1. 2. 3.

When does the power of taxation impinge the due process clause? What are the requisites of a valid classification? Cite Supreme Court decisions. A law withdrawing the VAT exemption granted to the press was challenged as discriminatory for giving broadcast media favored treatment. Should the challenge be sustained? (see case of Tolentino vs. Secretary of Finance, 235 SCRA 630)

4.

When is a property tax exempt for being used exclusively for educational purposes? Cite Supreme Court decisions to support your answer.

5. 6. 7. 8. 1.

What bills are required to originate exclusively from the House of Representatives? Explain the doctrine of mobilia sequntur personam. Is double taxation prohibited? Cite Supreme Court decisions to support your answer. Distinguish tax avoidance from tax evasion.

The power of taxation impinge the due process clause when tax measure should be unconscionable and unjust as to amount to confiscation of property, rendered for non-public purposes, and tax statute was arbitrary as to find no support in the Constitution. 2. 3. No, the court cited in Tolentino vs. Sec. Of Finance that there is curtailment of press freedom and freedom of thought and expression if tax is levied in order to suppress this basic right and impose a prior restraint. The court also ruled that the fee is not imposed for the exercise of a privilege but only for the purpose of defraying part of the cost of registration. 4. The SC ruled in the case CIR v CA, Ateneo de Manila Univ. as private respondents therein, that funds received by the priv respondent are technically not a fee and therefore may fall as gifts or donations which is tax exempt as shown with compliance with the requirement of Section 123 of the NIRC providing for the exemption of such gifts to an educational institution. 5----------6. mobilia sequntur personam literally means that the property follows the person in which the place where the owner is found is the situs or place of taxation under the rule that movables follow the person where as generally is at the domicile of the owner. This principle is applied to intangible personal property the situs of which is fixed by the domicile of the owner. The reason is that this type of property rarely admits of actual location. However, there are two exceptions to the rule. One is when it is inconsistent with the express provisions of a statute and the other is when the interests of justice demand that it should not be applied. 7. in the case of Villanueva v. City of Iloilo, the court held that there is no constitutional prohibition against double taxation in the Philippines. Thus, it is something not favoured, but is nevertheless permissible. 8 Tax avoidance Legal and not subject to criminal penalty Minimization of Taxes Tax evasion Illegal and subject to criminal penalty Almost always results in the absence of tax payments

Validity Effect