10/09/2016

INHERENT POWERS OF THE Mass Media Laws

STATE
Cyris Ann A. Ng-Santiago,
A.B., J.D.

THE STATE
What is a State?
A state is a community of persons more or less numerous,
permanently occupying a definite portion of territory, having a
government of their own to which the great body of inhabitants
render obedience, and enjoying freedom from external control
(sovereignty).
The Philippines is a state.
STATE GOVERNMENT
PRINCIPAL AGENT THAT EXERCISES THE WILL OF THE STATE
MADE OF ALL CITIZENS MADE OF PEOPLE WHO EXERCISE POLITICAL
CONTROL/ADMINISTRATION
CANNOT EXIST WITHOUT A GOVERNMENT CAN EXIST WITHOUT A STATE
REMAINS AS LONG AS ALL ITS ELEMENTS EXIST CAN CHANGE WITHOUT AFFECTING THE STATUS
OF A STATE

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BRANCHES OF THE PHILIPPINE

GOVERNMENT
LEGISLATIVE EXECUTIVE JUDICIARY

POWER Power to make, alter, Power to execute Power to settle justiciable

or repeal laws and enforce laws. controversies or disputes
involving rights that are
enforceable and
demandable
COMPOSITI CONGRESS PRESIDENT JUDICIARY
ON a. House of a. Supreme Court
Representatives b. Court of Appeals
voted by c. Regional Trial Courts
legislative d. Metropolitan Trial
districts Courts
b. Senate voted e. Metropolitan Circuit
nationally Trial Courts

ARTICLE II OF THE 1987 PHILIPPINE

CONSTITUTION, DECLARATION OF
PRINCIPLES AND STATE POLICIES
Function of Declaration or Principles?
- statement of the basic ideological principles and policies that
underlie the Constitution. It sheds light on the meaning of other
provisions and guide the government in implementing the constitution.

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ARTICLE II OF THE 1987 PHILIPPINE

CONSTITUTION, DECLARATION OF
PRINCIPLES AND STATE POLICIES
Section 1. The Philippines is a democratic and republican
state. Sovereignty resides in the people and all government
authority emanates from them.

ARTICLE II OF THE 1987 PHILIPPINE

CONSTITUTION, DECLARATION OF PRINCIPLES AND
STATE POLICIES
DEMOCRATIC
- Philippines has aspects of DIRECT DEMOCRACY such as initiative and referendum
(Art. VI, Sec. 32; Art. XVII, Sec. 2)
- the word democratic is also a monument to the EDSA Revolution which re-won
freedom through direct action of the people.
REPUBLICAN
- a republican state is a state wherein all government authority emanates from the
people and is exercised by a representative chosen by the people.
SOVEREIGNTY RESIDES IN THE PEOPLE
2 types:
A. Legal Sovereignty supreme power to affect legal interests either by legislative,
executive or judicial action. It is lodged in the people but is normally exercised by state
agencies.
B. Political sovereignty sum total of all the influences in a state, legal and non-legal,
which determine the course of law.

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INHERENT POWERS OF THE STATE: POLICE

POWER
DEFINITION: Power to promote and protect the general welfare.
Positively: the most essential, insistent and the least limitable power,
extending as it doe to all the great public needs.
Negatively: the inherent and plenary power of the State which
enables it to prohibit all that is hurtful to the comfort, safety, and
welfare of society. (Ermita-Manila Hotel and Motel Operators
Association Inc. vs. Mayor of Manila, L-24693, July 31, 1967)
Questions:
Which branch of government implements police power?
Which branch of government determines the necessity and the means of exercising
police powers?
Which branch of government determines whether the exercise of police power is within
the bounds of the Constitution?

INHERENT POWERS OF THE STATE: POLICE

POWER
Basic Purpose of Police Power:
1. To serve the general welfare, comfort and convenience of the
people;
2. To promote and preserve public health;
3. To promote and protect public safety;
4. To maintain and safeguard public order;
5. To protect public morals; and
6. To promote the economic security of the people.

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INHERENT POWERS OF THE STATE: POLICE

POWER
CASE: ERMITA MALATE HOTEL AND MOTEL OPERATORS ASSOCIATION VS.
MAYOR OR MANILA, G.R. NO. L-24693, JULY 31, 1967
FACTS: The Municipal Board of the City of Manila enacted Ordinance No. 4760
which required, inter alia hotel and motel operators to have guests fill up a form
in the lobby asking for guests particulars, length of stay, number of companions
(also with particulars). Such records are open to inspection either by the Mayor or
the Chief of Police or their duly authorized representative. Mayor approved the
ordinance. Petitioners argue the Ordinance is unconstitutional and void for
violating (1) due process, (2) the right to privacy, and (3) the right against self-
incrimination. Respondent maintain that the Ordinance bears a reasonable relation
to a proper purpose, which is to curb immorality, a valid and proper exercise of
police power.
ISSUE: Whether the Ordinance was a valid exercise of police power.
HELD: YES. Ordinance intended to curb the opportunity for the immoral or
illegitimate use to which such premises could be devoted to. The right of the
individual is necessarily subject to reasonable restraint by general law for the
common good. The liberty of the citizen may be restrained in the interest of the
public health, or of the public order and safety, or otherwise within the proper
scope of the police power.

INHERENT POWERS OF THE STATE: POWER

OF EMINENT DOMAIN
DEFINITION: Enables the State to forcibly acquire private property,
which is intended for public use, upon payment of just compensation.
Essentially, a compulsory sale to the State.
Requisites for exercise:
1. Property is private
2. taking must be within constitutional sense
3. taking for public use
4. just compensation is paid
5. taking was made with due process of law

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INHERENT POWERS OF THE STATE: POWER

OF EMINENT DOMAIN
General Rule: All private Who may exercise power?
property may be taken.
1. Congress
1. Real Property (expropriation)
2. President
2. Personal Property
3. Local legislative bodies
3. Tangible Property
4. Certain Public Corporations
4. Intangible Property (i.e., NHA)
* Exception: money and personal 5. Quasi-public corporations (i.e.,
right (chose in action) PNR, LRTA)

INHERENT POWERS OF THE STATE: POWER

OF EMINENT DOMAIN
Question:
Can the courts determine the propriety of the exercise of the power of
eminent domain?

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INHERENT POWERS OF THE STATE: POWER

OF EMINENT DOMAIN
CASE: CITY OF MANILA VS. CHINESE COMMUNITY OF MANILA, G.R.
NO. L-14355, OCTOBER 31, 1919
FACTS: The City of Manila filed a case for expropriation for certain
portions of the Manila Chinese Cemetery for constructing a public
improvement. The Chinese Community of Manila opposed and argued,
inter alia that expropriation was neither necessary nor expedient, and
would disturb the resting place rest of the dead. The City maintains that it
only needed to prove it had authority to expropriate and thus may
appropriate any land.
ISSUE: Whether the City of Manila needs establish the necessity for
expropriation.
HELD: YES. The question may be raised and the courts may determine
whether the right is properly exercised, i.e., that the land is indeed
private and that it is meant for public use. Expropriation usually calls for
a public expense, thus, taxpayers may question its public use or the
public necessity.

INHERENT POWERS OF THE STATE: POWER

OF TAXATION
DEFINITION:
TAX enforced proportional contributions from persons and property,
levied by the State for the support of government and all public needs.
TAXATION method tax is exacted.
Positively: the power to keep alive (i.e., the imposition of tariffs designed
for the encouragement and protection of locally produced goods against
competition from imports, tax exemptions) (Hampton and Co. v. United
States, 276 U.S. 394 412 (1928))
Negatively: The power to tax involves the power to destroy (i.e., sin
taxes) (McCulloch v. Maryland, 4 Wheat, 316 431 (U.S. 1819))

Questions:
Which branch of government implements tax laws?
Which branch of government determines the subject and rates of taxes?
Which branch of government determines whether the exercise of the power is within the bounds
of the Constitution?

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INHERENT POWERS OF THE STATE: POWER

OF TAXATION
Basis: Benefit-received principle. Reciprocal duties of support and
protection between the State and its inhabitants.
Purpose of taxation:
1. Revenue generation
2. Non-revenue or regulatory (regulation/control) (i.e., tariffs to
protect local industries, prevent inflation, promote new industries, etc.)

INHERENT POWERS OF THE STATE: POWER

OF TAXATION
SOME CLASSIFICATIONS:
1. Subject matter
a. Personal, poll, or capitation tax fixed amount imposed on persons
residing within a specific territory, regardless of citizenship,
property or occupation (i.e., community tax)
b. Property imposed on property, based on its value or some other
reasonable basis
c. Excise tax imposed on the exercise of an act, privilege, or
occupation (i.e., donees tax
2. Liable
a. Direct Tax demanded from the person who shoulders the burden.
Cannot be passed or shifted to another.

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INHERENT POWERS OF THE STATE: POWER

OF TAXATION
b. Indirect Tax demanded from a person who is expected to indemnify
him/herself at the expense of another. It is passed or shifted to
another (i.e., VAT)

3. Imposing Authority
a. National Tax National Government
b. Local Tax LGU or municipal corporations

4. Amount
a. Specific Tax fixed amount per head/number/other standard of
measurement.
b. Ad valorem Tax based on fixed proportion of the property.
Estimation of value of property needed.

INHERENT POWERS OF THE STATE: POWER

OF TAXATION
Article VI of the Constitution provides:
SECTION 28. (1) The rule of taxation shall be uniform and equitable. The
Congress shall evolve a progressive system of taxation.
(2) The Congress may, by law, authorize the President to fix within
specified limits, and subject to such limitations and restrictions as it may
impose, tariff rates, import and export quotas, tonnage and wharfage
dues, and other duties or imposts within the framework of the national
development program of the Government.
(3) Charitable institutions, churches and parsonages or convents
appurtenant thereto, mosques, non-profit cemeteries, and all lands,
buildings, and improvements, actually, directly, and exclusively used for
religious, charitable, or educational purposes shall be exempt from
taxation.
(4) No law granting any tax exemption shall be passed without the
concurrence of a majority of all the Members of the Congress.

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INHERENT POWERS OF THE STATE: POWER

OF TAXATION
SECTION 28. (1) The rule of taxation shall be uniform and
equitable. The Congress shall evolve a progressive system of
taxation.

Uniformity in taxation means that persons or things belonging to

the same class shall be taxed at the same rate. Tax operates with
the same force and effect in every place where the subject of it is
found. (i.e., valid classification)

Equitable taxation means the tax burden must be imposed

according to the taxpayers capacity to pay.

Progressive System of Taxation - tax rate increases as tax base

increases.

INHERENT POWERS OF THE STATE: POWER

OF TAXATION
CASE: TAN VS. DEL ROSARIO, G.R. NO. 109289, OCTOBER 3, 1994
FACTS: Petitioners question the constitutionality of Republic Act No. 7496, aka
the Simplified Net Income Taxation Scheme (SNIT), amending certain provisions
of the National Internal Revenue Code for violating the principle of uniformity
of taxation by taxing single proprietorships and professionals differently from
the manner it imposes tax of corporations and partnerships.
ISSUE: Whether R.A. No. 7496 violates the principle of uniformity of taxation.
HELD: NO. Uniformity in taxation merely requires that all subjects or objects of
taxation, similarly situated, are to be treated alike both in privileges and
liabilities (citing Juan Luna Subdivision vs. Sarmiento). Uniformity does not
forfend classification as long as: (1) the standards that are being used are
substantial and not arbitrary, (2) the categorization is germane to achieve
the legislative purpose, (3) the law applies, all things being equal, to both
present and future conditions, and (4) the classification applies equally well
to all those belonging to the same class (citing Pepsi Cola vs. City of Butuan)

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INHERENT POWERS OF THE STATE: POWER

OF TAXATION
(2) The Congress may, by law, authorize the President to fix
within specified limits, and subject to such limitations and
restrictions as it may impose, tariff rates, import and export
quotas, tonnage and wharfage dues, and other duties or
imposts within the framework of the national development
program of the Government.

INHERENT POWERS OF THE STATE: POWER

OF TAXATION
(3) Charitable institutions, churches and parsonages or convents
appurtenant thereto, mosques, non-profit cemeteries, and all
lands, buildings, and improvements, actually, directly, and
exclusively used for religious, charitable, or educational
purposes shall be exempt from taxation.

Exemption applies only to real property tax.

Property must be used actually, directly, and exclusively for religious,
charitable, or educational purposes.

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INHERENT POWERS OF THE STATE: POWER

OF TAXATION
CASE: LLADOC VS. COMMISSIONER OF INTERNAL REVENUE, G.R. NO. L-
19201, JUNE 16, 1965
FACTS: MB Estate, Inc. of Bacolod donated P10,000 to the parish priest of
Victorias, Negros Occidental for the construction of a new church. The money was
used for the construction of the church. The CIR issued an assessment for donees
gift tax against the parish for the donated amount.
ISSUE: Whether the Catholic Church is liable for donees tax.
HELD: YES. The phrase exempt from taxation in the Constitution only pertains to
taxes assessed against the enumerated properties (i.e., real property tax) and not
other forms of taxes such as excise tax. A donee's gift tax is not a property tax
but an excise tax imposed on the transfer of property by way of gift inter vivos. It
is a tax on the privilege of receiving the properties. Hence, even if the properties
were used for religious purposes, such tax does not violate the Constitution.

INHERENT POWERS OF THE STATE: POWER

OF TAXATION (FREE EXERCISE CLAUSE)
CASE: AMERICAN BIBLE SOCIETY VS. CITY OF MANILA, G.R. NO.
L-9637, APRIL 30, 1957
FACTS: In the course of its ministry, ABS had been selling and
distributing the bible. The City Treasurer of Manila it was in violation
of Ordinance 3000 for failure to secure the necessary permits and
pay proper taxes.
ISSUE: Whether American Bible Society is liable to pay taxes from the
sale of bibles?
HELD: NO. Selling and distributing bibles was purely religious. ABS
cannot be compelled to comply with the Ordinance by ABS would
impair its exercise of free speech and the enjoyment of its religious
profession and worship as well as the rights of dissemination of
religious beliefs.

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INHERENT POWERS OF THE STATE: POWER

OF TAXATION
CASE: ABRA VALLEY COLLEGE VS. AQUINO, G.R. NO. L-39086, JUNE
15, 1988
FACTS: Abra Valley College rents out its ground floor to Northern
Marketing Corporation for commercial revenue while its 2nd floor was
used by its Director as residence. The Municipal and Provincial Treasurers
issued a Notice of Seizure for the satisfaction of real property taxes due
on the entire building.
ISSUE: Whether the College was liable for real property tax.
HELD: YES. To be exempt from real property taxes, the properties must
be used exclusively for educational purposes. While the Courts have
allowed a liberal interpretation to such a phrase to include facilities which
are incidental to and reasonably necessary for the accomplishment of
such purpose, it cannot cover the properties being leased out for
commercial purposes as covered by the exception. The College is liable
for the properties used for commercial purposes.

INHERENT POWERS OF THE STATE: POWER

OF TAXATION
(4) No law granting any tax exemption shall be passed
without the concurrence of a majority of all the Members of
the Congress.

Questions:

May tax exemptions be created by law?

Are there constitutionally created tax exemptions?

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INHERENT POWERS OF THE STATE: POWER

OF TAXATION

INHERENT POWERS OF THE STATE:

DISTINCTIONS

General Distinctions
TAX LICENSE/REGUALTORY FEE

PRIMARILY REVENUE GENERATION PRIMARILY REGULATION

POWER OF TAXATION POLICE POWER

AMOUNT DEPENDS ON LEGISLATIVE INTENT AND SUBJECT TO GENERALLY COVERS COST OF REGULATION
CONSTITUTIONAL RESTRICTIONS

Fees may be regarded as taxes even though they also serve as instruments of regulation because
taxation may be made the implement of the States police power. But if the purpose is primarily
revenue, or if revenue is, at least, one of the real and substantial purposes, then the exaction is properly
called a tax. (Philippine Airlines vs. Edu re: motor vehicle registration fees)

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QUIZ
Nos. 1 4 What are the four elements of a state?
Nos. 5 7 What are the three branches of Philippine Government?

8. Which branch has the power to make, alter, or repeal laws?

Nos. 9 11 What are the three inherent powers of the state?

12. Jose is going to fly to Hong Kong. During inspection of his carry on luggage, airport
officials confiscated a nail cutter because passengers are prohibited from bringing sharp
objects in their carry on luggage. Jose is demanding compensation for the cost of the nail
cutter because it is being taken away from him. Should Jose be compensated? Yes or no.
13. What power did the State exercise in the above scenario?

14. Josie is a college student. Her school recently implemented a prohibition on colored/dyed
hair among its students. Josie had recently dyed her hair pink. Can she go to court to demand
that her university lift the prohibition? Yes or no.

15. A new law was passed requiring the talents of GMA to pay an increased income tax rate
of 40%. What ground can the talents use to assail the constitutionality of the new law?

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