1. CONSTITUTIONAL LIMITATIONS

2. I. DUE PROCESS OF LAW Art. III, Sec. 1, Constitution: “No person shall be deprived of life, liberty or property without due process of law, nor shall any person be denied the equal protection of laws.”

3. II. EQUAL PROTECTION OF THE LAWS Meaning of Equal Protection of the Laws: All persons of the same class subject to legislation shall be treated alike under circumstances and conditions both in the privileges conferred and liabilities imposed.

4. Example of compliance:  Different amounts of incomes are made to pay different rates for taxes Example of violation:  Property tax on motor vehicles using the streets of Manila, payable only by Manila resident owners.

5. III. RULE OF UNIFORMITY Art. VI, Sec. 28(1), Constitution: The rule of taxation shall be uniform and equitable.

6. Meaning of uniformity in taxation “all taxable articles/properties of the same class shall be taxed at the same rate.” Example of compliance: Tax on every billboard anywhere in the country Tax on every billboard anywhere in the country

7. IV. PROHIBITION AGAINST IMPRISONMENT FOR NON-PAYMENT OF POLL TAX Art. III, sec. 20, Constitution: “No person shall be imprisoned for debt or non-payment of a poll tax.”

8. V. PROHIBITION AGAINST IMPAIRMENT OF OBLIGATION OF CONTRACTS Art. III, Sec. 10, Constitution: “No law impairing the obligation of contracts shall be passed.” Meaning: The obligation of a contract is impaired when its terms or conditions are changed by law thereby weakening the position of one party.

9. VI. PROHIBITION AGAINST INFRINGEMENT OF RELIGIOUS FREEDOM Art. III, sec. 5, Constitution: “No law shall be made respecting an establishment of religion, or prohibiting the free exercise thereof. X x x” Example of violation: Imposition of license fees on the distribution and sale of bibles and other religious materials by a religious corporation.

10. VII. PROHIBITION AGAINST APPROPRIATION FOR RELIGIOUS PURPOSES Art. VI, sec.29(2), Constitution: No public money shall be appropriated for the use of any sect, church or of any priest, preacher, minister as such, except when such priest, preacher, minister is assigned to the armed forces, or to any penal institution, or government orphanage or leprosarium.

11. VIII. PROHIBITION AGAINST TAXATION OF RELIGIOUS, CHARITABLE AND EDUCATIONAL ENTITIES Art. VI, sec. 28(3), Constitution: Charitable institutions, churches and all lands, buildings and improvements actually, directly and exclusively used for religious, charitable or educational purposes shall be exempt from taxation.”

12. Application: The exemption covers only PROPERTY TAX. Test of exemption: It is the USE of the property and not ownership.

13. Meaning of “EXCLUSIVELY” “PRIMARILY” rather than solely Coverage of exemption: includes “CONCEPT OF INCIDENTAL USE” – the exemption extends to facilities which are incidental or reasonably necessary for the accomplishment of the purpose.

14. IX. PROHIBITION AGAINST TAXATION OF NON-STOCK, NON-PROFIT EDUCATIONAL INSTITUTION Art. XIV, sec. 4(3), Constitution: All revenues and assets of non-stock non-profit educational institutions used actually, directly and exclusively for educational purposes shall be exempt from taxes and duties. Application: Income tax and property tax

15. Art. XIV, sec.4(4), Constitution: all grants, endowments, donations or contributions used actually, directly and exclusively for educational purposes shall be exempt from tax. Application: Donor’s tax