*Direct injury suit /test - no longer applicable

TAXPAYER SUIT
-Only one who will sustain a direct injuri in consequence of its
enforcement may contest the validity of a statute
Basis: The right is based on the fact that expenditure of public funds by an
officer for the purpose of administering or implementing an invalid or
unconstitutional law is a misapplication of such funds (Gascon vs Arroyo, G.R. No.
78389)
REQUISITES: 1. Public funds derived from taxation are disbursed by a
political subdivision or instrumentality and in doing so, a law is violated or some
irregularity is committed; and
2. Petitioner is directly affected by the alleged act (Bagatsing vs San Juan G.R.
No. 97787)

- The Court in recent cases has relaxed the stringent direct injury test
bearing in mind that locus standi is a procedural technicality. In cases where serious
legal issues were raised or where public expenditures of millions of pesos were
involved, the Court did not hesitate to give standing to taxpayers. The Court finds no
reason to deviate from the jurisprudential trend. The amount involved in this case is
substantial. (Mamba vs Lara G.R. No. 165109)

*Fee
-Test in determining whether the imposition is Tax or a Fee: If the generation
of revenue is the primary purpose and regulation is merely incidental, the
imposition is a tax but if regulation is the primary purpose, the fact that incidental
revenue is also obtained does not make the imposition a tax (Progressive
Development Corp. vs Quezon City, G.R. No 36081)
-It is possible for an exaction to be both tax and regulation. License fees are
looked to as source of revenue as well as a means of regulation.
-Importance of Distinction of Tax from Fee:
:The government instrumentality that imposes the exaction may have
no authority to collect the tax but is authorized to collect the fees
:The person, who is required to pay the exaction may be exempt from
tax but not from the payment of fees or vice versa
: For income tax purposes, the tax, not fees, may be claimed as income
tax deduction

*Doctrine of Usage - charitable exemption

TAX EXEMPTION OF PROPERTIES ACTUALLY, DRIECTLY AND
EXCLUSIVELY USED FOR RELIGIOUS, CHARITABLE AND EDUCATIONAL
PURPOSES (Sec. 28 (3), Art. VI)
-The exemption only covers property taxes and not other taxes
- The test of exemption is the use of the property and not ownership of the
property.
- The exemption in favor of property used exclusively for charitable or
educational purpose is not limited to property actually indispensable therefore, but
extends to facilities which are incidental to and reasonable necessary for the
accomplishment of said purpose. (Abra Valley College vs Aquino, 162 SCRA 106)
- To be exempt from realty taxation, there must be proof of actual, direct and
exclusive use of lands. Buildings and improvements for religious or charitable
purposes (Province of Abra vs Hernando 107 SCRA 104)