Caltex v. Commissioner, 208 SCRA 755: Received Principle."

Caltex v.
Commissioner, 208 SCRA 755

 Taxation is no longer a measure merely to raise revenue to
support the existence of government. Taxes may be levied with a
regulatory purpose to provide means for the rehabilitation and
stabilization of a threatened industry which is affected with public
interest as to be within the police power of the State. The oil industry
is greatly imbued with public interest as it vitally affects the general
welfare.

Sumptuary purpose of taxation

 More popularly known as the non-revenue or regulatory
purpose of taxation. While the primary purpose of taxation is to raise
revenue for the support of the government, taxation is often employed
as a devise for regulation by means of which certain effects or
conditions envisioned by the government may be achieved.

 For example, government may provide tax incentives to
protect and promote new and pioneer industries. The imposition of
special duties, like dumping duty, marking duty, retaliatory duty, and
countervailing duty, promote the non-revenue or sumptuary purpose
of taxation.

Theory and basis of taxation

 The power of taxation proceeds upon the theory that the
existence of government is a necessity; that it cannot continue
without means to pay its expenses; and that for these means, it has a
right to compel all its citizens and property within its limits to
contribute.

 The basis of taxation is found in the reciprocal duties of
protection and support between the State and its inhabitants. In
return for his contribution, the taxpayer received benefits and
protection from the government. This is the so-called “benefits
received principle.”

Life blood or necessity theory

 The life blood theory constitutes the theory of taxation,
which provides that the existence of government is a necessity; that
government cannot continue without means to pay its expenses; and
that for these means it has a right to compel its citizens and property
within its limits to contribute.

 In Commissioner v. Algue, the Supreme Court said that
taxes are the lifeblood of the government and should be collected
without unnecessary hindrance. They are what we pay for a civilized
society. Without taxes, the government would be paralyzed for lack
of motive power to activate and operate it. The government, for its
part, is expected to respond in the form of tangible and intangible
benefits intended to improve the lives of the people and enhance their
moral and material values.
*What is BIR?
The Bureau of Internal Revenue is an agency of Department of Finance.
BIR collects more than half of the total revenues of the government. Caesar
Dulay is the current Commissioner of BIR.
MANDATE
The Bureau of Internal Revenue shall be under the supervision and control
of the Department of Finance and its powers and duties shall comprehend
the assessment and collection of all national internal revenue taxes, fees,
and charges, and the enforcement of all forfeitures, penalties, and fines
connected therewith, including the execution of judgments in all cases
decided in its favor by the Court of Tax Appeals and the ordinary courts.
The Bureau shall give effect to and administer the supervisory and police
powers conferred to it by this Code or other laws. (Section 2 of the National
Internal Revenue Code of 1997)
MISSION
We collect taxes through just enforcement of tax laws for nation-building
and the upliftment of the lives of Filipinos
VISION The Bureau of Internal Revenue is an institution of service

excellence and integrity.
GUIDING PRINCIPLE "Service Excellence with Integrity and

Professionalism"
*What are the policies that govern BIR?

National Tax Law
I. 1987 Constitution
The 1987 Philippine Constitution sets limitations on the exercise of the

power to tax. The rule of taxation shall be uniform and equitable.
 All money collected on any tax levied for a special purpose shall be
treated as a special fund and paid out for such purpose only.
 The Congress may, by law, authorize the President to fix within
specified limits, and subject to such limitations and restriction
 The Supreme Court shall have the power to review, revise, reverse,
modify or affirm on appeal or certiorari, as the law or the Rules of Court
may provide, final judgments and orders of lower courts

Caltex v. Commissioner, 208 SCRA 755: Received Principle."

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Caltex v. Commissioner, 208 SCRA 755: Received Principle."

Uploaded by

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Caltex v.

Commissioner, 208 SCRA 755

VISION The Bureau of Internal Revenue is an institution of service

GUIDING PRINCIPLE "Service Excellence with Integrity and

*What are the policies that govern BIR?

The 1987 Philippine Constitution sets limitations on the exercise of the

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