Question

A construction company recently completed a government infrastructure project worth PHP 50 million. The company is now preparing to submit its financial statements for tax assessment. However, the company's executive is concerned about the taxation of its income from the project. They are specifically worried about the inherent and constitutional limitations on taxation.

Identify and discuss three inherent limitations on taxation. Explain the basis for each limitation and cite relevant provisions of the Philippine Constitution, Tax Code, or relevant laws to support your answer.

Additionally, discuss two constitutional limitations on taxation. Explain the rationale behind each limitation and provide corresponding provisions from the Philippine Constitution that support the limitations.

1. Enumerate the three inherent limitations on taxation and provide their basis as well as the relevant provisions.
2. Enumerate the two constitutional limitations on taxation and provide the rationale and corresponding constitutional provisions.