RPH LONG QUIZ REVIEWER

THE FIRST MASS IN THE PHILIPPINES

*First recorded evidence is based on Pigafetta’s account

The birth of Roman Catholicism in the country was signified by the celebration of the first Catholic mass in the
Philippines March 31, 1521, after Ferdinand Magellan landed on the Philippines which he named then as the
Archipelago of St. Lazarus. However, the location of the mass is still shrouded with controversy. Originally it was
believed that the mass was celebrated in the in the island of Limasawa, in Leyte, but the discovery of the
Golden Tara in Butuan made some Philippine Historians question the veracity of the Limasawa location. As
recounted by Pigafetta the first Christian Mass celebrated was made in an island which he called ''Mazaua.''

In 1996, the Philippine Congress directed the National Historical Institute to recommend a historical finding. The
panel and the NHI reaffirmed in 1998 that the place is Limasawa, but the controversy is still alive today.

The following is an excerpt coming from a primary source that tackles the issue in question. This is from
Pigafetta’s Chronicles of the Voyage of Magellan. Source: Emma Blair and James Alexander Robertson. The
Philippine Islands Vol. 33.

1. On Saturday, March 16, 1521, we came upon a high land at a distance of three hundred leguas from the
islands of Latroni—an island named Zamal [i.e., Samar]. The following day, the captain-general desired to
land on another island which was uninhabited and lay to the right of the abovementioned island, in order
to be more secure, and to get water and have some rest. He had two tents set up on the shore for the sick
and had a sow killed for them.

2. On Monday afternoon, March 18, we saw a boat with nine men in it coming toward us. Therefore, the
captain-general ordered that no one should move or say a word without his permission. When those men
reached the shore, their chief went immediately to the captain-general, giving signs of joy because of our
arrival. Five of the most ornately adorned of them remained with us, while the rest went to get some others
who were fishing, and so they all came. The captain-general seeing that they were reasonable men,
ordered food to be set before them, and gave them red caps, mirrors, combs, bells, ivory, bocasine, and
other things. When they saw the captain’s courtesy, they presented fish, a jar of palm wine, which they call
uraca [i.e., arrack], figs more than one palmo long [i.e., bananas], and others which were smaller and
more delicate, and two cocoanuts. They had nothing else then but made us signs with their hands that
they would bring umay or rice, and cocoanuts and many other articles of food within four days.

3. There are many islands in that district, and therefore we called them the archipelago of San Lazaro, as
they were discovered on the Sabbath of St. Lazurus. They lie in x degrees of latitude toward the Arctic Pole,
and in a longitude of 161* degrees from the line of demarcation.

4. At noon on Friday, March 22, those men came as they had promised us in two boats with cocoanuts,
sweet oranges, a jar of palm-wine, and a cock, in order to show us that there were fowls in that district.
They exhibited great signs of pleasure at seeing us. We purchased all those articles from them. Their
seignior was an old man who was painted [i.e., tattooed]. He wore two gold earrings [schione] in his ears,
and the others many gold armlets on their arms and kerchiefs about their heads. We stayed there one
week, and during that time our captain went ashore daily to visit the sick, and every morning gave them
cocoanut water from his own hand, which comforted them greatly.

5. On Thursday morning, March 28, as we had seen a fire on an island the night before, we anchored near it.
We saw a small boat which the natives call boloto with eight men in it, approaching the flagship. A slave
belonging to the captain-general, who was a native of Zamatra [i.e., Sumatra], which was formerly called
Traprobana, spoke to them. They immediately understood him, came alongside the ship, unwilling to enter
but taking a position at some little distance. The captain seeing that they would not trust us, threw them
out a red cap and other things tied to a bit of wood. They received them very gladly and went away
quickly to advise their king. About two hours later we saw two balanghai coming.
6. Next day, holy Friday,(March 29) the captain-general sent his slave, who acted as our interpreter, ashore in
a small boat to ask the king if he had any food to have it carried to the ships; and to say that they would
be well satisfied with us, for he [and his men] had come to the island as friends and not as enemies. The
king came with six or eight men in the same boat and entered the ship. He embraced the captain-general
to whom he gave three porcelain jars covered with leaves and full of raw rice, two very large orade, and
other things. The captain-general gave the king a garment of red and yellow cloth made in the Turkish
fashion, and a fine red cap; and to the others (the king’s men), to some knives and to other mirrors. Then
the captain-general had a collation spread for them, and had the king told through the slave that he
desired to be with him, that is to say, brother. The king replied that he also wished to enter the same
relations with the captain-general. Then the captain showed him cloth of various colors, linen, coral
[ornaments], and many other articles of merchandise, and all the artillery, some of which he had
discharged for him, whereat the natives were greatly frightened. Then the captain-general had a man
armed as a soldier and placed him in the midst of three men armed with swords and daggers, who struck
him on all parts of the body. Thereby was the king rendered almost speechless. The captain-general told
him through the slave that one of those armed men was worth one hundred of his own men. The king
answered that that was a fact. The captain-general said that he had two hundred men in each ship who
were armed in that manner. He showed the king cuirasses, swords, and bucklers, and had a review made
for him. Then he led the king to the deck of the ship, that is located above at the stern; and had his sea-
chart and compass brought. He told the king through the interpreter how he had found the strait in order
to voyage thither, and how many moons he had been without seeing land, whereat the king was
astonished. Lastly, he told the king that he would like, if it were pleasing to him, to send two of his men with
him so that he might show them some of his things. The king replied that he was agreeable, and I went in
company with one of the other men.

7. Early on the morning of Sunday, the last of March, and Easter-day, the captain-general sent the priest with
some men to prepare the place where mass was to be said; together with the interpreter to tell the king
that we were not going to land in order to dine with him, but to say mass. Therefore, the king sent us two
swine that he had had killed. When the hour for mass arrived, we landed with about fifty men, without our
body armor, but carrying our other arms, and dressed in our best clothes. Before we reached the shore
with our boats, six pieces were discharged as a sign of peace. We landed; the two kings embraced the
captain-general and placed him between them. We went in marching order to the place consecrated,
which was not far from the shore. Before the commencement of mass, the captain sprinkled the entire
bodies of the two kings with musk water.” The mass was offered up. The kings went forward to kiss the cross
as we did, but they did not offer the sacrifice. When the body of our Lord was elevated, they remained on
their knees and worshiped Him with clasped hands. The ships fired all their artillery at once when the body
of Christ was elevated, the signal having been given from the shore with muskets. After the conclusion of
mass, some of our men took communion. The captain-general arranged a fencing tournament, at which
the kings were greatly pleased. Then he had a cross carried in and the nails and a crown, to which
immediate reverence was made. He told the kings through the interpreter that they were the standards
given to him by the emperor his sovereign, so that wherever he might go he might set up those his tokens.
[He said] that he wished to set it up in that place for their benefit, for whenever any of our ships came, they
would know that we had been there by that cross and would do nothing to displease them or harm their
property [property: doublet in original MS.]. If any of their men were captured, they would be set free
immediately on that sign being shown. It was necessary to set that cross on the summit of the highest
mountain, so that on seeing it every morning, they might adore it; and if they did that, neither thunder,
lightning, nor storms would harm them in the least. They thanked him heartily and [said] that they would do
everything willingly. The captain-general also had them asked whether they were Moros or heathen, or
what was their belief. They replied that they worshiped nothing, but that they raised their clasped hands
and their face to the sky; and that they called their god “Abba.” Thereat the captain was very glad, and
seeing that, the first king raised his hands to the sky, and said that he wished that it were possible for him to
make the captain see his love for him. The interpreter asked the king why there was so little to eat there.
The latter replied that he did not live in that place except when he went hunting and to see his brother,
but that he lived in another island where all his family were. The captain-general had him asked to declare
whether he had any enemies, so that he might go with his ships to destroy them and to render them
obedient to him. The king thanked him and said that he did indeed have two islands hostile to him, but
that it was not then the season to go there. The captain told him that if God would again allow him to
 return to those districts, he would bring so many men that he would make the king’s enemies subject to
him by force. He said that he was about to go to dinner, and that he would return afterward to have the
cross set up on the summit of the mountain. They replied that they were satisfied, and then forming in
battalion and firing the muskets, and the captain having embraced the two kings, we took our leave.

8. After dinner we all returned clad in our doublets, and that afternoon went together with the two kings to
the summit of the highest mountain there. When we reached the summit, the captain-general told them
that he esteemed highly having sweated for them, for since the cross was there, it could not but be of
great use to them. On asking them which port the best was to get food, they replied that there were three,
namely, Ceylon, Zubu, and Calaghann, but that Zubu was the largest and the one with most trade. They
offered of their own accord to give us pilots to show us the way. The captain-general thanked them, and
determined to go there, for so did his unhappy fate will. After the cross was erected in position, each of us
repeated a Pater Noster and an Ave Maria, and adored the cross; and the kings did the same. Then we
descended through their cultivated fields and went to the place where the balanghai was. The kings had
some cocoanuts brought in so that we might refresh ourselves. The captain asked the kings for the pilots for
he intended to depart the following morning, and [said] that he would treat them as if they were the kings
themselves and would leave one of us as hostage. The kings replied that every hour he wished the pilots
were at his command, but that night the first king changed his mind, and in the morning when we were
about to depart, sent word to the captain-general, asking him for love of him to wait two days until he
should have his rice harvested, and other trifles attended to. He asked the captain-general to send him
some men to help him, so that it might be done sooner; and said that he intended to act as our pilot
himself. The captain sent him some men, but the kings ate and drank so much that they slept all day. Some
said to excuse them that they were slightly sick. Our men did nothing on that day, but they worked the
next two days.

9. It lies in a latitude of nine and two-thirds degrees toward the Arctic Pole, and in a longitude of one hundred
and sixty-two degrees from the line of demarcation. It is twenty-five from the Acquada and is called
Mazaua.

10. We remained there seven days, after which we laid our course toward the northwest, passing among five
islands, namely, Ceylon, Bohol, Canighan, Baybai, and Gatighan.

AGRARIAN REFORM HISTORY

Pre-Spanish Period “This land is Ours God gave this land to us”

Before the Spaniards came to the Philippines, Filipinos lived in villages or barangays ruled by chiefs or datus. The
datus comprised the nobility. Then came the maharlikas (freemen), followed by the aliping mamamahay
(serfs) and aliping saguiguilid (slaves).

However, despite the existence of different classes in the social structure, practically everyone had access to
the fruits of the soil. Money was unknown, and rice served as the medium of exchange.

Spanish Period “United we stand, divided we fall.”

When the Spaniards came to the Philippines, the concept of encomienda (Royal Land Grants) was introduced.
This system grants that Encomienderos must defend his encomienda from external attack, maintain peace and
order within, and support the missionaries. In turn, the encomiendero acquired the right to collect tribute from
the indios (native).

The system, however, degenerated into abuse of power by the encomienderos. The tribute soon became land
rents to a few powerful landlords. And the natives who once cultivated the lands in freedom were transformed
into mere share tenants.
First Philippine Republic “The yoke has finally broken”

When the First Philippine Republic was established in 1899, Gen. Emilio Aguinaldo declared in the Malolos
Constitution his intention to confiscate large estates, especially the so-called Friar lands.

However, as the Republic was short-lived, Aguinaldo’s plan was never implemented.

American Period “Long live America”

Significant legislation enacted during the American Period:

· Philippine Bill of 1902 – Set the ceilings on the hectarage of private individuals and corporations may acquire:
16 has. for private individuals and 1,024 has. for corporations.

· Land Registration Act of 1902 (Act No. 496) – Provided for a comprehensive registration of land titles under the
Torrens system.

· Public Land Act of 1903 – introduced the homestead system in the Philippines.

· Tenancy Act of 1933 (Act No. 4054 and 4113) – regulated relationships between landowners and tenants of
rice (50-50 sharing) and sugar cane lands.

The Torrens system, which the Americans instituted for the registration of lands, did not solve the problem
completely. Either they were not aware of the law or if they did, they could not pay the survey cost and other
fees required in applying for a Torrens title.

Commonwealth Period “Government for the Filipinos”

President Manuel L. Quezon espoused the "Social Justice" program to arrest the increasing social unrest in
Central Luzon.

Significant legislation enacted during Commonwealth Period:

· 1935 Constitution – "The promotion of social justice to ensure the well-being and economic security of all
people should be the concern of the State."

· Commonwealth Act No. 178 (An Amendment to Rice Tenancy Act No. 4045), Nov. 13, 1936 – Provided for
certain controls in the landlord-tenant relationships

· National Rice and Corn Corporation (NARIC), 1936 – Established the price of rice and corn thereby help the
poor tenants as well as consumers.

· Commonwealth Act. No. 461, 1937 – Specified reasons for the dismissal of tenants and only with the approval
of the Tenancy Division of the Department of Justice.

· Rural Program Administration created March 2, 1939 – Provided the purchase and lease of haciendas and
their sale and lease to the tenants. Commonwealth Act No. 441 enacted on June 3, 1939 – Created the
National Settlement Administration with a capital stock of P20,000,000.

Japanese Occupation “The Era of Hukbalahap”

The Second World War II started in Europe in 1939 and in the Pacific in 1941.

Hukbalahap controlled whole areas of Central Luzon; landlords who supported the Japanese lost their lands to
peasants while those who supported the Huks earned fixed rentals in favor of the tenants.
Unfortunately, the end of war also signaled the end of gains acquired by the peasants.

Upon the arrival of the Japanese in the Philippines in 1942, peasants and workers organizations grew strength.
Many peasants took up arms and identified themselves with the anti-Japanese group, the HUKBALAHAP (Hukbo
ng Bayan Laban sa Hapon).

Philippine Republic “The New Republic”

After the establishment of the Philippine Independence in 1946, the problems of land tenure remained. These
became worst in certain areas. Thus, the Congress of the Philippines revised the tenancy law.

President Manuel A. Roxas (1946-1948) enacted the following laws:

· Republic Act No. 34 -- Established the 70-30 sharing arrangements and regulating share-tenancy contracts.

· Republic Act No. 55 -- Provided for a more effective safeguard against arbitrary ejectment of tenants.

Elpidio R. Quirino (1948-1953) enacted the following law:

Executive Order No. 355 issued on October 23, 1950 -- Replaced the National Land Settlement Administration
with Land Settlement Development Corporation (LASEDECO) which takes over the responsibilities of the
Agricultural Machinery Equipment Corporation and the Rice and Corn Production Administration.

Ramon Magsaysay (1953-1957) enacted the following laws:

· Republic Act No. 1160 of 1954 -- Abolished the LASEDECO and established the National Resettlement and
Rehabilitation Administration (NARRA) to resettle dissidents and landless farmers. It was particularly aimed at
rebel returnees providing home lots and farmlands in Palawan and Mindanao.

· Republic Act No. 1199 (Agricultural Tenancy Act of 1954) -- governed the relationship between landowners
and tenant farmers by organizing share-tenancy and leasehold system. The law provided the security of tenure
of tenants. It also created the Court of Agrarian Relations.

· Republic Act No. 1400 (Land Reform Act of 1955) -- Created the Land Tenure Administration (LTA) which was
responsible for the acquisition and distribution of large tenanted rice and corn lands over 200 hectares for
individuals and 600 hectares for corporations.

· Republic Act No. 821 (Creation of Agricultural Credit Cooperative Financing Administration) -- Provided small
farmers and share tenants loans with low interest rates of six to eight percent.

President Carlos P. Garcia (1957-1961)

Continued the program of President Ramon Magsaysay. No new legislation passed.

President Diosdado P. Macapagal (1961-1965) enacted the following law:

Republic Act No. 3844 of August 8, 1963 (Agricultural Land Reform Code) -- Abolished share tenancy,
institutionalized leasehold, set retention limit at 75 hectares, invested rights of preemption and redemption for
tenant farmers, provided for an administrative machinery for implementation, institutionalized a judicial system
of agrarian cases, incorporated extension, marketing and supervised credit system of services of farmer
beneficiaries.
The RA was hailed as one that would emancipate Filipino farmers from the bondage of tenancy.

President Ferdinand E. Marcos (1965-1986)

Proclamation No. 1081 on September 21, 1972 ushered the Period of the New Society. Five days after the
proclamation of Martial Law, the entire country was proclaimed a land reform area and simultaneously the
Agrarian Reform Program was decreed.

President Marcos enacted the following laws:

· Republic Act No. 6389, (Code of Agrarian Reform) and RA No. 6390 of 1971 -- Created the Department of
Agrarian Reform and the Agrarian Reform Special Account Fund. It strengthen the position of farmers and
expanded the scope of agrarian reform.

· Presidential Decree No. 2, September 26, 1972 -- Declared the country under land reform program. It enjoined
all agencies and offices of the government to extend full cooperation and assistance to the DAR. It also
activated the Agrarian Reform Coordinating Council.

· Presidential Decree No. 27, October 21, 1972 -- Restricted land reform scope to tenanted rice and corn lands
and set the retention limit at 7 hectares.

President Corazon C. Aquino (1986-1992)

The Constitution ratified by the Filipino people during the administration of President Corazon C. Aquino
provides under Section 21 under Article II that “The State shall promote comprehensive rural development and
agrarian reform.”

On June 10, 1988, former President Corazon C. Aquino signed into law Republic Act No. 6657 or otherwise
known as the Comprehensive Agrarian Reform Law (CARL). The law became effective on June 15, 1988.

Subsequently, four Presidential issuances were released in July 1987 after 48 nationwide consultations before
the actual law was enacted.

President Corazon C. Aquino enacted the following laws:

· Executive Order No. 228, July 16, 1987 – Declared full ownership to qualified farmer-beneficiaries covered by
PD 27. It also determined the value remaining unvalued rice and corn lands subject of PD 27 and provided for
the manner of payment by the FBs and mode of compensation to landowners.

· Executive Order No. 229, July 22, 1987 – Provided mechanism for the implementation of the Comprehensive
Agrarian Reform Program (CARP).

· Proclamation No. 131, July 22, 1987 – Instituted the CARP as a major program of the government. It provided
for a special fund known as the Agrarian Reform Fund (ARF), with an initial amount of Php50 billion to cover the
estimated cost of the program from 1987-1992.

· Executive Order No. 129-A, July 26, 1987 – streamlined and expanded the power and operations of the DAR.

· Republic Act No. 6657, June 10, 1988 (Comprehensive Agrarian Reform Law) – An act which became
effective June 15, 1988 and instituted a comprehensive agrarian reform program to promote social justice and
industrialization providing the mechanism for its implementation and for other purposes. This law is still the one
being implemented at present.

· Executive Order No. 405, June 14, 1990 – Vested in the Land Bank of the Philippines the responsibility to
determine land valuation and compensation for all lands covered by CARP.

· Executive Order No. 407, June 14, 1990 – Accelerated the acquisition and distribution of agricultural lands,
pasture lands, fishponds, agro-forestry lands and other lands of the public domain suitable for agriculture.
President Fidel V. Ramos (1992-1998)

When President Fidel V. Ramos formally took over in 1992, his administration came face to face with publics
who have lost confidence in the agrarian reform program. His administration committed to the vision “Fairer,
faster and more meaningful implementation of the Agrarian Reform Program.

President Fidel V. Ramos enacted the following laws:

· Republic Act No. 7881, 1995 – Amended certain provisions of RA 6657 and exempted fishponds and prawns
from the coverage of CARP.

· Republic Act No. 7905, 1995 – Strengthened the implementation of the CARP.

· Executive Order No. 363, 1997 – Limits the type of lands that may be converted by setting conditions under
which limits the type of lands that may be converted by setting conditions under which specific categories of
agricultural land are either absolutely non-negotiable for conversion or highly restricted for conversion.

· Republic Act No. 8435, 1997 (Agriculture and Fisheries Modernization Act AFMA) – Plugged the legal loopholes
in land use conversion.

· Republic Act 8532, 1998 (Agrarian Reform Fund Bill) – Provided an additional Php50 billion for CARP and
extended its implementation for another 10 years.

President Joseph E. Estrada (1998-2000) “ERAP PARA SA MAHIRAP’. This was the battle cry that endeared
President Joseph Estrada and made him very popular during the 1998 presidential election.

President Joseph E. Estrada initiated the enactment of the following law:

Executive Order N0. 151, September 1999 (Farmer’s Trust Fund) – Allowed the voluntary consolidation of small
farm operation into medium and large scale integrated enterprise that can access long-term capital.

During his administration, President Estrada launched the Magkabalikat Para sa Kaunlarang Agraryo or
MAGKASAKA. The DAR forged into joint ventures with private investors into agrarian sector to make FBs
competitive.

However, the Estrada Administration was short lived. The masses who put him into office demanded for his
ouster.

President Gloria Macapacal-Arroyo (2000-2010)

The agrarian reform program under the Arroyo administration is anchored on the vision “To make the
countryside economically viable for the Filipino family by building partnership and promoting social equity and
new economic opportunities towards lasting peace and sustainable rural development.”

Land Tenure Improvement - DAR will remain vigorous in implementing land acquisition and distribution
component of CARP. The DAR will improve land tenure system through land distribution and leasehold.

Provision of Support Services - CARP not only involves the distribution of lands but also included package of
support services which includes: credit assistance, extension services, irrigation facilities, roads and bridges,
marketing facilities and training and technical support programs.

Infrastructure Projects - DAR will transform the agrarian reform communities (ARCs), an area focused and
integrated delivery of support services, into rural economic zones that will help in the creation of job
opportunities in the countryside.
KALAHI ARZone - The KALAHI Agrarian Reform (KAR) Zones were also launched. These zones consist of one or
more municipalities with concentration of ARC population to achieve greater agro-productivity.

Agrarian Justice - To help clear the backlog of agrarian cases, DAR will hire more paralegal officers to support
undermanned adjudicatory boards and introduce quota system to compel adjudicators to work faster on
agrarian reform cases. DAR will respect the rights of both farmers and landowners.

President Benigno Aquino III (2010-2016)

President Benigno Aquino III vowed during his 2012 State of the Nation Address that he would complete before
the end of his term the Comprehensive Agrarian Reform Program (CARP), the centerpiece program of the
administration of his mother, President Corazon Aquino.

The younger Aquino distributed their family-owned Hacienda Luisita in Tarlac. Apart from the said farm lots, he
also promised to complete the distribution of privately-owned lands of productive agricultural estates in the
country that have escaped the coverage of the program.

Under his administration, the Agrarian Reform Community Connectivity and Economic Support Services
(ARCCESS) project was created to contribute to the overall goal of rural poverty reduction especially in
agrarian reform areas.

Agrarian Production Credit Program (APCP) provided credit support for crop production to newly organized
and existing agrarian reform beneficiaries’ organizations (ARBOs) and farmers’ organizations not qualified to
avail themselves of loans under the regular credit windows of banks.

The legal case monitoring system (LCMS), a web-based legal system for recording and monitoring various kinds
of agrarian cases at the provincial, regional and central offices of the DAR to ensure faster resolution and close
monitoring of agrarian-related cases, was also launched.

Aside from these initiatives, Aquino also enacted Executive Order No. 26, Series of 2011, to mandate the
Department of Agriculture-Department of Environment and Natural Resources-Department of Agrarian Reform
Convergence Initiative to develop a National Greening Program in cooperation with other government
agencies.

President Rodrigo Roa Duterte (2016 – present)

Under his leadership, the President wants to pursue an “aggressive” land reform program that would help
alleviate the life of poor Filipino farmers by prioritizing the provision of support services alongside land
distribution.

The President directed the DAR to launch the 2nd phase of agrarian reform where landless farmers would be
awarded with undistributed lands under the Comprehensive Agrarian Reform Program (CARP). Duterte plans to
place almost all public lands, including military reserves, under agrarian reform.

The President also placed 400 hectares of agricultural lands in Boracay under CARP.

Under his administration the DAR created an anti-corruption task force to investigate and handle reports on
alleged anomalous activities by officials and employees of the department.

The Department also pursues an “Oplan Zero Backlog” in the resolution of cases in relation to agrarian justice
delivery of the agrarian reform program to fast-track the implementation of CARP.
TAXATION

General Principles of Taxation

The power of taxation is normally defined in at least three (3) ways – as a power itself, as a means, or as a process – as
follows:
➢ As a power, it refers to the inherent power of the State to impose proportionate burden from among the citizenry for
the respective share in the cost of running the government and the delivery of its constitutional mandate to serve
and protect.
➢ As a means, it refers to one of the few ways by which the State raises revenue to support its existence and
operations. Other ways to raise revenue could be by foreign financing (e.g. foreign loans from World Bank, Asian
Development Bank, etc.) or by domestic financing (e.g. issuing bonds and other evidences of indebtedness to the
public) and such other means.
➢ As a process, it refers to the method of imposing a tax to raise revenue by the legislative act of the Congress in
passing a law or ordinance. Implementation and enforcement of such laws belongs to the Executive Department,
interpretation is for the Judiciary and compliance rests upon the taxpayers involved, except upon the hammers of the
law against erring taxpayers.

Taxation therefore, is the inherent power of the sovereign, exercised through the legislature, to impose burdens upon
subjects and objects within its jurisdiction for the purpose of raising revenues to carry out the legitimate objects of
government.

It is also defined as the act of levying a tax, i.e. the process or means by which the sovereign, through its law-making
body, raises income to defray the necessary expenses of government. It is a method of apportioning the cost of
government among those who, in some measure, are privileged to enjoy its benefits and must therefore bear its
burdens.

Taxes are the enforced proportional contributions from persons and property levied by the law-making body of the State
by virtue of its sovereignty for the support of the government and all public needs.

Essential elements of a tax

1. It is an enforced contribution.
2. It is generally payable in money.
3. It is proportionate in character.
4. It is levied on persons, property, or the exercise of a right or privilege.
5. It is levied by the State which has jurisdiction over the subject or object of taxation.
6. It is levied by the law-making body of the State.
7. It is levied for public purpose or purposes.

Purposes of taxation
1. Revenue or fiscal: The primary purpose of taxation on the part of the government is to provide funds or property with
which to promote the general welfare and the protection of its citizens and to enable it to finance its multifarious
activities.

2. Non-revenue or regulatory: Taxation may also be employed for purposes of regulation or control.
a) Imposition of tariffs on imported goods to protect local industries.
b) The adoption of progressively higher tax rates to reduce inequalities in wealth and income.
c) The increase or decrease of taxes to prevent inflation or ward off depression.

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.

Illustrations of lifeblood theory

1. Collection of taxes cannot be enjoined by injunction.
2. Taxes could not be the subject of compensation or set off.
3. A valid tax may result in destruction of the taxpayer’s property.
4. Taxation is an unlimited and plenary power.

Benefit-received principle
· This principle serves as the basis of taxation and is founded on the reciprocal duties of protection and support
between the State and its inhabitants. Also called “symbiotic relation” between the State and its citizens.
· In return for his contribution, the taxpayer receives the general advantages and protection which the
government affords the taxpayer and his property. One is compensation or consideration for the other; protection for
support and support for protection.
· However, it does not mean that only those who are able to and do pay taxes can enjoy the privileges and
protection given to a citizen by the government.

Nature or characteristics of the State’s power to tax

1. It is inherent in sovereignty; hence, it may be exercised although it is not expressly granted by the
Constitution.
2. It is legislative in character; hence, only the legislature can impose taxes (although the power may be
delegated).
3. It is subject to Constitutional and inherent limitations; hence, it is not an absolute power that can be exercised
by the legislature anyway it pleases.