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Last Minute Tips - Taxation - Dean Divina
Last Minute Tips - Taxation - Dean Divina
Law on Taxation
The 20% senior citizen discount and tax deduction scheme are valid
exercises of police power of the State absent a clear showing that it is
arbitrary, oppressive or confiscatory. The discount is intended to improve the
welfare of the senior citizens who, at their age, are less likely to be gainfully
employed, more prone to illnesses and other disabilities, and thus, in need of
subsidy in purchasing commodities. As to its nature an effects, although the
regulation affects the pricing, and, hence, the profitability of a private
establishment, it does not purport to appropriate or burden specific
properties, used in the operation or conduct of the business of private
establishments, for the use or benefit of the public, or senior citizens for that
matter, but merely regulates the pricing of goods and services relative to,
and the amount of profits or income/gross sales that such private
establishments may derive from, senior citizens. The State can employ police
power measures to regulate the pricing of goods and services, and, hence,
the profitability of business establishments in order to pursue legitimate
State objectives for the common good, provided, the regulation does not go
too far as to amount to taking.
SOUTHERN
CROSS
CEMENT
CORPORATION
v.
MANUFACTURERS ASSOCIATION OF THE PHILIPPINES,
158540, August 3, 2005
CEMENT
G.R. No.
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under its sovereign authority, toll fees may be demanded by either the
government or private individuals or entities, as an attribute of ownership.
PAMBANSANG KOALISYON NG MGA SAMAHANG MAGSASAKA AT
MANGGAGAWA SA NIYUGAN v. EXECUTIVE SECRETARY G.R. Nos.
147036-37 April 10, 2012
The Court was satisfied that the coco-levy funds were raised pursuant to law
to support a proper governmental purpose. They were raised with the use of
the police and taxing powers of the State for the benefit of the coconut
industry and its farmers in general.
GEROCHI v. DEPARTMENT OF ENERGY, 527 SCRA 696 (2007
The theory behind the exercise of the power to tax emanates from necessity,
without taxes, government cannot fulfill its mandate of promoting the
general welfare and well being of the people.
COMMISSIONER OF INTERNAL REVENUE v. ALGUE, INC., and THE
COURT OF TAX APPEALS, G.R. No. L-28896, February 17, 1988
Despite the natural reluctance to surrender part of one's hard earned income
to the taxing authorities, every person who is able to must contribute his
share in the running of the government. The government for its part is
expected to respond in the form of tangible and intangible benefits intended
to improve the lives of the people and enhance their moral and material
values. This symbiotic relationship is the rationale of taxation and should
dispel the erroneous notion that it is an arbitrary method of exaction by
those in the seat of power.
COMMISSIONER OF INTERNAL REVENUE v. ROSEMARIE ACOSTA G.R.
No. 154068 August 3, 2007
As well said in a prior case, revenue laws are not intended to be liberally
construed. Considering that taxes are the lifeblood of the government and in
Holmess memorable metaphor, the price we pay for civilization, tax laws
must be faithfully and strictly implemented.
SWEDISH MATCH PHILIPPINES INC. v. THE TREASURER OF THE CITY
OF MANILA, G.R. No. 181277, July 3, 2013
Double taxation means taxing the same property twice when it should be
taxed only once; that is, taxing the same person twice by the same
jurisdiction for the same thing. There is indeed double taxation if a taxpayer
is subjected to the taxes under both Section 14 (Tax on Manufacturers,
Assemblers and other Processors) and Section 21 (Tax on Business Subject to
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However, if the obligation to pay taxes and the taxpayers claim against the
government are both overdue, demandable, as well as fully liquidated,
compensation takes place by operation of law and both obligations are
extinguished to their concurrent amounts.
ASIA INTERNATIONAL AUCTIONEERS, INC. v. COMMISSIONER OF
INTERNAL REVENUE G.R. No. 179115 September 26, 2012
A tax amnesty, much like a tax exemption, is never favored or presumed in
law. The grant of a tax amnesty, similar to a tax exemption, must be
construed strictly against the taxpayer and liberally in favor of the taxing
authority.
FORT BONIFACIO DEVELOPMENT CORPORATION v. COMMISSIONER OF
INTERNAL REVENUE, G.R. No. 173425, September 4, 2012
While administrative agencies, such as the Bureau of Internal Revenue, may
issue regulations to implement statutes, they are without authority to limit
the scope of the statute to less than what it provides, or extend or expand
the statute beyond its terms, or in any way modify explicit provisions of the
law. Hence, in case of discrepancy between the basic law and an
interpretative or administrative ruling, the basic law prevails.
COMMISSIONER OF INTERNAL REVENUE v. SM PRIME HOLDINGS, INC.
613 SCRA 774 (2010)
Revenue Memorandum Circulars (RMCs) must not override, supplant, or
modify the law, but must remain consistent and in harmony with the law
they seek to apply and implement.
TEAM
ENERGY
CORPORATION
(Formerly
MIRANT
PAGBILAO
CORPORATION) v. COMMISSIONER OF INTERNAL REVENUE, G.R. No.
197760, January 13, 2014
BIR Ruling No. DA-489-03 is a general interpretative rule because it is a
response to a query made, not by a particular taxpayer, but by a
government agency tasked with processing tax refunds and credits. Thus, all
taxpayers can rely on BIR Ruling No. DA-489-03 from the time of its issuance
on 10 December 2003 up to its reversal by this Court in Aichi on 6 October
2010, where this Court held that the 120+30 day periods are mandatory and
jurisdictional.
PLANTERS PRODUCTS, INC. v. FERTIPHIL CORPORATION, G.R. No.
166006, March 14, 2008)
It would be a robbery for the State to tax its citizens and use the funds
generated for a private purpose. When a tax law is only a mask to exact
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funds from the public when its true intent is to give undue benefit and
advantage to a private enterprise, that law will not satisfy the requirement of
"public purpose."
ABAKADA GURO PARTY LIST (Formerly AASJAS) OFFICERS SAMSON
S. ALCANTARA and ED VINCENT S. ALBANO v. THE HONORABLE
EXECUTIVE SECRETARY G.R. No. 168056 September 1, 2005
The powers which Congress is prohibited from delegating are those which are
strictly, or inherently and exclusively, legislative. Purely legislative power,
which can never be delegated, has been described as the authority to make
a complete law complete as to the time when it shall take effect and as to
whom it shall be applicable and to determine the expediency of its
enactment.
NATIONAL POWER CORPORATION v. CITY OF CABANATUAN G.R. No.
149110 April 9, 2003
Taxation assumes even greater significance with the ratification of the 1987
Constitution. Thenceforth, the power to tax is no longer vested exclusively on
Congress; local legislative bodies are now given direct authority to levy
taxes, fees and other charges pursuant to Article X, section 5 of the 1987
Constitution.
QUEZON CITY, et al. v. ABS-CBN BROADCASTING CORPORATION, G.R.
No. 162015, March 6, 2006
Clearly then, while a new slant on the subject of local taxation now prevails
in the sense that the former doctrine of local government units delegated
power to tax had been effectively modified with Article X, Section 5 of the
1987 Constitution now in place, the basic doctrine on local taxation remains
essentially the same. For as the Court stressed in Mactan, "the power to tax
is [still] primarily vested in the Congress."
SOUTHERN CROSS CEMENT CORPORATION v. CEMENT MANUFACTURERS
ASSOCIATION OF THE PHILIPPINES, G.R. No. 158540, August 3, 2005
Assuming that Section 28(2) Article VI did not exist, the enactment of the
SMA [Safeguard Measure Act] by Congress would be voided on the ground
that it would constitute an undue delegation of the legislative power to tax.
The constitutional provision shields such delegation from constitutional
infirmity, and should be recognized as an exceptional grant of legislative
power to the President, rather than the affirmation of an inherent executive
power.
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Equality and uniformity in taxation means that all taxable articles or kinds of
property of the same class shall be taxed at the same rate. The taxing power
has the authority to make reasonable and natural classifications for purposes
of taxation; inequalities which result from a singling out of one particular
class for taxation or exemption infringe no constitutional limitation.
LUNG CENTER OF THE PHILIPPINES v. QUEZON CITY, G.R. No. 144104,
June 29, 2004
Even as we find that the petitioner is a charitable institution, we hold that
those portions of its real property that are leased to private entities are not
exempt from real property taxes as these are not actually, directly and
exclusively used for charitable purposes. On the other hand, the portions of
the land occupied by the hospital and portions of the hospital used for its
patients, whether paying or non-paying, are exempt from real property taxes.
COMMISSIONER OF INTERNAL REVENUE v. ST. LUKE'S MEDICAL
CENTER, INC. G.R. No. 195909 September 26, 2012
Section 30(E) and (G) of the NIRC requires that an institution be "operated
exclusively" for charitable or social welfare purposes to be completely
exempt from income tax. An institution under Section 30(E) or (G) does not
lose its tax exemption if it earns income from its for-profit activities. Such
income from for-profit activities, under the last paragraph of Section 30, is
merely subject to income tax, previously at the ordinary corporate rate but
now at the preferential 10% rate pursuant to Section 27(B).
JOHN HAY PEOPLES ALTERNATIVE COALITION, et al. v. VICTOR LIM, et
al., G. R. No. 119775, October 24, 2003
The incentives under R.A. No. 7227 are exclusive only to the Subic SEZ,
hence, the extension of the same to the John Hay SEZ finds no support
therein. The challenged grant of tax exemption would circumvent the
Constitution's imposition that a law granting any tax exemption must have
the concurrence of a majority of all the members of Congress.
COMMISSIONER OF INTERNAL REVENUE v. MARUBENI CORPORATION,
G.R. No. 137377, December 18, 2001
A contractor's tax is generally in the nature of an excise tax on the exercise
of a privilege of selling services or labor rather than a sale on products; and
is directly collectible from the person exercising the privilege. Being an
excise tax, it can be levied by the taxing authority only when the acts,
privileges or business are done or performed within the jurisdiction of said
authority.
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being made use of as a device for the actual distribution of cash dividends,
which is taxable.
Ma. Isabel T. Santos vs. Servier Phil., Inc., et al., G.R. No. 166377,
November 28, 2008
Respondent terminated petitioners services due to her illness, rendering her
incapable of continuing to work, and gave her retirement benefits but
withheld the tax due thereon. The retirements benefits are taxable because
the petitioner was only 41 yrs old at the time of retirement and had rendered
only 8 years of service; for these benefits to be exempt from tax, the
following requisites must concur: (1) a reasonable private benefit plan is
maintained by the employer; (2) the retiring official or employee has been in
the service of the same employer for at least ten (10) years; (3) the retiring
official or employee is not less than fifty (50) years of age at the time of his
retirement; and (4) the benefit had been availed of only once.
C. M. Hoskins & Co., Inc. vs. Commissioner of Internal Revenue, G.R.
No. L-24059, November 28, 1969
Payment by the taxpayer-corporation to its controlling stockholder (Hoskins)
of 50% of its supervision fees (paid by a client of the corporation for the
latter's services as managing agent of a subdivision project) or the amount of
P99,977.91 is not a deductible ordinary and necessary expense because it
does not pass the test of reasonable compensation. If independently, a onetime P100,000.00-fee to plan and lay down the rules for supervision of a
subdivision project were to be paid to an experienced realtor such as
Hoskins, its fairness and deductibility by the taxpayer could be conceded;
however, the fee paid to Hoskins continued every year since 1955 up to
1963 and for as long as its contract with the subdivision owner subsisted,
regardless of whether services were actually rendered by Hoskins.
Philippine Refining Company vs. Court of Appeals, et al., G.R. No.
118794, May 8, 1996
In claiming deductions for bad debts, the only evidentiary support given by
PRC was the explanation posited by its accountant, whose allegations were
not supported by any documentary evidence. One of the requisites to qualify
as bad debt is that the debt must be actually ascertained to be worthless
and uncollectible during the taxable year, and the taxpayer must prove that
he exerted diligent efforts to collect the debts by (1) sending of statement of
accounts; (2) sending of collection letters; (3) giving the account to a lawyer
for collection; and (4) filing a collection case in court.
Consolidated Mines, Inc. vs. Court of Tax Appeals, et al., G.R. Nos. L18843 & 18844, August 29, 1974
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Both depletion and depreciation are predicated on the same basic promise of
avoiding a tax on capital. The allowance for depletion is based on the theory
that the extraction of minerals gradually exhausts the capital investment in
the mineral deposit. The purpose of the depiction deduction is to permit the
owner of a capital interest in mineral in place to make a tax-free recovery of
that depleting capital asset. A depletion is based upon the concept of the
exhaustion of a natural resource whereas depreciation is based upon the
concept of the exhaustion of the property, not otherwise a natural resource,
used in a trade or business or held for the production of income. Thus,
depletion and depreciation are made applicable to different types of assets.
And a taxpayer may not deduct that which the Code allows as of another.
COMMISSIONER OF INTERNAL REVENUE vs. PHILIPPINE AIRLINES,
INC. (PAL), G.R. No. 179259 (2013).
A corporation like the Philippine Airlines who has a franchise of its own
cannot be subject to the minimum corporate income tax. The reason beingas provided in PD 1590, Section 13 of PAL's franchise, its taxation shall be
strictly governed by two fundamental rules, to wit: (1) respondent shall pay
the Government either the basic corporate income tax or franchise tax,
whichever is lower; and (2) the tax paid by respondent, under either of these
alternatives, shall be in lieu of all other taxes, duties, royalties, registration,
license, and other fees and charges, except only real property tax.
Manila Banking Corp. v. CIR, 499 SCRA 782
The intent of Congress relative to the MCIT is to grant a 4 year suspension of
tax payment to newly formed corporations. Corporations still starting have to
stabilize their venture in order to obtain stronghold in the industry. It is not a
surprise when many corporations reported losses in their initial years of
operations.
Commissioner of Internal Revenue vs. Court of Appeals, et al., G.R.
No. 124043, October 14, 1998
YMCA, a non-stock non-profit corporation with charitable objectives, claimed
exemption from payment of income tax by invoking the NIRC and the
Constitution. While the income received by the organizations enumerated in
Section 26 of the NIRC is, as a rule, exempted from the payment of tax in
respect to income received by them as such, the exemption does not apply
to income derived from any of their properties, real or personal, or from any
of their activities conducted for profit, regardless of the disposition made of
such income; Moreover, charitable institutions under Art. VI, sec. 28 of the
Constitution are only exempted from property taxes, and YMCA is not an
educational institution under Article XIV, Section 4 of the Constitution.
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together with the rest of the instrument, in order to give effect to the real
intent of the transferor; and
(6) That in case of doubt, the conveyance should be deemed donation inter
vivos rather than mortis causa, in order to avoid uncertainty as to the
ownership of the property subject of the deed.
ROMARICO G. VITUG vs. THE HONORABLE COURT OF APPEALS and
ROWENA FAUSTINO-CORONA, G.R. No. 82027, March 29, 1990
The conveyance in question is not, first of all, one of mortis causa, which
should be embodied in a will. In this case, the monies subject of savings
account were in the nature of conjugal funds. In the case relied on, Rivera v.
People's Bank and Trust Co., we rejected claims that a survivorship
agreement purports to deliver one party's separate properties in favor of the
other, but simply, their joint holdings.
RAFAEL ARSENIO S. DIZON vs. COURT OF TAX APPEALS, G.R. No.
140944, April 30, 2008
As held in Propstra v. U.S., where a lien claimed against the estate was
certain and enforceable on the date of the decedent's death, the fact that
the claimant subsequently settled for lesser amount did not preclude the
estate from deducting the entire amount of the claim for estate tax
purposes. These pronouncements essentially confirm the general principle
that post-death developments are not material in determining the amount of
the deduction.
COMMISSIONER OF INTERNAL REVENUE vs. COURT OF APPEALS, G.R.
No. 123206, March 22, 2000
Administration expenses, as an allowable deduction from the gross estate of
the decedent for purposes of arriving at the value of the net estate, have
been construed by the federal and state courts of the United States to
include all expenses "essential to the collection of the assets, payment of
debts or the distribution of the property to the persons entitled to it." In other
words, the expenses must be essential to the proper settlement of the estate
and expenditures incurred for the individual benefit of the heirs, devisees or
legatees are not deductible.
SPS. AGRIPINO GESTOPA and ISABEL SILARIO GESTOPA vs. COURT
OF APPEALS, G.R. No. 111904, October 5, 2000
The granting clause shows that Diego donated the properties out of love and
affection for the donee which is a mark of a donation inter vivos; second, the
reservation of lifetime usufruct indicates that the donor intended to transfer
the naked ownership over the properties; third, the donor reserved sufficient
properties for his maintenance in accordance with his standing in society,
indicating that the donor intended to part with the six parcels of land; lastly,
the donee accepted the donation.
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According to the Destination Principle, goods and services are taxed only in
the country where these are consumed. In connection with the said principle,
the Cross Border Doctrine mandates that no VAT shall be imposed to form
part of the cost of the goods destined for consumption outside the territorial
border of the taxing authority. Hence, actual export of goods and services
from the Philippines to a foreign country must be free of VAT, while those
destined for use or consumption within the Philippines shall be imposed with
10% VAT.
CIR v. Seksui Jushi Phils, Inc. G.R. No. 149671, July 21, 2006
While an ecozone is geographically within the Philippines, it is deemed a
separate customs territory and is regulated in laws as foreign soul. Sales by
supplies outside the borders of ecozone to this separate customs territory
are deemed exports and treated as export sales.
PHILIPPINE AMUSEMENT AND GAMING CORPORATION (PAGCOR) vs.
THE BUREAU OF INTERNAL REVENUE, G.R. No. 172087, March 15,
2011
The rationale for the exemption from indirect taxes provided for in P.D. 1869
and the extension of such exemption to entities or individuals dealing with
PAGCOR in casino operations are best elucidated from the 1987 case of
Commissioner of Internal Revenue v. John Gotamco & Sons, Inc., where the
absolute tax exemption of the World Health Organization (WHO) upon an
international agreement was upheld. We held in said case that the exemption
of contractee WHO should be implemented to mean that the entity or person
exempt is the contractor itself who constructed the building owned by
contractee WHO, and such does not violate the rule that tax exemptions are
personal because the manifest intention of the agreement is to exempt the
contractor so that no contractor's tax may be shifted to the contractee WHO.
LUZON HYDRO CORPORATION vs. COMMISSION ON INTERNAL
REVENUE, G.R. No. 188260 (2013).
Even though the sale of electricity by a power generation company is subject
to zero-rated VAT, its claim for refund or tax credit cannot be granted where
no VAT official receipts and VAT returns have been presented to prove that it
actually made zero-rated sales of electricity. An entity claiming for refund or
tax credit carries with it the burden of proving that not only is it entitled
under the substantive law to the allowance of its claim for refund or tax
credit but also that it met all the requirements for evidentiary substantiation
of its claim before the administrative official concerned.
CBK POWER COMPANY LIMITED vs. COMMISSIONER OF INTERNAL
REVENUE, G.R. Nos. 198729-30 (2014).
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Under Section 112(A) of the NIRC, for VAT-registered persons whose sales are
zero-rated or effectively zero-rated, a claim for the refund or credit of
creditable input tax that is due or paid, and that is attributable to zero-rated
or effectively zero-rated sales, must be filed within two years after the close
of the taxable quarter when such sales were made. The reckoning frame
would always be the end of the quarter when the pertinent sale or
transactions were made, regardless of when the input VAT was paid. Also, in
the filing of judicial claims, the 30-day period to appeal to the CTA is
dependent on the 120-day period, compliance with both periods is
jurisdictional. The period of 120 days is a prerequisite for the
commencement of the 30-day period to appeal to the CTA.
COMMISSIONER
OF
INTERNAL
REVENUE
vs.
MINDANAO
II
PARTNERSHIP, G.R. No. 191498 (2014).
Section 112(D) speaks of two periods: the period of 120 days, which serves
as a waiting period to give time for the CIR to act on the administrative claim
for refund or credit, and the period of 30 days, which refers to the period for
interposing an appeal with the CTA. The 30-day period applies not only to
instances of actual denial by the CIR of the claim for refund or tax credit, but
to cases of inaction by the CIR as well. Therefore, notwithstanding the timely
filing of administrative claims, the CTA does not have jurisdiction over the
case where the taxpayers judicial claim was filed beyond the 30 day period,
the nature of such time requirement being mandatory.
Commissioner of Internal Revenue vs. Silicon Philippines, Inc.
(formerly Intel Philippines Manufacturing, Inc.), G.R. No. 169778
(March 12, 2014).
Prior to seeking judicial recourse before the CTA, a VATregistered person
may apply for the issuance of a tax credit certificate or refund of creditable
input tax attributable to zerorated or effectively zerorated sales within two
(2) years after the close of taxable quarter when the sales or purchases were
made. Additionally, under paragraph (D) of Section 112, Tax Code, the
Commissioner of Internal Revenue is given a 120day period, from
submission of complete documents in support of the administrative
claim within which to act on claims for refund/applications for issuance of the
tax credit certificate. Upon denial of the claim or application, or upon
expiration of the 120day period, the taxpayer only has 30 days within which
to appeal said adverse decision or unacted claim before the CTA.
Taganito Mining Corporation vs. Commissioner of Internal Revenue,
G.R. No. 197591 (June 18, 2014).
The 2010 Aichi case instructs that once the administrative claim is filed
within the prescriptive period, the claimant must wait for the 120-day period
to end and, thereafter, he is given a 30-day period to file his judicial claim
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before the CTA, even if said 120-day and 30-day periods would exceed the
aforementioned two (2)-year prescriptive period.
Taganito Mining Corporation vs. Commissioner of Internal Revenue,
G.R. No. 201195 (November 26, 2014).
The 2-year period under Section 229 does not apply to appeals before the
CTA in relation to claims for a refund or tax credit for unutilized creditable
input VAT. Section 229 pertains to the recovery of taxes erroneously, illegally,
or excessively collected. Input VAT is not excessively collected as
understood under Section 229 because, at the time the input VAT is
collected, the amount paid is correct and proper. It is, therefore, Section 112
which applies specifically with regard to claiming a refund or tax credit for
unutilized creditable input VAT.
FORT BONIFACIO DEVELOPMENT CORPORATION vs. COMMISSIONER
OF INTERNAL REVENUE, G.R. No. 173425, January 22, 2013
Prior payment of taxes is not necessary before a taxpayer could avail of the
8% transitional input tax credit: first, it was never mentioned in Section 105
of the old NIRC [now Sec. 111] that prior payment of taxes is a requirement;
second, since the law (Section 105 of the NIRC) does not provide for prior
payment of taxes, to require it now would be tantamount to judicial
legislation which, to state the obvious, is not allowed; third, a transitional
input tax credit is not a tax refund per se but a tax credit; fourth, if the intent
of the law were to limit the input tax to cases where actual VAT was paid, it
could have simply said that the tax base shall be the actual value-added tax
paid; and fifth, this Court had already declared that prior payment of taxes is
not required in order to avail of a tax credit.
COMMISSIONER OF INTERNAL REVENUE vs. SEAGATE TECHNOLOGY
(PHILIPPINES), G.R. No. 153866, February 11, 2005
Having determined that respondent's purchase transactions are subject to a
zero VAT rate, the tax refund or credit is in order. To repeat, the VAT is a tax
imposed on consumption, not on business. Although respondent as an entity
is exempt, the transactions it enters into are not necessarily so. The VAT
payments made in excess of the zero rate that is imposable may certainly be
refunded or credited.
CIR vs Pascor Realty and Development Corp., GR no. 128315, June
29, 1999
An assessment contains not only a computation of tax liabilities, but also a
demand for payment within a prescribed period. It also signals the time when
penalties and protests begin to accrue against the taxpayer. To enable the
taxpayer to determine his remedies thereon, due process requires that it
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Sec. 228 of the Tax Code clearly requires that the taxpayer must be informed
that he is liable for deficiency taxes through the sending of a Preliminary
Assessment Notice. The sending of a PAN to the taxpayer is to inform him of
the assessment made is but part of due process requirement in the issuance
of a deficiency tax assessment, the absence of which renders nugatory any
assessment made by the tax authorities.
CIR v. Enron Subic Power Corp. 575 SCRA 212
A taxpayer must be informed in writing of the legal and factual bases of the
tax assessment made against him. This is a mandatory requirement. The
advice of a tax deficiency given by the CIR to an employee of Enron as well
as the preliminary 5-day letter notice, were not valid substitutes for the
mandatory notice in writing of the legal and factual bases of the assessment.
Sec. 228 of the NIRC requires that the legal and factual bases be stated in
the formal letter of demand and assessment notice. Otherwise the law and
RR 12-99 would be rendered nugatory. In view of the absence of a fair
opportunity for Enron to be informed of the bases of the assessment, the
assessment was void. This is a requirement of due process.
CIR vs First Express Pawnshop Company, GR 172045-46, June 16,
2009
Petitioner cannot insist on the submission of proof of DST payment because
such document does not exist as respondent claims that it is not liable to
pay, and has not paid, the DST on the deposit on subscription. The term
relevant supporting documents should be understood as those documents
necessary to support the legal basis in disputing a tax assessment as
determined by the taxpayer. The BIR can only inform the taxpayer to submit
additional documents. The BIR cannot demand what type of supporting
documents should be submitted. Otherwise, a taxpayer will be at the mercy
of the BIR, which may require the production of documents that a taxpayer
cannot submit.
Allied Banking Corporation vs CIR, G.R. No. 175097, February 5,
2010
Records show that petitioner disputed the PAN but not the Formal Letter of
Demand with Assessment Notices. Nevertheless, we cannot blame petitioner
for not filing a protest against the Formal Letter of Demand with Assessment
Notices since the language used and the tenor of the demand letter indicate
that it is the final decision of the respondent on the matter. We have time
and again reminded the CIR to indicate, in a clear and unequivocal language,
whether his action on a disputed assessment constitutes his final
determination thereon in order for the taxpayer concerned to determine
when his or her right to appeal to the tax court accrues. Viewed in the light
of the foregoing, respondent is now estopped from claiming that he did not
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Valley Trading Co., Inc. v. CFI of Isabela, Branch II, G.R. No. L-49529,
March 31, 1989
Unlike the National Internal Revenue Code, the Local Tax Code does not
contain any specific provision prohibiting courts from enjoining the collection
of local taxes. Such Statutory lapse or intent, however it may be viewed, may
have allowed preliminary injunction where local taxes are involved but
cannot negate the procedural rules and requirements under Rule 58.
Manila International Airport Authority v. Court of Appeals, G.R. No.
155650, July 20, 2006
Under Section 234(a), real property owned by the Republic is exempt from
real estate tax except when the government gives the beneficial use of the
real property to a taxable entity. The justification for the exception to the
exemption is that the real property, although owned by the Republic, is not
devoted to public use or public service but devoted to the private gain of a
taxable person.
Allied Banking Corporation, etc., v. Quezon City Government, et al.,
G. R. No. 154126, October 11, 2005
Real properties shall be appraised at the current and fair market value
prevailing in the locality where the property is situated and classified for
assessment purposes on the basis of its actual use.
Heirs of Tajonera v. Court of Appeals, G.R. No. L-26677, March 27,
1981
It is `the duty of each person' acquiring real estate in the city to make a new
declaration thereof, with the advertence that failure to do so shall make the
assessment in the name of the previous owner 'valid and binding on all
persons interested, and for all purposes, as though the same had been
assessed in the name of its actual owner.'
Spouses Hu v. Spouses Unico, G.R. No. 146534, September 18, 2009
With regard to determining to whom the notice of sale should have been
sent, settled is the rule that, for purposes of real property taxation, the
registered owner of the property is deemed the taxpayer. Thus, in identifying
the real delinquent taxpayer, a local treasurer cannot rely solely on the tax
declaration but must verify with the Register of Deeds who the registered
owner of the particular property is.
Ty v. Trampe, G.R. No. 117577, December 01, 1995
The protest contemplated under Sec. 252 of R.A. 7160 is needed where there
is a question as to the reasonableness of the amount assessed. Hence, if a
taxpayer disputes the reasonableness of an increase in a real estate tax
assessment, he is required to "first pay the tax" under protest; otherwise, the
city or municipal treasurer will not act on his protest.
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Davao Oriental Electric Coop vs. Prov. Dvo. of Oriental, 576 SCRA
645
Under then Sec. 30 of PD 464 [now under Sec. 226, LGC], having failed to
appeal the real property assessments to the LBAA, taxpayer now cannot
assail the validity of the tax assessment before the courts. For failure to
exhaust administrative remedies, the assessment became final. Under Sec.
64 of PD 464 [now under Sec. 252, LGC), the taxpayer must first pay under
protest and then assail the validity of the assessment.
Fels Energy, Inc. v. Province of Batangas, G.R. No. 168557, 170628,
February 16, 2007
Under Section 226 of R.A. No 7160, the last action of the local assessor on a
particular assessment shall be the notice of assessment; it is this last action
which gives the owner of the property the right to appeal to the LBAA. The
procedure likewise does not permit the property owner the remedy of filing a
motion for reconsideration before the local assessor.
Nestle Philippines, Inc. v. Court of Appeals, G.R. No. 134114, July 06,
2001
Customs duties" is "the name given to taxes on the importation and
exportation of commodities, the tariff or tax assessed upon merchandise
imported from, or exported to, a foreign country.
Feeder International Line, Pte., Ltd. v. Court of Appeals, G.R. No.
94262, May 31, 1991
Section 1202 of the Tariff and Customs Code provides that importation
begins when the carrying vessel or aircraft enters the jurisdiction of the
Philippines with intention to unload therein. It is clear from the provision of
the law that mere intent to unload is sufficient to commence an importation
and "intent," being a state of mind, is rarely susceptible of direct proof, but
must ordinarily be inferred from the facts, and therefore can only be proved
by unguarded, expressions, conduct and circumstances generally.
Jardeleza v. People, G.R. No. 165265, February 06, 2006
Smuggling is committed by any person who: (1) fraudulently imports or
brings into the Philippines any article contrary to law; (2) assists in so doing
any article contrary to law; or (3) receives, conceals, buys, sells or in any
manner facilitate the transportation, concealment or sale of such goods after
importation, knowing the same to have been imported contrary to law.
Carrara Marble Phil., Inc. v. Commissioner of Customs, G.R. No.
129680, September 01, 1999
The Tariff and Customs law subjects to forfeiture any article which is removed
contrary to law from any public or private warehouse under customs
supervision, or released irregularly from Customs custody. Before forfeiture
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proceedings are instituted the law requires the presence of probable cause;
once established, the burden of proof is shifted to the claimant.
People v. Court of First Instance of Rizal, G.R. No. L-41686,
November 17, 1980
It is quite clear that seizure and forfeiture proceedings under the tariff and
customs laws are not criminal in nature as they do not result in the
conviction of the offender nor in the imposition of the penalty provided for in
section 3601 of the Code. As can be gleaned from Section 2533 of the code,
seizure proceedings, such as those instituted in this case, are purely civil and
administrative in character, the main purpose of which is to enforce the
administrative fines or forfeiture incident to unlawful importation of goods or
their deliberate possession.
Subic Bay Metropolitan Authority v. Rodriguez, G.R. No. 160270,
April 23, 2010
Regional trial courts are devoid of any competence to pass upon the validity
or regularity of seizure and forfeiture proceedings conducted by the BOC and
to enjoin or otherwise interfere with these proceedings. Regional trial courts
are precluded from assuming cognizance over such matters even through
petitions for certiorari, prohibition or mandamus.
Jao v. Court of Appeals, G.R. No. 104604, 111223, October 06, 1995
Even if the seizure by the Collector of Customs were illegal, which has yet to
be proven, we have said that such act does not deprive the Bureau of
Customs of jurisdiction thereon. The allegations of petitioners regarding the
propriety of the seizure should properly be ventilated before the Collector of
Customs.
Transglobe International, Inc. v. Court of Appeals, G.R. No. 126634,
January 25, 1999
A forfeiture proceeding is in the nature of a proceeding in rem, i.e., directed
against the res or imported articles and entails a determination of the
legality of their importation. In this proceeding, it is in legal contemplation
the property itself which commits the violation and is treated as the offender,
without reference whatsoever to the character or conduct of the owner.
Commr. v. Hambretch & Quist Philippines, Inc., G.R. No. 169225,
November 17, 2010
The appellate jurisdiction of the CTA is not limited to cases which involve
decisions of the CIR on matters relating to assessments or refunds. Section 7
of Republic Act No. 1125 covers other cases that arise out of the National
Internal Revenue Code (NIRC) or related laws administered by the Bureau of
Internal Revenue (BIR).
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