1. In your own words, write a concise summary of the case.

 The focus of this case is the importation of petroleum and petroleum products
here in the Philippines. Reports had been received affirming that there were
smuggled petroleum and petroleum products resulting to extensive revenue
losses. In retort, the Commission of Internal Revenue signed RR no 2 – 2012
prescribing the tax administration treatment of petroleum and petroleum products
coming into the Philippines and it also includes coming through the Freeport
zone and economic zone of the country. This particular revenue regulation was
issued to safeguard the collection of taxes from whoever they were due. Upon
entry of the petroleum products in the Philippines and FEZ, the locator must pay
the stated tax first. In addition, he/she must justify the use of the product in the
registered activity to get a refund or credit for the taxes initially paid.

2. Using the presented facts and articles, identify the main issues or problems? You
can use additional resources other than those presented above.

 This revenue regulation is being questioned if it serves as mere tax

administrative issuance or if it implicitly amends a tax statute. When we talked
about tax administrative issuance, it prescribes instructions and procedures in
the implementation of rules and regulations pursuant to the law while tax statute
means to legislate for the assessment and collection of taxes.
 Another problem of this revenue regulation is the inclusion of the various FEZ’s
of the Philippines because products/goods arriving here are tax and duty free
importations.

3. Make an analysis and evaluation of the identified issues or problems in relation to

the powers of the CIR and tax penalties.

 The Legislature is the only body with the legislative authority to tax the state.
Taxing authority requires the ability to assign tax exemptions. As a result, the
imposition of taxes, as well as the grant and removal of tax exemptions, must all
be done by congressional action.

4. If you are the CIR, what are the considerations you need to keep in mind to avoid
the issues from happening again?

 Re-reading other rules to ensure that they do not conflict with the proposed
Revenue Regulations, which will prevent situations like these from recurring and
result in legal re-arrangements.