In one case, a certain imposition was successfully passed for the purpose of upholding the welfare of the sugar industry. It was questioned on the ground that there is no PUBLIC purpose since the sugar industry does not allegedly represent the public. The issue was resolved in favor of the validity of the imposition. While sugar industry does not represent the entire public as the proceeds would not add to the general budget of the national government, nevertheless, the industry itself admits of a public nature whose circumstances and effects directly affect the public. The requirement of direct purpose does not admit of a direct public benefit from the imposition.
• 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. To my mind, this is because the legislative branch is theoretically the representative of the people and they are directly aware and in common contact with the instances and situations of their districts making them the ones knowledgeable of how best their district could be affected by the new taxes imposed. 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. However, there are at least two (2) instances where delegation is possible (a) delegation to the President of some tariff powers, and (b) Local government unit's fiscal autonomy for their self serving needs.
• 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
• International comity has something to do with the friendly interaction and participation of different estates. 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.
• Territorial jurisdiction relates to the area of jurisdiction and responsibility of a particular estate. 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 or deriving income within the jurisdiction of its state. See the case of Spratley islands for better picture. Issue on who owns spratley had long been outstanding for each party claims jurisdiction in accordance with its of the parties belief that it rightfully belongs to it.
The following are the inherent limitations on the power of taxation: Taxes may be levied only for PUBLIC PURPOSE. The power to tax, being essentially LEGISLATIVE, cannot be delegated. The power to tax is limited to the State's TERRITORIAL JURISDICTION. INTERNATIONAL COMITY.
Inherent power of sovereignty Essentially a legislative function For public purposes Territorial in operation Tax exemption of government The strongest among the inherent powers of the government Subject to Constitutional and inherent limitations
Public purposes of taxes Non-delegability of the taxing power Territoriality or situs of taxation tax exemption of the government International Comity
Three inherent powers of government are taxation, education, and criminal justice. Three inherent powers of a state are police power, taxation, and eminent domination.
Inherent and Legislative Power
1. police power 2. eminent domain 3. power of taxation
Taxation has inherent limitations, such as the following: 1. Taxes must be levied for public purposes and no amount shall be used for religious purposes. 2. The power of taxation cannot be delegated. 3. Only one tax can be imposed on the same income (rule against double taxation) 4. Government instrumentalities and agencies though which the government exercises sovereign powers are exempt from tax, in the absence of the contrary intent in the law. 5. The power of taxation is limited to the territorial jurisdiction of the taxing state. 6. Tax laws cannot apply to properties of foreign governments (international comity). 7. The supreme Court has jurisdiction on tax laws.
The Constitution includes limitations on the powers of government and taxation. Some of the limitations include; the Orientation clause, the Uniformity clause and no export tax.
Police Power Power of Eminent Domain Power of Taxation
the power of the government or state to inforce and money mandatory or compolsory money contribution from the people to suppurt the needs of the nation.
Nature of taxation: The power to tax is an attribute of sovereignty, exercised by the government for the betterment of the people within its jurisdiction whose interest should be served, enhanced and protected. (69 SCRA 460)It is an inherent power of sovereignty, essentially a legislative function, enforced for public purpose, operates only within its territorial jurisdiction, exempts government agencies from tax (provided such agency performs governmental functions), and is subject to constitutional and inherent limitations.Scope of taxation: In the absence of limitations provided by the constitution, the power to tax is essentially unlimited, plenary, comprehensive, far reaching, and supreme. Taxation compasses every trade or occupation, every object or industry or possession of property. It levies a burden which, in case of failure to discharge, seizure or confiscation of property may be enforced, subject to due process of law.
The inherent powers of a state are all powers not designated to the federal government as specified in the tenth ... Define the three inherent powers of theState