Professional Documents
Culture Documents
*
No. L-59431. July 25, 1984.
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* EN BANC.
655
mitted that for all its plenitude, the power to tax is not
unconfined. There are restrictions. The Constitution sets forth
such limits. Adversely affecting as it does property rights, both
the due process and equal protection clauses may properly be
invoked, as petitioner does, to invalidate in appropriate cases a
revenue measure. If it were otherwise, there would be truth to the
1803 dictum of Chief Justice Marshall that “the power to tax
involves the power to destroy.” In a separate opinion in Graves v.
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656
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the laws’s benefits being available to all and the affairs of men
being governed by that serene and impartial uniformity, which is
of the very essence of the idea of law. There is, however, wisdom,
as well as realism, in these words of Justice Frankfurter: “The
equality at which the ‘equal protection’ clause aims is not a
disembodied equality. The Fourteenth Amendment enjoins ‘the
equal protection of the laws,’ and laws are not abstract
propositions. They do not relate to abstract units A, B and C, but
are expressions of policy arising out of specific difficulties,
addressed to the attainment of specific ends by the use of specific
remedies. The Constitution does not require things which are
different in fact or opinion to be treated in law as though they
were the same.” Hence the constant reiteration of the view that
classification if rational in character is allowable. As a matter of
fact, in a leading case of Lutz V. Araneta, this Court, through
Justice J.B.L. Reyes, went so far as to hold “at any rate, it is
inherent in the power to tax that a state be free to select the
subjects of taxation, and it has been repeatedly held that
‘inequalities which result from a singling out of one particular
class for taxation, or exemption infringe no constitutional
limitation.’ ”
Same; Same; Uniformity in taxation quite similar to the
standard of equal protection.—Petitioner likewise invoked the
kindred concept of uniformity. According to the Constitution: “The
rule of taxation shall be uniform and equitable.” This requirement
is met according to Justice Laurel in Philippine Trust Company v.
Yatco, decided in 1940, when the tax “operates with the same
force and effect in every place where the subject may be found.”
He likewise added: “The rule of uniformity does not call for perfect
uniformity or perfect equality, because this is hardly attainable.”
The problem of classification did not present itself in that case. It
did not arise until nine years later, when the Supreme Court held:
“Equality and uniformity in taxation means that all taxable
articles or kinds of property of the same class shall be taxed at the
same rate. The taxing power has the authority to make
reasonable and natural classifications for purposes of taxation, * *
*. As clarified by Justice Tuason, where “the differentiation”
complained of “conforms to the practical dictates of justice and
equity” it “is not discriminatory within the meaning of this clause
and is therefore uniform.” There is quite a similarity then to the
standard of equal protection for all that is required is that the tax
“applies equally to all persons, firms and cor-
657
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FERNANDO, C.J.:
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1 Petitioner must have realized that a suit for declaratory relief must be
filed with Regional Trial Courts.
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Over P 60,000 but not over P 6,075 + 19% of excess over P 60,000
P100,000
Over P100,000 but not over P 13,675 + 24% of excess over P
P250,000 100,000
Over P250,000 but not over P 49,675 + 29% of excess over P
P500,000 250,000
Over P500,000 P 122,175 + 35% of excess over P
500,000
Par. (b) reads: “(b) On taxable net income.—A tax is hereby imposed upon
the taxable net income as determined in Section 29 (a) received
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during each taxable year from all sources by every individual, whether
a citizen of the Philippines, or an alien residing in the Philippines
determined in accordance with the following schedule:
P500,000 P150,000
Over P500,000 P197,000 + 60% of excess over
P500,000
660
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661
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17 Ibid, 490.
18 Cf. Ermita-Malate Hotel and Motel Operators Association v. Hon.
City Mayor, 127 Phil. 306, 315 (1967); U.S. v. Salaveria, 39 Phil. 102, 111
(1918) and Eboña v. Daet, 85 Phil. 369 (1950). Likewise referred to is
O’Gorman and Young v. Hartford Fire Insurance Co., 282 US 251, 328
(1931).
662
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663
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664
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665
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Petition dismissed.
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——o0o——
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