Photo from Unsplash | Recha Oktaviani
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
The month of March of every year is declared as “Tax Consciousness Month” by virtue of Proclamation No. 1239, Series of 1974.
In the case of Commissioner of Internal Revenue v. Yumex Philippines Corporation (G.R. No. 222476, May 05, 2021), the Supreme Court held:
“It is said that taxes are what we pay for civilized society. Without taxes, the government would be paralyzed for the lack of the motive power to activate and operate it. Hence, despite the natural reluctance to surrender part of one’s hard-earned income to taxing authorities, every person who is able to, must contribute his share in the running of the government.”
Under Proclamation No. 1239, Series of 1974, there is a continuing need to instill consciousness of Filipino citizens’ obligation and their role as taxpayers in economic programs and nation-building.
Thus, under the Proclamation, the month of March of every year is declared as “Tax Consciousness Month”.
The Proclamation provides:
“NOW, THEREFORE, I, ALEJANDRO MELCHOR, Executive Secretary, by order of His Excellency, FERDINAND E. MARCOS, President of the Republic of the Philippines, do hereby declare the entire month of March of every year as “Tax Consciousness Month” under the Auspices of the Department of Finance, through the Bureau of Internal Revenue.”
In the above-cited case of Commissioner of Internal Revenue v. Yumex Philippines Corporation, the Supreme Court further ruled:
“But even as we concede the inevitability and indispensability of taxation, it is a requirement in all democratic regimes that it be exercised reasonably and in accordance with the prescribed procedure. If it is not, then the taxpayer has a right to complain and the courts will then come to his succor. For all the awesome power of the tax collector, he may still be stopped in his tracks if the taxpayer can demonstrate that the law has not been observed.” (Commissioner of Internal Revenue v. Yumex Philippines Corporation, supra.)
For this reason, the rule is that a tax is never presumed and there must be clear language in the law imposing the tax. Any doubt whether a person, article, or activity is taxable is resolved against taxation.” (Philippine Heart Center v. The Local Government of Quezon City, G.R. No. 225409, March 11, 2020)
Related Article/s:
Tax Deficiency vs. Tax Delinquency
When is there Double Taxation?
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
All rights reserved.