A.

TAXING AUTHORITY

a. Organizational Structure and functions of the BIR

b. Jurisdiction, Power, and Functions of the Commissioner of Internal Revenue

a. REPUBLIC VS HIZON; GR no. 130430; 13 December 1999

B. INCOME TAX

a. Definition, Nature and General Principles

1. CIR vs Lednicky; GR nos. L-18169, L-18262 & L-21434; 31 July 1964

2. CIR vs BOAC; GR no. L-65773-74; 30 April 1987 BANDILLA

3. CREBA vs Rumulo; GR no. 160756; 09 March 2010

4. Madrigal vs. Rafferty; GR no. L-12287; 07 August 1918

i. Income Tax System

1. Global

2. Schedular 

3. Others

ii. Features of the Philippine Income Tax Law

iii. Criteria in Imposing Philippine Income Tax

1. Citizenship

2. Residence

3. Source

ii. General Principles of Income Taxation

iii. Types of Philippine Income Taxes

iv. Kinds of Taxpayers

v. Taxable Period

b. Concept of Income

i. Concept and definition

 1. Fisher vs. trinidad; GR no. L-17518; 30 October 1922---D'LONSOD

2. CONCI V. CTA; GR NO. 48532; 31 AUGUST 1992

3. EISNER V. MACOMBER; 252 U.S.. 189 (1920)

4. MADRIGAL VS RAFFERTY; GR NO. L-12287; 07 AUGUST 1918-MAPANDI

5. CREBA VS ROMULO; GR NO. 160756; 09 MARCH 2010

6. CIR V. BENEDICTO; GR NO. 191999; 30 JULY 2014-MONDAY

7. ANPC VS BIR; GR NO. 228539; 26 JUNE 2019

8. BIR VS FIRST E-BANK TOWER CONDOMINIUM; GR NO. 215801; 15 JANUARY

2020-MONTECILLO

ii. When income is taxable

1. Existence of income

2. Realization of income

3. Recognition of income

4. Cases:

a. CIR V. CA; GR NO. 108576; 20 JANUARY 1999

b. CREBA VS ROMULO; GR NO. 160756; 09 MARCH 2010-OSORIO

iii. Test in determining whether income is earned for tax purposes

1. Flow of wealth test

2. Realization test

3. Claim of right doctrine or doctrine of ownership, command or control

4. Economic benefit test or doctrine of proprietary interest

a. Constructive receipt

b. Indirect receipt

2. Severance test

3. All event test

ii. Methods of accounting

1. Cash method

2. Accrual method
 3. Special methods

a. Installment basis

b. Deferred payment

c. Percentage of completion

d. Crop year basis

1. CIR V. LANCASTER PHILIPPINES; GR NO. 183408; 12 JULY 2017

ii. Power of CIR to allocate income and deductions

1. Controlled taxpayer

2. Theoretical (imputed) interest

3. Transfer pricing

4. True net income

5. Arm's length principle

6. Cost sharing agreement

ii. Situs of income

1. CIR V. JULIANE BAIER-[NICKEL; GR NO. 153793; 29 AUGUST 2006-PENAS JEM

2. HOWDEN V. COLLECTOR; GR NO. L-19392; 14 APRIL 1965

3. PHILIPPINE GUARANTY V. CIR; GR NO. L-22074; 30 APRIL 1965-PENAS SEF

4. NDC V. CIR; GR NO. L-53961; 30 JNE 1987

5. BIR RULING NO. 517-11, DATED 22 DECEMBER 2011-SETO

c. Gross income

i. Concepts and definition

1. BDO V. REPUBLIC; GR NO. 198756; 13 JANUARY 2015

2. CIR VS TOURS SPECIALISTS; GR NO. 66416; 21 MARCH 1990-VILLANUEVA

3. RMC 89-2012

4. RMC 16-2013

ii. Distinguish: gross income, net income and taxable income

iii. Sources of income subject to tax

1. Service
 2. Property

3. Activity

4. Cases:

a. CIR V. JULIANE BAIER-[NICKEL; GR NO. 153793; 29 AUGUST 2006

b. HOWDEN V. COLLECTOR; GR NO. L-19392; 14 APRIL 1965

c. PHILIPPINE GUARANTY V. CIR; GR NO. L-22074; 30 APRIL 1965

d. NDC V. CIR; GR NO. L-53961; 30 JNE 1987

e. BIR RULING NO. 517-11, DATED 22 DECEMBER 2011

f. ANPC V. BIR; GR NO. 228539; 26 JUNE 2019

g. BIR VS FIRST E-BANK TOWER CONDOMINIUM; GR NO. 215801; 15 JANUARY

2020

iv. Items of gross income

1. Compensation income

a. PIROVANO V. CIR; GR NO. L-19865; 31 JULY 1965

b. CIR V. HENDERSON; GR NO. L-12954; 28 FEBRUARY 1961

2. Fringe benefits

3. Professional income

4. Income from business

5. Income from dealings in property

a. Ordinary asset and capital asset

b. Types of gains

c. Special rules pertaining to income or loss from dealings in property (loss

limitations rule, loss carry-over rule, holding period rule)

d. Tax free exchanges

e. Cases:

1. GONZALES V. CTA; GR NO. L-14532-33; 26 MAY 1965

2. Passive income

a. Interest
 b. Dividend

c. Royalty income

d. Rental income

e. Cases:

1. CIR VS FDC; GR NO. 163653; 19 JULY 2011

2. CIR VS CA; GR NO. 108576; 20JANUARY 1999

3. WISE AND CO. V. MEER; GR NO. 48231; 30 JUNE 1947

4. CIR VS. MANNING; GR. NO. L-28398; 06 AUGUST 1975

7. Annuities and proceeds from life insurance or other types of insurance

8. Prizes and winnings

9. Pension, retirement benefit, or separation pay

10. Miscellaneous income

a. Condoned debt

b. Bad debt recovered

c. Tax refunds or credits

d. Subsidy

1. CIR VS SONY PHILIPPINES; GR NO. 178697; 17 NOVEMBER 2010

v. Exclusions

1. Concepts and principles

2. Excluded items

a. CIR VS PAL; GR NO. 160528; 09 OCTOBER 2006

b. CIR VS MITSUBISHIMETAL CORPORATION; GR NO. L-54908; 22 JANUARY 1990

c. BDAO VS. REPUBLIC; GR NO. 198756; 13 JANUARY 2015

2. Entitled taxpayers

3. Distinguish: exclusions, deductions, tax credits

4. Exclusions under the constitution

d. Deductions
 i. Concept and principles

1. CREBA V. ROMULO; GR NO. 160756; 09 MARCH 2010

2. PHILEX MINING CORP. V. CIR; GR NO. 148187

3. CIR VS ISABELA CULTURAL; GR NO. 172231

4. CIR VS GENERAL FOODS; GR NO. 143672

5. ATLAS CONSOLIDATED MINING V. CIR; GR NO. L-26911

ii. Concept of return of capital

iii. Itemized deductions and optional standard deduction

iv. Requirements for deductible items

v. Itemized deductions

1. Concepts

a. Business/statutory test

b. Substantiation requirements

c. Capital expenditure

d. Revenue expenditure

e. Primary purpose test

f. Origin of the claim doctrine

g. Cohan rule (principle)

h. Independent investor approach (test)

i. Tax arbitrage rule

j. Tax benefit rule

k. Bad debt theory

2. Cases:

a. ATLAS CONSOLIDATED MINING V. CIR; GR NO. L-26911

b. ESSO STANDARD VS CIR; GR NO. 28508

c. HOSPITAL DE SAN JUAN DE DIOS VS CIR; GR NO. L-31305

d. COLLECTOR VS PHILIPPINE EDUCATION CO.; GR NO. L-8505

e. PHILMICO-MAURI VS CIR; GR NO. 175651;

 f. VISAYAN CEBU TERMINAL VS CIR; GR NO. L-12798

g. ZAMORA VS CIR; GR NO. L-15290

h. JUMBO EAST REALTY VS CIR; CTA CASE NO. 8380

i. KUENZLE & STREIFF VS CIR; GR NO. L-12010

j. AGUINALDO INDUSTRIES VS CIR; GR NO. L-29790;

k. CIR VS GENERAL FOODS; GR NO. 143672

l. SAMBRANO VS CTA; GR NO. L-8652

m. CIR VS PALANCA; GR NO. L-16626

n. CIR VS VDA. DE PRIETO; GR NO. L-13912

o. PLARIDEL SURETY VS CIR; GR NO. L-21520

p. ALPHAMBRA CIGAR VS COLLECTOR; CTA CASE NO. 143

q. CITY LUMBER VS DOMINGO; GR NO. L-18282

r. CIR VS PRISCILLA ESTATE; GR NO. L-18282

s. PRC VS CA; GR NO. 118794

t. CHINA BANKING CORPORATION VS CA; GR NO. 125508

u. PHILEX MINING VS CIR; GR NO. 148487

v. COLLECTOR VS GOODRICH; GR NO. L-22265

w. BASILAN ESTATES VS CIR; GR NO. L-22492

ii. Items not deductible