Practice question
An otherwise lawful charge primarily implements an established industry-regulation program. Revenue raising is stipulated to be merely incidental. An analyst says all compulsory payments must be taxes. What does Gerochi teach?
- Primary regulation can make the charge a police-power exaction rather than a tax
- Every compulsory charge is automatically a tax regardless of purpose
- The charge becomes a private gift
- Incidental revenue invalidates every regulation
- A charge cannot have any connection to public welfare
Legal references
- Gerochi v. DOE, GR159796, July17 2007 ENBANC MAIN: https://lawphil.net/judjuris/juri2007/jul2007/gr_159796_2007.html MAIN purpose-based distinction between taxation and police-power exactions.
- Lutz v. Araneta, GRL-7859, December22 1955 MAIN: https://lawphil.net/judjuris/juri1955/dec1955/gr_l-7859_1955.html MAIN regulatory taxation and sugar-industry public-welfare rationale.
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