Taxation II

Estate Tax
I. Basic concepts
A. Succession – Article 774, Civil Code
1. Testamentary – Art. 779, Civil Code
2. Intestate – Art. 960, Civil Code
3. Mixed – Art. 780, Civil Code
B. Decedent – Art. 775, Civil Code
C. Estate – Art. 776, Civil Code
D. Heir, Devisees and Legatees – Art. 782, Civil Code
E. Definition of estate tax – Lorenzo v. Posadas, G.R. No. 43082, June 18, 1937

II. Applicable Law – Sections 84-97, National Internal Revenue Code of 1997, as amended
(NIRC)

III. Time and transfer of properties – Sec. 85(A), NIRC; Art. 777, Civil Code; Sec. 3, Revenue
Regulations (RR) No. 2-2003

IV. Persons subject to estate tax

1. Citizen
2. Resident alien
3. Non-resident alien

- Definition of residence
* Corre vs. Tan Corre, G.R. No. L-10128, November 13, 1956
* Collector vs. Lara, G.R. Nos. L-9456 & L-9481, January 6, 1958
* Vellila vs. Posadas, G.R. No. 43314, December 19, 1935

V. Gross estate subject to tax

A. Composition of gross estate of a resident decedent and a non-resident decedent –
Secs. 85 & 104, NIRC
* Collector v. Fisher, G.R. Nos. L-11622 & L-11668, January 28, 1961
* Collector v. Campos-Rueda, G.R. No. L-13250, October 29, 1971
* Collector v. Lara, G.R. Nos. L-9456 & L-9481, January 6, 1958

B. Decedent’s interest – Sec. 85(A), NIRC

* US v. Wells, 283 U.S. 102, April 13, 1931

C. Transfers in contemplation of death – Sec. 85(B), NIRC

* Vidal de Roces v. Posadas, G.R. No. 34937, March 13, 1933
* Dison v. Posadas, G.R. No. 36770, November 4, 1932

D. Revocable Transfers – Sec. 85(C), NIRC

E. Property passing under general power of appointment – Sec. 85(D), NIRC

F. Proceeds of life insurance – Sec. 85(E), NIRC

* BPI v. Posadas, G.R. No. 34583, October 22, 1931
* Del Val v. Del Val, G.R. No. 9374, February 16, 1915

G. Prior interest – Sec. 85(F), NIRC

H. Transfers for insufficient consideration – Sec. 85(G), NIRC

Taxation II Outline | Kriska Marna A. Buena 1

 I. Capital of the surviving spouse – Sec. 85(G), NIRC
> Property relationship between spouses
i. Absolute community – Arts. 91-93, Civil Code
ii. Conjugal property of gains – Arts. 106-120, Civil Code
iii. Complete separation of property – Arts. 143-146, Civil Code
iv. Marriage settlement
v. Property regime of unions without marriages – Arts. 147-148, Civil Code
* Collector v. Fisher, G.R. No. L-11622, January 28, 1961

VI. Deductions
A. Citizen or resident – Sec. 86(A), NIRC
1. Standard deduction – Sec. 86(A)(1), NIRC
2. Claims against the estate – Sec. 86(A)(2), NIRC
* Dizon v. CTA & CIR, G.R. No. 140944, April 30, 2008
3. Claims of deceased against insolvent persons – Sec. 86(A)(3), NIRC
4. Unpaid mortgages, taxes, casualty losses – Sec. 86(A)(4), NIRC
5. Property previously taxed – Sec. 86(A)(5), NIRC
* Estate of Fidel F. Reyes & Estate of Teresita R. Reyes v. CIR, CTA
Case No. 6747, January 16, 2006
6. Transfers for public use – Sec. 86(A)(6), NIRC
7. Family home – Sec. 86(A)(7), NIRC; Arts. 152 & 153, 156, 161 Family Code
8. Amount received by heirs under RA 4917 – Sec. 86(A)(8), NIRC

B. Non-Resident – Secs. 86(B) & (D), NIRC

1. Standard deduction – Sec. 86(B)(1), NIRC
2. Claims proportion to PH property – Sec. 86(B)(2), NIRC
3. Property previously taxed – Sec. 86(B)(3), NIRC
4. Transfers for public use – Sec. 86(B)(4), NIRC

C. Share in the conjugal partnership – Sec. 86(C), NIRC

D. Tax credit for estate taxes paid to foreign country – Sec. 86(D), NIRC

VII. Valuation – Sec. 88, NIRC

* Lorenzo v. Posadas, G.R. No. 43082, June 18, 1937
* Manila Railroad Co. v. Velasquez, G.R. No. 10278, November 23, 1915

VIII. Exemption of certain acquisitions and transmissions – Sec. 87, NIRC

IX. Administrative requirements

A. Computation of tax – Sec. 84, NIRC
B. Filing of estate tax return – Sec. 90, NIRC
1. BIR Form No. 1801 Estate Tax Return
2. Time of filing and payment – Secs. 90(B) & 91(A), NIRC
3. Extension of time for filing & payment – Secs. 90(C) & 91(B), NIRC
4. Payment by installment – Sec. 91(C), NIRC
5. Place of filing – Sec. 90(E), NIRC
C. Liability for payment of tax – Sec. 91(D), NIRC
* CIR v. Gonzales, G.R. No. L-19495, November 24, 1966
* CIR v. Pineda, G.R. No. L-22734, September 15, 1967
* Gonzales v. CTA & CIR, G.R. No. L-28821, December 19, 1980

X. Inhibitions, responsibilities, obligations in the enforcement of estate tax – Secs. 92, 94-97,
NIRC
* Pastor v. CTA, G.R. No. L-56340, June 24, 1983
* Polido v. CA & Gasat, G.R. No. 170632, July 10, 2007

2
Donor’s Tax
I. Basic concepts
Donation – Art. 725, Civil Code
1. Donation mortis causa – Art. 728, Civil Code
2. Donation inter vivos – Arts. 729, 730, 731, Civil Code
* Lladoc v. CIR, G.R. No. L-19201, June 16, 1965

II. Applicable law – Secs. 98-104, NIRC

III. Persons liable – Sec. 98, NIRC

a. Tax payable – Sec. 99, NIRC
b. Election campaign contributions – Sec. 99(B), NIRC; RA 7166

IV. Taxable gifts – Sec. 104, NIRC

a. Valuation – Sec. 102, NIRC

V. Transfer for inadequate consideration – Sec. 100, NIRC

A. Bona fide transactions
B. Sales of shares of stock for inadequate consideration – Sec. 7(c.1.4), RR No. 06-2008
* CIR v. B.F. Goodrich Phils., Inc. & CA, G.R. No. 104171, February 24, 1999
* Metro Pacific Corporation (now Neo Oracle Holdings, Inc.) v. CIR, CTA Case No.
8318, June 11, 2014
* Dizon v. CTA, G.R. No. 140944, April 30, 2008

VI. Exemption of certain gifts

A. In case of residents – Sec. 101(A), NIRC
B. In case of non-residents – Sec. 101(B), NIRC

VII. Repudiation of inheritance: Tax consequence – Arts. 1015-1023, Civil Code

* BIR Ruling No. 455-93 dated November 19, 1993

VIII. Filing of returns and payment of tax

A. Imposition of tax – Sec. 98, NIRC
B. Tax rate – Sec. 99, NIRC
C. Tax credit for donor’s tax paid to a foreign country – Sec. 101(c), NIRC
D. Filing and payment – Sec. 103, NIRC
E. BIR Form 1800 Donor’s Tax Return

Value Added Tax

I. Nature, characteristic and constitutionality of VAT
* CIR v. Benguet Corp., G.R. Nos. 134587 & 134588, August 8, 2005
* Tolentino v. Secretary of Finance, G.R. No. 115455, October 30, 1995
* Abakada Guro Party List (Formerly AASJAS) et al. v. Ermita, et al., G.R. No. 168056,
September 1, 2005
* CS Garment, Inc. v. CIR, G.R. No. 182399, March 12, 2014
* CIR v. CA and Commonwealth Management and Services Corp., G.R. No. 125355,
March 30, 2000

II. Applicable laws

1. Secs. 105-115, NIRC
2. Executive Order No. 273 – original VAT Law (1988)

Taxation II Outline | Kriska Marna A. Buena 3

 3. Republic Act No. (RA) 7643 (1992)
4. RA 7716 – Expanded VAT Law (1996)
5. RA 8241 – Improved VAT Law (1997)
6. RA 8424 – Tax Reform Act (1998)
7. RA 8761 (2000)
8. RA 9010 (2001)
9. RA 9238 (2004)
10. RA 9337 (2005)
11. RA 9361 (2006)
12. RA 10378 (2013)
13. RA 10963 (2018)
14. Revenue Memorandum Circular (RMC) No. 07-2006 – increasing VAT rate to 12%
15. RR No. 16-2005
16. RR No. 16-2011
17. RA 9994
18. RA 10754
19. RR No. 13-2018
20. RR No. 15-2018
21. RR No. 19-2018
22. RR. No. 25-2018
23. RR No. 26-2018
24. RMC No. 55-2014
25. RMC No. 39-2018
26. RMC No. 2-2019
27. RMC No. 4-2019

III. Persons liable

A. Who are liable? – Sec. 105, NIRC
* Sec. 4.105-1, RR No. 16-2005
* RR No. 16-2011

B. “in the course of trade or business” vs. “isolated transaction” vs. “incidental to the main line
of business”
* CIR v. Magsaysay Lines, Inc. et al., G.R. No. 146984, July 28, 2006
* Mindanao II Geothermal Partnership v. CIR, G.R. No. 193301, March 11, 2013

C. Output tax on sale of goods or properties

1. Tax rate and tax base – Sec. 106(A), NIRC; RMC No. 07-06 dated January 31, 2006
2. Definition of gross selling price – Sec. 106(A)(1), NIRC
3. Meaning of goods or properties – Sec. 106(A)(1), NIRC
4. Special rules on sale of real property (cash sales or installment sales) – RR No. 16-05
5. Zero-rated sale of goods or properties – Sec. 106(A)(2), NIRC
* Contex Corporation v. CIR, G.R. No. 151135, July 2, 2004
* CIR v. Seagate Technology, G.R. No. 153866, February 11, 2005
6. Transactions deemed sales – Sec. 106(B), NIRC
7. Changes in or cessation of status of a VAT-registered person – Sec. 106(C), NIRC
8. Sales return, allowances, and sales discounts – Sec. 106(D), NIRC
9. Authority of CIR to determine appropriate tax base – Sec. 106(E), NIRC

D. VAT on importation
1. In general – Sec. 107(A), NIRC
2. Transfer by VAT exempt persons – Sec. 107(B), NIRC

E. Output tax on sale of services

1. Tax rate and tax base – Sec. 108(A), NIRC
2. Definition of gross receipts – Sec. 108(A), NIRC

4
 3. Meaning of “sale or exchange of services” – Sec. 108(A), NIRC
* CIR v. Commonwealth Management and Services Corporation, G.R. No.
125355, March 30, 2000
* CIR v. SM Prime Holdings, Inc. and First Asia Realty Development Corp.
G.R. No. 183505, February 26, 2010
* Diaz and Timbol v. Secretary of Finance and CIR, G.R. No. 193007, July 19,
2011
4. Transmission by NGPC and electric cooperatives
5. Zero-rated sale of services – Sec. 108(B), NIRC

F. Exempt transactions
1. Meaning of exempt sales
2. Exempt vs. zero-rated sales
* CIR v. Cebu Toyo Corporation, G.R. No. 149073, February 17, 2005
* Toshiba Information Equipment (Phils) Inc. v. CIR, G.R. No. 157594, March
9, 2010
3. Exempt transactions
a. Sale or importation of agricultural and marine food products in their original
state
* Misamis Oriental Coco Traders v. Secretary of Finance, G.R. No.
108524, November 10, 1994, 238 SCRA 63
b. Sale or importation of fertilizers, seeds, seedlings and fingerlings
* RMC No. 55-2014
c. Importation of personal and household effects
d. Importation of professional instruments and implements
e. Services subject to percentage tax under Title V
f. Agricultural contract growers and milling for others of palay into rice, corn
into grits and sugar cane into raw sugar
g. Medical, dental, hospital and veterinary services
* Hermano (San) Miguel Febres Cordero Medical Education
Foundation (De La Salle – Health Science Institute), Inc. v. CIR, CTA
Case No. 8194, May 15, 2012
* CIR v. Philippine Health Care Providers, Inc., G.R. No. 168129, April
24, 2007
h. Educational services
i. Services rendered by individuals pursuant to employer-employee relationship
j. Services rendered by regional or area headquarters
k. Transactions that are exempt under international agreements or special law
l. Sale by agricultural cooperatives
m. Gross receipts from lending activities by credit or multipurpose cooperative
n. Sales by non-agricultural, non-electric and non-credit cooperatives
o. Export sales by persons who are not VAT-registered
p. Real properties not primarily held for sale or lease, socialized housing
q. Lease of residential units with a monthly rental income not exceeding Php
15,000
r. Sale, importation, printing or publication of books, newspapers and magazines
s. Transport of passengers by international carriers
t. Sale, importation or lease of passenger vessels or cargo vessels and aircrafts
including engine, equipment and spare parts thereof for domestic or internal
transport operations
u. Importation of fuel, goods and supplies by persons engaged in international
shipping or air transport operations
v. Services of banks and finance companies
w. Senior citizens and PWDs
x. Sec. 40(C)(2), NIRC

Taxation II Outline | Kriska Marna A. Buena 5

 y. Association dues, membership fees, and other assessments and charges
collected by homeowners associations and condominium corporations
z. Sale of gold to the BSP
aa. Sale of drugs and medicines prescribed for diabetes, high cholasterol and
hypertension
* RR No. 25-2018
* RMC No. 4-2019
bb. Sale or lease of goods, properties or services other than the transactions
mentioned in the preceding paragraphs, the gross sales or receipts do not exceed
Php 3,000,000.

G. Input taxes on purchases of goods or services and importation

1. Credits for input tax – Sec. 110(A)
a. Purchase or importation of goods – Sec. 110(A)(1)(a), NIRC
b. Purchase of capital equipment – Sec. 110(A)(2), NIRC
c. Purchase of services – Sec. 110(A)(1)(b), NIRC
d. VAT taxpayer with mixed transactions – Sec. 110(A)(3), NIRC
2. Transitional input tax – Sec. 111(A), NIRC
* Fort Bonifacio Development Corp. v. CIR, et al., G.R. Nos. 158885 &
170680, April 2, 2009
3. Presumptive input tax – Sec. 111(B), NIRC
4. Withholding of VAT
i. Creditable withholding VAT on non-resident lessors of properties or property
rights – Sec. 114(C), NIRC
ii. Final withholding VAT by government – Sec. 114(C), NIRC

H. Computation of VAT payable – Sec. 110(B), NIRC

* CIR v. American Express International, G.R. No. 152609, June 29, 2005
* Atlas Consolidated Mining & Dev. Corp. v. CIR, G.R. No. 145526, March 16, 2007

I. Refunds or tax credit of input tax – Secs. 112, 106, 108, NIRC
1. Nature
* CIR v. Tokyo Shipping, G.R. No. 68252, May 26, 1995
1. When allowed
a. Zero-rated or effectively zero-rated sales – Sec. 112(A), NIRC
* Eastern Telecommunications Philippines, Inc. v. CIR, G.R. No. 168856,
August 29, 2012
b. Cancellation of VAT registration – Sec. 112(B), NIRC
2. Period within which to file claim for refund or tax credit
* RMC No. 17-2018
* RMC No. 54-2014
3. Requisites of tax refund or tax credit
* CIR v. Aichi Forging Company of Asia, Inc., G.R. No. 184823, October 6,
2010
* CIR v. San Roque Power Corporation, G.R. No. 187485, February 12, 2013
* Nippon Express (Philippines) Corporation v. CIR, G.R. No. 196907, March
13, 2013
* CIR v. Team Sual Corporation, G.R. No. 205055, July 18, 2014
* Pilipinas Total Gas, Inc. v. CIR, G.R. No. 207112, December 8, 2015
* RR No. 1-2017 dated January 18, 2017
4. Sec. 269(j), NIRC
5. Burden of proof
* United Airlines, Inc v. CIR, GR No. 178788, Sept. 29, 2010

J. Compliance requirements
1. Registration

6
 a. Persons commencing business – Sec. 236(G)(1), NIRC
b. Failure to register – Sec. 236(G)(2), NIRC
c. Optional registration – Secs. 236(H) & 109(2), NIRC
d. Cancellation of registration – Sec. 236(F), NIRC
2. Invoicing and accounting requirements
a. In general – Sec. 237, NIRC
b. VAT invoicing requirements for goods and services – Sec. 113(A), NIRC
c. Information in the VAT invoice and official receipt – Sec. 113(B), NIRC
* Panasonic Communications Imaging Corp. v. CIR, G.R. No. 178090,
February 8, 2010
* Microsoft Philippines, Inc. v. CIR, G.R. No. 180173, April 6, 2011
* Western Mindanao Power Corporation v. CIR, G.R. No. 181136,
June 13, 2012
3. Accounting requirements – Sec. 113(C), NIRC
4. Issuance of erroneous VAT invoice or official receipt – Sec. 113(D), NIRC
5. Return and payment of VAT – Sec. 114, NIRC
a) BIR Form 2550M Monthly VAT Declaration
b) BIR Form 2550Q Quarterly VAT Return
6. Withholding VAT
a) Creditable and Final – Sec. 114(C), NIRC
b) Government Money Payments
c) ODA funded projects
d) BIR Form 1600 Monthly Remittance Return of VAT and Other
Percentages Withheld
e) BIR Form 2306 Certificate of Final Tax Withheld at Source
7. Summary List of Sales and Purchases

K. Power of the Commissioner to Suspend Business Operations – Sec. 115, NIRC

Other Percentage Taxes

I. Applicable law – Secs. 116-128, NIRC

II. Tax on Persons Exempt from VAT – Sec. 116, NIRC

III. Common carriers tax

A. Domestic – Sec. 117, NIRC
B. International – Sec. 118, NIRC
C. RMC No. 46-2008

IV. Tax on franchises – Sec. 119, NIRC

V. Overseas communication tax – Sec. 120, NIRC

VI. Banks and non-bank financial intermediaries performing quasi-banking functions – Sec. 121,
NIRC

VII. Other non-bank financial intermediaries – Sec. 122, NIRC

VIII. Tax on life insurance premiums – Sec. 123, NIRC

IX. Tax on agents of foreign insurance companies – Sec. 124, NIRC

X. Amusement taxes – Sec. 125, NIRC

XI. Tax on winnings – Sec. 126, NIRC

Taxation II Outline | Kriska Marna A. Buena 7

XII. Stock Transaction tax and tax on IPOs – Sec. 127, NIRC; RR No. 9-2018

XIII. Return and Payment of Percentage Tax – Sec. 128, NIRC

Excise Taxes
I. Applicable law – Secs. 129-172, NIRC

II. Goods subject to excise tax – Sec. 129, NIRC

III. Alcohol products – Secs. 141-143, NIRC

IV. Tobacco products – Secs. 144-147, NIRC; RR No. 3-2018

V. Petroleum products – Sec. 148, NIRC; RR No. 2-2018

a. Fuel markers – Sec. 148-A, NIRC

VI. Automobile – Sec. 149, NIRC; RR No. 5-2018; RR No. 24-2018

VII. Non-essentials – Sec. 150, NIRC

a. On cosmetic procedures – Sec. 150-A, NIRC
b. On sweetened beverages – Sec. 150-B, NIRC; RR No. 20-2018

VIII. Mineral products – Sec. 151, NIRC; RR No. 1-2018; RMC No. 105-2018

IX. General provisions – Sec. 129-140, NIRC

X. Administrative Provisions – Secs. 152-172 (Secs. 155 & 171), NIRC

Documentary Stamp Taxes

I. Applicable laws – Secs. 173-201, NIRC; RR No. 4-2018
RA 9243
RA 9648
RA 10963

Tax Remedies under the NIRC

I. Rights and remedies of the government under the NIRC
A. Power of the BIR to obtain information and make an assessment – Secs. 5-6, NIRC
1. Investigative Authority
a. Administrative summons to taxpayer
b. Third party summons
c. Informer’s reward – Sec. 282, NIRC
* Meralco Securities Corp. v. Savellano, G.R. No. L-36181, October 23,
1982
* CIR v. Fitness by Design, Inc., G.R. No. 215957, November 9, 2016
2. Power to make assessment
a. Examination of returns
b. Failure to submit required returns, statements, reports and other
documents
* Sy Po v. CTA & CIR, G.R. No. 81446, August 18, 1988
c. Inventory-taking, surveillance

8
 d. Termination of taxable period
e. Prescribe zonal values
* CIR v. Aquafresh Seafoods, Inc., G.R. No. 170389, October
20, 2010
f. Inquiry into bank deposits
g. Accreditation of tax agents
3. Power to suspend business operations of taxpayer – Sec. 115, NIRC

B. Protesting of an assessment – Sec. 228, NIRC; RR No. 12-99 as amended by RR No.

18-2013
a. Procedure for informing taxpayer of tax deficiency
b. Exceptions to issuance of Preliminary Assessment Notice (PAN)
c. Procedure for disputing assessment
* FBDC v. CIR, G.R. No. 173425, September 4, 2012
* CIR v. Pascor Realty, G.R. No. 128315, June 29, 1999
d. Presumption of correctness of assessment
* Sy Po v. CTA & CIR, G.R. No. 81446, August 18, 1988
* Portilo v. CIR, 932 F.2d 1128 (5th Cir. 1991), June 11, 1991
* CIR v. Hantex Trading Co., Inc., G.R. No. 136975, March 31, 2005
e. Assessment must be based on actual facts
* CIR v. Benipayo, G.R. No. L-13656, January 31, 1962
f. Assessment issued outside scope of LOA
* CIR v. Sony Philippines, Inc., G.R. No. 178697, November 17, 2010

C. Collection of unpaid taxes

a. Distraint, garnishment, levy & seizure – Secs. 205-215 & 217, NIRC
i. Actual vs. constructive distraint
ii. Procedure
b. Forfeiture to the government for want of bidder – Secs. 268, 262 & 224-226,
NIRC; RR No. 22-2002
c. Civil action – Sec. 220, NIRC
* Republic v. Lim Tian Teng Sons & Co., G.R. No. L-21731, March 31,
1966
* San Juan v. Vasquez, G.R. No. L-16814, September 19, 1961
* Yabes v. Flojo, G.R. No. L-46954, July 20, 1982
d. Criminal action – Secs. 222, 248(B), 253-255, 257-269, 274-278, 281-282,
NIRC
* CIR v. Pascor Realty, G.R. No. 128315, June 29, 1999
* Republic v. Patanao, G.R. No. L-22356, July 21, 1967
* Ungab v. Cusi, G.R. Nos. L-41919-24, May 30, 1980
* People v. Kintanar, CTA EB Crim. No. 006, December 3, 2010
* Judy Anne Santos v. People of the Philippines & BIR, G.R. No.
173176, August 26, 2008
* Aznar v. CTA, G.R. No. L-20569, August 23, 1974
e. Anti-injunction rule – Sec. 218, NIRC; Sec. 11, RA 9282
* General rule and exception
* Churchill v. Rafferty, G.R. No. 10572, December 21, 1915
* CIR v. Cebu Portland Cement Co., G.R. No. L-29059, December 15,
1987
f. Nature and extent of tax lien – Sec. 219, NIRC
* BPI v. Trinidad, G.R. No. 16014, October 4, 1921
g. Compromise and abatement – Sec. 204, NIRC
* CIR v. Reyes, G.R. Nos. 159694 & 163581, January 27, 2006
* Asiatrust Development Bank, Inc. v. CIR, G.R. No. 201530, April 19,
2017

Taxation II Outline | Kriska Marna A. Buena 9

 D. Imposition of surcharge, interest & compromise penalty
a. Civil penalties – Sec. 248, NIRC
* CIR v. Javier & CTA, G.R. No. 78953, July 31, 1991
* CIR v. Japan Airlines & CTA, G.R. No. 60714, October 4, 1991
* PICOP v. CIR, G.R. Nos. 106949-50, December 1, 1995
b. Interest – Sec. 249, NIRC; Sec. 3, RR No. 18-2013
* Cagayan Electric v. CIR & CTA, G.R. No. 60126, September 25, 1985
* Republic v. Heras, G.R. No. L-26742, April 30, 1970
* First Lepanto Taisho Insurance Corp. v. CIR, G.R. No. 197117, April
10, 2013
c. Compromise penalty – Sec. 6, RR No. 12-99
* CIR v. Lianga Bay Logging Co., Inc. & CTA, G.R. No. L-35266,
January 21, 1991

II. Rights and remedies of taxpayers under the NIRC

A. Amend return – Sec. 6(A), NIRC
* Rohm Apollo Semiconductor Phil. v. CIR, G.R. No. 168950, January 14, 2015

B. Protest Assessment – Sec. 228, NIRC

a. Procedure for protesting an assessment
* Pier 8 Arrastre and Stevedoring Services v. CIR, G.R. No. 173849,
September 28, 2007
* CIR v. Menguito, G.R. No. 167560, September 17, 2008
* CIR v. Metro Star Superama, G.R. No. 185371, December 8, 2010
b. Requirement to inform taxpayer of factual and legal basis of assessment
* CIR v. Reyes, G.R. No. 159694, January 27, 2006
* Australasia Cylinder Corp. v. CIR, CTA Case No. 6269, June 16, 2003
* PNZ Marketing, Inc. v. CIR, CTA Case No. 5726, December 14,
2001
* Phil. Mining Service Corp. v. CIR, CTA Case No. 5725, July 25, 2002
* Oceanic Wireless Network v. CIR, G.R. No. 143380, December 9,
2005
* CIR v. Enron Subic Power Corp., G.R. No. 166387, January 19, 2009
c. Submission of supporting documents
* H. Tambunting Pawnshop, Inc. v. CIR, G.R. No. 173373, July 29,
2013
* CIR v. First Express Pawnshop, G.R. Nos. 172045-46, June 16, 2009
* Dayrit, et al. v. Cruz & Vera v. G.R. No. L-39910, September 26, 1988

C. In case of denial of protest or inaction, appeal to CTA – Sec. 4(2), NIRC; Sec. 11, RA
9282; RR No. 18-2013
* Advertising Associates, Inc. v. CA & CIR, G.R. No. L-59758,
December 26, 1984
a. Scope of jurisdiction of CTA
* CIR v. Villa & CTA, G.R. No. L-23988, January 2, 1968
b. Application of the 180-day rule – Secs. 11 & 18-19, RA 1125 as amended by
RA 9282; Sec. 3(a)(2), Rule 4; Sec. 3(a), Rule 8, Rules of the CTA
* Lascona Land v. CIR, G.R. No. 171251, March 5, 2012
* RCBC v. CIR, G.R. No. 170257, September 7, 2011
c. What constitutes denial of protest or decision on disputed assessment?
* CIR v. Isabela Cultural Corp., G.R. No. 172231, February 12, 2007
* CIR v. Ayala Securities Corp. & CTA, G.R. No. L-29485, November
21, 1980
* Surigao Electric Co. Inc. v. CTA & CIR, G.R. No. L-25289, June 28,
1974
* CIR v. Union Shipping Corp. & CTA, G.R. No. 66160, May 21, 1990

10
 * CIR v. Algue, Inc. & CTA, G.R. No. L-28896, February 17, 1988
* Central Cement Corp. v. CIR, CTA Case No. 4312, September 1,
1993
* Advertising Associates, Inc. v. CA & CIR, G.R. No. L-59758,
December 26, 1984
* Avon Products Mfg., Inc. v. CIR, G.R. Nos. 201398-99, October 3,
2018
d. Appeals to CTA and Supreme Court – Secs. 11, 18 & 19, RA 9282
* Basa v. Republic & Villasor, G.R. No. L-45277, August 5, 1985
* Mambulao Lumber Co. v. CIR, G.R. No. L-37061, September 5, 1984

D. Refund and/or tax credit of erroneously paid tax – Sec. 229 & 204(c), NIRC
* Bermejo v. Collector, G.R. No. L-3029, July 25, 1950
* Central Azucarera Don Pedro v. CTA & CIR, G.R. Nos. L-23236 & L-23254,
May 31, 1967
* CIR v Meralco, G.R. No. 181459, June 9, 2014
* CIR v. Cebu Portland Cement & CTA, G.R. No. L-29059, December 15, 1987
* FNCB Finance v. CIR, CTA Case No. 3717, May 10, 1993
* Francia v. IAC, G.R. No. 67649, June 28, 1988

E. Liability of government for interest, attorney’s fees, etc.

* Philex Mining Corp. v. CIR, CA & CTA, G.R. No. 125704, August 28, 1998

F. Appeal in case of denial of refund or tax credit claim – same as assessment

G. Decision on “other matters” – Sec. 4, NIRC; Sec. 7(a)(1), RA 9282

* Rodriguez v. Blaquera, G.R. No. L-13941, September 30, 1960
* PNOC v. CA, G.R. No. 109976, April 26, 2005
* Phil. Journalists, Inc. v. CIR, G.R. No. 162852, December 16, 2004
* CIR v. Leal, G.R. No. 113459, November 18, 2002
* Asia International Auctioneers v. Parayno, G.R. No. 163445, December 18,
2007
* British American Tobacco v. Camacho, G.R. No. 163583, April 15, 2009
* Republic v Sunlife Assurance Company of Canada, G.R. No. 158085, October
14, 2005
* Gorospe v. Vinzons-Chato, G.R. No. 132228, January 21, 2003
* Philamlife v. Sec. of Finance & CIR, G.R. No. 210987, November 24, 2014
* Banco de Oro, et al. v. Republic of the Philippines, et al., G.R. No. 198756,
August 16, 2016
* CIR v CTA & Petron, G.R. No. 207843, February 14, 2018

H. Statute of Limitations – Secs. 203 & 222-223, NIRC

a. Period to assess
* Basilan Estates, Inc. v. CIR & CTA, G.R. No. L-22492, September 5,
1967
* CIR v. Phoenix Assurance Co., Ltd., G.R. Nos. L-19727 & 19903,
May 20, 1965
* Butuan Sawmill, Inc. v. CTA, G.R. No. L-20601, February 28, 1966
* CIR v. Primetown Property Group, Inc., G.R. No. 162155, August
28, 2007
* Taligaman Lumber Co. v. CIR, G.R. No. L-15716, March 31, 1962
* Aznar v. CTA, G.R. No. L-20569, August 23, 1974
* CIR v. BF Goodrich, G.R. No. 104171, February 24, 1999
* Telesat, Inc. v. CIR, CTA Case No. 6812, January 2, 2006
* Estate of Reyes and Estate of Reyes v. CIR, CTA EB No. 189, March
21, 2007

Taxation II Outline | Kriska Marna A. Buena 11

 b. Waiver of prescriptive period
* Republic v. Acebedo, G.R. No. L-20477, March 29, 1968
* CIR v. CA, Citytrust Banking Corporation & CA, G.R. No. 106611,
July 21, 1994
* Phil. Journalists, Inc. v. CIR, G.R. No. 162852, December 16, 2004
* CIR v. Kudos Metal Corporation, G.R. No. 178087, May 5, 2010
* CIR v. Next Mobile, Inc., G.R. No. 212825, December 7, 2015
* CIR v. Phil. Daily Inquirer, G.R. No. 213943, March 22, 2017
* RCBC v. CIR, G.R. No. 170257, September 7, 2011
* RMO No. 20-90
c. Suspension of prescriptive period
* Continental Micronesia, Inc. – Philippine Branch v. CIR, CTA Case
No. 6191, March 22, 2006
* CIR v. Phil. Global Communication, G.R. No. 167146, October 31,
2006
d. Period to collect
* Republic v. Ablaza, G.R. No. L-14519, July 26, 1960
* CIR v. Palanca, G.R. No. L-16626, October 29, 1966
* Republic v. Ker, G.R. No. L-21609, September 29, 1966
* Republic v. Hizon, G.R. No. 130430, December 13, 1999
* CIR v. Wyeth Suaco Laboratories & CTA, G.R. No. 76281,
September 30, 1991
* BPI v. CIR, G.R. No. 139736, October 17, 2005
* CIR v Hambrecht & Quist Philippines, Inc., G.R. No. 169225,
November 17, 2010
e. Period to file protest
* Pantranco v. Blaquera, G.R. No. L-13101, April 29, 1960
f. Period to file refund claim
* Collector v. Sweeney, et al., G.R. No. L-12178, August 21, 1959
* Gibbs & Gibbs v. CIR & CTA, G.R. No. L-17406, November 29,
1965
* CIR v. CA, Citytrust Banking Corporation & CA, G.R. No. 106611,
July 21, 1994
* ACCRA Investments Corp. v. CA, CIR & CTA, G.R. No. 96322,
December 20, 1991
* CIR v. TMX Sales, Inc. & CA, G.R. No. 83736, January 15, 1992
g. Period to prosecute violations of any provisions of the NIRC – Sec. 281,
NIRC

I. Non-retroactivity of rulings or regulations – Sec. 246, NIRC

* CIR v. Burroughs, Ltd. & CTA, G.R. No. 66653, June 19, 1986
* PBCom v. CIR, G.R. No. 194065, June 20, 2016
* Accenture, Inc. v. CIR, G.R. No. 190102, July 11, 2012

Local Government Taxation

I. Fundamental principles – Secs. 128, 130 & 132, 55(a) & (b), and 187-188, Local Government
Code (LGC)
* Pepsi-Cola Bottling Co. v. City of Cabanatuan, 24 SCRA 789
* City of Baguio v. De Leon, 25 SCRA 938
* Association of Customs Brokers v. Municipal Board, 93 Phil 107, 1053
* Ormoc Sugar Company v. Ormoc City, 22 SCRA 603
* Gaston v. Republic Planters Bank, 158 SCRA 626
* Progressive Development Corp. v. Quezon City, 172 SCRA 629
* Ancheta v. Sison, 130 SCRA 654

12
 * Matalin Coconut Company v. Malabang, 143 SCRA 404
* Villanueva v. City of Iloilo, 26 SCRA 578
* Ericsson Telecommunications v. City of Pasig, 538 SCRA 99
* Ormoc Sugar Company, Inc. v. Municipality Board of Ormoc, 20 SCRA 739
* Bagatsing v. Ramirez, 74 SCRA 306
* Asiatic Integrated Corporation v. Alikpala, 67 SCRA 60
* Smart Communications, Inc. v. Municipality of Malvar, Batangas, G.R. No. 204429,
February 18, 2014
* Procter & Gamble Trading Co. v. Municipality of Medina, 43 SCRA 130

II. Legal basis – Secs. 128-196, LGC; Sec. 5, Art. X, 1987 Constitution
* Philippine Petroleum v. Municipality of Pililia, 198 SCRA 82
* Petron v. Tiangco, G.R. No. 158881, April 16, 2008
* City Treasurer of Batangas City v. Pilipinas Shell Petroleum Corporation, G.R. No.
187631, July 8, 2015

III. Power to create sources of fund – Sec. 129, 168, 191-193, 186, and 132 LGC
* Mandanas v. Ochoa, G.R. No. 199802, July 3, 2018
* MCIAA v. Marcos, 261 SCRA 667
* NPC v. City of Cabanatuan, 401 SCRA 259
* City of San Pablo v. Reyes, 305 SCRA 353
* Iloilo Bottlers, Inc. v. City of Iloilo, 164 SCRA 607

IV. Common limitations – Sec. 133, LGC

* Progressive Development Corporation v. Quezon City, G.R. No. 36081, April 24,
1989, 172 SCRA 629
* Ferrer v. Bautista, G.R. No. 210551, June 30, 2015
* Philippine Petroleum Corporation v. Municipality of Pililia, 198 SCRA 82
* Pepsi-Cola Bottling Company v. Municipality of Tanauan, 69 SCRA 460
* Ormoc Sugar Co., Inc. v. Municipal Board of Ormoc City, 20 SCRA 739
* Matalin Coconut Co., Inc. v. Municipal Council of Malabang, Lanao del Sur, 143
SCRA 404
* People v. Nazario, 165 SCRA 186
* First Philippine Industrial Corporation v. Court of Appeals, 300 SCRA 661
* Land Transportation Office v. City of Butuan, 322 SCRA 805
* Mactan Cebu International Airport Authority v. Marcos, 261 SCRA 667
* Manila International Airport Authority v. Court of Appeals and City of Paranaque, 495
SCRA 591
* Province of Bulacan, et al. v. CA, 299 SCRA 442
* The San Miguel Corporation v. The Municipal Council, 52 SCRA 43
* Arabay, Inc. v. Court of First Instance of Zamboanga, 66 SCRA 617
* Pelizloy Realty Corporation v. Province of Benguet, G.R. No. 183137, April 10, 2013

V. Levy of tax; tax ordinance – Secs. 186-193, LGC

1. Procedure for approval
* Drilon v. Lim, G.R. No. 112497, August 4, 1994
* Reyes v. Court of Appeals, G.R. No. 118233, December 10, 1999
* Aala v. Uy, G.R. No. 202781, January 10, 2017
2. Publication and furnishing of copies
* Figuerres v. Court of Appeals, G.R. No. 119172, March 25, 1999, 305 SCRA
206
3. Scope of taxing power – Secs. 134, 142, & 151-155, LGC

VI. Local taxing authorities and scope of taxing power

A. Provinces – Secs. 135-141 & 153-155, LGC
a. Real property transfer tax – Sec. 135, LGC

Taxation II Outline | Kriska Marna A. Buena 13

 b. Tax on printing and publication – Sec. 136, LGC
c. Franchise tax – Sec. 137, LGC
* Province of Misamis Oriental v. Cagayan Electric Power and Light
Company, Inc., 181 SCRA 38
* National Power Corporation v. City of Cabanatuan, 401 SCRA 259
* City Government of San Pablo, Laguna v. Reyes, 305 SCRA 353
* Manila Electric Company v. Province of Laguna, 306 SCRA 750
* PLDT v. City of Davao, 363 SCRA 522
* Palma Development v. Municipality of Malangas, G.R. No. 152492,
October 16, 2003
* PLDT v. Province of Laguna, G.R. No. 151899, August 16, 2005
* Smart Communications v. City of Makati, October 13, 2004
* NPC v. Province of Isabela, G.R. No. 165827, June 16, 2006
* NGCP v. Oliva, G.R. No. 213157, August 10, 2016
d. Tax on quarry resources – Sec. 138, LGC
e. Professional tax – Sec. 139, LGC
f. Amusement tax – Sec. 140, LGC; Sec. 125, NIRC
* Philippine Basketball Association v. Court of Appeals, 337 SCRA 358
* Pelizloy Realty Corporation v. Province of Benguet, G.R. No. 183137,
April 10, 2013
* Alta Vista Golf and Country Club v. City of Cebu, G.R. No. 180235,
January 20, 2016
* Film Development Council of the Philippines v. Colon Heritage
Realty Corporation, G.R. No. 203754, June 16, 2015
g. Tax on delivery trucks – Sec. 141, LGC

B. Municipalities – Secs. 143-144, 147-149, 153-155, & 156-161, LGC

a. Taxes, fees, and charges not otherwise levied by provinces – Sec. 142, LGC
b. Local business taxes – Secs. 143-146, LGC
* Standard-Vacuum Oil. Co. v. Antigua, 96 Phil. 909
* Smith, Bell & Co. v. Municipality of Zamboanga, 55 Phil. 466
* Opon v. Caltex (Phil.), Inc., 22 SCRA 755
* Luz Yamane v. BA Lepanto Condominium Corporation, G.R. No.
154993, October 25, 2005
* Petron v. Mayor Tiangco, G.R. No. 158881, April 16, 2008
* Iloilo Bottlers, Inc. v. Iloilo City, 164 SCRA 607
* Manila Trading & Supply Co. v. City of Manila, 105 Phil 581
* Central Azucarera Don Pedro v. City of Manila, 97 Phil 627
* Caltex Philippines, Inc. v. City of Manila, 28 SCRA 840
* City of Manila v. Manila Remnant Co., Inc., 100 Phil 796
* Ericsson Telecommunications, Inc. vs. City of Pasig, 538 SCRA 99
* Mindanao Shopping Destination Corporation v. Duterte, G.R. No.
211093, June 6, 2017
c. Fees and charges – Sec. 147, LGC
* Procter & Gamble Philippine Manufacturing Corp. v. Municipality of
Jagna, 94 SCRA 894
* Punsalan, et al. v. Municipal Board of Manila, et al, 95 Phil. 46
d. Fees for sealing and licensing of weights and measures – Sec. 148, LGC
e. Fishery rentals, fees and charges – Sec. 149, LGC
f. Tax situs – Sec. 150, LGC
* Philippine Match Co. v. City of Cebu, 81 SCRA 99

C. Cities – Secs. 136-141, 143-149, 151, 153-155, & 156-161, LGC

a. Scope of taxing powers – Sec. 151, LGC
* Estanislao v. Costales, 196 SCRA 853

14
 D. Barangays – Secs. 152 & 153-155, LGC
a. Scope of taxing powers – Sec. 152, LGC

E. Common revenue-raising powers – Secs. 153-155, LGC

a. Service fees and charges
b. Public utility charges
c. Toll fees and charges
d. Fees and charges for regulation & licensing – Secs. 147, 139, & 149, NIRC

VII. Community tax

1. Persons liable – Secs. 157-158, LGC
2. Exemptions – Secs. 159 & 162, LGC
3. Payment and penalties – Secs. 160-161, 163, LGC

VIII. Tax exemption privileges

1. Grant
* Quezon City v. ABS-CBN, G.R. No. 166408, October 6, 2008
* PLDT v. City of Davao, 363 SCRA 522
* NAPOCOR v. City of Cabanatuan, 401 SCRA 259
* PLDT v. Province of Laguna, 467 SCRA 93
2. Withdrawal
* Mactan Cebu International Airport Authority v. Marcos, 261 SCRA 667
* City Government of San Pablo, Laguna v. Reyes, 305 SCRA 353
* Manila Electric Company v. Province of Laguna, 306 SCRA 750
* Smart Communications v. City of Davao, G.R. No. 155491, July 21, 2009

IX. Collection of local taxes

1. Tax period and manner of payment
2. Accrual – Secs. 165-171, LGC
* Mobil Philippines v. City Treasurer of Makati, G.R. No. 154092, July 14, 2005
3. Situs of tax collected – Sec. 150, LGC
* Allied Thread Co., Inc. v. City Mayor of Manila (1984)
* Shell Co., Inc. v. Municipality of Sipocot, Camarines Sur (1959)
3. Collection of local taxes – Secs. 172-185, LGC
a. Assessment
b. Payment
c. Reduction/Discount
4. Surcharges and penalties
* NPC v. City of Cabanatuan, G.R. No. 177332, October 1, 2014
5. Interest
6. Examination of books of accounts
7. Government remedies – Secs. 172-185, 254-270, LGC
a. Lien
* Hongkong & Shanghai Banking Corporation v. Rafferty, 39 Phil 145
b. Administrative actions; distraint and levy
* Spouses Federico Serfino v. Court of Appeals, 154 SCRA 19
* Estate of the Late Mercedes Jacob v. Court of Appeals, 283 SCRA
474
c. Judicial action
8. Taxpayer’s Remedies – Secs. 194-196, LGC
a. Assessment
* Valley Trading Co. v. CFI of Isabela (1989)
* Angeles City v. Angeles City Electric Corporation (2010)
b. Collection
c. Interruption
d. Protest

Taxation II Outline | Kriska Marna A. Buena 15

 * Manila Electric Company v. Barlis, 433 SCRA 11
* Yamane v. BA Lepanto Condominium Corporation, 474 SCRA 258
* City of Manila v. Cosmos Bottling Corp., G.R. No. 196681, June 27,
2018
* Lopez v. City of Manila, 303 SCRA 448
e. Tax refund and tax credit
* City of Manila v. Grecia-Cuerdo, G.R. No. 175723, February 4, 2014
* Metro Manila Shopping Mecca Corp. v. Toledo, G.R. No. 190818,
June 5, 2013
f. Challenging tax ordinance – Sec. 187, LGC
* Pelizloy Realty Corporation v. Province of Benguet, G.R. No. 183137,
April 10, 2013

Real Property Taxation

I. Definition and nature – Secs. 199, 201, 197, 224-225, 257, LGC
* Province of Nueva Ecija v. Imperial Mining Co., Inc., 118 SCRA 632
* Meralco v. CBAA, 144 SCRA 273
* Meralco Securities v. CBAA, 114 SCRA 260
* Caltex v. CBAP, 114 SCRA 296
* RCPI v. Provincial Assessor of South Cotabato, 456 SCRA 1
* Caltex (Phil.) Inc. v. Central Board of Assessment Appeals, 114 SCRA 296
* Fels Energy, Inc. v. Province of Batangas, 516 SCRA 186
* Board of Assessment Appeals v. Manila Electric Company, 119 Phil. 328
* Mindanao Bus Co. v. City Assessor, 116 Phil. 501
* Capitol Wireless v. Provincial Treasurer of Batangas, G.R. No. 180110, May 30, 2016

II. Power to levy real property tax – Sec. 232-241, LGC

1. Taxing authorities – Sec. 232, LGC
a. Provinces
b. Cities
c. Municipalities in Metro Manila
* De Pedro v. Romasan Development Corporation, 452 SCRA 564
* Sta. Lucia Realty & Development, Inc. v. City of Pasig, G.R. No. 166838, June
15, 2011
2. Tax rates – Sec. 233, LGC
3. Special education fund
4. Idle land tax – Sec. 235, LGC
5. Special levy – Sec. 240, LGC

III. Exempt properties – Sec. 234, LGC

* MIAA v. CA, G.R. No. 155650, July 20, 2006
* MIAA v City of Pasay, 583 SCRA 234
* Bangko Sentral ng Pilipinas v. CBAA, CTA EB Case No. 1438, October 1, 2018
* NPC v. CBAA, G.R. No. 171470, January 30, 2009
* NPC v. Province of Quezon, G.R. No. 171586, July 15, 2009
* NPC v. Province of Quezon, 611 SCRA 71
* Mactan Cebu International Airport Authority v. Marcos, G.R. No. 120082, September
11, 1996
* Mactan Cebu International Airport Authority v. City of Lapu-Lapu, G.R. No. 181756,
June 15, 2015
* Herarc Realty Corp. v. Provincial Treasurer of Batangas, G.R. No. 210736, September
5, 2018
* Quimpo v. Mendoza, 107 SCRA 73

16
 * Abra Valley v. Aquino, 162 SCRA 665
* BLGF Opinion dated June 20, 2012 addressed to Emmanuel Angeles
* CIR v. YMCA, 358 Phil. 562 (1998)
* Angeles University Foundation v. City of Angeles, G.R. No. 189999, June 27, 2012
* CIR v. St. Luke’s Medical Center, Inc., G.R. No. 203514, February 13, 2017
* City of Pasig v. Republic, 656 SCRA 271
* Lung Center of the Philippines, Quezon City, G.R. No. 144104, June 29, 2004
* CIR v. De La Salle University, G.R. No. 196896, November 9, 2016
* NPC v. Presiding Judge, 190 SCRA 477
* City Government of Quezon City v. Bayan Telecommunications, G.R. No. 162015,
March 6, 2006
* City of Davao v. RTC and GSIS, G.R. No. 127383, August 18, 2005
* Provincial Assessor of Marinduque v. CA (GR No. 170532, April 30, 2009)
* Philippine Ports Authority v. City of Iloilo (GR No. 109791, July 14, 2003)
* Digital Telecommunications Philippines, Inc. v. Cantos, G.R. No. 180200, November
25, 2013
* Board of Assessment Appeals, Province of Laguna v. Court of Tax Appeals and
NWSA, 118 Phil. 227
* National Development Company v. Cebu City, G.R. No. 51593, November 5, 1992
* City Government of San Pablo, Laguna v. Reyes, et al., G.R. No. 127708, March 25,
1999
* Philippine Fisheries Development Authority v. Court of Appeals, 528 SCRA 706
* GSIS v. City Assessor of Iloilo City, 493 SCRA 169
* GSIS v. City Treasurer of the City of Manila, 609 SCRA 330
* Republic v. City of Kidapawan, 477 SCRA 324

IV. Administration of real property tax – Secs. 198-231, LGC

1. Declaration of real property – Secs. 202-203, 208, LGC
2. Listing of real property in the assessment rolls – Sec. 205, LGC
3. Appraisal and valuation of real property – Secs. 212-213, 216, & 224-225, LGC
* Reyes v. Almanzor, 196 SCRA 322
* Patalinhug v. CA, 229 SCRA 554
* Sesbreno v. CBAA, G.R. No. 106588, March 24, 1997
* Allied Banking Corporation v. Quezon City Government, G.R. No. 154126,
October 11, 2005
2. Classification of real property – Secs. 215-217 & 199, LGC
3. Assessment
a. Assessment levels – Secs. 199 (e, f, g, h), 218-223, LGC
* Cenido v. Apacionado, et al., 318 SCRA 688
* Lopez v. City of Manila, G.R. 127139, February 19, 1999
* City Assessor of Cebu City v. Association of Benevola de Cebu, G.R.
No. 152904, June 8, 2007
4. Collection and payment – Secs. 246-251 & 270 LGC
a. Time of payment
b. Discounts
* Salva v. Magpile, G.R. No. 220440, November 8, 2017
c. Special rules on payment – Secs. 250, 255, & 276-277, LGC

V. Disposition of proceeds – Secs. 271-274, LGC

VI. Government remedies – Secs. 254-270, LGC

A. Administrative
1. Local government’s lien – Sec. 257, LGC
2. Levy – Secs. 258-259, LGC
* City of Davao v. Intestate Estate of Amada Dalisay, G.R. No. 207791,
July 15, 2015

Taxation II Outline | Kriska Marna A. Buena 17

 * Onstott v. Upper Tagpos Neighborhood Association, G.R. No.
221047, September 14, 2016
* Gamilla v. Burgundy Realty Corporation, G.R. No. 212246, June 22,
2015
* Tan v. Bantegui, 473 SCRA 663
* Vizarra v. Rodriguez, 509 SCRA 504
* Puzon v. Abellera, 169 SCRA 789
* Meralco Securities Industrial Corporation v. CBAA, et al., 114 SCRA
260
* De Asis v. IAC, 169 SCRA 314
* Cagayan Electric Power and Light Co., Inc. v. City of Cagayan de
Oro, G.R. No. 191761, November 14, 2012
* Moday v. CA, 268 SCRA 586
* Valbueco, Inc. v. Province of Bataan, G.R. No. 173829, June 10, 2013
* Aquino v. Quezon City, 497 SCRA 497
3. Purchase by LGU for want of bidder
B. Judicial – Secs. 266 & 270, LGC

VII. Taxpayer’s Remedies

A. Administrative
1. Protest
a. Appeal to the Local Board of Assessment Appeals (LBAA) – Secs. 226 & 229,
LGC
* Fels Energy v. Province of Batangas (GR No. 168557, Feb. 16, 2007)
* Victorias Milling v. CTA (GR No. L-24213, March 13, 1968)
* Callanta v. Office of the Ombudsman, 285 SCRA 648
* NPC v. Province of Quezon, supra
b. Appeal to the Central Board of Assessment Appeals (CBAA) – Sec. 229,
LGC
c. Effect of payment of tax – Sec. 231, LGC; Sec. 252, LGC
* Camp John Hay Development Corporation v. Central Board of
Assessment Appeals, G.R. No. 169234, October 2, 2013
* City of Pasig v. Republic, supra
* City Government of Quezon City v. Bayan Telecommunications,
supra
* Quimpo v. Mendoza, 107 SCRA 73
* Talento v. Escalada, Jr. 556 SCRA 491
* Republic v. City of Kidapawan, supra

2. Payment of real property under protest

a. File protest with local treasurer
* Meralco v. Nelia Barlis (GR No. 114231, May 18, 2001)
b. Appeal to the LBAA – Secs. 226 & 229, LGC
c. Appeal to the CBAA – Sec. 229, LGC
d. Appeal to the CTA En Banc – Sec. 11, NIRC
e. Appeal to the SC – Rule 45, Rules of Court
* NPC v. Provincial Treasurer of Benguet, G.R. No. 209303, November 14,
2016
* Meralco v. City Assessor of Lucena City, G.R. No. 166102, August 5, 2015
* NPC v. Municipal Government of Navotas, G.R. No. 192300, November 24,
2014
* Olivarez v. Marquez, 438 SCRA 679
f. Interest on unpaid realty tax – Sec. 250 & 255, LGC
* Quimpo v. Mendoza, 107 SCRA 73

3. Tax refund and tax credit – Sec. 253, LGC

18
 * Allied Banking Corporation v. Quezon City Government, 502 SCRA 113
* Testate Estate of Concordia T. Lim v. City of Manila, 182 SCRA 483

B. Judicial
1. Question on the legality of a tax ordinance – Sec. 187, LGC
* Ty v. Judge Trampe, 250 SCRA 500
* Jardine Davies Insurance Brokers, Inc. v. Aliposa, et al., G.R. No. 118900,
February 27, 2002
* Lopez v. City of Manila, G.R. No. 127139, February 19, 1999
2. Assailing the validity of a tax sale – Sec. 267, LGC

VIII. Prescription – Sec. 270, LGC

Customs

1. When duty and tax are due on imported goods – Sec. 104, Customs Modernization and
Tariffs Act (CMTA)
2. Types of importation – Secs. 115-118, CMTA
3. Liability of importer for duties and taxes – Sec. 405, CMTA
4. Release of goods – Secs. 431-436, CMTA
5. Valuation – Secs. 700-707, CMTA
6. Government’s right of compulsory acquisition – Sec. 709, CMTA
7. Marking of imported goods and containers – Sec. 710, CMTA
8. Special duties
a. Anti-dumping duty – RA 8752
b. Safeguard duty – RA 8800
c. Countervailing duty – RA 8751
9. Conditionally tax and/or duty-exempt importation – Sec. 800, CMTA
10. Free zones – Secs. 814-816, CMTA
11. Remedies of taxpayer
a. Drawbacks – Secs. 900-902, CMTA
b. Refund and abatement – Secs. 903-913, CMTA
c. Advance ruling – Secs. 1100-1103, CMTA
d. Administrative and judicial appeals – Sec. 1104, CMTA
e. Protest – Secs. 1106-1110, CMTA
f. Appeal in protest and forfeiture cases – Secs. 1126-1128, CMTA
12. Remedies of government
a. Post clearance audit – Secs. 1000-1005, CMTA
b. Alert Orders – Secs. 1111-1112, CMTA
c. Seizure and forfeiture – Secs. 1113-1119, 1124, CMTA
d. Civil remedies – Secs. 1132-1134, CMTA
e. Judicial remedies – Secs. 1135-1138, CMTA
13. Abandonment – Secs. 1129-1130, CMTA

Taxation II Outline | Kriska Marna A. Buena 19