Pointers in Taxation Law

2014 Bar Examinations
by Professor Victoria V. Loanzon
I. General Principles
A. Nature of Power: inherent but constitutional provisions limit the exercise thereof;
exercise of sovereign powers and not granted by the Constitution; primary purpose is
to generate funds for the state to finance the needs of the citizens and promote the
common weal; taxes are mandatory; not a contract between the state and the taxpayer
(in invitum) because consent which is an essential element of contract is absent; power
to destroy as it puts restraint on personal and property rights
Two-fold nature of power: inherent power and legislative power
B. Purposes: to distribute tax burden between individuals or classes of population; in
general, to redistribute resources between individuals (to include some form subsidy
by way of support to particular classes like the senior citizens, the poor, the retired
employees, the disabled); to provide basis for fiscal policy; to modify patterns of
consumption or employment (may have incentives or factors to make them less
attractive; expect questions on grant of incentives for exporters and note that if they
enjoy certain tax incentives the maximum limit of their production which can be sold
in the local market is 30%)
C. Characteristics: enforced and never voluntary (does not need consent of the
taxpayer); exacted pursuant to law (part of legislative power but limited by
constitutional provisions; and must originate from the House of Representatives);
exaction is always in the form of money but failure to pay may result to distraint and
levy of properties; taxes are personal and cannot be transferred or transmitted but the
burden can be shifted (in case of indirect taxes like VAT), purpose is to raise revenue
for public/ governmental purpose; cannot be used for private purpose; levied by
authority which has jurisdiction over the following person, property, transaction,
rights and privileges (which is the extent of coverage/scope of powers)
Taxes exacted pursuant to Law: Manila Memorial Park, Inc and La Funeraria
Paz-Sucat v. DSWD Secretary, 2013. The validity of the 20% senior citizen discount
and tax deduction scheme under RA 9257, as an exercise of police power of the State,
has already been settled in Carlos Superdrug Corporation.
D. Interpretation of tax laws and constitutional proscriptions: as a general rule,
tax statutes are construed strictly against the government and liberally in favor of
taxpayers; under the lifeblood theory, it frowns against exemptions and there therefore
the taxpayer has the burden of proof to show his claim (strictissimi juris); tax amnesty
is never presumed; all tax measures must originate from the House of Representatives
but Senate may propose or concur with amendments; any law granting tax exemption
must be approved by majority of all members of Congress; all money collected for a
special purpose (special levy or tax as contrasted to general tax) shall be dedicated
only for that purpose and any excess shall be transferred to the general fund of the
government; rule on taxation must be uniform and equitable; Congress shall evolve a
progressive system of taxation (tax rate and tax base are directly proportional as
against proportional system which has a fixed rate regardless of tax base; and
regressive system where the tax rate and tax base are inversely proportional);
delegation of legislative power to the President to impose tariff rates, import and
export quotas, tonnage and wharfage dues and other duties or imposts within the
framework of the national development program; charitable institutions, churches and
personages or convents appurtenant thereto, mosques, non-profit cemeteries and all
lands, buildings and improvements, actually, directly and exclusively used for

The Tax Cycle: Levy – Congress determines the persons. charges (ex. while taxes are not subject to set-off or compensation and over payment when proven forces the government to restore to the taxpayer the amount it overpaid (solution indebiti) Interpretation of Tax Provisions: CIR v. and Life Blood Theory – taxes constitute the lifeblood of the country and taxes support the operations of government and the public services extended to the people. Relevant Theories: Necessity Theory – existence of government is a necessity. forcing the government to continue borrowing to fund the budget deficits. subject to such limitations and restrictions as may be imposed under rules and regulations to be promulgated by the Secretary of Finance. Subject Matter of Taxes: Personal. subject to review by the Secretary of Finance. San Roque Power Corp and other cases consolidated with the petition 2013.religious. 2013: Taxes are the lifeblood of the nation. location. Benefits – Protection Theory – payment of taxes allows a citizen to enjoy benefits in an organized society. the Philippines has suffered the economic adversities arising from poor tax collections. The general rule is that a void law or administrative act cannot be the source of legal rights or duties. Payment and/or Exercise of Remedies – Compliance results in payment but resistance will allow the government and the taxpayer to exercise both administrative and judicial remedies. therefore it has the right to compel citizens and property to pay taxes. Assessment and Collection – The executive branch administers and implements all tax laws." E. specify schedule of the rate to be imposed. apportionment of the tax to be collected." Section 7 of the same Code does not prohibit the delegation of such power. The Philippines has been struggling to improve its tax efficiency collection for the longest time with minimal success. capitation or poll – fixed amount without regard to class. . property or exercises to be taxed. as well as its exception. special assessment for certain activities) and fees (ex. and mode of levy/collection. Property – subject to assessment based on area. amount to be raised. "the Commissioner may delegate the powers vested in him under the pertinent provisions of this Code to any or such subordinate officials with the rank equivalent to a division chief or higher. Factors to consider in enacting revenue-raising measures: purpose is lawful. identify specific person. nonpayment of other taxes such as real property taxes may subject one to imprisonment. except for non-payment of community taxes/poll taxes. The Court said that although Section 4 of the 1997 Tax Code provides that the "power to interpret the provisions of this Code and other tax laws shall be under the exclusive and original jurisdiction of the Commissioner. upon recommendation of the Commissioner. rates to be imposed and manner of implementation. distinguish if tax is direct or indirect. G. Article 7 of the Civil Code enunciates this general rule. Thus. business permits) in line with the principle of local autonomy . and enforces the levy. F. building permits. use of roads). Lifeblood Theory: Western Mindanao Power Corp v. use and normally distinguishes between land and improvements which may include equipment. and Customs duties – imposed on commodities exported or imported. H. CIR. property or privilege to be taxed. charitable or educational purposes are tax exempt. all local government units may impose tolls (ex. Consequently. situs of taxation. Excise – based on exercise of privileges or doing business (Expect questions on input/output tax and zero rated transactions).

. Corp. CIR. Inc v. Excise Tax: Eastern communications v. does not deal with the authority of local assessor to assess real property tax. Phils. Tax on Property: Camp John Hay Dev. Who are liable: For direct taxes. CIR. CIR. 2011: DST on time deposits CIR v. Without producing the Authority to Print." All purchases covered by invoices other than a "VAT Invoice" shall not give rise to any input tax. v. 2013: DST is due the person(1) making. This Court reiterates that. (Expect questions on VAT-exempt transactions and VATable transactions). 2011. A claim for tax exemption. 2013: Failure of BIR to act on a claim within 120 days. The general rule of requiring adherence to the letter in construing statutes applies with particular strictness to tax laws and provisions of a taxing act are not to be extended by implication. Ariete et al. Claim for refund or credit of unutilized input tax under Section 112 of NIRC: Remember the 120+30 Rule Mindanao Geothermal v. DST partakes of Excise Tax: Prudential Bank v. DST is an excise tax levied on the exercise by persons of privileges conferred by law Philacor Credit Corp v. 2013. judicial claim must be made within 30 days from receipt of BIR decision on tax refund/credit claim or if no action is received from the BIR within 120 days. Such claim questions the correctness of the assessment and compliance with the Q applicable provisions of Republic Act (RA) No. Nippon Express Corp v. Central Board of Assessment Appeals(“CBAA”). 2013: requisites – first. is mandatory. the taxpayer cannot claim any tax refund/tax credit. thus the burden can be shifted (ex. or (5) transferring the taxable documents I. will allow the taxpayer to seek relief within 30 days from the lapse of said 120 day period. it must be given its literal application and applied without interpretation. 7160 or the Local Government Code (LGC) of 1991. 2012: The pronouncement in Panasonic has since been repeatedly cited in subsequent cases. A careful reading of the RMOs pertaining to the Voluntary Assessment Program (VAP) shows that the recording of the information in the Official Registry Book of the BIR is a mandatory requirement before a taxpayer may be excluded from the coverage of the VAP. same person absorbs the tax (ex. (2) signing. VAT). (3) issuing. administrative claim must be filed with BIR within two years after the close of taxable quarter when zero-rated or effectively zero rated sales were made. 2013. reiterating the rule that the failure of a taxpayer to print the word "zero-rated" on its invoices or receipts is fatal to its claim for tax refund or tax credit of input VAT on zero-rated sales. It is well-settled that where the language of the law is clear and unequivocal. CIR. tax is paid by the person other than the one upon whom it is imposed. Only VAT-registered persons are required to print their TIN followed by the word "VAT" in their invoices or receipts and this shall be considered as a "VAT invoice. . income tax. particularly as to requirement of payment under protest. CTC) and burden to pay cannot be shifted while in indirect taxes. As to purpose: Fiscal when it raises funds or regulatory which it seeks to achieve social or economic goals. CIR. 2010. 2013: Liability for payment of DST is for account of the Seller Fort Bonifacio Dev. Corp v. (4)accepting. second.Tax on Persons: CIR v.. the requirement of [printing] the BIR permit to print on the face of the sales invoices and official receipts is a control mechanism adopted by the Bureau of Internal Revenue to safeguard the interest of the government. J. Bank of Commerce. Silicon Valley. CIR. whether full or partial. PTR. CIR.

R. the non-filing of TTRA with ITAD will not negate the right of the tax payer to claim the relief from a tax treaty.. admits different interpretations: first. Elements: presence of gain or profit. B. the state has the duty to fulfill its treaty obligations in good faith. 2014. G. National Internal Revenue Code A. value-added tax. Income Taxation: definition of income (profit or gains) as to the amount of money coming to a person or corporation over a specified period of time. Commissioner of Internal Revenue v. The Supreme Court (SC) explained the purpose of a tax treaty in the case of Commissioner of Internal Revenue (CIR) v. other percentage taxes. K. consider residence of the tax payer (mobilia sequntur personam). the latter having been granted exemption from the payment of said excise tax under Section 135 (a) of the NIRC II.CIR v. Evidently. No. 188497. Inc. documentary stamp taxes. and various bilateral air service agreements not to impose excise tax on aviation fuel purchased by international carriers from domestic manufacturers or suppliers on petroleum products sold to taxexempt international carriers. Application of Principles of Taxation: Consider persons (natural and juridical) to be taxed. What is included: income tax. Double taxation is the imposition of comparable taxes in two or more states on the same taxpayer in respect of the same subject matter and for identical periods” SC held that the BIR must not impose additional requirements that would negate the availment of relief provided under international agreements. as the statutory taxpayer who is directly liable to pay the excise tax on its petroleum products is entitled to a refund or credit of the excise taxes it paid for petroleum products sold to international carriers. No. 1999): “it is used to reconcile the national fiscal legislations of the contracting parties in order to help the taxpayer avoid international juridical double taxation. . SC Johnson and Sons. estate and donor’s taxes. This entails harmonization of national legislation with treaty provisions. construction of the tax exemption provision in question should give primary consideration to its broad implications on the country’s commitment under international agreements. consider threshold period and threshold amount. A tax treaty is an agreement that provides for a uniform treatment of a taxable event between agreeing countries. Under the basic international law principle of pacta sunt servanda. this statement. Visayas Geothermal Power co. 2013. and such other taxes as are or hereafter may be imposed and collected by the BIR. In view of the foregoing the Court held that respondent. CIR. 2013: The failure to observe the 120-day period to claim refund/credit is considered prematurely filed and CTA cannot take cognizance of the judicial claim. Considering that the crux of the controversy in the case was the validity of 15-day prescribed period of application. Tax Treaty: Deutsche Bank v. and second. 127105 (June 25. determine situs of the tax to avoid double taxation. G.. excise taxes. such is realized actually or constructively. February 19. Pilipinas Shell Petroleum Corporation. review reciprocity and comity principles under tax treaties which may operate for a given tax incident. C. and is not exempt by any law or treaty. filing of TTRA is still required but the BIR cannot outright deny the application because it was not filed within the period prescribed. nevertheless. Article 24 (9) of which has been interpreted to prohibit taxation of aircraft fuel consumed for international transport. Section 135 (a) of the National Internal Revenue Code embodies the country’s compliance with its undertakings under the 1944 Chicago Convention on International Aviation (Chicago Convention).R.

income from whatever source (ex. J. professional income. F. income from business. What is taxable income: items earned or gained as gross income less deductions and/ or personal and additional exemptions. 10% on cash and stock dividends for Filipinos. annuities. Income: definition. prizes or awards except PCSO and Lotto winnings). prizes and awards. tax refund). fringe benefits. income from dealings in property. non -resident citizens (Overseas contract workers. treatment of accumulated earnings. yield on monetary benefit from deposit substitutes. if authorized under the NIRC or any special law. aliens (determine threshold as to amount and period). 10% on from winnings from horse races. check also on principle of transfer pricing if domestic corporation does business in another foreign country. Final tax of 20% on interest income. tax on capital gains. payment schedule. H. royalty income except on royalty on books which is subject to 10%. co-ownerships and estates and trusts. inclusions of gross income.D. following the definition of a "proprietary educational institution" as "any private school maintained and administered by private individuals or groups" with a government permit. Tax rates for non-resident aliens are higher. exclusions and deductions (itemized and standard deductions. pensions. domestic corporations (review principles on transfer pricing). profession or business provided it is support by receipt or invoice except standard deduction and must meet additional requirement pertinent to withholding I. Memorize the amounts on personal exemption for individual tax payer under Section 35 (A) of the NIRC. Tax on Natural Persons: Inclusions in compensation income. Income derived from business or practice of profession. retirement benefit or separation pay. Check relevant provisions. partnerships including general partnerships. "Nonprofit" means no net income or asset accrues to or benefits any member or specific . tests when it becomes taxable. E. classification as to source (compensation income. tax on capital gains. minimum wage earners and those who granted exemptions under international agreements (those employed with Asian Development Bank and IRRI) are exempt from payment. Tax on Domestic Corporations: covered transactions.10% final tax on royalties on literary works. books and musical compositions (LBM). "Proprietary" means private. senior citizens. proceeds from insurance policies. G. distinguish between ordinary income and ordinary loss. capital gains tax expect a question on this review Sec. treatment of passive incomes subject to tax and those not subject to tax. The only qualifications for hospitals are that they must be proprietary and non-profit. Expect a question on treatment of taxes on proprietary educational institutions and hospitals. treatment of passive income (final tax and need not be reported since deduction is in the form of final tax). Who are liable: resident citizens with minimum wage earners considered as special class. passive income investment (ex. Section 27(B) of the NIRC imposes a 10% preferential tax rate on the income of (1) proprietary non-profit educational institutions and (2) proprietary non-profit hospitals.). forgiveness of indebtedness. 24(D) of the NIRC for schedule of rate and for actual computation of final sale over a property transaction). foreign corporations (review profit sharing for branches) including resident and non-resident foreign corporations. allowable deductions (itemized and optional standard deductions). Exclusions: those granted under the Constitution and by specific provision of law. nature. Deductions: generally any expense related to the taxpayer’s trade. seafarers).

whether out-patient. Value of Estate Tax – Only the net value of the estate is liable to tax. Only portions actually. Luke’s Medical Center. unless of course the transaction falls under the other provisions of Section 102 (b). an interpretation this Court cannot sanction. Indeed. as we explained in Burmeister: “This can only be the logical interpretation of Section 102 (b) (2). the payment of foreign currency is irrelevant. If the provider and recipient of the "other services" are both doing business in the Philippines. Tax on Resident Foreign Corporations: general rule – foreign corporations are liable for income derived from Philippine sources.person. treatment of accumulated earnings M. those subject to the regular VAT under Section 102 (a) can avoid paying the VAT by simply stipulating payment in foreign currency inwardly remitted by the recipient of services. minimum corporate tax due and schedule of payment. Tax on a hospital: CIR v. v. Inc. not a voluntary contribution. A tax is a mandatory exaction. may enjoy certain exemptions under tax treaty or provision of special laws. The provider of services can choose to pay the regular VAT or avoid it by stipulating payment in foreign currency inwardly remitted by the payer-recipient. real or personal. City of Angles. their transaction falls squarely under Section 102 (a) governing domestic sale or exchange of services. and no money inures to the private benefit of the persons managing or operating the institution. while portions leased to private entities are not exempt from such taxes. 2. A schedule of brackets of amount of net value and the corresponding rate schedule per bracket are imposed. As a general principle. wherever situated. or receives subsidies from the government. Such interpretation removes Section 102 (a) as a tax measure in the Tax Code. directly and exclusively used for charitable purposes are exempt from real property taxes. Tax on an educational institution: Angeles University Foundation v. Who are liable: residents and citizens covering all properties. 2012. CIR. so long as the money received is devoted or used altogether to the charitable object which it is intended to achieve. treatment of other incomes. or confined in the hospital. To interpret Section 102 (b) (2) to apply to a payer-recipient of services doing business in the Philippines is to make the payment of the regular VAT under Section 102 (a) dependent on the generosity of the taxpayer. K. with all the net income or asset devoted to the institution's purposes and all its activities conducted not for profit. may enjoy certain incentives if covered by a treaty or special provision of law (registration under the Board of Investments and the Philippine Economic Zone Authority). St. rate and schedule of payment. tax liability on certain incomes like interest on foreign loans. a charitable institution does not lose its character as such and its exemption from taxes simply because it derives income from paying patients. tangible or intangible. Tax on Non-resident Foreign Corporations: liable only for income derived from Philippine sources. 2012.’ L. intracorporate dividends. liability for capital gains tax. this is a purely local sale or exchange of services subject to the regular VAT. and non-resident aliens covering only . treatment of accumulated earnings Tax for services rendered by a resident corporation outside Philippine territory: Accenture. when the provider and recipient of services are both doing business in the Philippines. Otherwise. 2012: The Court held that that the recipient of the service should be doing business outside the Philippines to qualify for zero-rating is the only logical interpretation of Section 102(b)(2) of the 1977 Tax Code. Estate Tax and Donor’s Taxes under the NIRC 1. x x x Further.

family home. Gross Estate: decedent’s interest at the time of his death. service of formal letter of demand/ notice of assessment if basis for reconsideration is not meritorious. the protest is deemed waived). standard deduction. levy of real property. Commissioner of Internal Revenue v. institution. (2) it is shown on the return of the recipient that the income payment received was declared as part of the gross income. or to any political subdivision of said government. property transfers subject to revocation. Protest and Refund: A taxpayer may protest any assessment administratively. release of preliminary assessment in case of unsatisfactory explanation and if taxpayer disagrees. Please review the concept of vanishing deduction and the corresponding holding period and the tax rate based on the value of the property under Section 86(A) (2) of the NIRC. gifts made or for use of the national government or entity created by any of its agencies which is not conducted for profit. he has 15 days to request for reconsideration. Expenses. Team (Philippines) Operations Corporation (formerly Mirant Phils. and gifts in favor of an educational and/or charitable. No. 179260 ( 2014: There are three essential conditions for the grant of a claim for refund of creditable withholding income tax.A.properties in the Philippines provided. spouse. a flat rate of 30% is imposed. M. transactions covered and schedule of payment based on brackets as to the value of the donation (Section 16 of the NIRC). G. 4917 on Retirement Benefits of Private Employee). Collection of Delinquent Accounts: Government’s recourse . medical expenses and amounts received by heirs under R. 5. for the “stranger”. civil action and criminal action. Operation Corporation).. property passing under a general power of appointment. Tax Remedies under the NIRC: Review the steps in Assessment Process – letter of authority issued for tax audit. trust or philanthropic organization or research institution or organization. sister (whether by whole or half blood). taxpayer may file a protest within the 30-day period of the formal demand and must submit supporting documents within 60 days (if not. judicial expenses. Donor’s Tax: definition. and property transfers for insufficient consideration 4. Property previously taxed (transfers for public use. losses. ancestor and lineal descendant. 3. to wit: (1) the claim is filed with the Commissioner of Internal Revenue within the two-year period from the date of payment of the tax. the following are NOT “strangers”. taxpayer has 180 days from notice of final decision of the Commissioner of the Internal Revenue to file an appeal with the Court of Tax Appeals. Deductions from the Estate: 1. General Rule: Refund may be requested by the taxpayer within two years from payment. its inclusion in the gross estate is subject to the rule on reciprocity.distraint of personal property. proceeds of life insurance.R. transfer in contemplation of death.. O. and 2.governmental organization.). and (3) the fact of withholding is established by a copy of a statement duly issued by the payor to the payee showing the amount paid and the amount of the tax withheld therefrom. case is heard initially by a division of the CTA and an appeal . accredited non. Items not subject to Donor’s Tax: Dowries or gifts made on account of marriage.. with respect to intangible personal property. claims against the estate. taxes and casualty losses). unpaid mortgages. religious.brother. and relative by consanguinity in the collateral line within the fourth civil degree of relationship. if the Commissioner decides with finality that the taxpayer is liable for the assessment . claims against insolvent persons. taxes may be paid under protest. notice of informal conference (terminated if taxpayer presents satisfactory proof). 6. that. cultural or social welfare corporation. indebtedness and taxes (funeral expenses.

Act. In automatic review cases where such decisions of the Commission of Customs favorable to the taxpayer is elevated to the Secretary of Finance (Sec. commodity or article. No. Decisions of the Commissioner of Internal Revenue in cases involving disputed assessments. Principle of Exhaustion of Administrative Remedies: Commissioner of Internal Revenue vs. G. No. (1954). Sec. 1125 and other laws prior to R.A. Decisions of the Central Board of Assessment Appeals (CBAA) in cases involving the assessment and taxation of real property. penalties imposed in relation thereto. or other matters arising under the National Internal Revenue Code or other law or part of law administered by the Bureau of Internal Revenue. the following: 1. forfeitures or other penalties imposed in relation thereto. Countervailing and Safeguard Duty [Republic Act Nos. Criminal cases involving violations of the National Internal Revenue Code and the Tariff and Customs Code. Decisions of the Commissioner of Customs in cases involving liability for customs duties. and 4. 301 (a) and (p).R. 2315. 194105. or other matters arising under the Customs Law or other law or part of law administered by the Bureau of Customs [Rep. Under Republic Act Number 9282. 1125. 3. TCC). 2014: Taxpayer submits that the requirement to exhaust the 120day period under Section 112 (c) of the National Internal Revenue Code prior to filing the judicial claim with the Court of Tax Appeals (CTA) is a doctrine of “exhaustion of administrative remedies. in connection with the imposition of the Anti-Dumping Duty. fees or other money charges. in the case of nonagricultural product. 2. commodity or article.can further be made with the CTA en banc (please check the periods) and final arbiter is the Supreme Court Through the enactment of Republic Act No. and Republic Act 8800]. 3. Decisions of the Secretary of Trade and Industry.” The non-observance of the same merely results in lack of cause of action which may be waived for failure to timely invoke the same. refunds of internal revenue taxes. and 4. (1999) Sec. the CTA's original appellate jurisdiction was expanded to include the following: 1. . Collection of internal revenue taxes and customs duties the assessment of which have already become final. property taxes and final collection of taxes. Team Sual Corporation (Formerly Mirant Sual Corporation). 9282. in the case of agricultural product. seizure. February 5. fines. 8751 and 8752. as well as local tax cases. the Court of Tax Appeals retains exclusive appellate jurisdiction to review by appeal. Pursuant to the provisions of Republic Act No. 7]. or the Secretary of Agriculture. fees or other charges. the jurisdiction of the CTA has been expanded to include not only civil tax cases but also cases that are criminal in nature. detention or release of property affected. Decisions of the Regional Trial Courts (RTC) in local tax cases. 2. 9282.

October 2. Inc. .. III. v. No. 2014. G. Section 5. within the period prescribed by law. Central Board of Assessment Appeals.R. Section 252 and Section 222 of the Local Government Code sets out the administrative remedies available to a taxpayer or real property owner who does not agree with the assessment of the real property tax sought to be collected. Considering that the fees in Ordinance No. April 2. Thereafter. No. No. February 18. v. Operation Corporation). G. the Court must presume that the CTA rendered a decision which is valid in every respect.Commissioner of Internal Revenue v. Grecia-Cuerdo etc. (TFC) New cases:Camp John Hay Development Corporation v. by filing a notice of appeal. Article X of the 1987 Constitution provides that “[e]ach local government unit shall have the power to create its own sources of revenues and to levy taxes. Two conditions must be met: the taxpayer/real property owner questioning the assessment should first pay the tax due before his protest can be entertained. et al. 169234. the adverse decision of the LBAA with the Central Board of Assessment Appeals Camp John Hay Development Corporation v. G.. local government units are allowed to collect tolls. 169234. consistent with the basic policy of local autonomy. 2014. Thus. Team (Philippines) Operations Corporation (formerly Mirant Phils. G. he may elevate. any owner or person having legal interest in the property not satisfied with the action of the provincial. Caridad H. et al.R. 20442. The City of Manila. and petitioner is questioning the constitutionality of the same. Hence. 2013. Municipality of Malvar. A claim for exemption from payment of real property taxes does not actually question the assessor’s authority to assess and collect such taxes. Petitioners availed of the wrong remedy when they filed the special civil action for certiorari under Rule 65 of the Rules of Court with the Court in assailing the resolutions of the Court of Appeals (CA) which dismissed their petition filed with the said court and their motion for reconsideration of such dismissal. In the absence of any clear and convincing proof to the contrary. The effect is merely incidental. October 2. city or municipal assessor in the assessment of his property may file an appeal with the Local Board of Assessment Appeals (LBAA) of the province or city concerned. 175723.R. while the term “fee” means “a charge fixed by law or ordinance for the regulation or inspection of a business or activity. as rents or fees against persons or property. within thirty days from receipt.R.R. Batangas. but pertains to the reasonableness or correctness of the assessment by the local assessor Smart Communications. etc. 2013. 18 are not taxes. which is a continuation of the appellate process over the original case. Local Taxation Under Article X of the Constriction. 2014. Hon. Central Board of Assessment Appeals. in the instant case. 18 are not in the nature of local taxes. the CTA correctly dismissed the petition for lack of jurisdiction. February 4. The findings and conclusions of the Court of Tax Appeals (CTA) are accorded the highest respect and will not be lightly set aside. petitioner should have filed a petition for review on certiorari under Rule 45. G. and charges subject to such guidelines and limitations as the Congress may provide. Secondly. No. The LGC defines the term “charges” as referring to pecuniary liability. fees and charges. fees. No. 179260. the fees imposed in Ordinance No.

taxes and charges imposed by law on the imported product under the following circumstances: . Tariff and Customs Code of 1978. as amended A. except also in cases of sensitive agricultural products which are subject to as high as 40% tariff duties. upon compliance with certain prescribed conditions or formalities . Special Duties: These are levied in addition to the ordinary import duties.IMPORT DUTIES 1. goods 2 are levied ordinary import duties under the Most Favoured Nation (MFN) treatment ranging from Free/Zero to 30% except in cases of sensitive agricultural products which are accorded a certain degree of protection via higher tariff rates reaching to as high as 65%. With the exception of certain articles which can be imported 1 duty-free.IV. 2. goods are levied ordinary import duties ranging from 0% to 5%. under the Common Effective Preferential Tariff 3 (CEPT) Scheme . Ordinary Import Duties: Tariff duties are levied on imported goods either as a revenue generating measure or a protective scheme to artificially or temporarily inflate prices to protect a country’s domestic output and its industries from their foreign counterparts. On the other hand..

is being imported into. commodity or article destined for consumption in the exporting country which is causing or threatening to cause material injury to a domestic industry. Countervailing Duty: The countervailing duty is a special duty charged whenever any product. b. or materially retarding the establishment of a domestic industry producing similar product. and the importation of such subsidized product. manufacture or exportation of such product. Anti-Dumping Duty: The anti-dumping duty is a special duty imposed in the event that a specific kind or class of foreign article. commodity or article has caused or threatens to cause material injury to a domestic industry or has materially retarded the growth or prevents the establishment of a domestic industry. .a. at an export price less than its normal value in the ordinary course of trade for a like product. sold or is likely to be sold in the Philippines. commodity or article. commodity or article of commerce is granted directly or indirectly by the government in the country of origin or exportation. any kind or form of specific subsidy upon the production.

e. . the Secretary of Trade and Industry shall first establish that the application of such safeguard measures will be in the course of public interest. In case of failure to mark an article or its container at the time of importation. however. In the case of non-agricultural products. General Safeguard Measure:The general safeguard measure is applied by the Secretary of Trade and Industry. as to cause or threaten to cause serious injury to the domestic industry. The amount of additional duty to be levied shall not exceed 100% ad valorem based on the dutiable value of imported articles. there shall be levied upon such article a marking duty of 5% ad valorem. whether absolute or relative to domestic production.: c. Discriminatory Duty: The discriminatory duty is imposed by the President by proclamation upon articles of a foreign country which discriminate against Philippine commerce or against goods coming from the Philippines as stipulated under Section 304 of the TCCP. d. Marking Duty The marking of articles (or its containers) is a prerequisite for every article or container imported into the Philippines in accordance with Section 303 of the TCCP. in the case of agricultural products. or the Secretary of Agriculture. upon positive final determination of the Tariff Commission that a product is being imported into the country in increased quantities. in the case of non-agricultural products.

commodity or article. EXPORT DUTIES Logs are the only remaining products subject to the duty under Section 514 of the TCCP. Decisions of the Tariff Commission are appealable to the CTA. Insurance and Freight) import price falls below its trigger price.The general safeguard measure shall be limited to the extent of redressing or preventing the injury and to facilitate adjustments by the domestic industry from the adverse effects directly attributed to the increased imports. fines. The Secretary of Trade and Industry has jurisdiction in the case of non-agricultural product. Decisions/ Resolutions of the DTI and DA Secretaries may be elevated to the Tariff Commission. (1954). Decisions of the Commission of Customs favorable to the taxpayer are elevated to the Secretary of Finance (Sec.i. fees or other money charges. Act. as amended. 301 (a) and (p). The safeguard duty is imposed by the Commissioner of Customs through the Secretary of Finance upon request by the Secretary of Agriculture. 1986). CTA decisions are appealable to the Supreme Court. 4. and Republic Act 8800]. while the Secretary of Agriculture. 1125.f. Sec. (1999) Sec. B. 5. forfeitures or other penalties imposed in relation thereto. TCC). Countervailing and Safeguard Duty [Republic Act Nos. (Cost. commodity or article. in connection with the imposition of the AntiDumping Duty. seizure. 2. and 3. . The export duty imposed on logs is 20% of the gross Free on Board (FOB) value at the time of shipment based on the prevailing rate of exchange. 8751 and 8752. f. No. only planted trees are subject to the export duty. C. detention or release of property affected. 8 (issued June 20. Remedies 1. 2315. since all naturally grown trees are banned from being exported under Ministry of Environment and Natural Resources Memorandum Order No. or other matters arising under the Customs Law or other law or part of law administered by the Bureau of Customs [Rep. The Commissioner of Customs has jurisdiction in cases involving liability for customs duties. 7]. Special Safeguard Duty: An additional special safeguard duty is imposed on an agricultural product whenever the cumulative import volume in a given year exceeds its trigger volume and when the actual c. in the case of agricultural product. However. 6.