ATENEO LAW SCHOOL CENTRAL BAR OPERATIONS 2010 ATEREG CENTRAL BAR OPERATIONS eo a7 .V GEN eeaal eA ats oe AULT ADVISER eens ATTY. CABREROS & ATTY. MONTERO ees SESE CTE AD eens KATH MATIBAG & CARL SARANILLO ANNA MELISSA MARK JOREL ERICA CHRISTEL ABARQUEZ CALIDA PATINOog TAXATION LAW REVIEWER eer eet 1) OPERATIONS 2010 ‘able of Contents 1. Basie Principles, 1, National Internal Revenue Code, Title |. Organization and Function of the BIR, Title Il. Tax on Income, Title Il, Estate Tax and Donor's TAX... Estate Tax, Donor’s Tax,, Title 1V. Value-Added Tax, Title V: Percentage Taxes, Title VI. Excise Taxes, Title Vil. Documentary Stamp Ta Title Vill. Remedies... Remedies Available to the Government, Remedies Available to the Taxpayer Title IX. Compliance Requirements... Title X. Statutory Offenses and Penalties, Mm. Local Government Code... General Provisions, Specific Provision on the Taxing and Other Revenue Raising Powers of the LGU, Collection of Taxes, ‘Tax Remedies Under the Local Government Code,, ‘Tax Remedies of the Government, Tax Remedies of the Taxpayer, Real Property Taxation, 103 115 7G TAXATION LAW REVIEWER TENEO Imposition of Tax,, CENTRAL BAR OPERATIONS 2010 ‘Tax Remedies in Real Property Taxation, ‘Tax Remedies of the Taxpayer, \V. Tariff and Customs Cod Imposition of Ta ‘Tax Remedies Under the Tariff and Customs Code, 128 128 ‘Tax Remedies of the Government ‘Tax Remedies of the Taxpayer, 134 VI. Court of Tax Appeals, ‘Annex {. Procedure to Protest Customs Collector Assessment... wu 136 I. Tax Rates for Individuals, 140 It, Tax Rates for Corporation: IV. Remedies of the Government and Taxpayer Under NIRC, TCC and LGC...‘TAXATION LAW REVIEWER ATENEO El CO TAXATION — power inherent in every sovereign State to impose a charge or burden upon persons, properties, or rights to raise revenues for the use and support of the government to enable it to discharge its appropriate functions STAGES OF TAXATION: (LAP) 1 Lew 2. Assessment 3. Payment! BASIC PRINCIPLES OF A SOUND TAX SYSTEM (FAT): 1. Fiscal Adequscy- the sources of tax reveive should coincide with and approximate the needs of the government enpendrures 2. Administrative Feaeblty-the taxsystem shouldbe capable of being properly an ecient atiminitered by the goverament and enforced with the least inconvenience tothe taxpayer 3. Theoretical lustice the tox system should be firth. average taxpayer and based upon the ably to pay ‘BASIC USE FOR TAXES (Phil Guaranty vs. Cf 1-22074 April 30, 1965) Itisa necessary burden + To preserve the State's soverelgnty and + Serve as a means to give citizenry: © An army to resist an aggressfon, © Anavy to defend its shores from invasia,. © Acorps of civil servants to serve, © Public improvements designed for the enjoyment of the citizenry within the State's territory and Facilities and protection which a government is supposed to provide INHERENT LIMITATIONS (SPING) 2) Situs or territoriality of taxation © Power to taxis limited to the territorial jurisdiction of the taxing state. © EXCEPT: Where privity of relationship exists, the State can exercise its taxing territory. Sen Residence, Domicile, Gtizenship Leéation of the prone Person eS peed] ee ee Coa ‘Tangible Personal | Phislcal location although the Property owner resides in another urtsdeton “Tatangible Personal |< Domicile of the owner (mabifa Property. Sequitur personam) Tacome Citizenship | Residence eases | Strandier of property aoe se Residence os Location of Property. ‘Where the act/business/occupation is performed/exercised 2) Must be for a Bublie purpose “Test whether the proceeds will be used for something, wie ithe duty ofthe State to provide. “The pile purpose ofthe tax aw must exist atthe time of ts enactment. (Pascual vs. Secretary of Public Works, G.R. No. L-10405, 29 December 1960) Legislature is not required to adopt a policy of “al ‘or none” forthe Congress has the power to select the object of taxation. (Lute vs. Araneta, GA. No.l 7859; 22 December 1955) A special benefit to specific individual does not lininish the nature of tax being for public purpose as tong as Its inidental 3} "International eomity Property of a foreign State of government may not be taxed by another 4) Non-delegabiity of te taxing power Contemplates the power to determine kind, object, extent; amount, coverage, and situs of tax; Distinguish from power to assess and collect Exemptions: unless expressly authorized by the Constitution such as: (© Presidential taxing powers (Sec. 29 (2), Art. VI of the Constitution); (© Local governments 5) Exemptions of Government agencies Taking money from one pocket to the other Applies only to entities exercising sovereign functions (acta jure imperil) However, it can tax itself if there is statutory authority todo so and no express provision against such act Faculty Adviser: Atty, Marissa Cabrero, Atty. Michae) Dana Monterar Head: Kathrina Matibag Cari Mariou Saran, Understudies: Justinne Dizon, Allan Carla Soler, Kastinne Venzuela—TAXATION LAW REVIEWER CONSTITUTIONAL LIMITATIONS 1) Due process (Sec. 1, Art. Il) Shouldnotbe harsh, | No arbitrariness in assessment oppressive, or ‘and callection confiscatory (reasonableness) By authority of valid law | Right to notice andhearing. 4 ‘Must be for a public purpose imposed within ferritoral jurisdiction 2) 3) 4 5) Itcan also be invoked by the government. (Province of ‘Abra vs. Hernando, G.R. No. -49336 August 31;:1881) Equal protection é + Allpersons subject to legstation Shall be treated alike, under ike ciccurnstancesand conditions bath [a privileges conferred and liabilities imposed: (Sison, 17. vs, Ancheta, 6.R. No, -59431, 25.ly-1984) © + No violation of equal protection when theres proper” tlassifcation made; classification to valid must: © Reston substantial dstineions © Be germane to the purpose of thelaw © Not be limited to existing cncitions onlyjand © Apply equally toall members ofthe same class ‘Non-impairment clause (Sec. 10, Art. tl) ‘+ Applies only when government is party to the ‘contract granting exemption © EXCEPT: Franchise tax-exemption > The Constitution provides that franchise is subject to ‘amendment, alteration, or repeal by Congress. Must be uniform and equitable (Sec. 28 (1), Art VI) ‘+ Uniform: al articles or properties of the same class taxed at same rate + Equity: apportionment must be more or less just in the light of taxpayer's ability to shoulder tax burden. ‘* The equal protection clouse refers more to ike treatmentin lke circumstances +The uniformity and equity clause refers to the proper relative treatment for tax purposes of persons in unlike circumstances 'Non-imprisonment for non-payment of poll tax (See. 20, Act tp CENTRAL BAR OPERATIONS 2010 6 7 8) 9) ‘© Cant be made to pay fines and penalties for non payment. ‘+ Taxpayer may be imprisoned for non-payment of other kinds of taxes where the law so expressly provides. Congress shall evolve a progressive system of taxation (Sec. 28 (1), Art Vi) © Progressive system of taxation ~ the tax laws shall sive emphasis on direct rather than indirect taxes or ‘on the ability-to-pay principle taxation (Tolentino vs. Secretary of Finance, G.R. No. 115455 October 30, 4995) © Constitution does not prohibit regressive taxes; this 's a directive upon Congress, not a justiciable right. All appropriation, revenue or tariff bills shall originate exclusively in the House of Representatives, but the ‘Senate may propose or concur with amendments (Sec, “26 Qh arta) ‘Als the bil, not the law, that must originate from ‘House; bill may undergo extensive changes in senate '* Rationale: members of House are more sensitive to local ieeds. Freedom of religion (Sec. 5, Art It) + The constitutional guaranty ofthe free exercise and enjoyment of religious profession and worship arries with it the right to disseminate religious information. (American Bible Society vs. City of Manila, 6.8. No, -9637, 30 April 1957), © Activities simply and purely for propagation of falth are exempt ‘+ Taxis unconstitutional iit operates asa prior restraint on exercise of religion or favors a certain religion (non-establishment of religion) + Income of religious organizations from any activity conducted for profit or from any of their property, real or personal, regardless of disposition of such, income, Is taxable Freedom of press/expression (Sec. 4, Art. Il of the Constitution) ‘Tax that operates asa prior restraint is invalid, © If fee is only for purpose of defraying cost of registration and not for exercise of privilege, no Violation, —Foculty Adviser: Atty. Marissa Cabreros, Atty. Michael Oana Montero; Head: Kathrina Matibag, Carl Marou Saran; Understudies:iutinne Dizon, allan Carlo Soller, istine Venaucla—TAXATION LAW REVIEWER val Lan) Oper 410) Charitable institutions, churches, and parsonages or convents appurtenant thereto, mosques and non-profit cemeteries and all lands, buildings and improverents \CTUALLY, DIRECTLY andl EXCLUSIVELY USED for charitable, religious and educational purposes shall be exempt from taxation (Sec. 28 (3), Art. Viof the Constitution) * Pertains only to real estate tax Test of exemption: actual use of the property, not ownership 11) Tex exemption ofall revenues and assets of non-stock, non-profit educational institutions used ACTUALLY. DIRECTLY AND EXCLUSIVELY for educational purposes (Sec. 4(384), Art. XV) + Exemption covers income, real estate, donor's tax, and customs duties (distinguish feom the previous ‘which pertains only to real estate tax). ‘+ Income exempt provided its used for maintenance ‘or improvement of institution (indispensable or essentia}. : ‘+The exemption I strictly perso. (non- transferable) ‘+ Distinguish from tax treatmentof.. © Proprietary educational istitution’ (Preferential Taxof 10%): © Sovernment edvcational stations (exempt 2% UP) 12) Delegated authority of President to imposétaritf rates, Import and export quotas, tonnage and wharfagesiues (Gee. 28 (2), Art. VP + Delegated by Congress ‘Through a law ‘Subject to Congressional limits and restrictions Within the framework of nationat development progeam 413) Law granting tak exemption (includes amnesties, condonations and refunds) shall be passed with concurrence of Congress - majority of all members ‘voting separately (Sec. 28 (4), Art. Vi} + Relative majority (majority of quorum) i sufficient to withdraw exemption. 14) Nose of public money or property for religious purposes except if priest is assigned to armed forces, penal institutions, government orphanage or leprosarium (Sec. 29 (2), art. Vi) 15) Special purpose - special fund for said purpose, balance goes to general funds (Sec. 29 (3), Art. VI) 16) Veto power of the President - revenue/tariff bil (Sec. 27 (2) Art vi) 17) Power of review of the SC (Sec. 5{2)b, Art. VIN} 18) Power of Local Government to create its own sources and levy taxes, fees, charges (Sec. 5, Art.) 119} Just share of local government in national revenue shall be automatically released. (Sec. 6, Art. X) OTHER LIMITATIONS: 1) Tax exemption ofall revenues and assets of {2}, Proprietary or cooperative educational institutions {b|, Subject to limitations provided by law (Sec. 27(8) of 2S “the NRC) 2) Tak exemption of grants, endowments, donations or ~ eontbutlons USED ACTUALLY, DIRECTLY and EXQLUSIVELY for educational purposes (Sec. 101(A}(3) of the NIRC} © ‘LASSIFICATION OF TAXES A. Asto.subject matter of object 1) _Petsonal, pol, capitation tax— (a) Fixed amount (©) Individuals residing within specified territory (€) Without regard to their property, occupation or business ‘&x, Community Tax (Cedula) 2) Property tax~ {a} Imposed on property, real or personal (b) In proportion to its value or other reasonable ‘method of apportionment Ex. Realestate tax 3) Excise/Privilege tax (different from the excise tax in ‘Taxation Il) {a) Imposed upon performance of an act, the enjoyment of a privilege or the engaging in an. ‘occupation, profession or business Ex. Income tax, VAT, estate tax, donor's tax —Faculty Adviser: Atty, Marva Cabreros, Atty. Michael Dana Montero; Head: Kathrina Matibag, Carl Marlou Saranillo; Understudies:Justinae Dizon, Allan Caro Soller, Kristine Venzuela—sy TAXATION LAW REVIEWER we Sais YEN) Open B, Astowho bears the burden base or bracket increases ‘x Income tax, estate tax, donor's tax 4) Direct - the tax is imposed on the person who also bears the burden thereof 3) Regressive - tax rate decreases as the tax base increases Ex. Income tax, community tax, estate tax 4) Degressive - increase of rate is not proportionate to the 2) _ Indirect ~ imposed on the taxpayer who shifts the increase of tax base burden of the tax to another Ex. VAT, specific tax, percentage tax, customs duties u FROM POLICE POWER AND FROM EMINENT DOMAIN © Asto determination of amount ore 1) Specific —tax imposed and based on a physical unit of the form of a FEE) DO! measurement, as by head, number, weight, length or eas) volume Government or | Maybe granted to Ex. Tax on distilled spirits, fermented liquors, cigars =| politcal political public service 2) Ad Valorem - tax ofa fixed proportion of the"Value of property with respect to which the tax isiassessed; requires intervention of assessor. r Ex. Realestate tax, excise tax on ca, non-essential ‘goods é subdivisions companies or | promote public ‘| welfare through D. As topurpose ee fed to the cost | No limit imposed, 3}, General, fiscal or revenue -imposed for the géveral Sfrezaliean lt His amour Purpose of supporting the government» : © | issuance of should be based Ex Income tax, percentage tax license, or fon the market | surveiiance value of the 2}. Special or regulatory - imposed for a spetial purpote, to : noperiy achieve some social or economic objectives Ex, Protective tariffs or customs duties “i ‘Teeconiesportor | Nestantonthe "Tranter offahe’ sublicfunds | injurious use of | tothe property ‘As to authority imposing the tox ee 1} National - imposed by the national government cS or mepke teat ory parteuar Ex. National internal revenue taxes, custom duties Betton: prope peraes!peobernltpeosert andexcises that | andexcises that | comprehended may besubject | may be subject thereto thereto 2) Municipal or local - imposed by the municipal corporations or local governments Ex. Realestate tax, occupation tex [contracts may be. [contracts maybe —| impaired unless | impated (governments | F. As to graduation of rate (Three systems of taxation) 1} Proportional based ona fixed percentage of the pyeone. amount ofthe property, income or other basis to be ating : tered exemption; or BL | Ex, Real estate tax, VAT, percentage tax ‘involves franchise: ‘ 2) Progressive or graduated - tax rate increases as the tax Faculty Adviser: Aly, Marsa Cabreros, Atty, Michael Dana Meters; Heed: Kathrine Matibag, Cad Marlow Saran Understudies: ustinne Dizon, Alan Cara Soller, Kritine VenzueloTAXATION LAW REVIEWER es ATENE |G Patllentons ie Fe (legislative) of funds for payment of the debt. (Domingo TAX rz a vs. Garlitos, G.R. No. 1-18993, 29 June 1963) Source | Exercise of Emanate from the police 2) Taxoverpayment (8iR’s obligation to refund or set-off cece [eee Taainer th [er Me ect Ee reediation z imposed | Persons, properties, | Only on land ime [rs Distinction les in the primary purpose: Wh esa iaiC | PRESSE ¢ License fee primary purpose is to segulate and the imposed. improvement: that benefits the land ‘excess of the amount collected from the cost to carry Purpose ‘Support of Contribution to cost of _ Samrat echna = ee lane tnkess imposed on non-wefulocaatlons or businesses + Purpose of ettincton:ntatiois ang expt: apply only to one and nat othe ote fx xeon frors taxation does not include exernption frort fee): ‘Vxindof | Demand of | Demand of ownership} : demand _| sovereignty _| TAX DISTINGUISHED FROM DEBT Purpose” | suppert of "| Geliedion forthe we oF ‘government broperty Th ri ‘Amount _|'No limit ~depends Fair return of the cost source | Law; legal ol Based oncontract |” conneedofthe | ofthe property or soverament improvement Nature Paronal ‘Assignable & & ime Right to | Generally not subject to | Maybe the subject of |” TAX DISTINGUISHED FROM CUSTOMS DUTY set-off compensation/ set-off | compensation/ set-off | t 7 Efiect | Imprisonmentis No imprisonment for mus CSc senetiafor non: ior payment Coverage | More comprehensive than | Kind of tax payment Z | customs duty Persons propete | Goode Imported or Object i exported, GENERAL RULE: Taxes cannot be the subject of compensation or set-off DOCTRINE OF EQUITABLE RECOUPMENT 1) Refund of a tax ilegally or erroneously collected or Reasons: 3} Lifeblood theory overpaid by a taxpayer b) Taxes are not contractual obligation (absence of consent 2) Such tax cefund fs barred by prescription of taxpayer) 3) Tax presently being assessed against a taxpayer J Taxpayer and government are not mutual debtors and 4) May be recouped or set-off against the tax barred by creditors of each other prescription EXCEPTIONS: (This doctrine is not applicable in Philippines, ceason iF 1) Both claims already became overdue and demandable BLOOD THEORY) a5 well as fully iquidated > there must have already Faculty Adviser: Atty, Marissa Cabreros, Aty. Michael Dana Montero; Head: Kathrine Matibag, Carl Marlow Sa Understadio: tstinne Dizon, Allan Carla Soller, Krictine VenzuelaCONCEPT OF DOUBLE TAXATION Kinds of Double Taxation: A, DIRECT ~ Taxing same person, property or right twice ~ For the same purpose ~ By the same taxing authority ~ Within the same jurisdiction or taxing district ~ Within the same taxable period ~ And they must be of the same kind or character of tax 8. INDIRECT ~ Exists if any of the elements for direct double taxation is not present ‘TAX TREATY AS MODE OF EUMINATING DOUBLE TAXATION 1) EXEMPTION METHOD the income or capital which is taxable In the state of source or situs is exefnpted in the state of residence, although in some instances it may taken into account in determining the'rate of tax applicable to the tax payer's remaining income or capital (ex, Tax Spering Credit scheme) 2) CREDIT METHOD — the tax paid inthe stite of gourd is credited against the tax levied in the state of tesiderice 3) DEDUCTION METHOD — the tax paidin the stateof source is allowed as deduction front taxable income In ‘the state of residence ‘TAX AVOIDANCE VS. TAX EVASION ‘Tax Avoidance ~ tax saving device that is legally perthissible ‘Tax Evasion — connotes freud through the use of pretenses and forbidden devices to lessen or defeat taxes; must be wilful and intentional. + Tax evasion connotes the integration of three factors: (1) the end to be achieved, i, the payment of less than that known by the taxpayer tobe legally due, or the non-payment of tax when It i shown that a tax is due; {2}an accompanying state of mind which i described as being “evil” or "deliberate and not accidental"; and (3) a course of action or fllure of action which is unlawful. (Benigno vs. Toda, G.R. Nos. 7583-4 March 26, 1960) TAX EVASI PRONE OtherName | Tax Dodging Tax Minimization Means, [Use egal means _| Use legal means Penalty Punishabie by iaw | Not punishable by law ed peel toe y OPERATIONS 2010 1) General or intentional overlooking by the State of its authority to impose penalties on persons otherwise guilty of evasion or violation of a revenue or tax law 2) Partakes of an absolute forgiveness or waiver of the Government of its right to collect 3) Togive tax evaders, who wish to relent & are reform a chance to do so RULES ON TAX AMNESTY 1) Taxamnesty {a} Like tax exemption, never favored nor presumed {b)=Construed strictly against the taxpayer (must show complete tompliance with the law) 2). Government not estopped from questioning the tax liablity even iF amnesty tax payments were already received Reason: Erroneous application and enforcement ofthe law by public officers do not block subsequent correct pplication of the statute. The government is never stopped by mistakes or erors ofits agents Basis'tifeblood Theory 3) Defense of tax amnesty, like insanity, isa personat defense, Reason: Relates to the circumstances ofa particular accused and not the character of the acts charged in the information ‘TAK AMINESTY vs. TAX EXEMPTION Coverage of Immunity from | immunity trom Benefit civil criminal, | civil tabiity only administrative | (Le., excuse from liability arising | paying taxes) from non= eh payment of taxes Application Refersto past | Refers to taxable yearsor. | prospective transactions taxable years or Aratstetions “Faculty Adviser: Atty. Marissa Cabrevos, Ay. Michael Dana Montero; Head: Kathvina Motibag, Cari Marlow Saranll; Undorstudies: Justinne Dizon, Allan Carlo Soler, Kristine Venzuela—Sve None, because there was no actual taxes due as the person or transaction is protected by tax exemption Presence of Actual Revenue Loss Yes, thereis revenue loss since there was actually taxes due but collection was waived by the government ‘GLOBAL SYSTEM vs. SCHEDULAR SYSTEM OF TAXATION + In2 global or unitary system, 2 single taxis imposed on allincome recelved or earned by a person irrespective of the activities which produced the income. ‘+ Ina schedular system, income items are categorized into schedules according to types of actvty which produced ‘them. Different tax rates are applied for each types of income. ‘+ Philippine income taxation isa combinatjoa of both system but is more schedular for IndWvidval while more global for corporation. . Sess ‘Asyster which imposes a m1 personal tax upon the total | various types.of tax‘orr income ofthe taxpayer __| Income prodiing activities | Einphasiees 06 revenue and allocation aspects Most equitable i distributing tax burden, as burden ofan incividval ic closely related to his | income but rather fll resources and his abiity to | fortuitously onthe type of ay hie income \tsenver ota means for | This functioniealicn to redistributing income and | schedular system wherein wealth times of plenty orin times of need, people pay the same fixed tax on thelr income Schedviar system cannot perform these functions se of Its multiple rates, | the tax burden ofa person does not respond to his Ttserves as a supplementary devise to accomplish non- fiscal goals of the government ‘Adinistration & not quite as easy as schedular because ‘one has to consider all {income from whatever: | sources “Administration simple being confined to each transaction or activity tes ee OPERATIONS 2010 (CSSA ETERS ETS Re TITLE |. ORGANIZATION AND FUNCTION OF THE BUREAU OF INTERNAL REVENUE | ‘POWERS AND DUTIES OF THE BIR (ACEEGA) 1) Assessment and Collection of national internal revenue: {a) Taxes (b) Fees {e}_ charges 2) Enforcement ofall (a) Forfeitures (b} Fines and (c)_ Penalties connected therewith ‘Execution of all udgments decided i 8's favor by {2}, The Court of Tax Appeals (CTA) and “{B}. The ordinary courts A} Give‘effect to,and Administer the supervisory and police ‘éwirs ganferred to it by NIRC or by ather laws. (Sec. 2) ; Officials of the BIR 5-BY- One chieF= Commissioner of Internal Revenue (Commissioner) 2) * Four assistant chiefs - Deputy Commissioners (Sec. 3} *£.0. 430/{July 28, 1997) designates each of the 4 Deputy Commissioners to head the following functional groups: (a) Operations group (6) Legal Enforcement Group {o)_ information systems Group (d)_ Resource Management Group Powers of the Commissioner ‘A. Power to interpret tox law and decide tax cases (Sec 4) 1) Interpret provisions of NIRC and other tax laws subject to review by the Secretary of Finance 2) Decide: (a) Disputed assessments (b) Refunds of internal revenue taxes, fees and charges (c)_ Penalties imposed in relation thereto (6) Other matters arising from NIRC or other laws or portions thereof administered by the BIR subject to the exclusive appellate jurisdiction of the CTA ty, Marissa Cabreros, Aty. Michael Dana Montero; Head: Kathrina Matibag, Carl Marlow Saranill; Understudies Justine Dizon, Allan Carlo Seller, Kristine Vencuela—>, TAXATION LAW REVIEWER TENEO Revenue Administrative Order No. 02-01 SECTION 2. Review Power of the Secretary of Finance —»ox the Secretary of Finance shall have the power to affirm, revise, ‘modify or set aside rulings and issuances of the Bureau of the Internal Revenue concerning the Implementation and application of the provisions of the Tax Code and other tax laws. SECTION 3. Classification of BIR Rulings and Issuances Rulings of frst impression - rulings, opinions and Interpretations of the CIR with respect to the provisions of ‘the Tax Code and other tax laws without established precedent, and which are issued in response to a specific request for ruling fled by a taxpayer withthe BIR. Provided, however, that the term shall include reversal, modification ‘or revocation of any existing ruling. 2. Rulings with established precedents - mere reiteration of previous rulings, opinions end interpretations of the GR, as, delegated to duly authorized internal revenue offices (i., Deputy Commissioner, Legal and inspection, Group) that are ‘issued in response to a specific request fortuling filed by taxpayer with the B1R. 2 Revenue Memorandum Rutings (RMR rlings, options: © and interpretations of the CIR with respect to the: 6. provisions of the Tax Code and other tax aw as applied to | a specific sat of facts, with or without established”. a precedents, and which the CR may ssua ‘Gm tie to tiie for the purpose of providing taxpayers guidance onthe tax consequences in speci situations. Power to obtain information, summon, éxamine and take testimony of persons (See. 5) ss For the Commissioner to ascertain: (a) Correctness of any return or in making a return where none has been made (b) Liability of any person for any intemal revenue tax or in correcting such lability (c) Tax compliance ‘The Commissioner is authorized: 1) To Examine any relevant Book, paper, record or other data 2). Te Obtain any Information (costs, volume of production, receipts, sales, gross income, etc}, on a regular basis from: (a) Any person other than the person under investigation or (b) Any office or officer of the national/local government, government agencies and instrumentalties (Bangko Sentral, GOCCs) et be 71} OPERATIONS 2010 3) 4) 5) 6) 2) To Summon {2} The person liable for tax or required to file a return (b) Any officer or employee of such person or {6} Any person having in his possession/custady/ care 1, The books of accounts, 2. Accounting records of entries relating to the business of the person liable for tax or any ‘other person To Produce such books, pa and to give testimony To take the Testimony of the person concerned, under ‘oath as may be relevant to the inquiry Te cause revenue officers and employees to make 2 Canvass of ary revenue district or region pers, records and other data -. Nothing in Section S shall be construed as granting the Commissioner the authority to inquire into bank deposits other than as provided for under Sec. 6 (F} _gf the Code (authority to inquire into bank “depos Power to make assessments, prescribe requirements {for tax administration and enforcement (Sec. 6) “Examinatigh of returns and determination of tax due - (2) Aftera return has been filed the Commissioner or his representative may authorize |. Examination of any taxpayer; and {Assessment of the correct amount of tax; {O¥ ailure to fle a return shall not prevent the Commissioner from authoring the examination of any taxpayer; ‘Any tax or deficiency tax so assessed shall be paid upon Notice and demand from the Commissioner or his representative, Any return, statement or declaration filed in any authorized office shall not be withdrawn; but within THREE YEARS from date of filing, the same may be ‘modified, changed or amended; provided that no notice for audit or investigation of such return, has in the ‘meantime, been actually served upon the taxpayer. Fallure to submit required returns and other documents (8) fe person: i. Fails to fle a required return or report at the time prescribed or li, Willfully or otherwise files a false or fraudulent return, — Faculty Adviser: Atty. Marissa Cabreros, Atty. Michael Dana Montero; Head: Kathrine Matibag, Carl Marlou Seranilio; Understudies:Jstinne Dizon, flan Carlo Soller, Kristine Venza