Taxation 1-3E

Syllabus – Taxation 1
A. Introduction

1. General principles


o Definition of Taxation
o Definition of Taxes
o Attributes of Taxation
o Characteristics of Taxes/Requisites of a Valid Tax
o Kinds of taxes
o Taxation as Inherent Power of State
o Taxation distinguished from 2 other inherent powers
o Purposes/Objectives of Taxation
o Aspects/Stages of Taxation
o Characteristics/Principles of a Sound Tax System
o Taxes as distinguished from other impositions/exactions/levies
o Taxes vs. Set Off/Legal Compensation
o Equitable Recoupment
o Lifeblood Doctrine
o Necessity Theory
o Benefits-Protection Theory
o Power to Tax involves the Power to Destroy
o Kinds of Double Taxation
o Kinds of Tax Exemptions
o Principles/Interpretations/Construction on Tax Laws and Tax Exemptions
o Prospectivity of Tax Laws
o Prescriptability/Imprescriptability of Taxes
o Forms of Escape from Taxation
o Difference between Tax Evasion vs. Tax Avoidance
o Tax refund
o Tax credit
o Tax amnesty
o Compromise vs. abatement
o Judicial Review of Taxation
o Taxpayer’s Suit:
 Land Bank of the Phil. Vs. Cacayuran (G.R. 191867, April 22, 2015)
o Read selected cases:
 CIR vs. ALGUE, INC. [G.R. No. L-28896.  February 17, 1988.]
 REPUBLIC vs. MAMBULAO LUMBER [G.R. No. L-17725. February
28, 1962.]
 ENGRACIO FRANCIA vs. IAC [G.R. No. L-67649. June 28, 1988.]
 MELECIO R. DOMINGO vs. HON. LORENZO C. GARLITOS [G.R.
No. L-18994. June 29, 1963.]
  Executive Secretary vs. Southwing Heavy Industries (G.R. No.
164171, February 20, 2006)
 John Hay People’s Alternative Coalition vs. Lim (G.R. No. 119775,
October 24, 2003)
 Delpher Trades Corp and Pacheco vs. IAC (G.R. No. L-69259,
January 26, 1988)
 CIR vs. Lincoln Philippine Life Insurance (G.R. No. 119176, March
19, 2002)
 CIR vs. Estate of Benigno Toda (G.R. No. 147188, September 14,
2004)
 City of Iloilo vs. Smart Communications (G.R. No. 167260,
February 27, 2009)
 National Power Corporation vs. CBAA (G.R. No. 171470, January
30, 2009)
 Winebrenner & Inigo Insurance Brokers, Inc. vs. CIR (G.R. 206526,
January 28, 2015)
 Fluor Daniel Phil. Inc. vs. CIR (G.R. 200620, March 18, 2015)
 China Banking Corp. vs. CIR (G.R. 172509, February 4, 2015)
 CBK Power Co. Ltd. Vs. CIR (G.R. 193383-84, January 14, 2015)
 Philippine National Bank vs. CIR (G.R. 206019, March 18, 2015)
 Covanta Energy Philippine Holdings Inc. vs. CIR, R. 203160,
January 24, 2018
 Philippine Airlines vs. CIR, G.R. 206079-80, January 17, 2018
 University Physicians Services Inc. vs. CIR, G.R. 205955, March 7,
2018
 Bank of the Philippine Islands vs. CIR, G.R. 224327, June 11, 2018
 Asian Transmission Corp. vs. CIR, G.R. 230861, Sept. 19, 2018


2. Limitations


o Constitutional Limitations – Memorize all tax related provisions (direct and
indirect). Read entire 1987 Constitution again.
o 5 Inherent Limitations
o Tax Treaty – Read and compare RP-USA Tax Treaty and RP-China Tax
Treaty
o Review landmark cases under PoliLaw relating to constitutional and
inherent limitations
o Read selected cases:
 Bagatsing vs. Ramirez [G.R. No. L-41631. December 17, 1976.]
 Abakada Guro Party List vs. Executive Secretary [G.R. No. 168056.
September 1, 2005.]
 Eastern Theatrical vs. Alfonso [G.R. No. L-1104. May 31, 1949.]
 British American Tobacco vs. Camacho [G.R. No. 163583. August
20, 2008 and April 15, 2009.]
 La Sallian Educational Innovators Foundation vs. CIR, R. 202792,
February 27, 2019
 Tolentino vs. Sec. of Finance, G.R. No. 115455, October 30, 1995
  Planters Product vs. Fertiphil Corp. G.R. No. 166006, March
14,2008
 Gomez vs. Palomar L-23645, October 29,1968

 
B. Sources of Tax Laws

1. NIRC
o Sections 1 to 21 (Organization and Function of the BIR plus sources of
revenues)
o Section 23 (General Principles of Income Taxation):
 Association of Non-Profit Clubs Inc. vs. CIR,  G.R. 228539,  June
26, 2019
 Banco de Oro vs. CIR (G.R. 198756, January 13, 2015)
o Section 42 (Income from sources within the Philippines)
o Sections 202 to 231 (Remedies in General)
o Sections 244 – 246 (Rules and Regulations)
o Sections 247 to 249 (Penalties/Additions to Tax)
o Memorize Sections 203, 204, 222, 228 and 246
o Study RevRegs No. 12-1999, RevRegs No. 18-2013 and RMC 11-2014
o Study RevRegs No. 30-2002 and RevRegs 9-2013
o Study RMO 20-1990, RDAO 05-2001, RMC 06-2005 vs. RMC 14-2016
(waivers)
o Read selected cases:
 Commissioner of Internal Revenue vs. Isabela Cultural (361 SCRA
71)
 Commissioner of Internal Revenue vs. Union Shipping Corp (185
SCRA 547)
 Advertising Associates vs. CA (133 SCRA 765)
 Commissioner of Internal Revenue vs. Metro Star Superama Inc.
(GR No. 185371, Dec 8, 2010)
 Lascona Land vs. Commissioner of Internal Revenue (GR No.
171251, March 5, 2012)
 Rohm vs. CIR (GR No. 168950, Jan 14, 2015)
 RCBC vs. CIR (GR No. 170257, Sept 7, 2011)
 CIR vs. Hambrecht (GR No. 169225, Nov 17, 2010)
 CIR vs. Next Mobile (GR No. 212825, Dec. 7, 2015)

2. Custom Modernization and Tariff Act (CMTA)

o Read Sections 103, 104, 106, 113, 114, 120, 401, 402, 404, 423, 700,
701, 702, 703, 704, 705, 706, 709, 714, 800, 900, 913, 1000, 1002, 1003, 1100,
1106, 1126, 1127, 1128, 1136
o Memorize all Special Duties & Trade Remedy Measures
o Read selected cases
o Read selected BOC issuances

 
MIDTERMS CUT-OFF

3. Local Taxation
o Read Sections 128 to 196 – RA No. 7160 (LGC)
o Memorize Sections 130 (Fundamental Principles), 133 (Common
Limitations), 150 (Situs), and 195 (Protest)
o Read pertinent portions of IRR of LGC
o Read selected cases:
 Demaala vs. Comm. On Audit , ( G.R. 199752,  February 17, 2015)
 Prieto vs. City of Manila,  G.R. 221366, July 18, 2019\
 Randy Allied Ventures Inc. vs. City of Davao, G.R. 241697, July 29,
2019
 Cosmos Bottling Corp. vs. City of Manila,  G.R. 196681, June 27,
2018
 Noemi Cruz vs. City of Makati, G.R.  210894, September 12, 2018
o Read selected local finance circulars/DILG circulars

4. Real Property Taxation

o Read Sections 197 to 283 – RA No. 7160 (LGC)
o Memorize Section 198 (Fundamental Principles), 215 (Classes of Real
Property), 216 (Special Classes), 234 (Exemptions), 235 (SEF), 236 to 238 (Idle
lands) and 270 (Period to collect)
o Read pertinent portions of IRR of LGC
o Read selected cases:
 Mactan-Cebu Int’l Airport Authority vs. Lapu-Lapu City  (G.R.
181756,  June 15, 2015)
 National Power Corp. vs. Province of Pangasinan,  G.R. 210191,
March 4, 2019
 University of the Philippines vs. City Treasurer of Quezon City, G.R.
214044, June 19, 2019
o Read selected local finance circulars/DILG circulars

 
C. CTA/Judicial Remedies

1. CTA Jurisdiction under CTA Laws (RA No. 1125, 9282 and 9503) – collection of
taxes, civil cases and criminal cases, appeal to CTA En Banc, Petition for Review to
SC
2. CTA Rules of Court
3. Suspension of collection of taxes
4. Review again remedies under NIRC, CMTA and LGC and correlate with CTA
Laws/Rules of Court
5. Read selected cases:
o Y. Domingo Jewellers, Inc. vs. CIR, G.R. 221780, March 25, 2019
o Roca Security & Investigation Agency Inc. vs. CIR, G.R. 241338, April 10,
2019
o Misnet Inc. vs. CIR, R. 210604, June 3, 2019