Boon or bane: A theoretical exploration of the Philippine tax reform Programs - TRAIN and TRABAHO Law - as a fundamental principle of taxation and its effects to the PEZA and BOI in violation to the non-impairment clause granted under the Philippine Constitution

Date of Publication


Document Type

Master's Thesis

Degree Name

Juris Doctor

Subject Categories

Law | Tax Law


College of Law




The TRAIN law and TRABAHO bill both had a major impact on Philippine taxation, especially to PEZA and BOI and the respective entities falling under them. The TRAIN Law which has already been passed into law has revoked certain the fiscal and non-fiscal incentives previously given to these entities. Whereas, the TRABAHO Bill, which is not yet a law, only threatens to revoke or withdraw the incentives. This thesis aims to prove that there is a violation of the non-impairment Clause of the 1987 Constitution in unilaterally revoking the incentives since situation is analogous to a contract as all the elements of a contract are present. Additionally, there are dire consequences for the Philippine economy as this would result in the decline of foreign investments as a product of the revocation. Although the proponents believe that the elements of a contract are present in this case, there is yet no law or jurisprudence that can support the finding that there exists a contract that can qualify the current situation under the protection of the non-impairment Clause of the Constitution. Be that as it may, the negative impact of the withdrawal of the same incentives cannot simply be ignored as it can already be seen that foreign corporations had already withdrawn its respective investments. This cannot be taken lightly as the Philippine economy will suffer. 4

Abstract Format






Physical Description

107 leaves


Taxation--Philippines; Tax incentives—Law and legislation

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