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CEU SCHOOL OF LAW AND JURISPRUDENCE

COURSE OUTLINE1
Taxation II
1st Semester School year 2016-2017
LECTURER
Atty. Rosabel Socorro Teston-Balan
Phone No. 6323878
rstbalan25@gmail.com
SCHEDULE
Saturday
5:30-8:30 pm
GRADING
Quizzes/Participation 25%
Midterm Examination 30%
Final Examination
40%
Attendance
5%
COURSE DESCRIPTION: This course deals with the concepts and general principles
of transfer taxes (estate and donors), value added taxes, special excise taxes on
certain goods and other percentage and miscellaneous taxes including documentary
stamps tax, provided in the National Internal Revenue Code; Remedies available to
the government and the taxpayer; The Court of Tax Appeals; (Fundamentals of Local
Taxation, both under Local Tax Code and Real Property Tax Code); and the general
principles on Tariff and Customs duties.
COURSE OBJECTIVES:
After successfully completing this course, students will be able to:
1. Develop their legal skills in reading, understanding and applying complex and
dynamic tax legislation, case materials and taxation rulings.
2. Understand the principles and policies of the VAT system.
3. Explain the application of transfer taxes, DST and excise taxes
4. Be familiar and have a good appreciation of the remedies of government and
taxpayer
5. Have an overview and understanding of the Local Government Code and Tariff
and Customs Code
METHOD OF TEACHING
Socratic and case methods
Suggested References:
Ignatius Michael D. Ingles, Tax Made Less Taxing
Jose Vitug, A Compendium of Tax Law and Jurisprudence
Week 1
ESTATE TAX
1

Based on the course outline of Atty. Carlos G. Baniqued in Tax II, Ateneo de Manila University School of Law, as revised and updated by Atty. Terence Conrad H. Bello.

I. THE GROSS ESTATE


Rev. Regs. No. 02-2003, Dec. 16, 2002
A. Introduction
Lorenzo v. Posadas, 64 Phil. 353 (1937)
Beam v. Yatco, 82 Phil. 30 (1948)
B. General Definition of Gross Estate
Secs. 85 and 104, NIRC
CIR v. Campos Rueda, 42 SCRA 23 (1971)
C. Constitution
1. Property in Which Decedent Had an Interest
Sec. 85(A), NIRC
2. Transfers in Contemplation of Death
Sec. 85(B), NIRC
3. Transfers Taking Effect at Death
Sec. 85(B), NIRC
BIR Ruling No. 81-98, May 28, 1998
BIR Ruling No. 10-03, Sept. 8, 2003
4. Transfers with Retained Interest
Sec. 85(B), NIRC
a. Period for Which Interest is Retained
i. For life
ii. For any period which does not in fact end before death
b. Nature of Interest Retained
i. Possession or enjoyment
ii. Right to income
iii. Right to designate person who shall have possession or
enjoyment
iv. Right to designate person who shall receive income
5. Revocable Transfers
Sec. 85(C), NIRC
BIR Ruling No. 013-2005, Aug. 16, 2005
BIR Ruling No. DA-279-2006, April 25, 2006
a. Nature of Power
i. Power to alter or amend
ii. Power to revoke
iii. Power to terminate
b. Meaning of Power in Whatever Capacity
c. Meaning of Power Exercisable in Conjunction with any Other
Person
d. Meaning of Relinquishment of Power in Contemplation of Death
6. Power of Appointment
Sec. 85(D), NIRC
a. Meaning of Power of Appointment
b. Applicability in the Philippines
7. Proceeds of Life Insurance
Sec. 85(E), NIRC
a. Estate as Beneficiary
b. Third Person as Beneficiary
II. VALUATION OF ESTATE AND AMOUNT TO BE INCLUDED IN
CASES COVERED BY SECS. 85(B), (C) AND (D) OF THE NIRC
Secs. 85(G) and 88, NIRC
III. EXEMPT TRANSFERS
Sec. 87, NIRC
IV. EXCLUSION OF CONJUGAL SHARE OF SURVIVING SPOUSE
Sec. 85(H), NIRC

Week 2
V. DEDUCTIONS FROM GROSS ESTATE
Sec. 86, NIRC
A. Expenses, Losses, Indebtedness, Taxes, Etc. (ELITE)
1. Funeral Expenses
2. Expenses for Testamentary of Intestate Proceedings
3. Claims Against the Estate
Dizon v. Court of Tax Appeals, G.R. No. 140944, May 6, 2008
4. Claims Against Insolvent Persons
5. Unpaid Debts/Mortgages
6. Losses
B. Vanishing Deduction
C. Transfers for Public Use
D. Family Home
E. Standard Deduction
BIR Ruling 009-99, Jan. 22, 1999
F. Medical Expenses
G. Retirement Benefits and Separation Pay under NIRC Sec. 32(B)(6)(a) and
VI. FOREIGN TAX CREDITS
Sec. 86(E), NIRC
A. Per Country Limitation
B. Global Limitation
VII. SPECIAL RULES FOR NON-RESIDENT ALIENS
A. Meaning of Resident or Non-Resident
B. Inclusions in Gross Estate
Secs. 85 and 104, NIRC
C. Deductions from Gross Estate
Sec. 86(B) and (D), NIRC
D. Foreign Tax Credits
Sec. 86(E), NIRC
VIII. ADMINISTRATIVE PROVISIONS
A. Tax Rates
Sec. 84, NIRC
B. Notice of Death
Sec. 89, NIRC
C. Estate Tax Return
Sec. 90, NIRC
D. Payment of Estate Tax
Sec. 91, NIRC
E. Consequences of Non-Payment of Estate Tax
Secs. 248, 249, 94 to 97, NIRC
DONORS TAX
I. MEANING OF GIFT
Sec. 104, NIRC
Pirovano v. CIR, 14 SCRA 832 (1965)
II. VALUATION OF GIFTS
Sec. 102, NIRC
III. TRANSFER FOR LESS THAN ADEQUATE CONSIDERATION
Sec. 100, NIRC
IV. EXEMPT GIFTS
Sec. 101, NIRC
V. FOREIGN TAX CREDIT
Sec. 101(C), NIRC

A. Per Country Limitation


B. Global Limitation
VI.ON WHOM IMPOSED
Sec. 98(A), NIRC
VII.ADMINISTRATIVE
A. Tax Rates
Sec. 99, NIRC
B. Donors Tax Return
Sec. 103(A), NIRC
C. Payment of Donors Tax
Sec. 103(B), NIRC
D. Consequences of Non-Payment of Donors Tax
Secs. 248- Sec. 249, NIRC Sec. 95, NIRC Sec. 97, NIRC
Week 3
VALUE-ADDED TAX
I. TAXABLE TRANSACTIONS
A. In General
Sec. 105, NIRC
BIR Ruling 98-97, Aug. 28, 1997
BIR Ruling No. 18-05, Sept. 16, 2005
VAT Ruling No. 444-88
VAT Ruling No. 207-90, Nov. 8, 1990
BIR Ruling No. 10-98, Feb. 5, 1998
CIR v. Commonwealth Mgt. & Services Corp., G.R. 125355, March 30, 2000
VAT Ruling No. 26-97, April 1, 1997
Tourist Trade and Travel Corp. v. CIR, CTA Case No. 4806, Jan. 19, 1996
BIR Ruling No. 113-98, July 23, 1998
Magsaysay Lines, Inc. v. CIR, CTA Case No. 4353, April 27, 1992, aff. In
G.R No. 146984, July 28, 2006
Lapanday Foods Corp. v. CIR, CTA Case No. 7097, Oct. 18, 2007
CS Garments, Inc. vs. Commissioner of Internal Revenue, CTA Case No.
6520 dated January 4, 2007
Kepco Ilijan Corporation v CIR, CTA Case No. 8091, October 23, 2012
B. Sale of Goods or Properties
1. Transactions Covered
a. Actual Sale
Sec. 106(A)(1), NIRC, as amended by Rep. Act. No. 9337
BIR Ruling 424-2014
b. Transactions Deemed Sale
Sec. 106(B), NIRC, as amended by Rep. Act No. 9337
Sec. 4.106-7, Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by
Rev. Regs. No. 4-2007, Feb. 7, 2007
c. Changes in or Cessation of Status of a VAT-Registered Person
Sec. 106(C), NIRC, as amended by Rep. Act. No. 9337
Sec. 4.106-8, Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by
Rev. Regs. No. 4-2007, Feb. 7, 2007
BIR Ruling No. 24-2005, Dec. 23, 2005
2. Taxable Base
a. Gross Selling Price
Sec. 106(A)(1), 2nd par., NIRC, as amended by Rep. Act No. 9337
Sec. 4.106-4, Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by
Rev. Regs. No. 4-2007, Feb. 7, 2007
b. Sales Discounts, Returns and Allowances

Sec. 106(D), NIRC, as amended by Rep. Act No. 9337


Sec. 4.106-9, Rev. Regs. No. 16-2005, Sept. 1, 2005
VAT Ruling No. 204-90, Oct. 16, 1990
c. Taxable Base for Transactions Deemed Sale and Below Market Gross
Selling Price
Sec. 4.106-7(b), Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by
Rev. Regs. No. 4-2007, Feb. 7, 2007
C. Importation of Goods
Sec. 107, NIRC, as amended by Rep. Act. No. 9337
D. Sale of Services
1. Meaning of Sale or Exchange of Service
Sec. 108(A), NIRC, as amended by Rep. Act. No. 9337
Sec. 4.108-2, Rev. Regs. No. 16-2005, Sept. 1, 2005
Lhuillier v. CIR, CTA Case No. 6533, May 16, 2003
Revenue Memorandum Circular 42-2003
BIR Ruling DA 320-07
2. Taxable Base: Gross Receipts Actually and Constructively Received
Sec. 108(A), NIRC, as amended by Rep. Act. No. 9337
Sec. 4.108-4, Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by Rev.
Regs. No. 4-2007, Feb. 7, 2007
BIR Ruling No. 195-89, Sept. 8, 1989
VAT Ruling No. 111-88, April 25, 1989
VAT Ruling No. 205-90, Oct. 16, 1990
a. Amounts Earmarked for Payment to Third Parties
Sec. 4.108-4, Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by Rev.
Regs. No. 4-2007, Feb. 7, 2007
CIR v. Tours Specialists, Inc., G.R. 66416, March 21, 1990
BIR Ruling No. DA-069-2006, March 1, 2006
b. Reimbursement of Expenses
Sec. 4.108-4, Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by Rev.
Regs. No. 4-2007, Feb. 7, 2007
VAT Ruling No. 283-88, July 4, 1988
VAT Ruling No. 87-88, April 14, 1988
VAT Ruling No. 97-88, April 15, 1988
Revenue Memorandum Circular 65-2012
Officemetro Philippines, Inc. (formerly Regus Centres, Inc.) vs.
Commissioner of Internal Revenue, CTA Case No. 8382, June 3,
2014, the Court of Tax Appeals Third Division (CTA)
II. RELIEF FROM VAT: ZERO-RATING AND EXEMPTIONS
A. Difference Between Zero-Rating and Exemption
Secs. 4.106-5, 1st par., and 4.108-5(a), Rev. Regs. No. 16-2005, Sept. 1, 2005
Cf. Sec. 4.109-1(A), Rev. Regs. No. 16-2005, Sept. 1, 2005
CIR v. Seagate Tech. (Phil.), G.R. 153866, Feb. 11, 2005
Contex Corp. v. CIR, G.R. No. 151135, July 2, 2004
B. Automatically Zero-Rated Transactions
1. Sale of Goods and Properties
Sec. 106(A)(2)(a)(1), (2), (4) and (b), NIRC, as amended by Rep. Act.
No. 9337
Toshiba Information Equipment (Phils) Inc. v CIR GR No. 157594,
March 9, 2010
Revenue Regulations No 2-2012, February 17, 2012
BIR Ruling DA 30-07, January 19, 2007
BIR Ruling 031-07 January 19, 2007
2. Sale of Services
Sec. 108(B)(1), (2), (6) and (7), NIRC, as amended by Rep. Act. No. 9337

CIR v. American Express Intl, Inc. (Phil.), G.R. 152609, June 29, 2005
CIR v. Burmeister & Wain Scandinavian Contractor Mindanao, Inc.,
G.R. 153205, Jan. 22, 2007
3. Meaning of Accounted for in Accordance with the Rules
and Regulations of the BSP
BIR Ruling No. 176-94
VAT Ruling No. 47-00, Oct. 26, 2000
C. Effectively Zero-Rated Transactions
1. Sale of Goods and Properties
Sec. 106(A)(2)(3), (5), (6) and (c), NIRC, as amended by Rep. Act No.
9337
Sec. 4.106-6, Rev. Regs. No. 16-2005, Sept. 1, 2005
2. Sale of Services
Sec. 106(B)(3), (4) and (5), NIRC, as amended by Rep. Act No. 9337
Sec. 4.108-6, Rev. Regs. No. 16-2005, Sept. 1, 2005
D. Exempt Transactions
Sec. 109(1), NIRC, as amended by Rep. Act. No. 9337
1. Coverage of Exemption
a. General Rule
Philippine Acetylene Co., Inc. v. CIR, 20 SCRA 1056 (1967)
Phil. National Police Multi-Purpose Cooperative, Inc. v. CIR, CTA
Case No. 4845, March 10, 1994
BIR Ruling No. 155-98, Oct. 21, 1998
BIR Ruling No. 47-99, April 13, 1999
VAT Ruling No. 009-07, June 21, 2007
BIR Revenue Regulation No 16-2011, effective January 1, 2012
b. Exception
CIR v. John Gotamco & Sons, Inc., 148 SCRA 36 (1987)
Maceda v. Macaraig, Jr., 223 SCRA 217 (1993)
2. Waiver of VAT Exemption/Election to be Subject to VAT
Sec. 109(2), NIRC, as amended by Rep. Act No. 9337
III. RATES OF VAT
A. For Output Tax
B. For Input Tax
C. Transitional Input Tax
D. Presumptive Input Tax
E. Final Withholding VAT on Government or GOCCs
Week 4
IV. TAX CREDITS & REFUNDS
A. Input Tax Credit
Sec. 110, NIRC, as amended by Rep. Act. No. 9337, as further amended by
Rep. Act. No. 9361
Sec. 4.110-1, Rev. Regs. No. 16-2005, Sept. 1, 2005
1. Persons Who Can Avail of the Input Tax Credit
Sec. 110(A)(1)(b) and (A)(2), NIRC, as amended by Rep. Act. No. 9337
Sec. 4.110-2, Rev. Regs. No. 16-2005, Sept. 1, 2005
2. Special Rules on Amortization of Input Tax on Depreciable Goods
Sec. 110(A), proviso, NIRC, as amended by Rep. Act. No. 9337
Sec. 4.110-3, Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by Rev.
Regs. No. 4-2007, Feb. 7, 2007
3. Special Rules on Apportionment of Input Tax on Mixed Transactions
Sec. 110(A)(3), NIRC, as amended by Rep. Act. No. 9337
Sec. 4.110-4, Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by Rev.
Regs. No. 4-2007, Feb. 7, 2007

4. Substantiation of Input Tax Credits


Sec. 4.110-8, Rev. Regs. No. 16-2005, Sept. 1, 2005
BIR Ruling No. 61-00, Nov. 8, 2000
B. Transitional Input Tax
Sec. 111(A), NIRC, as amended by Rep. Act. No. 9337
Sec. 4.111-1(a), Rev. Regs. No. 16-2005, Sept. 1, 2005
C. Presumptive Input Tax
Sec. 111(B), NIRC, as amended by Rep. Act. No. 9337
Sec. 4.111-1(b), Rev. Regs. No. 16-2005, Sept. 1, 2005
D. Final Withholding VAT
Sec. 114(C), NIRC, as amended by Rep. Act. No. 9337
Sec. 4.114-2(a), Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by Rev.
Regs. No. 4-2007, Feb. 7, 2007
See Illustration in Sec. 4.110-4, Rev. Regs. No. 16-2005, Sept. 1, 2005, as
amended by Rev. Regs.
No. 4-2007, Feb. 7, 2007
E. Claims for Refund or Issuance of Tax Credit Certificates
Sec. 112, NIRC, as amended by Rep. Act. No. 9337
1. Zero-Rated or Effectively Zero-Rated Transactions
Sec. 112(A), NIRC, as amended by Rep. Act. No. 9337
2. Cancellation of VAT Registration
Sec. 112(B), NIRC, as amended by Rep. Act. No. 9337
3. Period within which Refund or Tax Credit of Input Tax shall be made
Sec. 112(C), NIRC, as amended by Rep. Act. No. 9337 correlate with
Sec. 229, NIRC
Commissioner of Internal Revenue vs.Mindanao II Geothermal
Partnership G.R. No. 191498 January 15, 2014
Rohm Apollo Semiconductor Philippines v CIR SC First Division GR
No. 168950 January 14, 2015
V. COMPLIANCE REQUIREMENTS
A. Registration with the BIR
Sec. 236, NIRC, as amended by Rep. Act No. 9337
1. Mandatory VAT Registration
Sec. 236(G), NIRC, as amended by Rep. Act No. 9337
Sec. 9.236-1(b), Rev. Regs. No. 16-2005, Sept. 1, 2005
2. Optional VAT Registration
Sec. 236(H), NIRC, as amended by Rep. Act No. 9337
Sec. 9.236-1(c), Rev. Regs. No. 16-2005, Sept. 1, 2005
3. Consequence of Failure to Register as a VAT Person
Sec. 236(G)(2), NIRC, as amended by Rep. Act No. 9337
4. Cancellation of VAT Registration
Sec. 236(F), NIRC, as amended by Rep. Act No. 9337
Sec. 9.236-6, Rev. Regs. No. 16-2005, Sept. 1, 2005
B. Record Keeping Requirements
Sec. 113(C), NIRC, as amended by Rep. Act No. 9337
Sec. 4.113-3, Rev. Regs. No. 16-2005, Sept. 1, 2005
C. Invoices and Receipts
Sec. 113, NIRC, as amended by Rep. Act No. 9337
1. General Requirements
Sec. 113(A) and (B), NIRC, as amended by Rep. Act No. 9337
Sec. 4.113-1(A) and (B), Rev. Regs. No. 16-2005, Sept. 1, 2005
2. Invoicing and Recording of Deemed Sale Transactions
Sec. 4.113-2, Rev. Regs. No. 16-2005, Sept. 1, 2005
3. Consequences of Erroneous Issuance of VAT Invoice or O/R
Sec. 113(D), NIRC, as amended by Rep. Act No. 9337

Sec. 4.113-4, Rev. Regs. No. 16-2005, Sept. 1, 2005


D. Creditable Withholding Tax
Sec. 4.114-2(b), Rev. Regs. No. 16-2005, Sept. 1, 2005
VI. FILING OF RETURN AND PAYMENT OF TAX Sec. 114, NIRC, as amended by Rep. Act
No. 9337
Sec. 4.114-1(A), Rev. Regs. No. 16-2005, Sept. 1, 2005
Week 5
OTHER PERCENTAGE TAXES
I. PERSONS/TRANSACTIONS SUBJECT TO PERCENTAGE TAXES
A. Persons Exempt from VAT
Sec. 116, NIRC, as amended by Rep. Act No. 9337
B. Domestic Carriers and Keepers of Garages
Sec. 117, NIRC, as amended by Rep. Act No. 9337
C. International Carriers
Sec. 118, NIRC
D. Franchises
Sec. 119, NIRC, as amended by Rep. Act No. 9337
E. Overseas Dispatch, Message or Conversation
Sec. 120, NIRC
F. Banks and Non-Bank Financial Intermediaries
Sec. 121, NIRC, as amended by Rep. Act No. 9337
CIR v. Solidbank Corp., G.R. No. 148191, Nov. 5, 2003
G. Finance Companies
Sec. 122, NIRC
H. Life Insurance Premiums
Sec. 123, NIRC
I. Agents of Foreign Insurance Companies
Sec. 124, NIRC
J. Amusement
Sec. 125, NIRC
K. Winnings
Sec. 126, NIRC
L. Stock Transactions in Philippine Stock Exchange
Sec. 127, NIRC
II. RETURNS AND PAYMENT OF PERCENTAGE TAX
Sec. 128, NIRC
EXCISE TAX
I. GOODS SUBJECT TO EXCISE TAX
A. In General
Sec. 129, NIRC
B. Alcohol Products
Secs. 141 143, NIRC, as amended by Rep. Act No. 9334
C. Tobacco Products
Secs. 144 145, NIRC, as amended by Rep. Act No. 9334
Secs. 146 147, NIRC H. Petroleum Products
Sec. 148, NIRC, as amended by Rep. Act No. 9337
D. Miscellaneous Articles
1. Automobiles
Sec. 149, as amended by Rep. Act No. 9224
2. Non-Essential Goods
Sec. 150, NIRC
E. Mineral Products
Sec. 151, NIRC, as amended by Rep. Act No. 9337
F. Petroleum Products

CIR v Pilipinas Shell Petroleum Corporation SC First Division G.R. No. 188497
February 19,
2014
II. PAYMENT OF EXCISE TAXES
Sec. 130, NIRC
Sec. 131, NIRC, as amended by Rep. Act No. 9334
Secs. 132 140, NIRC
III. ADMINISTRATIVE REQUIREMENTS
Sec. 130(C), NIRC
Secs. 152 172, NIRC
DOCUMENTARY STAMP TAX
I. IN GENERAL
Sec. 173, NIRC
CIR v. Heald Lumber, 10 SCRA 372
Michel J. Lhuillier Pawnshop, Inc. v. CIR, G.R. No. 166786, May 3, 2006
II. TRANSACTIONS/DOCUMENTS SUBJECT TO DST
A. Original Issuance of Shares
Sec. 174, NIRC, as amended by Rep. Act No. 9243
B. Transfer of Shares
Sec. 175, NIRC, as amended by Rep. Act No. 9243
Compagnie Financiere Sucres et Deneres v. CIR, G.R. No. 133834, Aug. 28,
2006
C. Foreign-Issued Bonds, Debentures, Shares or Certificates of
Indebtedness, and Other Instruments
Sec. 176, NIRC
D. Issue and Transfer of Certificate of Interest in Property or Accumulations
Sec. 177, NIRC
E. Bank Checks, Drafts, Certificates of Deposit not Bearing Interest
Sec. 178, NIRC
F. Debt Instruments
Sec. 179, NIRC, as amended by Rep. Act No. 9243
Banco de Oro Universal Bank v. CIR, CTA Case No. 6588, Aug. 5, 2005
Belle Corp. v. CIR, CTA Case No. 6156, June 17, 2005
Filinvest Development Corp v CIR 16353 167687
G. Bills of Exchange or Drafts
Sec. 180, NIRC, as amended by Rep. Act No. 9243
H. Acceptance of Foreign-Drawn Bills of Exchange
Sec. 181, NIRC
I. Foreign Bills of Exchange and LCs
Sec. 182, NIRC
J. Life Insurance Policies
Sec. 183, NIRC, as amended by Rep. Act No. 9243
BIR Ruling No. DA-182-2005, April 20, 2005
K. Non-Life Insurance Policies
Sec. 184, NIRC
BIR Ruling No. DA-288-2005, June 27, 2005
L. Fidelity Bonds and Other Insurance Policies
Sec. 185, NIRC
M. Annuities and Pre-Need Plans
Sec. 186, NIRC, as amended by Rep. Act No. 9243
N. Indemnity Bonds
Sec. 187, NIRC
O. Certificates
Sec. 188, NIRC

P. Warehouse Receipts
Sec. 189, NIRC
Q. Jai-Alai, Horse Race, Lotto, etc.
Sec. 190, NIRC
R. Bills of Lading or Receipts
Sec. 191, NIRC
S. Proxies
Sec. 192, NIRC
T. Powers of Attorney
Sec. 193, NIRC
U. Leases of Real Property
Sec. 194, NIRC
V. Mortgages, Pledges and Deeds of Trust
Sec. 195, NIRC
W. Deed of Sale of Real Property
Sec. 196, NIRC
BIR Ruling No. DA-076-2005
BIR Ruling No. DA-084-2005, March 14, 2005
BIR Ruling No. DA-065-2005, Feb. 23, 2005
BIR Ruling No. DA-640-2004, Dec. 17, 2004
BIR Ruling No. DA-648-2004, Dec. 21, 2004
BIR Ruling 079-2014
CIR v Shell GR 192398 September 29, 2014
X. Charter Party and Similar Instruments
Sec. 197, NIRC
Y. Assignment, Transfer, and Renewal of Certain Instruments
Sec. 198, NIRC
III. TRANSACTIONS/DOCUMENTS NOT SUBJECT TO DST
Sec. 199, NIRC, as amended by Rep. Act No. 9243
BIR Ruling No. DA-244-2005, June 7, 2005
Belle Corp. v. CIR, CTA Case No. 6156, June 17, 2005
IV. PAYMENT OF DST
Sec. 200, NIRC
V. EFFECT OF NON-PAYMENT OF DST Sec. 201, NIRC
Week 6
RIGHTS AND REMEDIES OF THE GOVERNMENT UNDER THE NATIONAL
INTERNAL REVENUE CODE
I. EXAMINATION AND AUDIT OF RETURNS
A. Statutory Basis
Secs. 5 and 6, NIRC
II. BIRS INVESTIGATIVE AUTHORITY
A. Statutory Basis
1. Administrative Summons to Taxpayer
Sec. 5(C), (D), NIRC
Sec. 6(C), NIRC
2. Third-Party Summons
Sec. 5(B), (C), NIRC
B. Informers Reward
Sec. 282, NIRC
BIR Rul. No. 071-00, Dec. 18, 2000
Meralco Securities Corp. v. Savellano, 117 SCRA 804 (1982)
Fitness by Design, Inc. v. CIR, G.R. No. 177982, Oct. 17, 2008
III. BIRS POWER TO MAKE ASSESSMENTS

A. Upon Examination of Returns Filed


Sec. 6(A), NIRC
B. In Case of Failure to Submit Required Reports
Sec. 6(B), NIRC
C. After Inventory Taking or Surveillance
Sec. 6(C), NIRC
D. Where CIR Terminates Taxpayers Taxable Period
Sec. 6(D), NIRC
E. Prescribe Zonal Value
Sec. 6(E), NIRC
CIR v. Aquafresh Seafoods, Inc., G.R. No. 170389, Oct. 20, 2010
F. Issuance of Pre-Assessment Notice
Sec. 228, NIRC
Sec. 3, Rev. Regs. No. 12-99, Sept. 6, 1999
G. Issuance of Final Assessment Notice
Sec. 228, NIRC
Sec. 3, Rev. Regs. No. 12-99, Sept. 6, 1999
1. What Constitutes an Assessment
CIR v. Pascor Realty and Dev. Corp., 309 SCRA 402 (1999)
Fort Bonifacio Dev. Corp. v. CIR, CTA Case No. 5665, Aug. 11, 2000
Republic v. Court of Appeals, 149 SCRA 351 (1987)
2. Presumption of Correctness of Assessment
Sy Po v. CTA, 164 SCRA 524 (1988)
3. Assessment Must be Based on Actual Facts
CIR v. Benipayo, 4 SCRA 182 (1962)
Chemical Industries of the Phil., Inc. v. CIR, CTA Case No. 5257, Oct.
29,1998
4. Assessment Issued Outside Scope of Letter of Authority
Sony Philippines, Inc. v. CIR, CTA Case No. 6185, Oct. 26, 2004
Week 7 MIDTERMS
WEEK 8
IV. COLLECTION OF UNPAID TAXES
A. Distraint, Garnishment, Levy and Seizure
Secs. 205-217, 224-225 NIRC
Sec. 202, NIRC
B. Civil Action
Sec. 205, NIRC
Sec. 220, NIRC
Sec. 7(b)(2)(c), Rep. Act. No. 1125, as amended by Rep. Act. No. 9282
Sec. 11, Rep. Act. No. 1125, as amended by Rep. Act. No. 9282
Republic v. Lim Tian Teng Sons & Co., 16 SCRA 584 (1966)
San Juan v. Vasquez, 3 SCRA 92 (1961)
Yabes v. Flojo, L-46954, July 20, 1982
C. Criminal Action
Sec. 220, NIRC
CIR v. Pascor Realty and Dev. Corp., supra
Republic v. Patanao, 20 SCRA 712 (1967)
Ungab v. Cusi, G.R. No. L-41919-24, May 30, 1980
D. Anti-Injunction Rule
1. General Rule
Sec. 218, NIRC
Churchill v. Rafferty, 32 Phil. 580 (1915)
CIR v. Cebu Portland Cement Co., 156 SCRA 535, 541 (1987)
2. Exception

Sec. 11, Rep. Act. No. 1125, as amended by Rep. Act. No. 9282
Rule 10, Revised Rules of the CTA (S.C. A.M. No. 05-11-07-CTA, Nov. 2005)
E. Nature and Extent of Tax Lien
Sec. 219, NIRC
F. Compromise and Abatement
Sec. 204(A) and (B), NIRC
BIR Ruling No. 111-99, July 22, 1999
BIR Ruling No. 059-01, Dec. 20, 2001
V. IMPOSITION OF SURCHARGE, INTEREST, AND COMPROMISE PENALTY
A. Civil Penalties
Sec. 248, NIRC
Secs. 250-252, NIRC
Secs. 4 & 5, Rev. Regs. No. 12-99, Sept. 6, 1999
CIR v. Javier, Jr., 199 SCRA 824, 831 (1991)
CIR v. Japan Air Lines, 202 SCRA 450, 458 (1991)
PICOP v. CIR, CTA Case No. 3215, Feb. 15, 1987
CIR v. Pilipinas Shell Petroleum Corporation, CTA E.B. No. 64 (CTA Case
No. 6003), April 28, 2006
BIR Ruling No. 002-95, Jan. 6, 1995
BIR Ruling No. 048-99, April 13, 1999
BIR Ruling No. 205-99, Dec. 28, 1999
BIR Ruling No. 078-98, May 28, 1998
B. Interest
Sec. 249, NIRC
Sec. 5, Rev. Regs. No. 12-99, Sept. 6, 1999
Cagayan Electric v. CIR, 138 SCRA 629 (1985)
Republic v. Heras, 32 SCRA 507, 513-514 (1970)
C. Compromise Penalty
Sec. 6, Rev. Regs. No. 12-99, Sept. 6, 1999
CIR v. Lianga Bay Logging Co., Inc., 193 SCRA 86, 92-93 (1991)
Atlas Consolidated Mining & Dev. Corp. v. CIR, CTA Case No. 5671, Aug.
29, 2002
Week 9
RIGHTS AND REMEDIES OF TAXPAYER UNDER THE NATIONAL INTERNAL
REVENUE CODE
I. AMEND TAX RETURN
Sec. 6(A), NIRC, last paragraph
Rev. Mem. Cir. No. 40-2003, July 3, 2003
II. PROTEST ASSESSMENT
A. Procedure
Rev. Regs. No. 12-85, Nov. 27, 1985
Sec. 3, Rev. Regs. No. 12-99, Sept. 6, 1999
B. Notice of Informal Conference
Revenue Regulations 18-2013
Revenue Memorandum Circular 11-2014
C. Preliminary Assessment Notice (PAN) Sec. 228, NIRC
Pier 8 Arrastre and Stevedoring Services v. CIR, CTA Case No. 3789, Aug.
1,1991
1. Exceptions
Sec. 228(a) to (e), NIRC
2. Effect of Failure to Receive PAN

CIR v. Menguito, G.R. No. 167560, Sept. 17, 2008


CIR v. Metro Star Superama, CTA EB Case No. 306, Sept. 16, 2008
D. Final Assessment Notice
Sec. 228, NIRC
CIR v Basf Coating +Inks Phils Inc. SC 3rd Division GR No. 198677
November 26 2014
E. Requirement to Inform Taxpayer of Factual and Legal Basis of Assessment
Sec. 228, NIRC
CIR v. Reyes, G.R. No. 159694, Jan. 27, 2006
CIR v. Enron Subic Power Corp., G.R. No. 166387, Jan. 19, 20
Australasia Cylinder Corp. v. CIR, CTA Case No. 6014, Aug. 14, 2002
Abbot Laboratories v. CIR, CTA Case No. 5718, Feb. 16, 2001
PNZ Marketing v. CIR, CTA Case No. 5726, Dec. 14, 2001
Sevilla v. CIR, CTA Case No. 6211, Oct. 4, 2004
FMF Development Corp. v. CIR, CTA Case No. 6153, March 20, 2003
Subic Power Corp. v. CIR, CTA Case No. 6059, May 8, 2003
Phil. Mining Service Corp. v. CIR, CTA Case No. 5725, July 25, 2002
Oceanic Wireless Network v. CIR, CTA Case No. 6111, Nov. 3, 2004
F. Submission of Supporting Documents
Sec. 228, NIRC
1. Effect of Non-Compliance
Sec. 228, NIRC, 4th par.
2. What Constitutes Relevant Supporting Documents
G. Tambunting Pawnshop, Inc. v. CIR, CTA Case No. 6238, Oct. 8, 2004
CIR v. First Express Pawnshop Co., Inc., G.R. No. 172045-46, June 16, 2009
H. Effect of Failure to File Protest
Sec. 228, NIRC
Dayrit v. Cruz, 165 SCRA 571 (1988)
Week 10
III.
IN CASE OF DENIAL OF PROTEST OR INACTION, APPEAL TO CTA
A. Scope of Jurisdiction of CTA/What is Appealable to CTA
Sec. 4, 2nd par., NIRC Sec. 228, NIRC
Sec. 7, Rep. Act No. 1125, as amended by Rep. Act No. 9282
CIR v. Villa, 22 SCRA 4 (1968)
B. Application of 180-day Rule
Sec. 3(a)(2), Rule 4 and Sec. 3(a), Rule 8, Revised Rules of the CTA (S.C.
A.M. No. 05-11-07-CTA, Nov. 22, 2005)
Lascona Land Co., Inc. v. CIR, CTA Case No. 5777, Jan. 4, 2000
Rizal Commercial Banking Corp. v. CIR, G.R. No. 168498, April 24, 2007
C. What Constitutes Denial of Protest/Decision on Disputed Assessment
1. General Rule
2. Issuance of Revised Assessment Upon Reinvestigation
Avon Products Mfg., Inc. v. CIR, CTA Case No. 5908, Jan. 20, 2005
3. Final Notice Before Seizure
CIR v. Isabela Cultural Corp., 361 SCRA 71 (2001)
4. Final Demand Letter
CIR v. Ayala Securities Corp., 70 SCRA 204 (1976)

Surigao Electric Co. Inc. v. CTA, 57 SCRA 523 (1974)


5. Filing of Collection Suit
CIR v. Union Shipping Corp., 185 SCRA 547 (1990)
6. Referral to Solicitor General for Collection
Republic v. Lim Tian Teng Sons & Co., supra
7. Issuance of Warrant of Distraint and Levy
Central Cement Corporation v. CIR, CTA Case No. 4312, Sept. 1,
1993
CIR v. Algue, Inc., 158 SCRA 9 (1988)
Advertising Associates, Inc. v. CA, 133 SCRA 765 (1984)
D. Period to Appeal/Effect of Failure to Appeal
Sec. 228, last par., NIRC
Sec. 11, Rep. Act. No. 1125, as amended by Rep. Act. No. 9282
St. Stephens Association v. Collector of Internal Revenue, 104 Phil. 314
(1958)
Roman Catholic Archbishop of Cebu v. Collector, 4 SCRA 279 (1962)
Pantranco v. Blaquera, 107 Phil. 975 (1960)
Basa v. Republic, 138 SCRA 34 (1985)
Mambulao Lumber Co. v. CIR, 132 SCRA 1 (1984)
E. Mode of Appeal and Effect of Appeal
1. Appeal to a Division of the CTA
Sec. 11, Rep. Act. No. 1125, as amended by Rep. Act. No. 9282
2. Appeal to CTA En Banc
Sec. 18, Rep. Act. No. 1125, as amended by Rep. Act. No. 9282
IV. APPEAL TO SUPREME COURT
Sec. 19, Rep. Act. No. 1125, as amended by Rep. Act. No. 9282
Week 11
V. REFUND AND/OR TAX CREDIT OF ERRONEOUSLY PAID TAX
A. What Constitutes Erroneous Payment
CIR v. Central Azucarera Don Pedro, 49 SCRA 474 (1973)
B. Requirement of Filing Administrative Claim
Sec. 229, NIRC Sec. 204(C), NIRC
Bermejo v. Collector, 87 Phil. 96 (1950)
Andrea Vda. De Aguinaldo v. CIR, 13 SCRA 269 (1965)
Chemical Industries of the Phil., Inc. v. CIR, CTA Case No. 5887, Aug. 8,
2000
C. Exception to Requirement of Filing Administrative Claim
Sec. 229, NIRC, proviso, last paragraph
Sec. 204(C), NIRC
D. Effect of Supervening Event
Sec. 229, NIRC
Manila Electric Co. v. CIR, CTA Case No. 7107, October 16, 2006
CIR v. Central Azucarera Don Pedro, supra
E. Offsetting Against Deficiency Tax Assessments
CIR v. Cebu Portland Cement Co., 156 SCRA 535, 541 (1987) BPI
Securities Corp. v. CIR, CTA Case No. 6089, Aug. 22, 2002
FNCB Finance v. CIR, CTA Case No. 3717, May 10, 1993

F. Whether Government is Liable for Interest, Attorneys Fees, Etc.


Philex Mining Corp. v. CIR, et. al., 306 SCRA 126 (1999) G. Taxes Not
Subject of Set-Off
Francia v. IAC, 162 SCRA 753 (1988) BIR Ruling No. 415-93, Oct. 15, 1993
VI. APPEAL IN CASE OF DENIAL OF REFUND/TAX CREDIT CLAIM
A. CTA (Division and En Banc)
Sec. 4, 2nd par., NIRC
Sec. 7(a)(1), (2), Rep. Act. No. 1125, as amended by Rep. Act. No. 9282
Sec. 11, Rep. Act. No. 1125, as amended by Rep. Act. No. 9282
Sec. 18, Rep. Act. No. 1125, as amended by Rep. Act. No. 9282
B. Supreme Court
Sec. 19, Rep. Act. No. 1125, as amended by Rep. Act. No. 9282

Week 12
VII. STATUTE OF LIMITATIONS
A. Period to Assess
Secs. 203, 222, 223 NIRC
1. When is an Assessment Deemed Made?
Basilan Estates, Inc. v. CIR, 21 SCRA 17 (1967)
2. Effect of Filing an Amended Return
CIR v. Phoenix Assurance Co., Ltd., L-19127, May 20, 1965
3. Effect of Filing a Wrong Return
Butuan Sawmill, Inc. v. CTA, L-20601, Feb. 28, 1966
4. How Prescriptive Period is Counted
CIR v. Primetown Prop. Group, Inc., G.R. No. 162155, August 28,
2007
5. Ordinary Prescription
Sec. 203, NIRC
6. Extraordinary Prescription
a. False/Fraudulent Return or No Return
Sec. 222(a), NIRC
Taligaman Lumber Co., Inc. v. CIR, 4 SCRA 842, 847 (1962)
Aznar v. CTA, 58 SCRA 519 (1974)
CIR v. BF Goodrich Phil., Inc., 303 SCRA 546 (1999)
CIR v. Ayala Hotels, CA-G.R. SP No. 70025, April 19, 2004
b. Waiver of Prescriptive Period
Sec. 222(b), NIRC
Republic v. Acebedo, 22 SCRA 1356 (1968) CIR v. CA, et. al., 303
SCRA 614 (1999)
Philippine Journalists, Inc. v. CIR, 447 SCRA 214 (2004)
Pfizer, Inc. v. CIR, CTA Case No. 6135, April 21, 2003
c.
Suspension of Prescriptive Period
Sec. 223, NIRC
Continental Micronesia, Inc. - Phil. Branch v. CIR, CTA Case
No. 6191, March 22, 2006
B. Period to Collect
Secs. 203, 222, 223, NIRC

Republic v. Ablaza, 108 Phil. 1105 (1960)


Palanca v. CIR, 4 SCRA 263 (1962)
Republic v. Ker & Co. Ltd., 18 SCRA 208 (1966)
Republic v. Hizon, 320 SCRA 574 (1999)
CIR v. Wyeth Suaco Laboratories, Inc. and CTA, 202 SCRA 125, 131
(1991)
Bank of the Phil. Islands v. CIR, G.R. No. 139736, Oct. 17, 2005
CIR v. Hambrecht & Quist Phil., Inc., CTA E.B. No. 73 (CTA Case
No. 6362), Aug. 12, 2005
C. Period to File Protest
Sec. 228, NIRC
D. Period to Appeal Decision on Disputed Assessment to CTA
See III(D) above
E. Period to File Refund or Tax Credit Claim
Sec. 204(C), NIRC Sec. 229, NIRC
Collector v. Sweeney, 109 Phil. 59 (1959)
Gibbs v. CIR, 107 Phil. 232 (1960)
CIR v. CA, et. al., 301 SCRA 435 (1999)
ACCRA Investments Corp. v. CA, G.R. No. 96322, Dec. 20, 1991
CIR v. TMX Sales, Inc., G.R. No. 83736, Jan. 15, 1992
1. How Is Two-Year Prescriptive Period Counted
CIR v. Primetown Prop. Group, Inc., supra
F. Period to Prosecute Violations of any Provisions of NIRC Sec. 281,
NIRC
Lim v. CA, 190 SCRA 616 (1990)
VIII. APPEAL OF RULINGS TO DOF, NON-RETROACTIVITY
A. Power of Review of DOF over Rulings
Sec. 4, 1st par., NIRC (distinguish from appeal of other matters
to CTA under the 2nd par. of Sec. 4)
CIR v. Leal, 392 SCRA 9 (2002)
B. Non-Retroactivity of Revocation of Rulings or Regulations
Sec. 246, NIRC
CIR v. Burroughs Ltd., G.R. No. 66653, June 19, 1986
PBCom v. CIR, 302 SCRA 241 (1999) ABS-CBN v. CTA, 108 SCRA 142
(1981)
Week 13
LOCAL GOVERNMENT CODE
I. GENERAL PRINCIPLES
A. Local Autonomy
Sec. 129, Local Government Code of 1991 (LGC)
Mactan Cebu Intl Airport Authority v. Marcos, G.R. No. 120082, Sept.
11,1996
Manila Electric Co. v. Prov. of Laguna, G.R. No. 131359, May 5, 1999
Smart Communications, Inc. vs. Municipality of Malvar, Batangas G.R. No.
204429. February 18, 2014.]
B. Fundamental Principles
Sec. 130, LGC
Pepsi Cola Bottling Co. of the Phils., Inc. v. Mun. of Tanauan, L-31156, Feb.
27, 1976

Ormoc Sugar Co., Inc. v. Mun. Board of Ormoc City, L-24322, July 21, 1967
Asiatic Integrated Corporation v. Alikpala, 72 SCRA 285
Matalin Coconut Co. v. Mun. Council of Malabang, 143 SCRA 404
C. Common Limitations on Taxing Powers of LGUs
Sec. 133, LGC
Prov. of Bulacan v. CA, G.R. No. 126232, Nov. 27, 1998
Phil. Petroleum Corp. v. Mun. of Pililla, G.R. No. 90776 June 3, 1991
San Miguel Corp. v. Mun. Council of Mandaue, L-30761, July 11, 1973
Cagayan Electric Power and Light Co., Inc. vs. City of Cagayan de Oro
G.R. No. 191761. November 14, 2012.
II. SCOPE OF TAXING POWERS OF LGUS
A. Province
Secs. 135-141, LGC
B. Municipality
Secs 142-143, LGC
C. City
Sec. 151, LGC
Art. 237, IRR
D. Barangay
Sec. 152, LGC
III. COMMUNITY TAX CERTIFICATE (CTC)
A. Who are liable
Secs. 157-159, LGC Art. 246, IRR
B. Exemptions
Sec. 159, LGC
C. Place and time of payment of tax
Secs. 160-161, LGC
IV. TIME, MANNER AND PLACE OF PAYMENT OF LOCAL BUSINESS TAX
A. Time of payment
1. General rule
Secs. 165-167, LGC
2. In case of new ordinance levying new tax or increasing rates
Sec. 166, LGC
3. In case of retirement of business
Sec. 145, LGC Art. 241, IRR
B. Manner of payment
Sec. 146, LGC Art. 242, IRR
Standard Vacuum Oil Co. v. Antigua, 96 Phil. 909
Ali Nam v. City of Manila, 109 Phil. 808
C. Place of payment
1. Location of branch or sales outlet
Sec. 150(a), LGC Art. 243, IRR
2. Allocation to 2 or more LGUs
Sec. 150(b) to (e), LGC Art. 243, IRR
3. Sales by route trucks or vans
Art. 243(d), IRR
V. ENACTMENT OF TAX ORDINANCES AND OTHER REVENUE
MEASURES
A. Public hearing
Sec. 186, last proviso, LGC Sec. 187, LGC
Art. 275, IRR
Figueras v. CA, G.R. No. 119172, March 25, 1999
Tuzon v. CA, 212 SCRA 739, 745 (1992)
B. Publication

Sec. 188, LGC Art. 276, IRR


Figueras v. CA, et. al., supra
C. Appeal to Secretary of Justice
Sec. 187, LGC
Reyes, et. al. v. CA, G.R. No. 118233, Dec. 10, 1999
Drilon v. Lim, G.R. No. 112497, Aug. 4, 1994
Hagonoy Market Vendor Assoc. v. Mun. of Hagonoy, Bulacan, 376 SCRA
376
D. Appeal to court of competent jurisdiction
Id.
E. Effect of appeal
Id.
VI. REMEDIES OF LOCAL GOVERNMENT AND TAXPAYER
A. Remedies of local government
1. Examination of taxpayers books of accounts
Sec. 171, LGC
2. Issuance of deficiency assessment
Sec. 195, LGC Sec. 194, LGC
3. Imposition of surcharge and interest
Secs. 168-169, LGC
4. Summary remedies
a. Distraint of personal property
Sec. 175, LGC
b. Levy on real property
Secs. 176, 178-182, LGC
c. Further distraint and levy
Sec. 184, LGC
5. Judicial remedy (Collection) Sec. 183, LGC
B. Remedies of taxpayer
1. Protest of assessment
Sec. 195, LGC Art. 285, IRR
California Mfg. Co., Inc. v. City of Las Pias, CTA AC No. 4, Sept.
28, 2005
2. Claim for refund or tax credit
Sec. 196, LGC Art. 286, IRR
VII. AUTHORITY OF LGUS TO GRANT TAX EXEMPTION PRIVILEGES
Sec. 192, LGC and Art. 282, IRR
See also Sec. 193, LGC and Art. 283, IRR re. withdrawal of existing tax
exemption privileges
Week 14
REAL PROPERTY TAXATION
I. GENERAL PRINCIPLES AND DEFINITIONS
Sec. 198, LGC
Sec. 199, LGC
Reyes v. Almanzor, 196 SCRA 322 (1991)
Meralco v. Central Board of Assessment Appeals (CBAA), 114 SCRA 260
(1982)
Caltex Phils. Inc. v. CBAA, 114 SCRA 296
Benguet Corp. v. CBAA, 218 SCRA 271 (1993)
Prov. of Nueva Ecija v. Imperial Mining Co., Inc., 118 SCRA 632 (1982)
Ty v. Trampe, 250 SCRA 500 (1995)
Lopez v. City of Manila, 303 SCRA 448 (1999)
II. REAL PROPERTY TAX AND ADDITIONAL OR SPECIAL LEVIES
A. Basic real property tax

Sec. 233, LGC


Lopez v. City of Manila, supra
B. Special Education Fund (SEF)
Sec. 235, LGC
C. Tax on idle lands
Secs. 236-237, LGC
D. Special levy due to improvements
Secs. 240-243, LGC
III. EXEMPTIONS FROM REAL PROPERTY TAX Sec. 234, LGC
Light Rail Transit Authority v. CBAA, 342 SCRA 692 (2000)
IV. PAYMENT OF REAL PROPERTY TAX AND SPECIAL LEVIES
A. Date of accrual
Sec. 246, LGC Sec. 245, LGC
B. Payment on installment
Sec. 250, LGC
C. Discount for Advance Payment
Sec. 251, LGC
VI. APPRAISAL AND ASSESSMENT OF REAL PROPERTY
A. Appraisal
Sec. 201, LGC (Real Property)
Secs. 224-225, LGC (Machineries)
1. Voluntary
Secs. 202-203, LGC
See also Sec. 208, LGC
2. Involuntary
Sec. 204, LGC
See also Sec. 213, LGC
Allied Banking Corp. v. QC Govt, 472 SCRA 303 (2005)
B. Assessment
1. Classifying real property
Sec. 217, LGC
Secs. 215-216, LGC
2. Assessment levels
Sec. 218, LGC
3. General revision
Sec. 219, LGC
Art. 310, IRR
Lopez v. City of Manila, supra
4. Reassessment
Sec. 220, LGC
Sec. 221, LGC
Callanta v. Office of the Ombudsman, 285 SCRA 648 (1998)
Meralco v. Barlis, 375 SCRA 570 (2002)
VI. REMEDIES OF LOCAL GOVERNMENT
A. Posting of notice of delinquency
Sec. 254, LGC
B. Imposition of interest
Sec. 255, LGC
C. Administrative remedies
Secs. 256-257, LGC
Secs. 258-265, LGC
D. Judicial action (collection)
Sec. 256, LGC
Sec. 266, LGC

Sec. 270, LGC


E. Unpaid tax constitutes a lien
Sec. 257, LGC
VII.
REMEDIES OF TAXPAYER
A. Dispute assessment
1. Appeal to local Board of Assessment Appeals
Sec. 226, LGC
Callanta, et. al. v. Office of the Ombudsman, supra
2. If denied, appeal to Central Board of Assessment Appeals
Sec. 229(c), LGC
3. If denied, appeal to Court of Tax Appeals
Sec. 7, Rep. Act No. 1125, as amended by Rep. Act No. 9282
4. Effect of appeal
Sec. 231, LGC
B. Payment under protest
Sec. 252, LGC Art. 343, IRR
Camp John Hay Devt Corp. v. CBAA, CTA E.B. No. 48 (CBAA Case No.
L-37; Tax Appeal Case No. 2002-2003 Board of Tax Assessment
Appeals, Baguio City), July 27, 2005
National Power Corp. v. Prov. of Quezon and Mun. of Pagbilao, CTA
E.B. No. 46 (CBAA Case No. L-29)
C. Claim for refund or credit
Sec. 253, LGC
China Banking Corp. v. City Treasurer of Kalookan, CTA Case AC No.
12, Aug. 31, 2005
Week 15
TARIFF AND CUSTOMS CODE
I.
Introduction
II.
Basis of Assessment of Duty
A. Basis of dutiable value
Sec. 201, TCCP
B. Basis of dutiable weight
Sec. 202, TCCP
III.
Special Duties
A. Anti-Dumping Duty
Sec. 301, TCCP
B. Countervailing Duty
Sec. 302, TCCP
C. Marking Duty
Sec. 303, TCCP
D. Discriminating Duty
Sec. 304, TCCP
IV. Ascertainment and Collection of Import Duty
A. When importation begins and deemed terminated
Sec. 1202, TCCP
B. Who is deemed owner of imported articles
Sec. 1203, TCCP
C. Liability of importer for duties
Sec. 1204 ,TCCP
V. Remedies of Government
A. Search, seizure and arrest
Secs. 2202-2212, TCCP
Secs. 2301-2306, TCCP
B. Impose surcharges, fines and forfeitures

Sec. 2307, TCCP


Secs. 2501-2536, TCCP
C. File civil or criminal action
Sec. 2401, TCCP
D. Impose fine and imprisonment
Secs. 3601-3612, TCCP
E. Compulsory Acquisition
Sec. 2317, TCCP
F. Automatic review by Secretary of Finance of adverse ruling
Sec. 2313, TCCP
VI. Remedies of Importer
A. Payment under protest
Secs. 2308-2312, TCCP
B. Appeal to Commissioner of Customs
Sec. 2313, TCCP
C. Compromise
Sec. 2316, TCCP
Week 16 -Finals