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PM Reyes Bar Reviewer On Taxation II
PM Reyes Bar Reviewer On Taxation II
(Based on the 2013 Bar Syllabus and Updated with the Recent BIR Issuances and the
Latest Supreme Court and CTA Jurisprudence as of January 31, 2013)
This is the second installment of my two-part reviewer
on taxation. It covers 8 topics, namely: (1) Estate Tax
(2) Donors Tax (3) Tax Remedies (4) Organization and
Functions of the BIR (5) Local Government Taxation
(6) Real Property Taxation (7) Tariff and Customs
Code; (8) Judicial Remedies (CTA). It is a consolidated
and updated version of my reviewers in Tax 2 and
Taxation Law Review. This reviewer is based on notes
from Atty. Montero and Assoc. Dean Gruba and the
books and reviewers of Atty. Mamalateo and Atty.
Domondon. I also added some stuff from Atty. Mickey
Ingles reviewer and Justice Dimaampao. For the
transfer taxes, I added stuff from Starr Weigands
notes. References have also been made to the 2013
Bedan Red Book and the 2012 UP Tax Reviewer.
Further, I added the recent and relevant revenue
regulations and other BIR issuances (especially those
issued in 2012) and the latest SC and CTA
jurisprudence (as of January 31, 2013). Most of the
digests were sourced from Du Baladad and
Associates (BDB Law) and from Baniqued &
Baniqued. The reviewer will make reference to codal
provisions. Thus, I recommend that you read this with
a copy of the NIRC and other Laws Codal (2012
edition) by Atty. Sacadalan-Casasola
Possessors may reproduce and distribute my
reviewer provided my name remains clearly
associated with my work and no alterations in the
form and content of my reviewer are made. No
stamping please.
May this reviewer prove useful to you. If it does,
please share it to others. Happy studying!
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TABLE OF CONTENTS
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II. NIRC
B. Estate Tax ................................................. 2
C. Donors Tax ............................................. 18
D. Value-Added Tax .................................... 25
E. Tax Remedies ......................................... 59
F. Organization and Function of the Bureau
of Internal Revenue................................... 100
III. Local Government Code
A. Local Government Taxation ................ 104
B. Real Property Taxation ........................ 120
IV. Tariff and Customs Code ......................... 137
V. Judicial Remedies (CTA) ......................... 152
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Donors Tax
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Inter Vivos
--------------------------------------------------------------2. Definition
---------------------------------------------------------------
Statepartnership
theory
Ability to
Theory
--------------------------------------------------------------3. Nature
--------------------------------------------------------------Q: What is the nature of the estate tax?
The Estate Tax is
a. It is not a tax on property
b. It is a tax imposed on the privilege to
transmit property a death and is measured
by the value of the property.
Pay
Redistribution
of wealth theory
and
rights
Page 3 of 164
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Resident citizens
Non-resident citizens
Resident alien
Non-resident alien
Determination
estate
of
gross
Resident
Citizen,
Non-resident
Citizen,
Resident
Alien
All
properties,
real
or
personal,
tangible
or
intangible,
wherever
situated,
plus
items
includible in gross estate
Non-Resident Alien
Only
those
properties
situated in the Philippines
provided that with respect to
intangible personal property,
its inclusion in the gross
estate is subject to the rule
of reciprocity under Section
104 of the Tax Code
Net Estate
---------------------------------------------------------------
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Non-Resident Alien
Composition
estate
Resident
Citizen,
Non-resident
Citizen,
Resident
Alien
Non-Resident Alien
Resident
Citizen,
Non-resident
Citizen,
Resident
Alien
of
gross
Page 5 of 164
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Shares
Stock
of
Usufructuary,
use
or
habitation,
annuity
Improvement
Decedents Interest
Read Section 85(A)
Q: What
include?
Page 7 of 164
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Recovable Transfers
Property
under
Appointment
General
Power
of
Nature
Tax Treatment
General
Special
transfers
for
insufficient
Page 8 of 164
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Example 1
100
200
70
Example 2
100
200
100
30
Page 9 of 164
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the
Judicial expenses
Q: What are the requisites for
deductibility of judicial expenses?
Judicial expenses to be deductible
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In
unpaid
obligation
arose
from
purchase of
goods
or
services
a. Pertinent
documents
evidencing the purchase of
goods or service
b. Duly notarized Certification
from the creditor as to the
unpaid balance of the debt,
including interest as of the time
of death;
c. Certified true copy of the latest
audited balance sheet of the
creditor
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Unpaid mortgage
property
or
indebtedness
on
Taxes
Losses
Q: What are the requisites for losses to be
deductible from the gross estate?
Losses are deductible:
1.
2.
3.
4.
5.
Vanishing Deduction
Q: What are the requisites for unpaid taxes
to be deductible?
1. Taxes which have accrued as of or before
the death of the decedent; and
2. Unpaid as of the time of his death,
regardless of whether or not it was incurred
in connection with trade or business
Note: This deduction will not include: (1) income tax upon
income received after death, or (2) property taxes not
accrued before his death, or (3) the estate tax due from
the transmission of his/her estate. These shall be
chargeable against the income of the estate because it
accrued after the death of the decedent.
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2.
3.
4.
Standard deduction
Read Section 86(A)(5)
Note: Total deductions do not include the special
deductions (FSMA)
3. Subtract 2 from 1
4. Apply the rate of vanishing deduction to 3
above.
Note: Let us have a numerical example. In 2000, A
inherits a land valued at P500,000. In 2003, A died with
the said land having a value of P600,000. His gross estate
amounted to P2 million. His allowable deductions
amounted to P400,000
500,000 (
Medical expenses
Read Section 86(A)(6)
Q: What are the requisites for deductibility
of medical expenses?
= 400,000
= 400,000 x 60% = P240,000
1.
2.
deductions
as
Family home
2. Special deductions
(FSMA)
a. Family home
b. Standard
deduction
c. Medical
expenses
d. Amount
received by heir
under RA 4917
3. Share in conjugal
property
Citizen or Resident
Alien Decedents
Non-resident
decedents
alien
Deductions:
1. Ordinary deductions
a. Expenses,
losses,
indebtedness,
taxes,
etc
(ELIT)
i. Funeral
expenses
ii. Judicial
expenses
iii. Claims
against
the
estate
iv. Claims
against
insolvent
persons
v. Unpaid
mortgage or
indebtedness
on property
vi. Taxes
vii. Losses
b. Vanishing
Deduction
c. Transfer
for
public use
Deductions:
1. Ordinary deductions
2. Share in conjugal
property
Note: (1) Non-resident alien
decedent cannot avail of
special deductions.
(2) No deduction shall be
allowed unless the executor,
administrator, or anyone of
the heirs as the case may be
includes in the estate tax
return of the decedent, the
value at the time of his death
that part of the gross estate
of the non-resident not
situated in the Philippines
(Section 86(D), Tax Code)
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or registerable property
such as real
property, motor vehicle, shares of stock or
other similar property for which a clearance
from the BIR is required as a condition
precedent for the transfer of ownership
thereof in the name of the transferee.
Page 17 of 164
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--------------------------------------------------------------3. Nature
--------------------------------------------------------------Q: What is the nature of a donors tax?
Read Section 98
Q: What donations are covered by the
donors tax?
The donors tax is imposed only on donaitons inter
vivos. Donations mortis causa partake of the nature
of testamentary dispositions are subject to estate tax
In the case of Gestopa v CA [October 5, 2000], the
Supreme Court held that the donation of the
deceased spouses to their illegitimate daughter was
a donation inter vivos. The spouses executed the
deed out of love and affection for the donee, which
is a mark of a donation inter vivos. The donor
reserved sufficient properties for their maintenance
in accord with their standing in society, indicating the
donor intended to part with the property donated.
And, the donee accepted the donation, which is only
required in donations inter vivos.
--------------------------------------------------------------2. Definition
--------------------------------------------------------------Q: What is a donors tax?
A donors tax is an excise tax imposed on the
privilege to transfer property by way of gift inter vivos
based on pure act of liberality without any or less
than adequate consideration and without any legal
compulsion to give.
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Resident citizen
Non-Resident Citizen
Resident Alien
Non-Resident Alien
Domestic Corporation
Foreign Corporation
Net Estate
Citizens
and
Resident Aliens
Non-Resident
Aliens
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For
improvements
For
Real
Property
c.
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If several gifts were made during the year -Gross gifts made
Less: Deductions from the gross gifts
= Net gifts made on this date
Add: all prior net gifts during the year
= Aggregate net gifts
Multiplied by applicable rate
= Donors tax on aggregate net gifts
Less: donors tax paid on prior net gifts
= Donors tax payable on the net gifts to date
In other words, if the donor makes several gifts during the
same calendar year, the gifts shall be added on a
cumulative basis.
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Q:
Pursuant
to
the
governments
privatization program, NDC decided its
shares in the National Marine Corp. and 5
vessels. Magsaysay Lines bought the
shares and vessels. The CIR contends that
the sale of the 5 vessels is incidental to its
NDCs VAT registered activity of leasing out
personal property and thus VAT-taxable. Is
the CIR correct?
No. In CIR V. M AGSAYSAY LINES [JULY 28, 2006], the
Supreme Court found that any sale, barter or
exchange of goods or services not in the course of
trade or business is not subject to VAT. In this case,
the sale of the vessels was an isolated transaction,
not done in the ordinary course of NDCs business
and is thus not subject to VAT.
Note: In THOMAS C. ONGTENCO VS. CIR, CTA CASE NO.
8190, DECEMBER 12, 2012, the CTA held that the
taxpayers act of lending money to a corporation, where he
is a director and stockholder cannot be considered as an
act of lending in the course of his trade or business. His
act of lending was not done in the ordinary course of his
business or trade but merely an isolated transaction in
order to help the company in its provincial expansion
considering that, at that time, it was just starting and was
having difficulties in getting and applying for loans from
banks. The act of lending was a one-time assistance in his
capacity as stockholder..
Page 26 of 164
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Under the VAT method of taxation, which is invoicebased, an entity can subtract from the VAT charged
on its sales or outputs the VAT it paid on its
purchases, inputs and imports. (CIR V. SEAGATE
TECHNOLOGY [FEBRUARY 11, 2005]).
Note: (1) The Tax Credit method is the method used para
malaman mo how much ang babayaran mo na VAT. We
will talk about this in greater detail sa Determination of
output/input vat. For now, Ill give you the basics which will
suffice for understanding the succeeding topics.
As discussed above, the taxpayer determines his tax
liability by computing the tax on the gross selling price or
gross receipt (output tax) and subtracting or crediting the
earlier VAT on the purchase or importation of goods or on
the purchase of service (input tax) against the tax due on
his own sale. Gawin nating formula:
Page 27 of 164
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Amount
in
Pesos (2005)
Adjusted
amounts
Section 109(P)
Section 109(P)
Section 109(Q)
Section 109(V)
1,500,000
2,500,000
10,000
1,500,000
1,919,500
3,199,200
12,800
1,919,500
Page 28 of 164
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For
goods
and
properties other than
real properties
1. There is an actual or
deemed sale, barter,
The fair market value shall mean whichever is the higher of (1)
the fair market value as determined by the CIR (zonal value) or
(2) the air market value as shown in the schedule of values of the
provincial and city assessors (real property tax declaration). In the
absence of a zonal value, gross selling price shall refer to the
market value shown in the latest real property tax declaration or
the consideration, whichever is higher.
exchange of goods or
properties
for
a
valuable
consideration
2. The
sale
is
undertaken in the
course of trade or
business or exercise
of profession in the
Philippines
3. The
goods
or
properties are located
within the Philippines
and are for use or
consumption therein
4. The sale is not
exempt from VAT
under Section 109 of
the Tax Code, special
law or international
agreement
binding
upon the government
of the Philippines.
Note: (1) The absence of
any of the above requisites
exempts the transaction
from
VAT.
However,
percentage
taxes
may
apply. Actually, the annual
gross sales or receipts
must exceed P1,199,500.
Otherwise, it is subject to
the 3% percentage tax on
small business enterprises.
(2) We can combine (3) and
(4) by stating that the
transaction should not be a
VAT zero-rated or a VATexempt transaction.
2.
3.
4.
5.
6.
including dacion en
pago,
barter
or
exchange,
assignment, transfer
or conveyance, or
merely contract to
sell involving real
property
The real property is
located
in
the
Philippines
The
seller
or
transferor
is
engaged in real
estate
business
either as a real
estate
dealer,
developer or lessor
The real property is
held primarily for
sale or for lease in
the ordinary course
of his trade or
business
The sale is not
exempt from VAT
under Section 109,
special
law
or
international
agreement binding
upon
the
government of the
Philippines.
The
threshold
amount set by the
law should be met
Page 29 of 164
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Q: Distinguish
exemption.
zero
rating
from
VAT-
Zero-rated
It is a taxable transaction
but does not result in an
output tax
VAT-Exempt
Not subject
output tax
to
the
Persons engaged in
transactions which are
zero-rated, being subject
to VAT, are required to
register
Registration is optional
for
VAT-exempt
persons.
Zero-rated
Effectively zero-rated
Page 31 of 164
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intended to be enjoyed
by the seller who is
directly and legally
liable for the VAT,
making such seller
internationally
competitive by allowing
the refund or credit of
input taxes that are
attributable to export
sales.
application
is
needed except in
sales to PEZA,
sales
to
BOIregistered
100%
manufacturerexporter
2. RA 9337 up to
before RR 4-2007
(November 1, 2005
to April 5, 2007)
application
is
needed;
no
exceptions
3. RR 4-2007 (April 6,
2007 onwards)
need for application
not
expressly
provided.
Page 32 of 164
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0% VAT
Sale of Services
0% VAT
VAT exempt
VAT exempt
PEZAregistered
enterprise to
buyer
from
customs
territory
(local/domestic
sales)
VAT-exempt
if
the service is
performed
or
rendered within
the
ecozone.
Same
rule
applies to lease
of properties if
located in the
ecozone.
12%
VAT
imposed on the
PEZA-registered
Page 34 of 164
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When a VAT-registered
person engaged in a
VAT-taxable
activity
decides to discontinue
such activity and engage
in a non-VAT-taxable
activity.
2. Approval of a
request for
cancellation of a
registration due to
reversion to exempt
status
When
a
person
commenced a business
with the expectation that
is gross sales or receipts
will exceed P1,919,500
but failed to exceed this
amount during the first
12 months of operation.
3. Approval of request
for cancellation of a
registration due to
desire to revert to
exempt status after
lapse of 3
consecutive years
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Subject to VAT:
a. Exchange
of
property
by
corporation
acquiring control for
the shares of stocks
of
the
target
corporation
b. Exchange
of
properties
by
a
person who wants to
join the corporation
of his properties
held for sale or for
lease for shares of
stock
whether
resulting
to
corporate control or
not
2. Change in trade or
corporate name
3. Merger or
consolidation
by
tollway
Page 37 of 164
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the
zero-rated
sales
of
Page 40 of 164
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j)
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k) Transactions
which
are
exempt
under
international
agreements
to
which
the
Philippines is a signatory or under special laws
l)
u) Services
of
banks,
non-bank
financial
intermediaries
performing
quasi-banking
functions and other non-bank financial
intermediaries
v) Sale or lease of goods or properties or
performance of services other than the
transactions mentioned in the preceding
paragraphs, the gross annual sales and/or
receipts do not exceed the amount of
14
P1,919,500. .
14
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the
creditable
input
tax
- P5,000
- P3,000
- P2,000
- P4,000
- P20,000
- P100,000
P100,000
- P100,000
- P100,000
- P400,000
Page 47 of 164
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No VAT payable
the
of
5. Transitional input
tax
6. Input
tax
Deemed
Invoice required
on
sale
transactions
8. Advance VAT on
sugar
Payment
Order
showing
payment of the advance VAT.
Page 48 of 164
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and paid the related excise taxes thereon before the same
were sold to the petitioner. The purchase price for the raw
alcohol included, among others, the excise taxes paid by
the supplier. Subsequently, petitioner exported its locally
manufactured liquor products and received the
corresponding foreign currency proceeds of such export
sales. Petitioner then filed applications for tax refund/
issuance of tax credit certificates corresponding to the
excise taxes which its supplier paid but passed on to it as
part of the purchase price of the subject raw alcohol
invoking Section130(D) of the Tax Code.
HELD: The Court ruled that the right to claim a refund or
be credited with the excise taxes belongs to its supplier.
Any excise tax paid thereon shall be credited or refunded
requires that the claimant be the same person who paid
the excise tax.
Page 49 of 164
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16
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In Aichi
Thus:
1. For the administrative claim, file
within 2 years from end of the taxable
quarter when sales were made.
2. For judicial claim, BIR has 120 days
to decide. If adverse decision within
the 120 day period, 30 days from
receipt of decision to appeal to CTA. If
no BIR decision within 120 days, 30
th
days from the 120 day to appeal to
the CTA.
Note: (1) Thus, Aichi affirmed the Courts ruling in Mirant
in that the 2-year prescriptive period shall be reckoned
from the end of the taxable quarter when the relevant
sales were made but clarified that such prescriptive period
applies only to the filing of the administrative claim.
See THIRD MILLENNIUM OIL MILLS, INC. VS. CIR [CTA EB
NO. 729 (CTA CASE NO. 7583), JUNE 7, 2012]; CIR VS.
PENN PHILIPPINES, INC., CTA EB NO. 693 [CTA CASE NO.
7457), JUNE 27, 2012]
The taxpayers compliance with the 120-day period under
Section 112(C) is both mandatory and jurisdictional.
See PROCTER & GAMBLE ASIA, PTE. LTD. VS. CIR [CTA EB
CASE NO. 740 (CTA CASE NO. 7683), JUNE 18, 2012];
CARGILL PHILIPPINES, INC. VS. CIR, [CTA EB CASE NO. 779
(CTA CASE NOS. 6714 & 7262), JUNE 18, 2012]; PHILEX
MINING CORPORATION VS. CIR, [CTA EB NO. 817 (CTA
CASE NO. 7798), JUNE 13, 2012]; DIAGEO PHILIPPINES, INC.
VS. CIR, [CTA EB NO. 806 (CTA CASE NO. 7778), JUNE 21,
2012]; PHILEX MINING CORPORATION VS. CIR, CTA EB NO.
808 (CTA CASE NOS. 7859 & 7886), JUNE 6, 2012; CE
CASECNAN WATER AND ENERGY COMPANY, INC. VS. CIR, CTA
EB NO. 726 (CTA CASE NO. 7739), JUNE 26, 2012;
(2) Citing Aichi, the CTA in numerous cases have held that
filing the judicial claim without waiting for the lapse of the
120-day period is fatal. The premature filing of the judicial
claim warrants dismissal.
SEE DEUTSCHE KNOWLEDGE SERVICES, PTE. LTD. VS.
COMMISSIONER OF INTERNAL REVENUE [CTA CASE NO. 8165,
JANUARY 08, 2013]; CASECNAN WATER AND COMPANY, INC.
VS.COMMISSIONER OF INTERNAL REVENUE [CTA EB NO. 836,
JANUARY 28, 2013]; HEDCOR SIBULAN, INC. VS.
COMMISSIONER OF INTERNAL REVENUE [C.T.A. CASE NO.
8051, JANUARY 05, 2012]; SITEL PHILIPPINES CORPORATION
VS. COMMISSIONER OF INTERNAL REVENUE, [C.T.A. EB NO.
668, JANUARY 06, 2012]; CE CEBU GEOTHERMAL POWER
COMPANY, INC. VS. COMMISSIONER OF INTERNAL REVENUE
[CTA EB NO. 741, JANUARY 12, 2012]; CBK POWER
COMPANY LIMITED VS. COMMISSIONER OF INTERNAL REVENUE
[CTA EB NO. 760, FEB 1, 2012]; SAN ROQUE POWER
CORPORATION VS. COMMISSIONER OF INTERNAL REVENUE
[CTA CASE NO, 7937, FEBRUARY 8, 2012]; AIR LIQUIDE
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sale
Invoicing
and
requirements
recording
1. Transfer, use
or
consumption not in
the
course
of
business of goods
or
properties
originally intended
for sale or use in
the
course
of
business
2. Distribution
or
transfer
to
shareholders/invest
ors or creditors
3. Consignment
of
goods if actual sale
is not made within
60 days
4. Retirement from or
cessation
of
business
with
respect to all goods
on hand
i. If the business is to be
continued by the new
owners or successors, the
entire amount of output tax
on the amount deemed sold
shall be allowed as input
taxes.
ii. If the business is to be
liquidated and the goods in
the inventory are sold or
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3.
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--------------------------------------------------------------a) Assessment
(i) Concept of assessment
(a) Requisites for valid assessment
(b) Constructive method for income
determination
(c) Inventory method for income
determination
(d) Jeopardy assessment
(e) Tax delinquency and tax deficiency
(ii) Power of the Commissioner to make
assessments and prescribe additional
requirements for tax administration and
enforcement
(a)
Power of the Commissioner to
obtain
information
and
to
summon/examine and take testimony
of persons
(iii) When assessment is made
(a) Prescriptive period for assessment
(1) False, fraudulent, and non-filing
of returns
PIERRE MARTIN DE LEON REYES
Ateneo Law Batch 2013
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Percentage method
Net worth method
Bank deposit method
Cash expenditure method
Unit and value method
Third party information or access to records
method
g. Surveillance and assessment method
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the
taxpayer
considered
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17
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18
Note that the case was governed under the old law which
provides for 6 tears to assess and another 5 years to collect.
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19
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--------------------------------------------------------------(d) Interest
(1) In general
(2) Deficiency interest
(3) Delinquency interest
(4) Interest on extended payment
--------------------------------------------------------------Read Section 249, Tax Code
Q: What are the types of interests collected
under the Tax Code
1. In general there shall be assessed and
collected any unpaid amount of tax, interest
at the rate of 20% per annum or such higher
rate as may be prescribed from the date
prescribed for payment until fully paid
2. Deficiency interest any deficiency in the
tax due shall be subject to 20% per annum
3. Delinquency interest the unpaid amount
shall be subject to 20% per annum in case
of:
a. Failure to pay the amount of tax due
on any return required to be filed
b. Failure to pay the amount of tax due
for which no return is required
c. Failure to pay a deficiency tax or
surcharge or interest thereon on the
due date appearing on the notice
and demand of the CIR
4. Interest on Extended Payments if any
person is qualified and elects to pay
installments but fails to pay the tax or any
installment on or before the date prescribed,
there shall be assessed and collected
interest at the rate of 20% per annum on the
tax or deficiency tax or part thereof unpaid
PIERRE MARTIN DE LEON REYES
Ateneo Law Batch 2013
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20
--------------------------------------------------------------a) Protest
(i) Protesting assessment
(a) Protest of assessment by taxpayer
(1) Protested assessment
(2) When to file a protest
(3) Forms of protest
(4) Content and validity of protest
(b) Submission of documents within 60
days from filing of protest
(c) Effect of failure to protest
(d) Period provided for the protest to
be acted upon
(ii)
Rendition
of
decision
by
Commissioner
(a) Denial of protest
(1) Commissioners
actions
equivalent to denial of protest
(a) Filing of criminal action
against taxpayer
(b) Issuing a warrant of distraint
and levy
(2) Inaction by Commissioner
(iii) Remedies of taxpayer to action by
Commissioner
(a) In case of denial of protest
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(b) In
case
of
inaction
by
Commissioner within 180 days
from submission of documents
(c) Effect of failure to appeal
--------------------------------------------------------------Read Section 228, Tax Code
Note: First, Ill give you the overview of the steps in an
administrative protest and then well go to the topics in the
outline.
21
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22
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--------------------------------------------------------------(b) In
case
of
inaction
by
Commissioner within 180 days
from submission of documents
--------------------------------------------------------------Q: What happens if the protest is not acted
upon within 180 days by the CIR?
1. File a petition for review with the CTA within
30 days after the expiration of the 180 day
period
2. Await the final decision of the CIR on the
disputed assessment and appeal such final
decision to the CTA within 30 days after
receipt of a copy of such decision (see CIR
V. FIRST EXPRESS PAWNSHOP COMPANY, INC
[JUNE 16, 2009]; RCBC V. CA [APRIL 24,
2007])
Director of the BIR for the reason that the case was not
elevated to the Court of Tax Appeals as mandated by the
provisions of the last paragraph of Section 228 of the Tax
Code. By virtue thereof, the said assessment notice has
become final, executor and demandable.
HELD: The Supreme Court held that it is not correct to say
that the assessment became final and executory by the
sole reason that the taxpayer failed to appeal the inaction
of the Commissioner within 30 days after the 180-day
reglementary period because in effect, it limited the
remedy of the taxpayer under Section 228 of the NIRC to
just one, that is - to appeal the inaction of the
Commissioner on its protested assessment after the lapse
of the 180-day period.
23
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b) Collection
(i) Requisites
(ii) Prescriptive periods
--------------------------------------------------------------Read Section 203, 222-223, Tax Code
Q: What are the requisites for the collection
of taxes?
We must make a distinction between delinquency
tax and deficiency tax.
1. Delinquency tax can be immediately
collected administratively through issuance
of a warrant of distraint or levy and/or
through judicial action (see Section 205,
Tax Code)
2. Deficiency tax can be collected also
through administrative and/or judicial
remedies but has to go through the process
of filing the protest by the taxpayer against
the assessment and the denial of such
protest by the CIR.
24
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judicial
only.
proceedings
25
the
25
In the said case, the Supreme Court noted that Section 332 (no
w Section 222) does not apply in the collection of income taxes by
summary proceedings. But when the collection of income taxes is
to be effected by court action, the provision is controlling.
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b) Judicial Remedies
(i) Civil and criminal actions
(a) Suit to recover tax based on
false and fraudulent returns
--------------------------------------------------------------Read Section 205, Tax Code
Q: What are the remedies of the government
for the collection of taxes?
1. Administrative Remedies
a. Tax lien
b. Distraint of personal property, or levy of real
property or garnishment of bank deposits
c. Sale of property
d. Forfeiture
e. Compromise and abatement
f. Penalties and fines;
g. Suspension of business operations
2. Judicial Remedies
a. Civil action
b. Criminal action
be handled by the
Regional Evaluation
Board or the National
Evaluation Board on a
case-to-case basis
5. Cases which become
final and executory
after final judgment of
a
court
where
compromise
is
requested on the
ground of financial
incapacity
of
the
taxpayer
1. Delinquent accounts
2. Cases
under
administrative protest
after issuance of the
FAN to the taxpayer
which
are
still
pending in the RO,
RDO, Legal Service,
Large
Taxpayer
Service,
Collection
Service, Enforcement
Service and other
officers
of
the
National Office
3. Civil tax cases being
disputed before the
courts
4. Collection cases filed
in courts
5. Criminal
violations
other
than
those
already filed in court
or those involving
criminal tax fraud
Not
subject
compromise
to
--------------------------------------------------------------(a) Abatement
--------------------------------------------------------------Q: What is abatement?
An abatement is a diminution or decrease in the
amount of tax imposed such that to abate is to nullify
or reduce in value or amount.
(a) Remedy
of
enforcement
of
forfeitures
(2) Action to contest forfeiture of
chattel
(b) Resale of real estate taken for
taxes
(c) When property to be sold or
destroyed
(d) Disposition of funds recovered in
legal proceedings or obtained
from forfeiture
(xi) Further distraint or levy
--------------------------------------------------------------Q: What are the requisites for a valid
distraint and levy?
1. The taxpayer must be delinquent
2. There must be a subsequent demand
for its payment
3. The taxpayer must fail to pay the
delinquent tax at the time required
4. The period within which to collect the tax
has not yet prescribed
26
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1.
More than
million
Php
2.
Commissioner
seizes
sufficient
personal property to
satisfy
the
tax,
charge & expenses
of seizure (Section
207 (A), Tax Code)
3.
4.
5.
6.
2.
RDO
seizes
sufficient personal
property to satisfy
the tax, charges &
expenses of seizure
(Sec. 207 (A), Tax
Code)
7. Commissioner may
purchase property for
the
National
Government (Section
212, Tax Code)
8. Property may be
resold and the net
proceeds shall be
remitted
to
the
National Treasury as
internal
revenue.
(Section 212, Tax
Code)
not
his
the
on
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7. Excess of proceeds
of the sale over
claim and cost of
sale shall be turned
over to the owner
(Section 213, Tax
Code)
8. Within 5 days after
the sale, levying
officer shall enter
return
of
the
proceedings
upon
the records of the
RCO, RDO and
RRD (Section 213,
Tax Code)
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--------------------------------------------------------------(iv)
Statutory offenses and penalties
--------------------------------------------------------------Note: I already discussed civil penalties or surcharges and
interests in Assessment. As to statutory offenses, I will
include them in the discussion of criminal action.
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crimes
Criminal Actions
Q: Name the most common
punishable under the Tax Code?
Read Section 254-255, Tax Code
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27
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the
the
not
the
The
offender
offered
to
compromise
No revenue, surcharges or fees
were actually recovered
The information refers to case
Entitlement
to
Informers Reward
Yes
No
No
--------------------------------------------------------------b) Refund
(i) Grounds and Requisites for refund
(ii) Requirements for refund as laid down
by cases
(a) Necessity of written claim for
refund
(b) Claim containing a categorical
demand for reimbursement
(c) Filing of administrative claim for
refund and the suit/proceeding
before the CTA within 2 years
from date of payment regardless
of any supervening cause
(iii) Legal basis of tax refunds
(iv) Statutory basis for tax refund under
the Tax Code
(a) Scope of claims for refund
(b) Necessity of proof for claim or
refund
(c) Nature of erroneously paid
tax/illegally assessed collected
(d) Tax refund vis--vis Tax Credit
(e) Essential requisites for claim of
refund
(v) Who may claim/apply for tax
refund/tax credit
(a) Taxpayer/withholding agents of
non-resident foreign corporations
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(4) For actions for refund of corporate income tax, the twoyear prescriptive period is counted from the time of actual
filing of the Final Adjustment Return or Annual Income Tax
Return not on the date when the taxes were paid on
quarterly basis. (see CIR V. CA [JANUARY 21, 1999]). It is at
this point that it can already be determined whether there
has been an overpayment of the taxpayer. (see CIR V.
PHILAMLIFE [MAY 29, 1995]).
OF
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(BANCO
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Section 112(c)
Recovery of excess or
unutilized input tax
1. Payment period
begins on the date of
payment of tax or
penalties regardless
of any supervening
cause
2. Administrative
claim within 2 years
from payment filed
with the CIR
3. Submission
of
additional
and
relevant
support
documents within
60 days from filing of
claim
4. Appeal
to
CTA
Division within 30
days from receipt of
notice of denial or
from inaction of the
CIR counted from
submission
of
documents. Appeal
should
be
made
within the 2 years
prescriptive
period.
8. Administrative
claim
within
2
years counted
from the close of the
taxable quarter when
the relevant sales
were made
9. Submission
of
additional
and
relevant
support
documents within
60 days from filing of
claim
10. Appeal
to
CTA
Division within 30
days from receipt of
notice of denial or
from lapse of 120
days
of
inaction
counted
from
submission
of
documents.
The
appeal should NOT
be made within the
2-year prescriptive
period.
Otherwise,
Motion
for
Reconsideration
or
New Trial to CTA
Division within 15
days from receipt of
decision.
5. Appeal to CTA En
Banc within 15
days from receipt of
resolution.
6. Appeal to the SC
within 15 days from
receipt of resolution
under Rule 45
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---------------------------------------------------------------
To delegate power
Read Section 7, Tax Code
Q: What powers of the CIR are nondelegable?
1. To recommend the promulgation of rules
and regulations
2. Issuance of first impression rulings
3. Compromise or abatement if the amount is
over P500,000
4. Assign officers in charge of excisable
articles
Revenue
Memorandum
Orders (RMOs)
Revenue
Memorandum
Rulings (RMRs)
Revenue
Memorandum
Circular (RMCs)
Revenue Bulletins
(RB)
BIR Rulings
interpretations
of
the
Commissioner of
Internal
Revenue with respect to the
provisions of the Tax Code
and other tax laws, as applied
to a specific set of facts, with
or
without
established
precedents, and which the
Commissioner may issue from
time to time for the purpose of
providing taxpayers guidance
on the tax consequences in
specific
situations.
BIR
Rulings, therefore, cannot
contravene
duly
issued
RMRs; otherwise, the Rulings
are null and void ab initio.
are issuances that publish
pertinent
and
applicable
portions,
as
well
as
amplifications, of laws, rules,
regulations and precedents
issued by the BIR and other
agencies/offices.
refer to periodic issuances,
notices
and
official
announcements
of
the
Commissioner of
Internal
Revenue that consolidate the
Bureau of Internal Revenues
positions of the Tax Code,
relevant tax laws and other
issuances for the guidance of
the public.
are official position of the
Bureau to Queries raised by
taxpayers
and
other
stakeholders
relative
to
clarification and interpretation
of tax laws.
are issued by the BIR
International
Tax
Affairs
Division to rule on certain
issues
relating
to
interpretations of international
tax treaty provision under
which certain taxpayers or
transactions can avail of tax
exemptions or preferential tax
rates.
Q: Is publication/posting of an ordinance
fixing the assessment levels for different
classes of real property in an LGU
necessary?
Yes. In FIGUERRES V. CA [M ARCH 25, 1999], the
Supreme Court held that the publication/posting
requirement under Section 188 of the LGC must be
complied with in case of an ordinance imposing real
property taxes, as well as an ordinance fixing the
assessment levels for different classes of real
Barangays
Professional Tax
Q: What is the situs of professional tax?
Professional tax is payable in the province where the
taxpayer practices his profession or where the
principal office is located in case he practices his
profession in several places.
Note: (1) The taxpayer has the option. Such person who
has paid the corresponding professional tax shall be
entitled to practice his profession in any part of the
Philippines without being subjected to any national or local
tax, license or fee for the practice of such profession (see
Section 139, LGC)
(2) Professional tax may be imposed by a province or city
but not by a municipality or barangay
(3) Professionals exclusively employed in government
shall be exempt from payment
Amusement Tax
Q: Is the amusement tax on admission
tickets to PBA games a national or local
tax?
It is a national tax. In PBA v CA [AUGUST 8, 2000],
the Supreme Court held that it was the National
Government which could collect amusement taxes
from the PBA. While Section 13 of the Local Tax
Code mentions other places of amusement,
professional basketball games are definitely not
within its scope under the principle of ejusdem
generis.
28
7. Peddlers
8. Other business not specified
Note: Those already subject to tax under (1) to (7) can no
longer be subject to tax under (8) otherwise it will be
deemed as double taxation. (see City of Manila v. CocoCola Bottlers [August 4, 2009])
A corporation with no business operation, and is merely an
investor in another corporation, is not liable for local
business tax. ORLEYTE COMPANY (PHILIPPINE BRANCH) VS.
CITY OF MAKATI AND DULCE P. CRUZ, IN HER CAPACITY AS
TREASURER OF MAKATI, CTA AC NO. 80, NOVEMBER 14,
2012
The operator of the North Expressway falls within the
classification of a contractor subject to local business tax
based on its gross receipts. MANILA NORTH TOLLWAYS
CORPORATION VS. THE MUNICIPALITY OF GUIGUINTO BULACAN,
CTA AC NO. 82, DECEMBER 03, 2012
Q: Can an
corporation?
LGU
tax
condominium
b.
ii.
29
Recorded at
Allocation
Branch/sales
office
Principal office
None
None
Section 150(b)
The following sales allocation shall apply to
manufacturers with factories, plants and plantations,
etc.:
If the plantation and factory are located in the same
place
1. 30% of all sales recorded in the principal
office shall be taxable by the city or
municipality where principal office is located
2. 70%
shall be taxable by the city or
municipality where
If the plantation and factory are not located in the
same place, the 70% above shall be divided as
follows
1. 60% to the city or municipality where the
factory is located
2. 40% to the city or municipality where the
plantation is located
Plantation
&
factory in same
location
Yes
No
Allocation
principal
30%
30%
to
Allocation
factory, etc
to
70%
The 70% above
shall be divided:
If two or more
factories, etc =
70% is prorated
DATED M ARCH
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.
n.
o.
DST
Estate and Donors taxes
Customs Duties
Taxes on goods passing through the LGU
Taxes on agricultural and aquatic products
sold by marginal farmers and fisherman
Taxes on BOI-registered enterprises
Excise taxes on articles under the Tax Code
and taxes on petroleum products
Percentage tax and VAT
Taxes on gross receipts of transportation
contractors
Taxes on premium paid by way of
reinsurance
Taxes on registration of motor vehicles
Taxes on Philippine products actually
exported
Taxes on Countryside and Barangay
Business Enterprises and cooperatives
Taxes and fees on the National Government
Section 133(e)
Q: Is a municipal ordinance imposing fees
on goods (corn) that pass through a
municipalitys territory valid?
No. As held in PALMA DEVELOPMENT CORP V.
ZAMBOANGA DEL SUR [OCTOBER 16, 2003], LGUs,
through their Sanggunian, may impose taxes for the
use of any public road such as a service fee
imposed on vehicles using municipal roads to a
wharf. However, Section 133(e) prohibits the
imposition in the guise of wharfage, of fees as well
as other taxes or charges in any form whatsoever on
goods or merchandise. In this case, the LGU cannot
tax the goods even in the guise of police
surveillance fees.
Section 133(j)
Q: What is the rationale for the exemption of
common carriers from local taxes?
As held in FIRST PHILIPPINE INDUSTRIAL CORP V. CA
[DECEMBER 29, 1998], the legislative intent in
excluding from the taxing power of the LGU the
imposition of business tax against common carriers
is to prevent a duplication of the so-called common
carriers tax.
Section 133(h)
Q: The Province of Bulacan passed an
ordinance imposing tax on minerals
extracted from public lands but went on to
collect tax on minerals extracted from
private lands. Since the LGC only provides
for tax on public lands, is the action of the
Province of Bulacan valid?
30
Section 186
Q: Are broadcasting and telecommunication
companies liable to pay local transfer
taxes?
No. As held in both SMART COMMUNICATIONS V. THE
CITY OF DAVAO [SEPTEMBER 16, 2008] and QUEZON
CITY V. ABS-CBN BROADCASTING CORPORATION
[OCTOBER 6, 2008], these franchise holders are now
31
subject to VAT.
31
The Supreme Court ruled in both cases that the in lieu of all
taxes clause in their franchises applies only to national internal
revenue taxes and not to local taxes. As such, they would have
been liable to pay local transfer taxes. However, with the advent
of the VAT law, such franchise holders are instead liable to pay
VAT.
nature
of
local
2.
3.
4.
5.
6.
7.
If disposed
If not disposed
8. Officer
sells
the
goods
at
public
auction to the highest
bidder for cash. w/in
5 days, the local
treasurer shall report
sale to the local chief
executive concerned
(Section 175, LGC)
9. Excess of proceeds
over charges shall be
returned to the owner
of the property sold.
8. It
shall
be
considered as sold
to the LGU for the
amount
of
the
assessment made
by the Committee
on Appraisal and to
the extent of the
same amount, the
tax
delinquencies
shall be cancelled.
(Section 175, LGC)
If there is a bidder
If there is no bidder OR
the highest bid is
insufficient to cover
the taxes and other
charges
7. LT shall purchase
the
property
in
behalf of the LGU
(Section 181, LGC)
sanggunian (Section
178, LGC)
8. LT shall deliver to
purchaser certificate
of sale
9. Proceeds of sale in
excess of delinquent
tax,
interest
&
expenses of sale
remitted to the owner
(Section 178, LGC)
10. Within 1 year from
sale,
owner
may
redeem
upon
payment of the 1.
delinquent tax, 2.
interest
due,
3.
expenses of sale
(from
date
of
delinquency to date
of sale) and 4. addl
interest of 2% per
month
on
the
purchase price from
date of sale to date of
redemption.
Delinquent
owner
retains
possession
and right to the fruits
(Section 179, LGC)
11. LT returns to the
purchaser/bidder the
price
paid
plus
interest of 2% per
month (Section 179,
LGC)
12. If property is not
redeemed, the local
treasurer
shall
execute a deed of
conveyance to the
purchaser
(Section
180, LGC)
8. Registrar of Deeds
shall transfer the
title of the forfeited
property to the LGU
without need of a
court order (Section
181, LGC)
9. Within 1 year from
forfeiture, the owner,
may redeem the
property by paying
to the local treasurer
the full amount of
the tax and the
related interest and
the costs of sale
otherwise
the
ownership shall be
vested on the local
government
unit
concerned. (Section
181, LGC)
10. Sanggunian
concerned may, by
ordinance sell and
dispose of the real
property
acquired
under the preceding
section at public
auction.
(Section
182, LGC)
and other charges but for RPT, the LGU may purchase
for only one reason there is no bidder! Its that simple.
So memorize the procedure and just take note of these
two distinctions between levying for local taxes and
levying for RPT.
Note: (1) In both cases, levy may be repeated until the full
amount due, including all expenses, is collected.
(2) This is important! To make our lives easier, I want you
to note that the procedure for levying real properties to
satisfy local taxes is.wait for it.the SAME as the levy
procedure for satisfying RPT. Wait hindi pa tapos! Its the
same EXCEPT for two things: (1) Publication is once a
week for 3 weeks for local taxes while it is once a week for
2 weeks for RPT and (2) for local taxes, the LGU may
purchase levied property for two reasons there is no
bidder OR the highest bid is insufficient to cover the taxes
Q: Define machinery.
Machinery
embraces
machines,
equipment,
mechanical contrivances, instruments, appliances or
apparatus which may or may not be attached,
permanently or temporarily, to the real property. It
includes the physical facilities for production, the
installations and appurtenant service facilities, those
which are mobile, self-powered or self-propelled,
and those not permanently attached to the real
property which are actually, directly, and exclusively
used to meet the needs of the particular industry,
business or activity and which by their very nature
and purpose are designed for, or necessary to its
manufacturing,
mining,
logging,
commercial,
industrial or agricultural purposes (see Section
199(o), LGC)
Q: Define improvement.
Improvement is a valuable addition to the property or
an amelioration in its condition amounting to more
than a repair or replacement of parts. (see Section
199(m), LGC)
Force majeure
Civil disturbance
Natural calamity
Any cause which physically or legally
prevents the owner of the property or person
having legal interest therein from improving,
utilizing, or cultivating the same (see
Section 238, LGC)
Section 234(a)
Q: Is the Metro Manila International Airport
Authority (MMIA) a GOCC which will now be
considered liable for RPT under the LGC?
32
33
Section 234(b)
Note: Remember our discussions in General Principles of
Taxation
Section 234(c)
Q: What are the requisites to claim
exemption from RPT for machineries and
equipment used by LWDs and GOCCs?
1. The machineries and equipment are
actually, directly, and exclusively used by
the LWDs and GOCCs
Section 234(e)
Q: ABC Mining operates a Siltation Dam and
Decant System. The Provincial Assessor of
Marinduque assessed the same for RPT. Is
the subject property exempt from RPT?
The answer would be yes in light of SECTION 91 OF
RA 7942 IN RELATION TO SECTION 3(AM) which
includes infrastructure in the definition of pollution
control devices exempt from RPT.
Nonetheless, it must be noted that in PROVINCIAL
34
ASSESSOR OF M ARINDUQUE V. CA [APRIL 30, 2009],
34
1991 LGC. All references to RA No. 7942, which came into effect
only on 14 April 1995, were all out of place.
Agricultural
Land
Commercial
Land
Industrial Land
Mineral Lands
improvements
4.
5.
6.
7.
8.
9.
Residential
Agricultural
Commercial
Industrial
Mineral
Special
Residential
Land
Is land principally
habitation
devoted
to
agricultural
products.
The
Provincial
assessor reclassified the property as
commercial for tax purposes. Mr. and Ms. X
appealed to the LBAA and argued that the
tax declaration classifying their property as
residential is binding. Is the contention of
the spouses correct?
No. The law focuses on the actual use of the
property for classification, valuation and assessment
purposes regardless of ownership. Section 217 of
the LGC provides that real property shall be
classified, valued, and assessed on the basis of its
actual use regardless of where located, whoever
owns it, and whoever uses it.
Note: This is not included in the Syllabus but just note that
the following are the instances where he assessor shall
make a valuation of real property: (1) the real property is
declared and listed for taxation purposes for the first time;
(2) there is an ongoing general revision of property
of
remedies
are
concurrent
and
2.
3.
4.
5.
6.
If there is a bidder
9. Bidder pays and
30 days after the
sale, the LT shall
report the sale to
the sanggunian
10. LT shall deliver
to
purchaser
certificate of sale
11. Proceeds of sale
in excess of
delinquent tax,
interest
&
expenses of sale
remitted to the
owner (Section
260, LGC)
12. Within 1 year
from sale, owner
may
redeem
upon payment of
the 1. delinquent
tax, 2. interest
due,
3.
expenses of sale
(from date of
delinquency to
date of sale) and
additional
interest of 2%
per month on
the
purchase
price from date
of sale to date of
redemption.
Delinquent
If there is no bidder
9. LT shall purchase
the
property
in
behalf of the LGU
(Section 263, LGC)
Note: in cases of levy for
unpaid local taxes, LT may
purchase if there is no
bidder or if the highest bid
is insufficient (Section 181,
LGC)
owner
retains
possession and
right to the fruits
(Section
261,
LGC)
13. LT returns to the
purchaser/bidder
the price paid
plus interest of
2% per month
(Section
261,
LGC)
14. If property is not
redeemed, the
local
treasurer
shall execute a
deed
of
conveyance to
the
purchaser
(Section
262,
LGC)
Note: (1) In both cases, levy may be repeated until the full
amount due, including all expenses, is collected. (Section
265, LGC)
(2) Again recall what I said in the levying procedure for
local taxes. The procedure for levying real properties to
satisfy local taxes is the SAME as the levy procedure for
satisfying RPT EXCEPT for two things: (1) Publication is
once a week for 3 weeks for local taxes while it is once a
week for 2 weeks for RPT and (2) for local taxes, the LGU
may purchase levied property for two reasons there is no
bidder OR the highest bid is insufficient to cover the taxes
and other charges but for RPT, the LGU may purchase
for only one reason there is no bidder! Its that simple.
So memorize the procedure and just take note of these
two distinctions between levying for local taxes and
levying for RPT.
35
36
Q: Define tariff.
Tariff is the list or schedule of articles on which a
duty is imposed upon the importation into the
country with the rates at which they are severally
taxed. Derivatively, it is the system of imposing
duties or taxes on the importation of foreign
merchandise.
the
rule
on
government
she
was
3. Conditionally-free importation
--------------------------------------------------------------Q: What are the classes of importation
under the TCC?
1. Dutiable Importation (Section 100, TCC)
2. Prohibited Importations (Section 101 and
1207, TCC)
3. Conditionally-Free Importations (Section
105, TCC)
4. Drawbacks (Section 106, TCC)
37
38
38
2. Special duties
a) Dumping duties
b) Countervailing duties
c) Marking duties
d) Retaliatory/discriminatory duties
e)Safeguard duties
---------------------------------------------------------------
1.
2.
3.
4.
5.
39
ii.
iii.
--------------------------------------------------------------I. Remedies
1. Government
a) Administrative/extrajudicial
(i) Search, seizure, forfeiture, arrest
b) Judicial
(i) Rules on appeal including jurisdiction
PIERRE MARTIN DE LEON REYES
Ateneo Law Batch 2013
2. Taxpayer
a) Protest
b) Abandonment
c) Abatement and Refund
----------------------------------------------------------------------------------------------------------------------------1. Government
a) Administrative/extrajudicial
(i) Search, seizure, forfeiture, arrest
b) Judicial
(i) Rules on appeal including jurisdiction
--------------------------------------------------------------Q: What are
government?
the
remedies
of
the
a. Administrative/Extrajudicial Remedies
b. Judicial Remedies
--------------------------------------------------------------a) Administrative/extrajudicial
(i) Search, seizure, forfeiture, arrest
--------------------------------------------------------------Q:
What
are the extrajudicial
(or
administrative remedies) available to the
government?
1. Enforcement of tax lien (Section 1204 and
Section 1508, TCC)
2. Seizure and forfeiture (Section 2201-2212,
2301-2317, 2530-2536, TCC)
Page 145 of 164
Last Updated: 30 July 2013 (v3)
Q: Are common
forfeiture?
carriers
subject
to
--------------------------------------------------------------b) Judicial
(i) Rules on appeal including jurisdiction
--------------------------------------------------------------Read Section 2401, TCC
Q: What are the judicial remedies that may
be availed of by the Government?
a. Civil Action
b. Criminal Action
Note: Such actions shall be brought in the name of the
Government of the Philippines and shall be conducted by
customs officers but no action shall be filed in court
without the approval of the CoC.
--------------------------------------------------------------2. Taxpayer
a) Protest
b) Abandonment
c) Abatement and Refund
----------------------------------------------------------------------------------------------------------------------------a) Protest
--------------------------------------------------------------Read Section 2308 to 2315, TCC
Q: What is an administrative tax protest?
A tax protest case, under the TCC, involves a
protest of the liquidation of import entries. In other
words, it is a protest which questions the legality or
correctness of assessed customs duties.
Q21.1. Discuss
the
procedure
for
customs protest from issuance of
warrant of detention to appeal to
the Supreme Court.
1. Collector issues warrant for detention of
property (if owner or importer desires to
secure release of property for legitimate use,
Collector may surrender subject property
upon filing of sufficient bond)
2. Collector immediately reports seizure to
COC and Chairman of COA
If the government is
aggrieved by the
decision of the
Collector:
1. Protest
to
the
Collector within 15
days
2. If aggrieved by the
decision or action of
the collector upon
protest, appeal to the
Commissioner within
15
days
after
notification in writing
by the Collector of his
action or decision
3. Appeal
to
CTA
Division within 30
days from notice
4. Appeal to CTA En
Banc
5. Appeal to SC by
certiorari within 15
days
1. Automatic review by
COC
2. Automatic review by
DOF Secretary
3. If owner or importer
is aggrieved by
decision of COC or
DOF Secretary
4. Appeal to CTA
Division within 30
days from notice
5. Appeal to CTA En
Banc
6. Appeal to SC by
certiorari within 15
days
--------------------------------------------------------------b) Abandonment
--------------------------------------------------------------Read Sections 1801-1802, TCC
Q: What is abandonment?
Abandonment is the renunciation by an importer of
all his interests and property rights in imported
articles (see Section 1801, TCC)
iv.
ii.
ii.
ii.
VS. COMMISSIONER
INTERNAL REVENUE [DECEMBER 9, 2005], the
Supreme Court reiterated that a demand letter for
payment of delinquent taxes may be considered a
decision on a disputed or protested assessment.
The determination on whether or not a demand letter
is final is conditioned upon the language used or the
tenor of the letter being sent to the taxpayer. In this
case, the letter of demand dated January 24, 1991,
unquestionably constitutes the final action taken by
the BIR on petitioners request for reconsideration
when it reiterated the tax deficiency assessments
due
from
petitioner,
and
requested
its
payment. Failure to do so would result in the
issuance of a warrant of distraint and levy to
OF
40
i.
ii.
CBAA
RTCs (in the exercise of their appellate
jurisdiction)
Period to file: 30 days
Definition
Plaintiff
Taxpayers
Suit
Citizens Suit
---------------------------------------------------------------
Q:
How
is
ripeness
for
judicial
determination applied in a taxpayers suit?