a B UNIVERSITY OF THE PHILIPPINES COLLEGE OF LAW TAXATION | 2nd, SY 2004-2005 PART | - LOCAL TAXATION 1. Reat Property Tax A. Definition/Nature of real property tax 4, Nature — tax on ownershia; ad valorem tax Object of the tax; tne property, meaning of "real property” Secs, 199, 224-225, Local Oovernment Code, Book fi (LGC) Sec. 257. LGC Moreioo v. CBAA (114 SCRA 273) Morsien Socuritios ¥ CBAA (114 SCRA 260) Caltex v. CBAP (114 SCRA 296) ELGF Ruling dated January 23, 2003 (offsetting of taxes) ELGI Ruling dated Novernher 21, 2002 (What are real property?) BLGF Ruling dated October 8, 2092 (id'e machinery) BLGE Ruling dated Octoher 24, 2902 [RPT exemptions) BLGF Ruling dated Jonuary 10, 2003 (RPT Exemrtion) 8, Powar to levy real property tax 4, Provinces, cities, nnunicipaltizs in Metro Manila Bes, 132, LEC 2. Tax rates ~ sroportionalfat rate Sex. 233, LGC C. Fundamental principles re: appraisal, assessinent. fevy and collection Seos 198-399, LGC 1. Aporaisel al its current fait market value Reyes v. Almanzor (196 SCRA 322) Sestreno v. CAA (G.R. No. 108639, March 24, 1997) 2. Classification based on actual use. Seus, 215-217,219 (b, a, df, 9 3) LGC Residential - devoted ta habitation Commercial - for the object of profit Industrial — industrial activity as capital investment Agricultural — plarting trees, raising crops, ivestock and poullly. dairy. salt making, inland fishing eogeMineral - in which meteilic and non-metalic minerals exist/sommercia! quantty Timberland Special Soc. 216, LGC 3. Property shall be assessed on the basis of a uniform classification within each local government unit 4. The appraisal, assessment, levy, and ccllection of real property tax shall net be let to any private person 5, The appraisal, and assessment of real property ta all be equitable, Reyes v. Almanzcr, supra C. Exempt propertizs Sec, 234 1GC Mactan Cebu Intemational Airgort Authority v. Manns, (G.R No 120092 September 11, 1998) Guimpo v. Mandoze (107 SORA 73) ‘Absa Vaitey v. Aquine (162 SCRA 965) Nanocor v Presiding Judge (150 SCRA 477) D. Assessment level/ RevisionY Valuat on’ Effectivity See. 199 (o,f.q,h), LGC See. 216-223, LGC Lape v. ly of Manila (Fobniary 19, 1999) E. Taxpayer's remedy on cases involving real property tax 1. Contasting an assessment of tard value Caltex vy. CBAP (144 SERA 298) Chavez v. Opinion (186 SCRA 931) 2. Payment of real proparty tax under pretest Secs. 246-252, 276-277. LGC a b 4 e File protest with the iocal treasurer Protest! to be filed with the Local Board of Assessment Acpeals (within 3¢ days from receipt of assessment. 120 days to decides Appeal to tha Certral Board of Assessment Acpeals (within 30 days frem receipt cf denial Appeal to tha GTA en dane (R.A. 9289, amendirg R.A. 1425) Appeal to the SC F. Special levy on real property 4. Taxon ide land See. 235, LGC 2. Special Education Fund BLGF Ruting dated October 7, 2002Wi Taxing Power of Local Government Units Philippine Petroteunt v. Municipality of Pilila (188 SCRA 82) A. Fundamental crinciples Sees. 130 and 192, LGC 5. Commor. imitations Seo, 193, LGC ©. Scope of taxing power 1 Taxing power of the province a Real property transfer tax Seo, 135, LGC b. Tax on printing and publication $00. 136, LEC Franctise tax Set. 197, 66 a Tax on quarry resources See. 138, LGC Protessional tax Sec. 139, LGC 1. Amusement tax on adm'ssions, Sec. 140, (GC ~compare io amusement tax under Seo. 125, NIRC @ Tax on detvery trucks Seo. 141, LGC 2. Taxing power of the municioal ty a. Tax on businesses Sees. 143-146, LGC BLGF Rutng dated December 11, 2002 (Marita "double taxation") BLGF Ruting dated Novernber 15, 2002 (is PSE subject 10 LBT?) BLGF Ruting dated January 17, 2001 {L8T on holding companies) ELGF Ruting dated September 20, 2002 (Sales of petroleum products) ELGF Ruling dated August 5, 2002 (Manufacturers) BLGF Ruling dated January 17 and 29, 2002) (Sales Allocation) b Fees and charges Sec. 147, 60 ©. Situs of tox See. 180, LSC 3. Taxing power of the cty 4 Sec. 151. LGC Estanislao v. Costalos (196 SCRA 853) Taxing power af the barangays Sec. 152, LGC5, Community Tax a b © Persons fiable Sees. 157-158, LEC Exomption/optional tax Secs, 189 and 162, LG Payment/penattios/presentation of certificate Sees, 160-187, 163, LEC 6. Collection of local taxes a b. Accrual/tax perlocimanner of paymenvsurcharge an¢ penalties Socs 165-971, LGC Collection of the tax Secs. 172-285, LGC i. Assessment Il. Paymest on installment ii, Candonation cf tax ix. Reduction/discount v. Remedies cf the goverment to collect Secs. 264-270, LGC nt under protest i. Protest fo the citymunicizal treasurer ji. Appeal to the reguiar court of competent jurisdiction ll, Appeal to the CTA en banc (RA 9282, amending RA 1125; iv. Appeal to the SC Taxpayers remedies Sees. 194-196, LEC Pay 7. Levy of tax and effectviy of tax ordinance Ses. 136-193, LGC - contesting the validity of a tax ordinanceIL LOCAL TAXATION (Local Government Cade ~ RA 7160) Local Goverment Taxation Sostion 128 — 198 (LGC) Alojancro Ty v, Hon. Tramps & Municipal Assessor of Pasig GRNo. 117577, Dec. 1, 7995 Rule XXX, Art. 217 - 287, Ruies and Regulations impiemerting the Local Government Coda Local Finance Circular 1-93 (Barks) Local Finance Circular 2-93 (insurance Co.) Local Finance Circular 3-93 (Finance Co.) Maino Circular No 82-02 — Jaan, 16, 1982 issued by Department of the Interior and Local Government Memo Circviar No. 5-03 ~ Oct. 22, 1993 issued by the Department of Finance See. Delon vs. Mayor Lim, GR 112497. Aug. 4 1904. Manila Tax Ordinance Phil, Match Co. Lid, vs. City of Cebu, 81 SCRA 99, Jan, 18, 199° {situs of peyment of local business tax) PLDT vs, City of Davac, GR No, 143867, March 25, 2003, {PLDT liable to franchise tax imposed by City) Palma Dev. Corp. v. Municipality of Malangas, GR No. 152482, Oct. 18, 2003 lL TARIFF AND CUSTOMS CODE Concept A. the Tan and Customs Coce B. The Bureau of Customs Duties. Power and Jurisdiction Articles Subject to Duty Export [suspended exceot on logs} and import duties+ B. Meaning of Importation - See. 1204, 1202 C. Classes of Importation a. Dutiable importation - Section 400 >. Prohibited importations - Sec. 101, 1207 ¢ Conditionally - Free Importation - See, 105 Rates of Duty A. General Rules - Seo. 104 8. Basis of Duty - Sections 201, 202, 204, 205, 1308-40, 1213 Customs Administrative Order No. 2-96, June 14, 1996 RA. No. 8181 — Transaction Value CAO No, 2-89, Implementing RA 8181 on customs dutiable value C. Special duties a. Dumping Sec. 361 b, — Countervailing Seo, 302 c Marking Sec. 303 dg. Discriminatory Sec. 304 D. Flexible Tariff rates - Section 407 imposition of Duties A Persons liable - Sec. 1203-5 B.— Dectaration - Section 1202.4307 C, Examination, Appraisal and Classification - See. 1405-8 D. Assessment of Taxes E. Liquidation - Section 1801-1603 Remedies of the GovernmentVI A. Extrajucicial 4. Enforcament of Tax Lien - Section 1508 2, Seizure and Foriellure - Sec. 2205, 2304-2316 B. Judicial Remedies of the Taxpayer A. Refund - Section 1707-8 B. Protest - Section 2308, 2370, 2309, 2212 C. Abandonment - See. 1801-3 16