UNIVERSITY OF THE EAST

College of Law

Course Title : Taxation Law II

Course Credit : Three (3) Units
Faculty : Atty. Marvin P. Cañero, CPA

Course Description: This course introduces the concepts and principles relating to the imposition of transfer
taxes (donor’s tax and estate tax) and value-added tax, remedies under the National Internal Revenue Code
and related laws and revenue issuances, local government taxation, and judicial remedies (RA 1125, as
amended, and the Revised Rules of the Court of Tax Appeals)

Course Objectives:

1. Identify and understand the concepts, policies, and imposition donor’s tax, estate tax and value-
added tax, including the application to actual business transactions.
2. Understand the basic principles and policies of local government taxation.
3. Identify and appreciate administrative and judicial remedies that may be availed of by the government
and taxpayers on matters relating to taxes.
4. Encourage the observance of honesty and fair dealing on matters relating to the payment and
collection of taxes.

Method of Teaching: Live discussion/lecture via canvas and/or zoom with recitations using socratic method.

COURSE OUTLINE

A. ESTATE TAX and DONOR’S TAX

a. Sections 84 to 104, NIRC, as amended.

b. RA 10963
c. RR 12-2018; RR 17-2018
1 d. Dizon vs. CTA, G.R. No. 140944, 30 April 2008
2 e. CIR vs. Pineda, GR No. L-22734, 15 September 1967

B. VALUE-ADDED TAX

a. Sections 105 to 115, NIRC, as amended.

b. RR 13-2018
3 c. ABAKADA Guro Party List vs. Ermita, GR No. 168056, 1 September 2005;
4 d. Tolentino vs. Secretary of Finance, GR No. 115455, 25 August 1994
5 e. CIR Vs. Magsaysay Lines, GR No. 146984, 28 July 2006
6 f. ANPC vs. BIR, G.R. No. 228539, June 2019
7 g. PSALM vs. CIR, G.R. No. 226556, 3 July 2019,
8 h. Contex vs. CIR, GR No. 151135, 2 July 2004
9 i. CIR vs. Seagate Technology, GR No. 153866, 11 Feb 2005
10 j. Fort Bonifacio Development Corp. vs. CIR, G.R. No. 175707, November 19, 2014
11 k. Toshiba Information Equipment [Phils.], vs. CIR, G.R. No. 157594, March 9, 2010
12 l. CIR vs. Toshiba Information Equipment [Phils.], Inc., G.R. No. 150154. August 9, 2005
13 m. Coral Bay Nickel Corporation VS. CIR, GR No. 190506, 13 June 2016
14 n. Accenture, Inc. Vs. CIR, GR No. 190102, 11 JULY 2012,
15 o. CIR, v. United Cadiz Sugar Farmers Association MPC, G.R. No. 209776, Dec 07, 2016
16 p. CIR vs. Negros Consolidated Framers MPC, GR No. 212735. December 5, 2018
17 q. Fort Bonifacio Development Corporation vs. CIR, G.R. No.173425, 4 September 2012
18 r. RR 26-2018
19 s. CIR vs. Team Energy Corporation, GR No. 230412, 27 March 2019

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 20 t. Steag State Power, Inc. vs. CIR, GR No. 205282, 14 January 2019
21 u. Eastern Telecommunications Philippines, Inc., vs. CIR, G.R. No. 183531, March 25, 2015
22 v. CIR vs. Euro-Philippines Airline Services, Inc., GR No. 222436, 23 July 2018

C. REMEDIES UNDER THE NIRC

a. Tax Assessment

i. Requisites of a valid assessment

23 1. CIR vs. Eron Subic Power Corporation, GR No. 166387, 19 January 2009
24 2. CIR vs. United Salvage And Towage (Phils.), Inc., G.R. No. 197515, July 2, 2014
25 3. Samar-I Electric Cooperative vs. CIR, G.R. No. 193100, 10 December 2014
26 4. Pilmico-Mauri Foods Corp., v. CIR, G.R. No. 175651, September 14, 2016
27 5. CIR v. Fitness by Design, Inc., G.R. No. 215957, November 9, 2016
28 6. CIR v. Pascor Realty and Development Corp., GR No. 128315, 29 June 1999
29 7. Adamson v. Court of Appeals, GR No. 120935, 21 May 2009
30 8. Estate of Julina Diez vda. De Gabriel vs. CIR, GR No. 155541, 01 January 2004

ii. Prescriptive Period

1. CIR vs. Asalus Corporation, G.R. No. 221590, 22 Feb 2017
2. CIR vs. Philippine Daily Inquirer, Inc., G.R. No. 213943, 22 March 2017
3. CIR vs. La Flor Dela Isabela, Inc., G.R. No. 211289. January 14, 2019, J. Reyes
4. BIR vs. GMCC United Development Corp., GR No. 191856, 7 December 2016
5. CIR vs. The Stanley Works Sales (Phils.), Inc., G.R. No. 187589. Dec 3,
2014RCBC vs. CIR, GR No. 170257, 7 September 2011
6. CIR vs. Systems Technology, Inc. vs. CIR, G.R. No. 220835, July 26, 2017,
7. CIR vs. Avon Products Manufacturing, Inc/Avon Products Manufacturing, Inc. Vs.
The Commission of Internal Revenue, G.R. Nos. 201398-99/G.R. Nos. 201418-19.
October 3, 2018, J. Leonen
8. CIR vs. Standard Chartered Bank, G.R. No. 192173, July 29, 2015
9. CIR vs. Next Mobile, G.R. No. 212825, December 07, 2015,
10. Asian Transmission Corp. vs. CIR,2018, G.R. No. 230861, 19 Sept 2018,
11. CIR vs. Basf Coating + Inks Phils., Inc., G.R. No. 198677, 26 Nov 2014
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iii. Is Assessment Necessary Before Prosecution?

1. Ungab vs. Cusi, 97 SCRA 877, 30 May 1980
2. CIR vs. CA (Fortune Case) GR No.119322, 4 June 1996
3. Adamson, et al vs. CA/CIR vs. CA, GR Nos. 120935 and 124557, 21 May 2009
4. BIR vs.CA, Spouses Manly, G.R. No. 197590. November 24, 2014

b. Assessment Process and Reglementary Periods

i. Medicard Philippines vs. CIR, GR. No. 222743, 5 April 2017
ii. CIR vs. Lancaster Philippines, Inc., G.R. No. 183408, July 12, 2017
iii. CIR vs. Hentex Trading Co., Inc. G.R. No. 136975, 31 March 2005
iv. Visayan Cebu Terminal vs. Collector, 108 SCRA 320
v. CIR vs. Metro Star Superama, GR No. 185371, 8 December 2010
vi. CIR vs. Transitions Optical Philippines, Inc., G.R. No. 227544, 22 November 2017
vii. CIR vs. Avon Products Manufacturing, Inc/Avon Products Manufacturing, Inc. Vs.
CIR, G.R. Nos. 201398-99/G.R. Nos. 201418-19. October 3, 2018

c. Civil Penalties
i. Revenue Regulation 21-2018

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 d. Collection
i. China Banking Corporation v. CIR, GR. No. 172509, February 04, 2015
ii. Angeles City vs. Angeles City Electric Cooperative, GR No. 166134, 29 June 2010
iii. CIR vs. Pilipinas Shell Petroleum Corp., GR Nos. 197945 & 204119-20, 9 Jul 2018
iv. CIR vs. BPI, GR NO. 224327, 11 June 2018
v. BPI vs. CIR, G.R. No. 181836, July 09, 2014

e. Taxpayer’s Remedies

i. Protesting an Assessment
1. CIR vs. First Express Pawnshop Co., GR No. 172045, 16 June 2009
2. CIR VS. Liquigas Phils. Corp., GR Nos. 215534 & 215557, 18 Apr 2016
3. Lascona Land Co., Inc. vs. CIR, GR No. 171251, 5 March 2012
4. RCBC vs. CIR, GR No. 168498, 24 April 2007
5. PAGCOR vs. BIR, G.R. No. 208731, January 27, 2016
6. CIR vs. Roca Security, GR No. 241338, 10 April 2019 – judicial remedy
7. Misnet, Inc. vs. CIR, GR No. 210604, 3 June 2019 - judicial remedy
8. CIR vs. VY Domingo Jewellers, GR No. 221780, 25 March 2019 -
judicial remedy
9. CIR vs. SOJ and Metropolitan Cebu Water District, GR No. 209289, 9
July 2018 ( jurisdiction on disputed assessment)

ii. Compromise and Abatement

1. Asiatrust Dev’t Bank, Inc., vs. CIR, G.R. No. 201530, April 19, 2017

iii. Recovery of Tax Erroneously or Illegally Collected

1. Silkair (Singapore) Pte. Ltd. v. CIR, GR No. 171383, 14 November
2008; Silkair (Singapore) Pte. Ltd. v. CIR, GR No. 184398, 25 Feb 2010
2. CIR vs. Pilipinas Shell Pet. Corp., GR No. 180402, Feb 10, 2016
3. PAL v. CIR, GR No. 198759, 1 July 2013
4. CIR vs. PASAR, GR No. 186223, Oct 1, 2014
5. Chevron vs. CIR, GR No. 210836, 1 Sept 2015
6. CBK Power Company Limited vs. CIR, G.R. Nos. 193383-84, January
14, 2015; CIR vs. CBK Power Company Limited, G.R. Nos. 193407-08
7. CIR vs. Goodyear Philippines, Inc. GR No. 216130, 3 August 2016
8. Metropolitan Bank & Trust Co. vs. CIR, GR No. 182582, 17 Apr 2017,
9. PBCOM vs. CIR, GR No. 194065, 20 June 2016
10. PAL vs. CIR, CIR vs. PAL, January 17, 2018, G.R. Nos. 206079-8
11. Mitsubishi Corp.–Manila Br. vs. CIR, June 5, 2017, G.R. No. 175772
12. CIR vs. Manila Electric Company, G.R. No. 181459. June 9, 2014
13. Republic vs. Team Energy Corp., G.R. No. 188016, 14 Jan 2015
14. CIR Vs. Team [Philis] Operations Corp. GR No. 179260, April 2, 2014
15. Winebrenner & Iñigo Insurance vs. CIR, GR No. 206526, 28 Jan 2015
16. CIR vs. PNB, G.R. No. 180290, September 29, 2014
17. Philippine National Bank, v. CIR, G.R. No. 206019, March 18, 2015,
18. CIR vs. PNB, GR No. 212699, 13 March 2019
19. University Physician Services, Inc.- Mg’t, Inc. vs. CIR, 7 Mar 2018
20. Rhombus Energy, Inc. vs. CIR, GR No. 206362, August 1, 2018
21. CIR vs. San Miguel Corp., GR Nos. 180740 & 180910, 11 Nov 2019
22. CIR vs. Univation Motors Phils., Inc. GR No. 231581, 10 April 2019
23. CIR vs. Semirara Mining Corp., GR No. 202534, 8 December 2018
24. CIR vs. Cebu Holdings, Inc., GR No. 189792, 20 June 2018

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 f. Government Remedies
i. Administrative Remedies
ii. Judicial Remedies

D. LOCAL GOVERNMENT CODE

a. Local Government Taxation

i. Fundamental principles

ii. Nature and source of taxing power

1. Pelizloy Realty Corp. vs. Benguet, GR No. 183137, 10 Apr 2013
2. Province of Bulacan vs. CA
3. Ferrer vs. Mayor Bautista, G.R. No. 210551, June 30, 2015

iii. Local taxing authority

1. Ongsuco, et al vs. Hon. Mariano M. Malones (2009)

iv. Scope of local taxing power

v. Specific taxing power of LGUs

1. City of Pasig vs. Manila Electric Cooperative, GR No. 181710, 7 March
2018

vi. Common Limitations on the taxing powers of LGUs

1. Palma Dev’t Corp v. Mun. of Malangas, GR No. 152492, 16 Oct 2003
2. Batangas City vs. Pilipinas Shell, GR No. 187631, 8 July 2015
3. Petron vs.Tiangco, (2008)
4. PBA vs. CA, GR No. 119122, 8August 2000
5. Manila Vs. Hon. Angel Valera Colet, GR No. 120051, Dec 10, 2014

vii. Collection of local taxes

viii. Taxpayer’s remedies

1. Jardine Davies Insurance Brokers, Inc. Vs. Aliposa, 2003
2. City of Manila vs. Cosmos Bottling Corp., GR No. 196681, 27 Jun 2018
3. Alta Vista Golf & Country Club vs. Cebu, GR No. 180235, 20 Jan 2016
4. China Banking Corp. vs. Treas. of Manila, G.R. No. 204117, 1 Jul 2015
5. Coca-Cola Bottlers Phils., Inc. vs. Manila, G.R. No. 197561, 7 Apr 2014
6. Metro Manila Shopping Mecca Corp., et al vs. Toledo, G.R. No.
190818, June 05, 2013
7. International Container Terminal Services, Inc. vs. City of Manila, GR
No. 185622, 17 October 2018
8. Treasurer of Manila vs. Philippine Berverage Partners, Inc., substituted
by Coca-Cola Bottlers Philippines, G.R. No. 233556, 11 Sept 2019

ix. Civil remedies of LGUs

1. Lanao Norte Electric Cooperative, Inc. vs. Provincial Government of
Lanao Del Norte, GR No. 185420, 29 august 2017

b. Real Property Taxation

i. Fundamental principles

ii. Nature and imposition of real property tax

1. MERACLO vs. Lucena, G.R. No. 166102, August 05, 2015
2. FELS Energy, Inc. vs. Prov. of Batangas, GR No. 168557, 16 Feb 2007

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 3. Capitol Wireless, Inc., vs. Prov. Treas. of Batangas, et al, 30 May 2016
4. LRTA vs. CBAA, G.R. No. 127316. October 12, 2000
5. City of Pasig vs. Republic, 24 August 2011
6. NPC vs. Province of Quezon and Mun. of Pagbilao, 15 July 2009
7. Republic vs. City of Paranaque, GR NO. 191109, 8 July 2012
8. UP vs. City Treasurer of Quezon City, GR No. 214044, 19 June 2019
9. National Grid Corporation of the Philippines VS. Ofeliam Oliva, G.R. No.
213157, August 10, 2016

iii. Appraisal, assessment and collection of real property tax

iv. Refund or credit of real property tax

v. Taxpayer’s remedies
1. Manila Electric Company, vs. Nelia A. Barlis, May 18, 2001
2. Ty vs. Trampe, G.R. No. 117577. December 1, 1995
3. NPC vs. Prov. Treas. of Benguet, et al, G.R. No. 209303, Nov 14, 2016
4. Davao Vs. Estate of Amado S. Dalisay, GR No. 207791, 15 Jul 2015
5. City of Lapu-Lapu Vs. PEZA, G.R. No. 184203, November 26, 2014

E. JUDICIAL REMEDIES [ RA 1125, as amended, and the Revised Rules of the CTA]

a. Allied Banking Corporation v. CIR, GR No. 175097, 5 February 2010

b. CIR vs. CTA and Petron Corp., G.R. No. 207843, 15 Jul 2015; MR dated 14 Feb 2018
c. Com. of Customs vs. Oilink International Corporation, G.R. No. 161759, July 2, 2014
d. CIR vs. Hambrecht & Quist Philippines, Inc., GR No. 169225, 17 November 2011
e. Phil. American Life and Gen. Insurance vs. SOF and CIR, GR No.210987, 24 Nov 2014
f. Smart Communications, Inc. vs, Malvar, Batangas, G.R. No. 204429. Feb 18, 2014
g. NAPOCOR Vs. Navotas, et al, G.R. No. 192300. November 24, 2014
h. Ce Casecnan Water & Energy Co., Inc., vs. Nueva Ecija GR No. 196278, 17 Jun 2015
i. BDO VS. CIR, G.R. No. 198756, 13 January 2015; MR: 16 August 2016
j. Steel Corporation vs. BOC and BIR, GR No. 220502, 12 February 2018
k. PSALM Corporation vs. CIR, August 8, 2017, G.R. No. 198146,
l. City of Manila vs. Grecia-Cuerdo, G.R. No. 175723, February 4, 2014
m. CIR vs. Kepco Ilijan Corporation, GR No. 199422, 21 June 2016
n. SMI-ED vs. CIR, GR No. 175410, 12 Nov 2014
o. Tridharma Marketing Corporation Vs. CTA & CIR, GR No. 215950, 20 June 2016
p. Spouses Emmanuel Paquiao And Jinkee Pacquiao Vs. CIR, GR No. 213394, 06 Apr 2016
q. CIR vs. Standard Insurance Co., INc. GR No. 219340, 7 Nov 2018
r. Macario Gaw vs. CIR, G.R. No. 222837, July 23, 2018
s. CIR vs. CTA and Wintelcom, Inc., GR No. 203403, 14 November 2018
t. Philippine Ports Authority vs. Davao, GR No. 190324, 6 June 2018
u. BIR vs. Acosta, et al, GR No. 195320, 23 April 2018
v. Ignacio vs. Treasurer of Quezon City, GR No. 221620, 11 September 2017
w. Alcantara vs. Republic, GR No. 192536, 15 March 2017
x. NAPOCOR vs. Provincial Government of Bataan, GR No. 180654, 6 March 2017