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Taxation is the act of levying the tax, i.e., the process or means by which the sovereign, through its law-making body,
raises income to defray the necessary expenses of the government.
It is merely a way of apportioning the cost of the government among those who in some measures are privileged to
enjoy its benefits and, therefore, must bear its burdens.
it is an inherent power of the sovereign exercised through the legislature to impose burdens upon subjects or objects
within its jurisdiction for the purpose of raising revenues to carry out the legitimate objects of the government.
- As a power, it refers to the inherent power of the state to demand enforced contributions for public purpose/s.
Manifestations:
1. Imposition even in the absence of constitutional grant empowering a state to collect taxes.
2. States right to select objects and subjects of taxation.
3. No injunction rule. As a general rule courts should not issue injunctive writs to enjoin collection of tax
otherwise this would restrict the amount of taxes that may be collected to finance the activities of the
government.
LEGISLATIVE:
It is an exercise of the high prerogative of sovereignty.
It involves the promulgation of rules.
Taxation is a set of rules,
-how much is the tax to be paid;
-who pays the tax
-to whom it should be paid
-when the tax should be paid
Manifestation:
Prohibition on improper delegation of the legislative power to tax.
Theory of Taxation
The theory of taxation is the lifeblood doctrine.
It upon the theory that the existence of government is a necessity; that it cannot continue without means to
pay its expenses; and that for these means, it has a right to compel all its citizens and property within its
limits to contribute.
The life blood theory constitutes the theory of taxation, which provides that the existence of government is a
necessity; that government cannot continue without means to pay its expenses; and that for these means it
has a right to compel its citizens and property within its limits to contribute.
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In Commissioner v. Algue, the Supreme Court said that taxes are the lifeblood of the government and
should be collected without unnecessary hindrance. They are what we pay for a civilized society. Without
taxes, the government would be paralyzed for lack of motive power to activate and operate it. The
government, for its part, is expected to respond in the form of tangible and intangible benefits intended to
improve the lives of the people and enhance their moral and material values.
- The theory behind the exercise of the power to tax emanates from necessity, without taxes, government
cannot fulfill its mandate of promoting the general welfare and well-being of the people. (Commissioner of
Internal Revenue v. Bank of Philippine Islands, G.R. No. No. 134062, April 17, 2007; National Power
Corporation v. City of Cabanatuan, G.R. No. 149110, 9 April 2003, 401 SCRA 259, 269-270 )
CJ Marshall said that, the power to tax involves the power to destroy. on the other hand, Justice Holmes stated
that the power to tax is not the power to destroy while the court sits.
Reconcile the statements.
Basis of Taxation
The basis of taxation is found in the reciprocal duties of protection and support between the State and its
inhabitants. In return for his contribution, the taxpayer received benefits and protection from the government.
This is the so-called benefits received principle.
Basis of taxation is also found on Jurisdiction by the State over persons and property within its territory.
Basis of taxation explains the reason why a state may impose taxes;
Theory of taxation explains why there is a need to impose taxes.
Basis of taxation explains the reason why a state may impose taxes;
Taxes are essential to the existence of the government. The obligation to pay taxes rests not upon the
privileges enjoyed by or the protection afforded to the citizen by the government, but upon the necessity of
money for the support of the State. For this reason, no one is allowed to object to or resist payment of taxes
solely because no personal benefit to him can be pointed out as arising from the tax. (Lorenzo v. Posadas,
64 Phil. 353)
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Purposes of Taxation
1. Primary purpose.
Revenue or fiscal taxes are imposed in order to raise funds used to meet the legitimate objectives of
government. (CIR vs. Fortune Tobacco Corp., G.R. Nos. 167274-75, July 21, 2008)
2. Secondary purposes.
Sumptuary or regulatory purpose taxes are imposed to promote the general welfare and to protect the
health, safety or morals of the inhabitants. It is in the joint exercise of the power of taxation and police power
where regulatory taxes are collected. Taxation may be made the implement of the states police power.
(Caltex Phils., Inc., vs COA, 208 SCRA 726, 8 May 1992, Osmena vs. Orbos, 220 SCRA 703, Tio vs. VRB,
151 SCRA 208, Southern Cross Cement Corporation vs. Cement Manufacturers Association of the
Philippines, et. Al., G.R. No. 158540, August 3, 2005)
3. The Coconut Levy Funds under the Coconut Investment Fund created under R.A. 6260; The Coconut
Consumers Stabilization Fund created under P.D. 276, The Coconut Industry Development Fund created under
P.D. 582 and the Coconut Industry Stabilization Fund created under P.D. 1841, were all raised under the States
taxing and police powers. (Cocofed vs. PCGG, 178 SCRA 236, 252, Republic v. COCOFED, G.R. No. 147062-64,
December 14, 2001)
Compensatory purpose to implement social justice provisions of the Constitution through the progressive
system of taxation, which would result to equal distribution of wealth. (Southern Cross Cement Corporation
vs. Cement Manufacturers Association of the Philippines, et. Al., G.R. No. 158540, August 3, 2005; Batangas
Power Corporation vs. Batangas City, et. Al., G.R. No. 152675)
To implement the power of eminent domain (Commissioner of Internal Revenue vs. Central Luzon Drug
Corporation, G.R. No. 159647, April 16, 2005; M.E. Holding Corporation vs. CA, et. Al., G.R. No. 160193,
March 3, 2008)
Aspects of Taxation - Processes that are included or embodied in the term taxation
The first is taxation, strictly speaking, while the second may be referred to as tax administration. The two
processes together constitute the taxation system.
3. Administrative feasibility
- It means that tax laws should be capable of convenient, just and effective administration.
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Limitations on the power to tax
- As a general rule, the power to tax is an incident of sovereignty and is unlimited in its range, acknowledging in its
very nature no limits, so that security against its abuse is to be found only in the responsibility of the legislature which
imposes the tax on the constituency who are to pay it. Nevertheless, effective limitations thereon may be imposed by
the people through their Constitutions (Mactan Cebu International Airport Authority vs. Marcos, 11 September 1996)
While the power does not emanate from a grant, as the same is necessarily inherent upon the existence of the
state, exercise of the power is subject to those limitations inherent upon it and those expressly provided for by the
Constitution as follows:
Inherent limitations
- These limitations are those limitations that emanates from the very nature of the power of taxation. They are very
basic and are built-in with the power. Some may be similar to the constitutional limitation but the constitutional
limitation seems to be supreme as they are the most specific, thus, specifically intended to rule the application or
exercise of the power of taxation.
1. Levy for public purpose. The revenues collected from taxation should be devoted to a public purpose.
Principles to consider:
- utilized for the benefit of the community in general
- inequalities infringe no constitutional limitation
- individual taxpayer need not derive direct benefits from the tax
- tax imposed not so much for revenue purposes
- not used for purely private purposes
- benefit derive by private individuals is merely incidental
- determined at the time of enactment of tax law
- public use=public interest, public benefit, public welfare (Republic v. COCOFED, G.R. No. 147062-64,
December 14, 2001, 372 SCRA 462, 482-84; Republic vs. Cocofed, G.R. Nos. 177857-58, January 24,
2012)
Requisites for taxpayers, concerned citizens, voters or legislators to have locus standi to sue:
1. In general, it should involve constitutional issues. (David, et. Al. v. Pres. Gloria Macapagal-Arroyo, G.R.
No. 171396, May 3, 2006)
3. For voters, there must be showing of obvious interest in the validity of the election law in question.
4. For concerned citizens, there must be showing that the issues raised are of transcendental importance
which must be settled early.
5. For legislators, there must be a claim that the official action complained of infringes upon their
prerogatives as legislators.
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2. Non-delegation of legislative power to tax. To delegate is to pass on or to entrust to another a certain duty or
obligation. Power to tax is lodged with the legislative department. Likewise, this is premised on the legal
maxim delegate potestas, non delegari potest which means, what has been delegated cannot be re-
delegated so as not to hamper the objective of the delegation.
(Abakada Guro Party List, et. Al. vs. Ermita, et. Al. G.R. No. 168056, September 1, 2005)
Requirement:
- complete
- sufficiently determinate standards
Power of LGUs to levy taxes, fees and other charges pursuant to Article X, section 5 of the 1987 Constitution
(Batangas Power Corporation vs. Batangas City, et. Al. G.R. No. 152675 and companion case April 28, 2004 citing National Power
Corporation vs. City of Cabanatuan, G.R. No. 149110, April 9, 2003)
- Exercised no longer merely by virtue of a valid delegation as before, but pursuant to
direct authority conferred by the Constitution
- However, the basic doctrine on local taxation remains essentially the same, the
power to tax is (still) primarily vested in the Congress. Sec. 5 does not change the
doctrine that LGUs do not possess inherent powers of taxation.
- Must be for public purpose, uniform, not confiscatory, within the jurisdiction of the
LGU
- Legal effect: it reversed the principle that doubts are resolved against LGUs.
Hence, in interpreting statutory provisions on municipal fiscal powers, doubts will be
resolved in favor of municipal corps.
- (Quezon City, et. Al. vs. ABS-CBN Broadcasting Corp, G.R. No. 166408, Oct. 6,
2008 citing City of Government of Quezon City, et. Al. vs. Bayan
Telecommunications, Inc. G.R. No. 162015, march 6, 2006, 484 SCRA 169 in turn
referring to Mactan Cebu International Airport Authority vs. Marcos G.R. No.
120082, September 11, 1996, 261 SCRA 667, 680)
3. Territorial jurisdiction relates to the area of jurisdiction and responsibility of a particular state. Independent states
power of taxation is generally confined only within its jurisdiction to give due respect and as courtesy to
other states. A state, as a rule, can only impose and implement tax laws and rules within its jurisdiction in
accordance with its wishes. Outside its jurisdiction, it is without power to do so. But then, it can tax on
citizens or entities of other states doing a trade or business.
- laws cease to operate beyond a countrys jurisdictional limits
4. Exemption of government entities. Government is the people, by (not BUY) the people, for (not POOR) the
people. Government exists for the people and whatever amount it makes, came from the people and such
amount it use to finance its various activities to address the general welfare of its inhabitants. It is not
constituted to engage in any trade or business but to deliver basic services and serve everyone within.
Analytically, taxing the government itself will not generate more revenue. The money will only rotate and
so no effect, at all, would be made. Suffice it to say however, there exist no express prohibition
5. International comity has something to do with the friendly interaction and participation of different states. This
adheres to some amount of submission and compliance of certain international rules and covenants for
mutual benefits and enjoyment of the states and its inhabitants. Bilateral agreements, conventions and
international treaties fall under this category.
- Principle of Sovereign Equality Among States
- Rule of par in parem non habet imperium (An equal has no power over an equal.)
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Constitutional Limitations are those provided for in the constitution or implied from its provisions.
1. General/ Indirect Constitutional Limitations
2. Specific/Direct Constitutional Limitations
GENERAL/INDIRECT:
1. Due Process
Should not be harsh, oppressive or confiscatory.
By authority of a valid law.
Must be for public purpose.
Imposed within territorial jurisdiction.
No arbitrariness in assessment and collection.
Right to notice and hearing.
2. Equal Protection
All persons subject to legislation shall be treated alike under like circumstances and conditions, both in
the privileges conferred in liabilities imposed. Persons and properties to be taxed shall be group, and all the same
class shall be subject to the same rate and the tax shall be administered impartially upon them . (Santos v. People,
G.R. No. 173176, 8/26/08)
- It does not demand absolute equality.
- (Tiu, et. Al. v. CA, G.R. No. 127410, 1/20/99)
Requisites for valid classification (it must be reasonable, based on reasonable foundation/rational basis
and is not palpably arbitrary ):
1. Based on substantial distinctions which makes for real differences;
2. Germane to the purpose of the law
3. Not limited to existing conditions only;
4. Apply equally to each member of the class;
(ABAKADA Guro Party List v. Purisima, G.R. No. 166715, 8/14/08)
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Methods of reducing rigors of double taxation:
1. Tax treaties
2. Tax credits
3. Tax deductions
4. Provide for exemption
(CIR vs. S.C. Johnson and Son, Inc., et.al., G.R. No. 127105, 25 June 1999.)
3. Prohibition against infringement of religious freedom Sec 5, Art III, it has been said that the constitutional
guarantee of the free exercise and enjoyment of religious profession and worship, which carries the right
to disseminate religious belief and information, is violated by the imposition of a license fee on the
distribution and sale of bibles and other religious literatures not for profit by a non-stock, non-profit
religious corporation.
(American Bible Society v. City of Manila, 101 Phil. 386 (1957)
4. Freedom of Press/expression -
a tax that operates as a prior restraint is invalid.
8. Law-making process
SPECIFIC/DIRECT:
1. Non-imprisonment for non-payment of poll tax [Section 10, Article III, Constitution]-
o A person cannot be imprisoned for non-payment of community tax, but may be imprisoned for other
violations of the community tax law, such as falsification of the community tax certificate, or for failure to
pay other taxes.
4. All appropriation, revenue, and tariff bills shall originate exclusively in the House of Representatives, but the
Senate may propose and concur with amendments [Section 24, Article VI, Constitution]
5. The President shall have the power to veto any particular item/s in appropriation, revenue, or tariff bill, but the
veto shall not affect the item/s to which he does not object [Section 27 (2) Article VI, Constitution]
6. Delegated power of the President to impose tariff rates, import and export quotas, tonnage and wharfage dues
7. Tax exemption of charitable institutions, churches, parsonages, or convents appurtenant thereto, mosques and
non-profit cemeteries and all lands, building and improvements actually, directly and exclusively used for
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charitable, religious and educational purposes [Section 28 (3) , Article VI, Constitution]
8. No tax exemption without the concurrence of majority vote of all members of Congress [Section 28 (4), Article
VI, Constitution]
9. No use of public money or property for religious purposes except if priest is assigned to the armed forces,
penal institutions, government orphanage or leprosarium [Section 29, Article VI, Constitution]
10. The Supreme Courts power to review judgments or orders of lower courts in all cases involving the legality of
any tax, impose, assessment or toll or the legality of any penalty imposed in relation to the above [Section 5
(2) (b), Article VIII, Constitution]
11. Authority of local government units to create their own sources of revenue, to levy taxes, fees and other
charges subject to guidelines and limitations imposed by Congress consistent with the basic policy of local
autonomy
12. Automatic release of local governments just share in national taxes
13. Tax exemption of all revenues and assets of non-stock, non-profit educational institutions used actually,
directly, and exclusively for educational purposes [Section 4, Article XIV, Constitution]
14. Tax exemption of all revenues and assets of proprietary or cooperative educational institutions subject to
limitations provided by law including restrictions on dividends and provisions of reinvestment of profits
[Section 4 (3), Article XIV, Constitution]
15. Tax exemption of grants, endowments, donations or contributions used actually, directly, and exclusively for
educational purposes subject to conditions prescribed by law.
DISTINCTIONS:
TAXATION vs. POLICE POWER vs. EMINENT DOMAIN
1.) As to purpose:
Taxation for the support of the government
Eminent Domain- for public use
Police Power to promote general welfare, public health, public morals, and public safety.
2) As to persons affected:
Taxation and Police Power operate upon a community or a class of individuals
Eminent Domain operates on the individual property owner.
4) As to amount of imposition:
Taxation Generally no limit to the amount of tax that may be imposed.
Police Power Limited to the cost of regulation
Eminent Domain There is no imposition; rather, it is the owner of the property taken who is just paid
compensation.
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Proportional as theoretically, tax is proportioned upon a taxpayers ability to pay. This goes to show that the
cost of the entire governance in the state is being apportioned among the inhabitants through a certain rule of
apportionment being put into play.
Generally payable in money
Levied on persons, property or exercise of a right or privilege
Levied by the state having jurisdiction
Levied by the legislature
Raise revenue goes with the very heart of taxation, to earn income for the government. Secondary however
to this primary purpose, tax is being seconded to serve some other concerns for the majority.
Support the expenses of the government is related to public purpose of the imposition of taxation. While
the government is empowered to collect from among its inhabitants by the power of taxation, proceeds are
bound to serve the public needs and expenditure only.
Paid at regular periods/intervals
Classification of Taxes:
A. As to subject matter of object
1.) personal, poll, capitation tax
(a) fixed amount
(b) individuals residing within specified territory
(c) without regard to their property, occupation or business
Ex. Community Tax (Cedula)
2) Property tax
(a) imposed on property, real or personal
(b) in proportion to its value or other reasonable method of apportionment
Ex. Real estate tax
2) Indirect - imposed on the taxpayer who shifts the burden of the tax to another. (CIR vs. American
Express International, Inc. (Philippine Branch), G.R. No. 152609, June 29, 2005, CIR vs. Acesite
Hotel Corp, G.R. No. 147295, February 16, 2007, Silkair PTE, Ltd., vs. CIR, G.R. No. 173594,
February 6, 2008, Phil. Acetylene vs. CIR, G.R. No. L-19707, August 17, 1967, )
Ex. VAT, specific tax, percentage tax, customs duties
C. As to determination of amount
1) Specific - tax imposed and based on a physical unit of measurement, as by head, number, weight,
length or volume
Ex. Tax on distilled spirits, fermented liquors, cigars
2) Ad Valorem - tax of a fixed proportion of the value of property with respect to which the tax is
assessed; requires intervention of assessor.
Ex. Real estate tax, excise tax on cars, nonessential goods
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D. As to purpose
1) General, fiscal or revenue - imposed for the general purpose of supporting the government
Ex. Income tax, percentage tax
2) Special or regulatory - imposed for a special purpose, to achieve some social or economic objectives
Ex. Protective tariffs or customs duties on imported goods intended to protect local
industries
2) Progressive or graduated - tax rate increases as the tax base or bracket increases
Ex. Income tax, estate tax, donors tax
b) BASIS: Tax imposed under power of taxation WHILE license fee under police power.
c) AMOUNT: In taxation, no limit as to amount WHILE license fee limited to cost of the license and expenses of
police surveillance and regulation.
d) TIME OF PAYMENT: Taxes normally paid after commencement of business WHILE license fee before.
e) EFFECT OF PAYMENT: Failure to pay a tax does not make the business illegal WHILE failure to pay license
fee makes business illegal.
f) SURRENDER: Taxes, being lifeblood of the state, cannot be surrendered except for lawful consideration
WHILE a license fee may be surrendered with or without consideration.
Toll v. tax
1. Toll is a sum of money for the use of something. It is the consideration which is paid for the use of a
road, bridge, or the like, of a public nature. Taxes, on the other hand, are enforced proportional
contributions from persons and property levied by the State by virtue of its sovereignty for the support
of the government and all public needs.
2. Toll is a demand of proprietorship; tax is a demand of sovereignty.
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3. Toll is paid for the used of anothers property; tax is paid for the support of government.
4. The amount paid as toll depends upon the cost of construction or maintenance of the public
improvements used; while there is no limit on the amount collected as tax as long as it is not
excessive, unreasonable, or confiscatory.
5. Toll may be imposed by the government or by private individuals or entities; tax may be imposed only
by the government.
Tax v. penalty
1. Penalty is any sanction imposed as a punishment for violation of law or for acts deemed injurious;
taxes are enforced proportional contributions from persons and property levied by the State by virtue
of its sovereignty for the support of the government and all public needs.
2. Penalty is designed to regulate conduct; taxes are generally intended to generate revenue.
3. Penalty may be imposed by the government or by private individuals or entities; taxes only by the
government.
o As to extent
1. total; and
2. partial.
o As to intent
1. intentional; and
2. accidental or by omission.
o As to source
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1. Constitutional;
2. Statutory;
3. Treaty;
4. Contractual; and by
5. Licensing ordinance
Tax avoidance is the tax saving device within the means sanctioned by law.
Tax evasion a scheme used outside of those lawful means and when availed of, it usually subjects the taxpayer to
further or additional civil or criminal liabilities. (CIR vs. The Estate of Benigno P. Toda Jr., G.R. No.
147188, September 14, 2004)
Generally, tax laws liberally interpreted in favor of the taxpayer and strictly against the government. (CIR vs. The
Philippine American Accident Insurance Co. Inc., et al., G.R. No. 141658, March 18, 2005, CIR vs. Acosta, etc., G.R.
No. 154068, August 3, 2007, CIR vs. Fortune Tobacco Corp., G.R. Nos. 167274-75, July 21, 2008)
In case of doubt, tax laws must be construed strictly against the State and liberally in favor of the taxpayer
because taxes, as burdens which must be endured by the taxpayer, should not be presumed to go beyond what the
law expressly and clearly declares. (Lincoln Philippine Life Insurance Company, Inc., etc., v. Court of Appeals, et al.,
293 SCRA 92, 99)
Statutes granting tax exemptions are construed strictissimi juris against the taxpayer and liberally in favor of the
taxing authority. A claim of tax exemption must be clearly shown and based on language in law too plain to be
mistaken. Otherwise stated, taxation is the rule, exemption is the exception. (Quezon City et al. vs. ABS-CBN
Broadcasting Corp G.R. No. 166408, October 6, 2008, Sea-Land Service, Inc. vs. CA, G.R. No. 122605, April 30,
2001)
The basis for the rule on strict construction to statutory provisions granting tax exemptions or deductions is to
minimize differential treatment and foster impartiality, fairness and equality of treatment among taxpayers. (Quezon
City, et al., v. ABS-CBN Broadcasting Corporation, G. R. No. 166408, October 6, 2008)
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c. Execution of all judgments decided in BIRs favor by CTA and ordinary courts;
d. Give effect to and administer the supervisory and police powers conferred to it by the NIRC. (Sec.2)
As part of the executive department, the Bureau of Internal Revenue (BIR) is vested with powers to collect and assess
taxes. To some extent, it also exercises quasi-judicial and quasi-legislative functions. BIR has the rule-making power
to aid in the implementation of tax laws. In exercising theses functions, the Commissioner recommends the
promulgation of Revenue Regulation (RRs) and issues tax rulings and other revenue issuances such as RMCs,
RMOs, RAMOs, and RMRs, among other things.
Revenue Regulation (RR) are issued by the Secretary of Finance, upon the recommendation of the Commissioner. They
prescribe or define rules and regulations for the effective enforcement of the provisions of the Tax Code and related
statutes.
Revenue Memorandum Circulars (RMC) contain pertinent and applicable portions, as well as amplification of laws, rule,
regulations and precedent s issued by the BIR and other agencies/offices.
Revenue Memorandum Order (RMO) provide directives or instructions, prescribe guidelines and outline processes,
operations activities, workflows, methods and procedures necessary in the implementation of stated policies,
objectives, plans, and programs of the BIR in all areas of operations, except audit.
Revenue Memorandum Rulings (RMR) are rulings, opinions, and interpretations of the Commissioner with respect to
the provisions of the Tax Code and other tax laws, as applied to a specific set of facts, with or without established
precedents, and which the Commissioner may issue from time to time to inform taxpayers of the tax consequences
on specific situations.
Commissioner of Internal Revenue has exclusive and original jurisdiction over implementation and interpretation of the
Tax Code of 1997 and other tax laws. However, the Secretary of Finance has the power to affirm, revise, modify or
set aside rulings and issuances of the Bureau of Internal Revenue (BIR) concerning such implementation and
application of the provisions of the Tax Code of 1997 and other tax laws.
2. Rulings of First Impression - These refer to the rulings, opinions and interpretations of the Commissioner of
Internal Revenue with respect to the provisions of the Tax Code and other tax laws without established precedent,
and which are issued in response to a specific request for ruling filed by a taxpayer with the Bureau of Internal
Revenue. Provided, however, that the term shall include reversal, modification or revocation of any existing ruling.
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- valid unless revoked by the Secretary of Finance
General Rule:
Revenue rulings and regulations have no retroactive affect if prejudicial to taxpayer.
Except:
-deliberate misstatement/omission by taxpayer
- facts gathered are materially different
- taxpayer acted in bad faith
(Sec. 246, NIRC as amended)
The exercise of such power under Section 4 of the Tax Code of 1997, however, does not cover disputed
assessments, refunds of internal revenue taxes, fees or other charges, and penalties imposed in relation thereto,
or other matters arising under the Tax Code or other laws or portions thereof administered by the BIR. In these
instances, the Court of Tax Appeals has the exclusive appellate jurisdiction.
Neither shall the power be exercised to apply to rulings that are deemed void ab initio because they
contradict duly issued Revenue Regulations, Revenue memorandum Orders, Revenue Memorandum Rulings,
and Revenue Memorandum Circulars.
b. Power to obtain information, summon, examine and take testimony of persons (Sec. 5)
c. Power to make assessments, prescribe additional requirements for tax administration and enforcement (Sec. 6)
d. Authority to delegate power. Read RDAO No. 3-2009 (15 May 2009)
e. Assignment of internal revenue officers (Sec. 16 and 17)
Question: Is the CIR liable for damages with respect to a ruling issued without notice, which had adverse effects
against the taxpayer?
Case: Vinzons-Chato vs. Fortune Tobacco Corp., G.R. No. 141309, 19 June 2007 and 23 December 2008
PHILIPPINE TAXES:
A. Internal Revenue taxes imposed under the NIRC.
1. Income tax
2. Transfer taxes
a) Estate tax
b) Donors tax
3. Percentage taxes
a) Value Added Tax
b) Other Percentage Taxes
4. Excise taxes
5. Documentary stamp tax
B. Local/ Municipal Taxes
C. Tariff and Customs Duties
D. Taxes / Tax Incentives under special laws
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