Tan v. Del RosarioG.R. No. 109289

Petition: Consolidated special civil action for prohibition1

Petitioner: Rufino R. TanRespondent: Ramon R. Del Rosario, Jr.Ponente:Jose C. VitugDate: October 3, 1 !

Facts:"etitioner assails the constitutionalit# of R$ %! & or the 'implified (et )ncome Ta*ation 'chemeand asserts the violation of $rticle ))), 'ection 1+ and $rticle V), 'ections +& 1-3 and + 1- ! of the Constitution and the validit# of 'ection &/ of the Revenue Regulations (o. +0 3.

Issue:hether or not '()T is unconstitutional on the ground that it fails to compl# that 2the rule of ta*ation shall be uniform and e uitable4 in compliance to $rticle V), 'ection + 1- of the Constitution0 (O

Held: (O

Petitioner: The la5 5ould no5 attempt to ta* single proprietorships and professionalsdifferentl# from the manner it imposes the ta* on corporations and partnerships.

Court: 'uch s#stem of income ta*ation has long been prevailing rule even prior to R$%! &. 6niformit# of ta*ation re uires that all sub7ects or ob7ects of ta*ation similarl# situated be treated ali8e both in privileges and liabilities.

Re uirements91. The standards that are used therefor are substantial and not arbitrar#+. The categori:ation is germane to achieve the legislative purpose3. The la5 applies, all things being e ual, to both present and future conditions

1 G.R. No. 109289- Republic Act No. 7496 or the Simplifed Net I come !"#"tio Scheme $SNI!%& "me di ' cert"i pro(i)io ) o* the N"tio "l I ter "l Re(e ue +ode, G.R. No. 109446- Sectio 6& Re(e ue Re'ul"tio ) No. 2-9 2 No per)o )h"ll be depri(ed o* li*e& libert & or propert /ithout due proce)) o* l"/& or )h"ll " per)o be de ied the e u"l protectio o* the l"/). (er bill p"))ed b the +o 're)) )h"ll embr"ce o l o e )ub ect /hich )h"ll be e#pre))ed i the title thereo*.4 !he rule o* t"#"tio )h"ll be u i*orm " d e uit"ble. !he +o 're)) )h"ll e(ol(e " pro're))i(e ) )tem o* t"#"tio . 3 Ge er"l ro*e))io "l "rt er)hip - !he 'e er"l pro*e))io "l p"rt er)hip $G % " d the p"rt er) compri)i ' the G "re co(ered b R. A. No. 7496. !hu)& i determi i ' the et proft o* the p"rt er)hip& o l the direct co)t) me tio ed i )"id l"/ "re to be deducted *rom p"rt er)hip i come. Al)o& the e#pe )e) p"id or i curred b p"rt er) i their i di(idu"l c"p"citie) i the pr"ctice o* their pro*e))io /hich "re ot reimbur)ed or p"id b the p"rt er)hip but "re ot co )idered ") direct co)t& "re ot deductible *rom hi) 'ro)) i come.

!. The classification applies e uall# 5ell to all those belonging to the same class;egislative intent9

1. to increasingl# shift the income ta* s#stem to5ards the schedular approach& for individual ta*pa#ers

+. to maintain, b# and large, the present global treatment% on ta*able corporations.Classification is deemed neither arbitrar# nor inappropriate.

"etitiondismissed .

6 A ) )tem emplo ed /here the i come t"# tre"tme t ("rie) " d m"de to depe d o the 5i d or c"te'or o* t"#"ble i come o* the t"#p" er 7 A ) )tem /here the t"# tre"tme t (ie/) i di ere tl the t"# b")e " d 'e er"ll tre"t) i commo "ll c"te'orie) o* t"#"ble i come o* the t"#p" er