Lifeblood Theory.docx 47j6j

LIFEBLOOD THEORY CIR v. BPI 521 SCRA 373, 387- 388 x x x (T)he public will suffer if taxpayers will not be held liable for the proper taxes assessed against them: "Taxes are the lifeblood of the government, for without taxes, the government can neither exist nor endure. " A principal attribute of sovereignty, the exercise of taxing power derives its source from the very existence of the state whose social contract with its citizens obliges it to promote public interest and common good. The theory behind the exercise of the power to tax emanates from necessity; without taxes, government cannot fulfill its mandate of promoting the general welfare and well-being of the people.

LIFEBLOOD THEORY DAVAO GULF LUMBER CORP. v CIR 293 SCRA 77 Because taxes are the lifeblood of the nation, statutes that allow exemptions are construed strictly against the grantee and liberally in favor of the government. Otherwise stated, any exemption from the payment of a tax must be clearly stated in the language of the law; it cannot be merely implied therefrom. LIFEBLOOD THEORY FERDINAND R. MARCOS II v. CA, et al. 273 SCRA 47 Ferdinand R.Marcos II assailed the decision of the Court of Appeal declaring the deficiency income tax assessments and estate tax assessments upon the estate and properties of his late father final despite the pendency of the probate proceedings of the will of the late President. On the other hand, the BIR argued that the State's authority to collect internal revenue taxes is paramount. JOSE REYES v. PEDRO ALMANZOR 196 SCRA 322 Verily, taxes are the lifeblood of the government and should be collected without unnecessary hindrance. However, such collection should be made in accordance with law as any arbitrariness will negate the very reason for government itself. It is therefore necessary to reconcile the apparently conflicting interests of the authorities and the taxpayers so that the real purpose of taxation, which is the promotion of the common good, may be achieved. ( CIR v. Algue, Inc., 158 SCRA 9 [1988]) Consequently, it stands to reason that petitioners who are burdened by the government by its Rental Freezing Laws (R.A No. 6359 and P.D. No. 20) under the same principle of social justice should not now be penalized by the same government by the imposition of excessive taxes

petitioners can ill afford and eventually result in the forfeiture of their properties. PHILIPPINE GUARANTY CO., INC. v. CIR 13 SCRA 775 The defense of reliance in good faith on rulings of the CIR requiring no withholding of tax due on reinsurance s may free the taxpayer from the payment of surcharge or penalties imposed for failure to pay the corresponding withholding tax, but it certainly would not exculpate it from liability to pay such withholding tax. The Government is not estopped from collecting taxes by the mistakes or errors of its agents. PHILEX MINING CORPORATION v. CIR 294 SCRA 687 Philex posits the theory that it had no obligation to pay the excise tax liabilities within the prescribed period since, after all, it still has pending claims for VAT input credit/ refund with BIR. We fail to see the logic of Philex's claim for this is an outright disregard of the basic principle in tax law that taxes are the lifeblood of the government and so should be collected without unnecessary hindrance. Evidently, to countenance Philex's whimsical reason would render ineffective our tax collection system. Too simplistic, it finds no in law or in jurisprudence.

PHILIPPINE BANK OF COMMUNICATIONS v. CIR 302 SCRA 250 Basic is the principle that "taxes are the lifeblood of the nation." The primary purposes is to generate funds for the State to finance the needs of the citizenry and to advance the common weal. Due process of law under the Constitution does not require judicial proceedings in tax cases. This must necessarily be so because it is upon taxation that the government chiefly relies to obtain the means to carry on its operations and it is of utmost importance that the modes adopted to enforce the collection of taxes levied should be summary and interfered with as little as possible. From the same perspective, claims for refund or tax credit should be exercised within the time fixed by law because the BIR being an istrative body enforced to collect taxes, its functions should not be unduly delayed or hampered by incident matters.