Recitation
GENERAL PRINCIPLES
Concepts, Basis, Purpose
Taxation- is a process inherent in every state to exercise the power to
exact, enforced, proportional contributions imposed upon persons,
properties, or rights to raise revenue in order to defray the necessary
and legitimate expenses of the government
Taxation is innate and inborn in every State
a. taxes are enforced contributions
- obligations created by law; not founded on contract or agreement
b. proportional in character
-based on one's ability to pay
c. taxes are levied by authority of the law
-power to tax is imposed by legislative power
d. taxes are for the support of the government and all its public needs
BASIS OF TAXATION
A. LIFEBLOOD THEORY
-the very life and blood of the nation solely depend on taxation
-it is the taxation that gives blood to the nation in order to survive.
without it, there can be no government. there will be no revenue to
support or sustain its functions
B. NECESSITY THEORY
-Without taxes, the government cannot fulfill its mandate of promoting
the general welfare and well-being of the people
PURPOSES OF TAXATION
1. the primary purpose of taxation is to raise revenues to raise funds or
property to enable the State to promote the general welfare and
protection of its citizens
2. Secondary or non-revenue purposes
a. reduce social inequality- progressive system of taxation; the tax rate
increases as the tax base increases
b. encourage the growth of local industries- power to tax carries the
power to grant tax exemptions. Tax reliefs serves as incentives to
encourage investment
c. protect our local industry against unfair competition- the tariff and
customs code allows the imposition of certain taxes upon imported
goods to further protect our local industry
d. as an implement of the police power- through imposition of taxes
with the end in view of regulating a particular activity
Principles of a sound tax system (FAT)
1. Fiscal adequacy- sources of revenues must be adequate to meet
government expenditures and other public needs
2. Theoretical justice- a sound tax system must take into consideration
the taxpayers' ability to pay
3. Administrative feasibility- tax laws must be capable of effective and
efficient enforcement. They must not obstruct business growth and
economic development
Q. Will a violation of these principles invalidate a tax law?
IT DEPENDS. A tax law will retain its validity even if it is not in
consonance with the principles of fiscal adequacy and administrative
feasibility because the Constitution does not expressly require so.
However, if a tax law runs contrary to the principle of theoretical
justice, such violation will render the law unconstitutional considering
that under the Constitution, the rule of taxation should be uniform and
equitable.
Scope of taxation
The sole arbiter of the purposes for which taxes shall be levied is the
legislature, provided the purposes are public.
The courts may review the levy of the tax to determine whether the
purpose is a public one but once that is determined, the courts can
make no other inquiry as to the purpose of the tax, as it affects the
power to impose it.
1. Comprehensive
2. Unlimited- unlimited in its magnitude so that security against its
abuse is to be found only in the responsibility of the legislature
3. Plenary
4. Supreme
Nature of the Taxing Power
A. Taxation as an Inherent Attribute of Sovereignty
The power of taxation is an incident of sovereignty as it is inherent in
the State, belonging as a matter of right to every independent
government. Constitutional provisions do not give rise to the power to
tax but merely impose limitations on what would otherwise be an
invincible power.
It is considered inherent in a sovereign State because it is a necessary
attribute of sovereignty. Without this power, no sovereign State can
exist nor endure.
B. Taxation as Legislative in character
The power to tax is inherent in the State, and the State is free to select
the object of taxation, such power being exclusively vested in the
legislature, EXCEPT where the Constitution provides otherwise.
SCOPE OF LEGISLATIVE TAXING POWER
1. Amount or rate of tax
2. Apportionment of the tax
3. Kind of tax
4. Method of collection
5. Purpose/s of its levy, provided it is for public purpose
6. Subject to be taxed, provided it is within its jurisdiction
7. Situs (place) of taxation
Limitations
1. INHERENT
a. Taxes are exacted only for a public purpose
- The power to tax exists for the general welfare; hence, implicit in its
power is the limitation that it should be used only for a public purpose.
- The term "public purpose" is not defined. It does not only pertain to
those purposes which are traditionally viewed as essentially
government functions, such as building roads and delivery of basic
services, but also includes those purposes designed to promote social
justice. Thus, public money may now be used for the relocation of
illegal settlers, low-cost housing and urban or agrarian reform.
- Justice Isagani Cruz defines 'public purpose' as embracing not
merely direct public benefit or advantage but also indirect public
benefit.
- The power to determine whether the purpose of taxation is public or
private resides in Congress. However, this will not prevent the court
from questioning the propriety of such a statute on the ground that the
law enacted is not for a public purpose; but once it is settled that the
law is for a public purpose, the court may no longer inquire into the
wisdom, expediency or necessity of such tax measure.
PASCUAL v. SECRETARY OF PUBLIC WORKS 110 Phil. 331
Nevertheless, in the case of Pascual v. Secretary of Public Works
which challenges the law appropriating a certain amount for the
construction of a feeder road on a land owned by a private individual,
the Court held the law to be an invalid imposition since it results in the
promotion of a private enterprise, it benefits the property of a particular
individual. The provision that the land shall thereafter be donated to the
government does not cure this defect. The rule is that, if the public
advantage or benefit is merely incidental in the promotion of a
particular enterprise, such defect shall render the law invalid. On the
other hand, if what is incidental is the promotion of a private enterprise,
the tax law shall be deemed "for a public purpose."
b. International Comity
- Under Section 2, Article II of our Constitution, the Philippines "adopts
the generally accepted principles of international law as part of the law
of the land, and adheres to the policy of peace, equality, justice,
freedom, cooperation, and amity with all nations.
- where even the strongest state cannot assume jurisdiction over
another state, no matter how weak, or question the validity of its acts in
so far as they are made to take effect within its own territory
c. Territoriality
d. Non-delegability of the taxing power
- The power to tax is exclusively vested in the legislative body.
Exceptions
- The Congress may, by law, authorize the President to impose tariff
rates, import and export quotas
- Each local government unit shall have the power to create its own
sources of revenue, fees, charges, subject to such guidelines and
limitations as the Congress may provide consistent with the basic
policy of local autonomy
e. Tax exemption of the government
General: the government is tax exempt however it can also tax itself
RULES:
1. Administrative Agencies
a. Governmental function - tax exempt unless when the law expressly
provides for tax. (Sec.32 B7)
b. Proprietary function – taxable unless exempted by law. (Sec. 27C)
2. GOCCs
General Rule: Income is taxable at the rate imposed upon corporations
or associations engaged in a similar business, industry, or activity.
Exception: GSIS, SSS, PHIC, PCSO and PAGCOR. (Sec. 27(C),
NIRC)
2. CONSTITUTIONAL
1. Due Process Clause
"No person shall be deprived of life, liberty or property without due
process of law . . . " (Art. Ill, Sec. 1)
- The due process clause may be invoked where a taxing statute is so
arbitrary that it finds no support in the Constitution, as where it can be
shown to amount to a confiscation of property. There must be a proof
of arbitrariness
2. Equal Protection Clause (Art. III, Sec. 1, 1987 Constitution
" . . . nor shall any person be denied the equal protection of the law."
(Art. Ill, Section 1)
It merely requires that all persons subjected to such legislation shall be
treated alike, under like circumstances and conditions, both in the
privileges conferred and in the liabilities imposed*
Requisites of a Valid Classification:
a. based upon substantial distinctions
b. germane to the purposes of the law
c. not limited to existing conditions only 4. Progressive Taxation

d. apply equally to all members of the class
ORMOC SUGAR COMPANY, INC. v. THE TREASURER OF ORMOC
CITY, et al.22 SCRA 603
Ormoc Sugar Company alleged that Ordinance No. 4, Series of 1964,
imposing "on any and all productions of centrifugal sugar milled at the
Ormoc Sugar Co., Inc., in Ormoc City a municipal tax equivalent to one
per centum (1%) per export sale to the USA and other foreign
countries" is unconstitutional for being violative of the equal protection
clause (Sec. Ill], Art. Ill, Constitution) and the rule on uniformity of
taxation. (Sec. 2811 ], Art. VI, Constitution)
HELD:
Ord. No. 4 is declared unconstitutional.
Congress shall evolve a progressive system of taxation. (Art. VI, Sec.
2811])
Taxation is said to be equitable when its burden falls on those better
able to pay; taxation is progressive when its rate goes up depending
on the resources of the person affected.
5. Non-impairment clause
No law shall be passed impairing the obligations of contracts. (Art. Ill,
Section 10, Constitution)
6. Non-imprisonment for non-payment of poll tax
No person shall be imprisoned for non-payment of a debt or poll tax.
(Art. Ill, Section 20, Constitution)

The Bill of Rights in the Constitution provides: While a person may not be imprisoned for nonpayment of a cedula or
poll tax (People v. Linsangan, 62 Phil. 646), he may be imprisoned for
"x x x nor shall any person be denied the equal protection of the laws." non-payment of other kinds of taxes where the law so expressly
(Sec. Art. Ill) In Felwa v. Salas, L-26511, October 29, 1966, the SC provides.
ruled that the equal protection clause applies only to persons or things
identically situated and does not bar a reasonable classification of the 7. Bills to originate from the House of Rep
subject of taxation, and a classification is reasonable where: (1) it is
based on substantial distinctions which make real differences; (2) Both Houses of Congress may initiate bills, but only the Lower House
these are germane to the purposes of the law; (3) the classification may propose tax measures.
applies not only to present conditions but also to future conditions
which are substantially identical to those of the present; (4) the 8. Veto Power of the President
classification applies only to those who belong to the same class.
9. President's power to tax
A perusal of the requisites instantly shows that the questioned
ordinance does not meet them, for it taxes only centrifugal sugar 10. Taxation and freedom of the press
produced and exported by the Ormoc Sugar Co., Inc. and none other.
At the time of the taxing Ordinance's enactment, Ormoc Sugar No law shall be passed abridging the freedom of speech, of
Company, it is true, was the only sugar central in the City of Ormoc. expression, or of the press... (Article 111, Section 4, Constitution)
Still, the classification, to be reasonable, should be in terms applicable
to future conditions as well. The taxing ordinance should not be 11. Taxation and freedom of religion
singular and exclusive as to exclude any substantially established
12. Tax Exemption Of Properties Actually, Directly And
sugar central, of the same class as plaintiff, from the coverage of the
Exclusively Used For Religious, Charitable And Educational
tax
Purposes
3. Uniformity of Taxation

The rule of taxation shall be uniform and equitable. (Art. VI, Sec. 28[1]
of the Constitution)

Herrera vs QC
Uniformity in taxation — says Black on Constitutional Law — means
that all taxable articles or kinds of property of the same class shall be
The Supreme Court ruled thus —
taxed at the same rate.
"Moreover, the exemption in favor of property used exclusively for
charitable or educational purposes is 'not limited to property actually
indispensable' therefore (Cooley on Taxation, Vol. 2, p. 1430), but
Equal Uniformity
Protection extends to facilities which are incidental to and reasonably necessary
Taxpayer may not Taxpayers shall Taxable articles, for the accomplishment of said purposes, such as in the case of
be be or hospitals, 'a school for training nurses, a nurses' home, property use to
Deprived of life, treated alike kinds of provide housing facilities for interns, resident doctors, superintendents,
liberty or property under like property of and other members of the hospital staff, and recreational facilities for
without due circumstances the same student nurses, interns, and residents' (84 C.J.S. 6621), such as
process of and conditions class, shall
'Athletic fields' including 'a firm used for the inmates of the institution.'
law. Notice both in the be taxed at
must, therefore, privileges the same rate. (Cooley on Taxation, Vol. 2, p. 1430)
be given in case conferred and There should
of failure to pay liabilities therefore,
taxes imposed. be no direct
double
taxation
Abra Valley Collage vs Aquino
For non-payment of real estate taxes, the properties of the Abra Valley
Junior College, Inc. was sold at public auction for the satisfaction of the
unpaid real property taxes thereon. At issue is whether or not the lot
and building in question are used exclusively for educational purposes.
Petitioner contends that the primary use of the lot and building for
educational purposes, and not the incidental use thereof, determines
the exemption from property taxes under Section 22(3), Article VI of
the 1935 Constitution. Hence, the seizure and sale of subject college
lot and building, which are contrary thereto as well as to the provision
of Commonwealth Act No. 470, otherwise known as the Assessment
Law, are without legal basis and therefore void.
On the other hand, private respondents maintain that the college lot
and building in question which were subjected to seizure and sale to
answer for the unpaid tax are used: (1) for the educational purposes of
the college; (2) as the permanent residence of the President and
Director thereof, Mr. Pedro V. Borgonia, and his family including the in-
laws and grandchildren; and (3) for commercial purposes because the
ground floor of the college building is being used and rented by a
commercial establishment.
Section 22, paragraph 3, Article VI, of the then 1935 Philippine
Constitution, expressly grants exemption from realty taxes for
"cemeteries, churches and parsonages or convents appurtenant
thereto, and all lands, buildings, and improvements used exclusively
for religious, charitable or educational purposes . . ."
Relative thereto, Section 54, paragraph c, Commonwealth Act No. 470
as amended by Republic Act No. 409, otherwise known as the
Assessment Law, provides:
"The following are exempted from real property tax under the
Assessment Law:
(c) churches and parsonages or convents appurtenant thereto, and all
lands, buildings, and improvements used exclusively for religious,
charitable, scientific or educational purposes.
In this regard petitioner argues that the primary use of the school lot
and building is the basic and controlling guide, norm and standard to
determine tax exemption, and not the mere incidental use thereof.
HELD:
The test of exemption from taxation is the use of the property for
purposes mentioned in the Constitution.(Apostolic Prefect v. City
Treasurer of Baguio, 71 Phil.54711941])
It must be stressed however, that the exemption extends to facilities
which are incidental to and
reasonably necessary for the accomplishment of the main purposes.
The use of the school building or lot for commercial purposes is neither
contemplated by law, nor by jurisprudence. Thus, while the use of the
second floor of the main building in the case at bar for residential
purposes of the Director and his family, may find justification under the
concept of incidental use, which is complimentary to the main or
primary purpose — educational, the lease of the first floor thereof to
the Northern Marketing Corporation cannot by any stretch of
imagination be considered incidental to the purpose of education.
However, since only a portion is used for purposes of commerce, it is
only fair that half of the assessed tax be returned to the school
involved.
PROVINCE OF ABRA v. HERNANDO
107 SCRA 104*
To be exempt from realty taxation, there must be proof of the actual
and direct USE of the lands, buildings, and improvement for religious
or charitable purposes.
Lung Center of the Philippines v. Quezon City and Constantino P.
Rosas, City
Assessor of Quezon City, G.R. No. 144104, June 29, 2004, 433 SCRA
119, the prevailing rule on the application of tax exemption to
properties incidentally used for religious, charitable and educational
purposes, as enunciated in the case of Herrera v. QC-BAA, 3 SCRA
187, has now been abandoned. In resolving the issue of whether or not
the portions of the real property of Lung Center that are leased to
private entities are exempt from real property taxes, die Supreme
Court reexamined the intent of the constitutional provision granting tax
exemption of properties ACTUALLY,
DIRECTLY AND EXCLUSIVELY USED FOR RELIGIOUS,
CHARITABLE AND EDUCATIONAL PURPOSES.
Thus, the records of the Constitutional Commission reveal that what is
exempted is not the institution itself; those exempted from real estate
taxes are lands, buildings and improvements actually, directly and
exclusively used for religious, charitable or educational purposes
Meaning of actually, directly and exclusively
"Actually is opposed to seemingly, pretendedly, or feignedly, as
actually engaged in farming means, truly in fact."
"Directly. In a direct way without anything intervening; not by
secondary, but by direct means."
"Exclusively. Apart from all others; without admission of others to
participation; in a manner to exclude.
13. Tax exemptions granted to Non-stock, non-profit educational
institutions
14. Appropriation of Public money
No public money or property shall be appropriated, applied, paid or
employed directly or indirectly for the use, benefit or support of any
sect, church, denomination, sectarian institution, or system of religion
or of any priest, preacher, minister, or other religious teacher or
dignitary as such EXCEPT when such priest, preacher, minister or
dignitary is assigned to the armed forces or to any penal institution or
government orphanage or leprosarium. (Article VI, Section 29[l]
Constitution)
15. Grant of tax exemption
Art. VI, Section 28(4) of the Constitution provides that:
No law granting any tax exemption shall be passed without the
concurrence of a.majority of all the members of Congress.
ASPECTS, PROCESSES, PHASES OF TAXATION
A. Levy/Imposition - enactment of tax laws or statutes
- Courts have no power to inquire into or interfere in the wisdom,
objective, motive or expediency in the passage of a tax law, as this is
purely legislative in character
B. Enforcement or tax administration
assessment and collection- administrative
payment - compliance by taxpayer
CLASSIFICATION OF TAXES
1. As to subject matter
a. Personal tax - A personal tax is of fixed amount imposed on
individuals, whether citizens or not, residing within a specified territory,
without regard to their property or occupation (e.g., community tax),
b. Property tax- property tax is imposed on property, real or personal,
in proportion to its value (e.g., real estate tax).
c. Excise tax- A tax on the exercise of right or privilege or performance
of an act. (e.g., income tax, estate tax, donor's tax and valueadded
tax).
d. Customs Duties – duties charged upon the commodities on their
being imported into or exported from a country.
2. As to burden
a. Direct tax - A direct tax is a tax for which a taxpayer is directly liable
on the transaction or business it engages in. Ex: custom duties and
taxes paid by oiling company to the BOC for their importation of crude
oil
b. Indirect tax- a tax primarily paid by persons who can shift the
burden upon someone else
3. As to purpose
a. General tax- imposed solely to raise revenue for the government,
such as: income tax, donor's tax, estate tax and value-added tax
b. Special tax- imposed and collected to achieve a particular legitimate
object of government
4. As to manner of computation
a. Specific tax - imposed and based on weight or volume capacity or
any other physical unit of measurement
b. Ad valorem tax - tax is based on selling price or other specified
value of the goods.
5. As to taxing authority
a. National- imposed by the national government (e.g., revenue taxes
under the NIRC and custom duties),
b. Local tax - levied and collected by the local government (e.g., real
property tax and business tax).
6. As to rate
a. Progressive tax - one whereby the rate increases as the tax base
(amount) increases. Examples are income tax, estate and donor's tax
under the NIRC.
b. Regressive tax- one where the tax rate decreases as the tax base
increases
Interpretation & Construction of tax statutes
1. Public purpose is always presumed.
2. If the law is clear, apply the law in accordance to its plain and simple
tenor.
3. A statute will not be construed as imposing a tax unless it does so
clearly, expressly and unambiguously.
4. In case of doubt, it is construed most strongly against the
Government, and liberally in favor of the taxpayer.
5. Provisions of a taxing act are not to be extended by implication.
6. Tax laws operate prospectively unless the purpose of the legislature
to give retrospective effect is expressly declared or may be implied
from the language used.
7. Tax laws are special laws and prevail over a general law.
Tax doctrines:
Prospectivity - The general rule under the Civil Code that laws shall
have prospective application applies to tax laws. Retroactive
application of revenue laws may be allowed if it will not amount to
denial of due process. There is violation of due process when the tax
law imposes harsh and oppressive tax.
Imprescriptibility- As a rule, taxes are imprescriptible as they are the
lifeblood of the government. However, tax statutes may provide for
statute of limitation
a) National Internal Revenue Code- assessment of tax within 3 years
from the actual date of filing
b. Tariff and Customs code-
c. Local Government code- Local Taxes, fees, or charges shall be
assessed within five (5) years from the date they became due
CONCEPT OF DOUBLE TAXATION
There is double taxation where one tax is imposed by the State and
the other is imposed by the city
Double taxation becomes obnoxious only where the taxpayer is taxed
twice for the benefit of the same governmental entity or by the same
jurisdiction for the same purpose, but not in a case where one tax is
imposed by the State and the other by the city or municipality.
Power to destroy
The power to tax includes the power to destroy.
It includes the power to destroy if it is used validly as an implement of
the police power in discouraging and in effect ultimately prohibiting
certain things or enterprises inimical to the public welfare.
But where the power to tax is used solely for the purpose of raising
revenues, the modern view is that it cannot be allowed to confiscate or
destroy. If this is sought to be done, the tax may be successfully
attacked as an inordinate and unconstitutional exercise of the
discretion that is usually vested exclusively in the legislature in
ascertaining the amount of the tax.
-refers to the unlimitedness and the degree or vigor with which the
taxing power may be employed to raise revenue.
- the financial needs of the State may outrun any human calculation, so
the power to meet those needs by taxation must not be limited even
though taxes become burdensome or confiscatory.
Power to destroy - tax is a destructive power which interferes with
personal property for the support of the government
Forms of Escape from Taxation
1. Shifting of tax burden - the process by which the tax burden is
transferred from the statutory taxpayer (impact of taxation) to another
(incident of taxation) without violating the law
2. Capitalization - a mere increase in the value of the property is not
income but merely an unrealized increase in capital.
3. Transformation - the manufacturer or producer upon whom the tax
has been imposed, fearing the loss of his market if he should add the
tax to the price, pays the tax and endeavors to recoup himself by
improving his process of production, thereby turning out his units at a
lower cost.
4. Tax avoidance - the exploitation by the taxpayer of legally
permissible alternative tax rates or methods of assessing taxable
property or income, in order to avoid or reduce tax liability. Example:
“estate planning” (conveyance of property to a family corporation for
shares)
5. Tax evasion - use by the taxpayer of illegal or fraudulent means to
defeat or lessen the payment of the tax.
DOCTRINE OF EQUITABLE RECOUPMENT NOT FOLLOWED IN
THE PHILIPPINES
A tax presently being assessed against a taxpayer which has
prescribed may not be recouped or set-off against an overpaid tax the
refund of which is also barred by prescription. It is against public policy
since both parties are guilty of negligence.
The doctrine of equitable recoupment allows a taxpayer whose claim
for refund has prescribed to offset tax liabilities with his claim of
overpayment.
Doctrine of Set-off- compensation.
General Rule: Taxes cannot be the subject of compensation or set-off.
Reasons:
1. lifeblood theory
2. taxes are not contractual obligation but arise out of duty to the
government
3. the government and the taxpayer are not mutually creditors and
debtors of each other. (Francia v. IAC)
Exception: When both obligations are due and demandable as well as
fully liquidated and all the requisites for a valid compensation are
present, compensation takes place by operation of law. (Domingo v.
Garlitos)
In the case of Republic v. Mambulao Lumber Co. (4 SCRA 622), this
Court ruled that Internal Revenue Taxes can not be the subject of set-
off or compensation.
We stated that: "A claim for taxes is not such a debt, demand, contract
or judgment as is allowed to be set-off under the statutes of set-off,
which are construed uniformly, in the light of public policy, to exclude
the remedy in an action or any indebtedness of the state or
municipality to one who is liable to the state or municipality for taxes.
Neither are they a proper subject of recoupment since they do not
arise «»t of the contract or transaction sued on.
TAXPAYERS’ SUIT
A case where the act complained of directly involves the illegal
disbursement of public funds derive from taxation (Justice Melo,
dissenting in Kilosbayan, Inc vs Guingona, Jr.)
REQUISITES FOR TAXPAYERS’ SUIT
a. The tax money is being extracted and spent in violation of specific
constitutional protections against abuses of legislative power.
b. That public money is being deflected to any improper purpose
(Pascual vs Secretary of Public Works)
c. That the petitioner seeks to restrain respondents from wasting public
funds through the enforcement of an invalid or unconstitutional law
Power to Compromise
A compromise is an agreement between two or more persons who, to
avoid a lawsuit, amicably settle their differences on such terms as they
can agree on. An offer of compromise does not, therefore, assume the
category of a compromise until it is voluntarily accepted by the other
party, and no obligation arises or is created by a simple offer or
suggestion coming from one of the parties without acceptance by the
other
Requisites
1. The taxpayer must have a tax liability.
2. There must be an offer (by the taxpayer of an amount to be paid by
the taxpayer)

3. There must be an acceptance (by the Commissioner or taxpayer as

the case may be) of the offer in the settlement of the original claim.

IMPOSITIONS NOT STRICTLY CONSIDERED NOT CONSIDERED

AS TAXES

1. Toll – amount charged for the cost and maintenance of the property
used.

2. Penalty – punishment for the commission of a crime.

3. Compromise Penalty – amount collected in lieu of criminal

prosecution in cases of tax violations.

4. Special Assessment – levied only on land based wholly on benefit

accruing thereon as a result of improvements or public works
undertaken by government within the vicinity.

5. License or Fee – regulatory imposition in the exercise of the police

power.

6. Margin Fee – exaction designed to stabilize the currency.

7. Debt – a sum of money due upon contract or one which is

evidenced by judgment.

8. Subsidy – a legislative grant of money in aid of a private enterprise

deemed to promote the public welfare.

9. Customs duties and fees – duties charged upon commodities on

their being transported into or exported from a country.

10. Revenue – a broad term that includes taxes and income from other
sources as well.

11. Impost – in its general sense, it signifies any tax, tribute or duty. In
its limited sense, it means a duty on imported goods and merchandise.

NATURE OF TAX LAWS

1. Not political in character

2. Civil in nature, not subject to ex post facto law prohibitions

3. Not penal in character