The Maceda cases (1991 and MR 1993) showed that the legislative can validly pass the power to exempt a taxpaying entity, in this case the Fiscal Incentives Review Board, which is of course subject to the approval of the President. CIR v. CA stated that administrative agencies are merely granted interpretative powers, but not law-making powers, meaning they can only interpret the laws passed in the essence, but not to the extent of adding to what its spirit intended. Mactan v. Marcos had a contrasted ruling with MIA v. CA based on the same principle: government instrumentalities are not charged taxes, for it would be senseless for the whole to tax a portion of it. The difference in the ruling is how the Mactan airport and the MIA are characterized, the latter emphasized as being devoted for public purpose and thus exempted. IN GSIS v. Treasurer of Manila and Philippine Fisheries v. Central Board, the Court ruled that although government instrumentalities are exempted from real estate taxes, the same does not hold for the property they rent out to other entities. Tanada v. Angara- The Philippines follow the comity of nations, which means that each country respects the rules of other countries, taken in conjunction with treaties as obligations to international bodies such as the WTO. CIR v. Mitsubishi- An Exchange of Notes are Executive in character and therefore does not give rise to tax exemptions, which is purely legislative. A tax refund is basically a tax exemption. The remedy of a party which has been promised assumption of fees and subsequently taxed is therefore not a tax refund from the BIR but rather compensation from the promising party. It was held in CIR v. BOAC that income derived from the Philippines, even if the service is performed not in the Philippines, is subject to tax. The dissent here noted that such activity was not the sale of property as the majority claimed, but rather a piece of paper evidencing a contract of carriage. Sources: Laforteza #UPLaw #ReviewNotes #Taxation
Posted on: Sat, 30 Aug 2014 18:43:55 +0000
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