5. Q.- (a) Is “double taxation” prohibited in the Philippines? (b) When is double taxation ‘objectionable’ or ‘obnoxious’, and henceprohibited?
A.- (a) There is no constitutional prohibition against double taxation in the Philippines. It is something not favored, but permissible, provided some other constitutional requirement is not thereby violated, such as the requirement that taxes must be uniform. (Villanueva vs. City of lloilo, G.R. No. L-262521, Dec. 28, 1968.)
(b) In order to constitute double taxation in the objectionable sense, the same property must be taxed twice when it should be taxed but once; both taxes must be imposed on the same property or subject-matter, for the same purpose, by the same State, Government, or taxing authority, within the same taxing period, and they must be the same kind or character of tax. (Villanueva vs. City of lloilo, G.R. No. L-262521, Dec. 28, 1968.)
Moreover, 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. (Pepsi-Cola Bottling Co. of the Phil., Inc. vs. Mun. of Tanauan, Leyte, G.R. No. L-31156, Feb.27, 1976; Commissioner of Internal Revenue vs. Hawaiian-Philippine Co., G.R. No. L-16315, Oct. 10, 1967; Punzalan vs. Mun. Board of Manila, 95 Phil. 46 [1954]).
(Taken from page 28, PHIL. LAW ON LOCAL GOV’T. TAXATION, Vol. 1, 3rd. ed.)
