities Corporation)
EXCEPTION: when the laws otherwise provide.
EXAMPLES
1. National Internal Revenue Code- assessment of internal
revenue taxes within three (3) years after the last day
prescribed by law for filing of the return (TAX CODE, Sec.
203); and ten (10) years in cases of fraud (TAX CODE, Sec.
222)
2. Tarif and Customs Code- entry and passage free of duty,
after the expiration of the (3) years from the date of the
final payment of duties, in the absence of fraud or protest,
be final and conclusive upon all parties, unless the
liquidation of the import entry was merely tentative
(TARIFF CODE, Sec 1603, as amended by R.A 9135, Sec 4).
III.
Compensation or Set-of
Compensation shall take place when two persons, in their own
right, are creditors and debtors of each other (CIVIL CODE Art.
1278).
The presupposes mutual obligations between the parties, and
that they are mutual creditors and debtors of each other.
There can be legal compensation for tax purposes as long as all the
requisites under Article 1279 of the Civil Code are present. The claims
of the taxpayer and the government (RECALDE, supra at 32)
V.
COMPROMISE
A contract whereby the parties, by making reciprocal concessions,
avoid litigation or put an end to one already commended (CIVIL
CODE ATY 2028)
RULE: Compromises are allowed and enforceable when the subject
matter thereof is not expressly prohibited from being compromised
and the public official entering into it is duly authorized by law
(Vitug and Acosta supra at 48).
PERSONS ALLOWED TO COMPROMISE
1. Commissioner of the Internal Revenue- may enter under certain
conditions into a compromise for both the civil and criminal
liabilities of the taxpayer (TAX CODE, Sec 204)
2. Collector of Customs- with respect to customs duties and limited
to cases where legitimate authority is specifically granted, such
as in the remission of duties (TARIFF CODE, SEC 709)
3. Customs Commissioner- subject to the approval of the Secretary
of Finance on cases involving the imposition of fines, surcharges
and forfeitures (TARIFF CODE SEC 2316)
4. Local Government Code-no provision regarding compromise,
however, tax (not criminal) liability is not prohibited from being
compromised (CIVIL CODE, Arts 2034&2035). It could be legally
feasible to provide for and allow tax compromises and to name
the proper official to enter into the compromise (VITUG &
ACOSTA supra at 49)
VI.
Taxpayers Suit
Only one who will sustain a direct injury in consequence of its
enforcement may contest the validity of a statute (RECALDE,
supra at 37)
BASIS: the right is based on the fact that expenditure of public
funds by an officer for the purpose of administering or
implementing an invalid or unconstitutional law is a
misapplication of such funds.
WHEN AVAILABLE: it is only when an act complained of, which
may include a legislative enactment, directly involves the
illegal disbursement of public funds derived from taxation that
the taxpayers suit may be allowed (VITUG & ACOSTA, supra
citing Pascual v Secretary of Public Works)