TAXATION LAW REVIEW

I. GENERAL PRINCIPLES

A. Classification of Taxes
1. Different Classifications
a. Separate Opinion of Justice Bersamin in CIR vs. Pilipinas Shell, GR No.
188497 dated February 19, 2014

B. Fees vs. Charges vs. Taxes

1. Progressive Development Corporation vs. Quezon City, GR No. L-36081 dated April
24, 1989
2. Ferrer, Jr. vs. Bautista, GR No. 210551 dated June 30, 2015 (ARCILLA AND ABENIO)

C. Are taxes subject to set-off?

1. Relevant Civil Code provisions
2. Francia vs. IAC, GR No. 67649 dated June 28, 1988
3. Philex Mining vs. CIR, GR No. 125704 dated August 28,
1988 4. Domingo vs. Garlitos, GR No. L-18994 dated June 29,
1963
5. Air Canada vs. CIR, GR No. 169507 dated January 11, 2016 (CODIZAL AND BABIANO)

D. Double
Taxation 1.
Kinds
2. Modes of eliminating double taxation
3. CIR vs. Solidbank, GR No. 148191 dated November 25, 2003
4. Nursery Care Corporation vs. Acevedo, GR No. 180651 dated July 30,
2014 5. International Double Taxation
a. RMO No. 72-2010 dated August 25, 2010 (basic concepts only)
b. RMO No. 8-2017 dated October 24, 2010 (basic concepts only)
c. CIR vs. S.C. Johnson and Sons, Inc., GR No. 127105 dated June 25, 1999
d. Deutsche Bank AG Manila Branch vs. GR No. 188660 dated August 19, 2013
e. CIR vs. Interpublic Group of Companies, Inc., GR No. 207039 dated August 14,
2019 (GARZIA-AZCUE, DE LARA AND NAVARRO)

E. Inherent Limitations
1. Enumeration
2. Delegation to Local Government Units
a. Pepsi Cola Bottling Co. of the Phils. vs. Municipality of Tanauan, GR No. L-
31156 dated February 27, 1976

F. Constitutional Limitations
1. Enumeration
2. Non-impairment of obligation of contracts / Grant of
Franchise a. Sec. 10 Art. III of the Constitution
b. Sec. 11 Art. XII of the Constitution
c. Meralco vs. Province of Laguna, GR No. 131359 dated May 5, 1999
d. Smart Communications, Inc. vs. City of Davao, GR No. 155491 dated
September 16, 2008 (GACULA AND PADILLA)

3. Infringement of Religious Freedom

a. Sec. 5 Art. III of the Constitution
b. American Bible Society vs. City of Manila, GR No. L-9637 dated April 30,
1957 c. Tolentino vs. Secretary of Finance, GR No. 115455 dated August 25,
1994 and
October 30, 1995 (motion for reconsideration)
 4. Infringement of Press Freedom
a. Sec. 4 Art. III of the Constitution
b. Tolentino vs. Secretary of Finance, GR No. 115455 dated August 25, 1994 and
October 30, 1995 (motion for reconsideration) (PY AND MALONZO)

G. Tax Rulings
1. Definition
2. Revenue Regulations (“RR”) No. 5-2012 dated April 2, 2012
3. Commissioner’s Ruling (Sec. 7(B) of the NIRC)
4. Power of the CIR to Interpret /Review/Appeal to Sec. of Finance (Sec. 4 of the NIRC)
a. Honda Cars Philippines, Inc. vs. Honda Cars Technical Specialist Supervisors
Union, GR No. 204142 dated November 19, 2014
b. Banco De Oro vs. Republic, GR No. 198756 dated January 13, 2015
c. Confederation for Unity, Recognition and Advancement of Government
Employees vs. Commissioner - BIR, GR No. 213446 dated July 3, 2018
5. Appeal of Rulings – RTC or CTA?
a. Banco De Oro vs. Republic, GR No. 198756, January 13, 2015 and resolution
on the Motion for reconsideration, GR No. 198756 dated August 16, 2016
b. Confederation for Unity, Recognition and Advancement of Government
Employees vs. Commissioner - BIR, GR No. 213446 dated July 3, 2018
(SICCUAN AND MURIA)

6. Non-Retroactivity of Rulings
7. a. Sec. 246 of the NIRC
b. CIR vs. Phil. Healthcare Providers, GR No. 168129 dated April 24, 2007
c. CIR vs. Burmeister and Wain, GR No. 153205 dated Jaunary22, 2007
d. CIR vs. CA, GR No. 117982 dated February 6, 1997 [read also concurring
opinion of Justice Vitug]
e. CIR vs. Filinvest Development Corporation, GR Nos. 163653 and 167689
dated July 19, 2011
f. CIR vs. San Roque Power, GR No. 187485 dated February 12, 2013 and other
cases
g. CIR vs. San Roque Power, GR No. 187485 dated October 8, 2013
h. Banco De Oro vs. Republic, GR No. 198756 dated August 16, 2016 – resolution

on the Motion for Reconsideration (TIMPUG, OSTAN AND RAMOS)

II. LOCAL AND REAL PROPERTY TAXATION

A. General Principles in Local Taxation

1. Local Government Units’ Power to Tax
a. Sec. 5 Art. X of the 1987 Constitution
b. Sec. 129 of the Local Government Code (“LGC”)
c. Film Development Council of the Philippines vs. Colon Heritage Realty, GR No.
203754 dated June 16, 2015
2. Repeal of Tax Exemptions
a. Sec. 193 of the LGC
b. PLDT vs. City of Davao GR No. 143867, August 22, 2001
3. Procedure for approval and effectivity of tax ordinance
a. Secs. 132, 187 and 188 of the LGC (ALVAREZ AND BUNAL)
B. Common Limitations on Local Government Units’ Power to Tax
1. Sec. 133 of the LGC
2. Petron Corp. vs. Tiangco, GR No. 158881 dated April 16, 2008
3. Batangas City vs. Pilipinas Shell Petroleum Corporation, GR No. 187631 dated July 8,
2015
4. City of Manila vs. Colet, GR No. 120051 dated December 10, 2014
5. Provincial Assessor of Agusan del Sur vs. Filipinas Palm Oil, GR No. 183416 dated
October 5, 2016
6. MIAA vs. CA, GR No. 155650 dated July 20, 2006 (CANETE AND ERANA)
C. Specific Taxes
1. Local Transfer Tax
a. Sec. 135 of the LGC
2. Franchise Tax
a. Sec. 137 of the LGC
b. Smart Communications vs. City of Davao, GR No. 155491 dated16, 2008

c. City of Iriga vs. Camarines Sur III Electric Cooperative, Inc., GR No. 192945 dated
September 5, 2012
3. Professional Tax
a. Sec. 139 of the LGC
b. Local Finance Circular No. 1-2019 dated June 12, 2019
4. Amusement Tax
a. Sec. 140 of the LGC (as amended by RA 9640)
b. Sec. 131(c) of the LGC
c. Pelizloy Realty Corp., vs. Province of Benguet, GR No. 183137 dated April 10,
2013. (compare with old case of PBA vs. CA GR No. 119122, August 8, 2000)
d. Alta Vista Golf and Country Club vs. The City of Cebu, GR No. 180235 dated
January 20, 2016
5. Business Tax
a. Sec. 143 of the LGC
b. Nursery Care Corporation vs. Acevedo, GR No. 180651 dated July 30, 2014
c. City of Davao vs. Randy Allied Ventures, Inc., GR No. 241697 dated July 29, 2019
(MACASINAG, MALAMBUT AND MANLANGIT)

D. Remedies on Local Taxation

1. Constitutionality of Tax
Ordinance a. Sec. 187 of the
LGC
a. Aala vs. Uy, GR No. 202781 dated January 10, 2017
b. Smart Communications, Inc. vs. Municipality of Malvar, GR No. 204429, GR
No. 204429 dated February 18, 2014. Compare with De Lima vs. City of
Manila, GR No. 222886 dated October 17, 2018
c. City of Cagayan De Oro v. CEPALCO, GR No. 224825 dated October 17, 2018

2. Protest
a. Sec. 195 of the LGC
b. San Juan vs. Castro, GR No. 174617 dated December 27,
2007 3. Refund
a. Sec. 196 of the LGC
b. City of Manila vs. Cosmos Bottling Corporation, GR No. 196681 dated June
27, 2018
c. International Container Terminal Services, Inc. vs. City of Manila, GR No.
185622 dated October 17, 2018
4. Is Injunction Available?
a. Angeles City vs. Angeles Electric Corporation, GR No. 166134 dated June 29,
2010 (REYES, ROMERO AND REFORSADO)
E. General Principles on Real Property Taxation
1. Machineries and Improvements
a. Secs. 199 (m) and (o) of the LGC
b. Manila Electric Company vs. The City of Assessor and City Treasurer of
Lucena City, GR No. 166102 dated August 5, 2015
c. Provincial Assessor of Agusan del Sur vs. Filipinas Palm Oil, GR No. 183416
dated October 5, 2016
d. Capitol Wireless, Inc. vs. Provincial Treasurer of Batangas, GR No. 180110
dated May 30, 2016
2. Notification of New or Revised
Assessment a. Sec. 223 of the LGC
b. Manila Electric Company vs. The City of Assessor and City Treasurer of
Lucena City, GR No. 166102 dated August 5, 2015 (SANTOS and SAYAO)

F. Exemption from Real Property Taxation

1. Sec. 234 of the LGC
2. Sec. 206 of the LGC
3. Sec. 28, Art. VI of the 1987 Constitution
4. Sec. 4(3), Art. XIV of the 1987 Constitution
a. MIAA vs. CA, GR No. 155650 dated July 20, 2006
b. Lung Center of the Philippines vs. Quezon City, GR No. 144104 dated June
29, 2004
c. NPC vs. Province of Quezon, GR No. 171586 dated July 15, 2009
d. NPC vs. Province of Quezon, GR No. 171586 dated January 25, 2010
(Resolution) e. Provincial Assessor of Agusan del Sur vs. Filipinas Palm Oil, GR
No. 183416 dated
October 5, 2016
e. LRTA vs. Quezon City, GR No. 221626 dated October 9, 2019 (MALAMBUT,
STA. CRUZ, AND ALVAREZ)

5. Who should pay the tax under Sec.

234(a)? a. Sec. 205(d) of the LGC
b. Herarc Realty Corp. vs. Provincial Treasurer of Batangas, GR No. 210736
dated September 5, 2018.
c. Philippine Fisheries Development Authority vs. CA, GR No. 169836 dated
July 31, 2007.
d. GSIS vs. City Treasurer and Assessor of Manila, GR No. 186242December 23,
2009.
e. City of Pasig vs. Republic, GR No. 185023 dated August 24, 2011.
f. Philippine Heart Center vs. Local Government of Quezon City, GR No.
225409 dated March 11, 2020. (ARCILLA AND ABENIO)

G. Remedies on Real Property Taxation

1. Secs. 226, 229, 252, 254, 258, 260 and 267 of the LGC
2. Requirement of payment under protest
a. Manila Electric Company vs. The City of Assessor and City Treasurer of
Lucena City, GR No. 166102 dated August 5, 2015
b. NPC vs. Province of Quezon, GR No. 171586 dated July 15, 2009
c. NPC vs. Province of Quezon, GR No. 171586 dated January 25, 2010
(Resolution) d. Camp John Hay Development Corp. vs. CBAA, GR No. 169234
dated October 2,
2013 (include concurring opinion of Justice
Carpio) 3. Payment under protest not required
a. NPC vs. Municipal Government of Navotas, GR No. 192300 dated November
24, 2014
b. City of Lapu-Lapu vs. PEZA, GR No. 184203 dated November 26, 2014
c. CE Casecnan Water and Energy Company, Inc. vs. The Province of Nueva
Ecija, GR No. 196278 dated June 17, 2015 (include Certiorari Jurisdiction of
 the CTA)
4. Recent cases
a. NPC vs. Provincial Treasurer of Benguet, GR No. 209303 dated November
14, 2016
b. Capitol Wireless, Inc. vs. Provincial Treasurer of Batangas, GR No. 180110
dated May 30, 2016
c. Philippine Ports Authority vs. Davao, GR No. 190324 dated June 6, 2018
(CANETE, BABIANO AND BUNAL)

5. RPT Delinquency
a. Secs. 254, 258, 260 and 267 of the LGC
b. Salva vs. Magpile, GR No. 220440 dated November 8, 2017
c. Solco vs. Megaworld Corporation, GR No. 213669 dated March 5,
2018 d. Beaumont Holdings vs. Reyes, GR No. 203706 dated August
7, 2017
e. Alvarado vs. Ayala Land, Inc., GR No. 208426 dated September 20, 2017
(CODIZAL AND DE LARA)

III. VALUE-ADDED TAX

A. Concept and elements of VATable

transactions 1. VAT as an indirect tax
a. Impact vs. incidence of tax.
b. Contex vs. CIR, GR No. 151135 dated July 2, 2004.
2. Persons Liable
a. VAT registration – Mandatory and Optional
i. Secs. 236(G) and 236(H) of the NIRC. (as amended by RA
10963) ii. Sec. 109(2) of the NIRC.
iii. Q/As 6, 30 and 31 of RMC No. 46-2008.
iv. VAT vs. Percentage Tax – Sec. 109(BB) vs. Sec. 116 of the NIRC. (as
amended by RA 10963)
b. Meaning of the phrase “in the ordinary course of trade or business”
i. CIR vs. CA and Commonwealth Management Services, GR No. 125355
dated March 30, 2000.
ii. CIR vs. Sony Phils, Inc., G.R. No. 178697 dated November 17, 2010.
iii. Mindanao II Geothermal Partnership vs. CIR, GR No. 193301 dated
March 11, 2013.
iv. Power Sector Assets and Liabilities Management Corporation vs. CIR, GR
No.
198146 dated August 8, 2017.
v. Power Sector Assets and Liabilities Management Corporation vs. CIR, GR
No.
226556 dated July 3, 2019.
vi. ANPC vs. BIR, GR No. 228539 dated June 26, 2019. (GARCIA-AZCUE,
ERANA AND MACASINAG)

B. VAT on Goods
1. Sec. 106 of the NIRC.
2. Sale of Real Property – Tax base for goods vs. Tax base for real property. – Sec.
4.106-4 of RR No. 16-2005.
a. Exempt Real Property – Sec. 109(p) of the NIRC. (as amended by RA 10963)
• Clarification of VAT exempt thresholds – Sec. 4.109-1 p of
RR No. 13-2018.
3. Transactions deemed sale – Sec. 106(B) of the NIRC - Sec. 4.106-7 of RR No. 16-2005
as amended by RR No. 4-2007.

C. VAT on Services
1. Sec. 108 of the NIRC.
 2. Medicard Philippines, Inc. vs. CIR, GR No. 222743 dated April 5, 2017.
3. CIR vs. SM Prime Holdings, Inc. GR No. 183505 dated February 26, 2010.
4. Diaz vs. The Secretary of Finance and CIR, GR No. 193007 dated July 19, 2011.
(GACULA AND NAVARRO)

D. Zero-rated Sales and Exempt

Sales 1. Zero-Rated Sales
a. Sec. 106(A)(2) and Sec. 108(B) of the NIRC. (as amended by RA
10963) 2. Exempt Sales
a. Sec. 109(1) of the NIRC. (as amended by RA 10963 and further amended by
RA 11467)
b. Clarification by RMO No. 23-2020 dated July 9, 2020
c. Percentage Tax – Sec. 116. (as amended by RA
10963) d. Sec. 4.109-1 of RR No. 13-2018.
e. CIR vs. United Cadiz Sugar Farmers Association Multi Purpose Cooperative,
GR No. 209776 dated December 7, 2016.
3. Destination Principle and Cross-Border Doctrine
a. Coral Bay Nickel Corporation vs. CIR, GR No. 190506 dated June 13, 2016.
4. Exempt Person vs. Exempt Transaction / Effectively Zero-Rated vs. Automatic
Zero-
Rating
a. CIR vs. Seagate Technology (Phils.), GR No. 153866 dated February 11, 2005.
(PADILLA AND MALAMBUT)

E. Input Tax
1. Substantiation Requirements
a.Sec. 110(A) in relation to Sec. 113 of the
NIRC. b. Sec. 4.110-8 of RR No. 16-2005.
2. Rule on Capital Goods – Sec. 110(A) (as amended by RA
10963) a. Sec. 4.110-3 of RR No. 13-2018.
3. CIR vs. Sony Phils, Inc., G.R. No. 178697 dated November 17,
2010. 4. Transitional Input Tax
b. Sec. 111(A) of the NIRC.
c. Fort Bonifacio Development vs. CIR GR No. 173425 dated September 4, 2012.

F. VAT Refund
1. Procedural Matters
a. Sec. 112 of the NIRC. (as amended by RA 10963)
b. RMC No. 47-2019 and Sec. 112-1 of RR No. 26-2018. (latest rules on input
VAT refund)
c. Contex vs. CIR, GR No. 151135 dated July 2, 2004.
d. Atlas Consolidated Mining vs. CIR, GR Nos. 141104 and 148763 dated June
8, 2007.
e. CIR vs. San Roque Power, GR No. 187485 dated February 12, 2013 and
other cases.
f. Coca-Cola Bottlers Philippines, Inc. vs. CIR, GR No. 222428 dated February
19, 2018.
2. Substantiation Issues
a. Microsoft Phils., Inc. vs. CIR, GR No. 180173 dated April 6, 2011.
b. Team Energy vs. CIR, GR Nos. 197663 and 197770 dated March 14, 2018.

G. Other Matters
1. Consequences of Issuing Erroneous VAT Invoice (Sec. 113(D) of the NIRC and
Sec.
4.113-4 of RR No. 16-05)
2. CIR vs. Euro-Philippines Airline Services, Inc., GR No. 222436 dated July 23,
2018.
(PY, MALONZO, SICCUAN AND MANLANGIT)
IV. REMEDIES UNDER THE NIRC

A. Letter of Authority / Audit Notice

1. Sec. 6(A) of the NIRC and Sec. 13 of the NIRC.
2. Revenue Memorandum Order No. 43-90. (as cited in the SC
Cases) 3. CIR vs. Sony Phils, Inc., G.R. No. 178697, November 17,
2010
4. CIR vs. De La Salle University, GR No. 198841 dated November 9,
2016 5. Medicard Philippines, Inc. vs. CIR, GR No. 222743 dated
April 5, 2017 6. CIR vs. Lancaster Philippines, Inc., GR No. 183408
dated July 12, 2017 7. Number of times a taxpayer may be audited
a. Sec. 235 of the NIRC (TIMPUG AND MURIA)

B. Tax Assessment
1. CIR vs. Pascor Realty, GR No. 128315 dated June 29, 1999.
2. SMI-ED Technology Corporation, Inc. vs. CIR, GR No. 175410 dated November 12,
2014.
3. CIR vs. Fitness By Design, Inc., GR No. 215957 dated November 9, 2016.

C. Prescriptive period to assess and collect

1. Period for Assessment – General Rule/Ordinary Prescription - Sec. 203 of the
NIRC. a. CIR vs. La Flor Dela Isabela, Inc., GR No. 211289 dated January 14,
2019.
b. CIR vs. Transitions Optical Phils., GR No. 227544 dated November 22, 2017.
(OSTAN AND RAMOS)
2. Period for Collection – General Rule Sec. 222(C) of the NIRC.
3. FalseReturn, Fraudulent Return, Omission to File a
Return/Extraordinary Prescription
a. Sec. 222(A) of the NIRC. Correlate with Sec. 248(B) of the NIRC.
b. Aznar vs. CTA, GR No. L-20569 dated August 23, 1974 compare with CIR vs.
Philippine Daily Inquirer, Inc., GR No. 213943 dated March 22,
2017. c. CIR vs. Asalus Corporation, GR No. 22150 dated February
22, 2017.
d. CIR vs. Fitness By Design, Inc., GR No. 215957 dated November 9, 2016.
4. Suspension of the prescriptive period
a. Secs. 223 and 91(B) of the NIRC
b. CIR vs. United Salvage and Towage (Phils.), Inc., GR No. 197515 dated July
2, 2014.
c. BPI vs. CIR, GR No. 139736 dated October 17, 2005.
d. CIR vs. BASF Coating + Inks Phils., Inc., GR No. 198677 dated November 26,
2014.
(REFORSADO AND REYES)
5. Waiver of the Statute of Limitations
a. New Requirements under RMO No. 14-2016 dated April 4, 2016.
b. Phil. Journalists, Inc. vs. CIR, GR No. 162852 dated December 16, 2004.
c.CIR vs. Kudos Metal, GR No. 178087 dated May 5, 2010 – take note of
old rule. d. RCBC vs. CIR, GR No. 170257 dated September 7, 2011.
e. CIR vs. Next Mobile, Inc., GR No. 212825 dated December 29, 2015.
f. CIR vs. Transitions Optical Philippines, Inc., GR No. 227544 dated November
22, 2017.
g. Asian Transmission Corporation vs. CIR, GR No. 230861 dated September
19, 2018.
h. CIR vs. Avon Products Manufacturing, Inc., GR Nos. 201398-99 dated
October 3, 2018. (ROMERO AND SANTOS)

D. Procedure in issuing an assessment / Requisites of a valid assessment / Due

Process 1. Sec. 228 of the NIRC.
 2. RR No. 12-1999 dated September 6, 1999, as amended by RR No. 18-2013
dated November 28, 2013, further amended by RR No. 22-2020.
3. CIR vs. Metro Star Superama, Inc., G.R. No. 185371 dated December 8,
2010. 4. CIR vs. Asalus Corporation, GR No. 22150 dated February 22,
2017.
5. CIR vs. Fitness By Design, Inc., GR No. 215957 dated November 9, 2016.
6. Samar-I Electric Cooperative vs. CIR, GR No. 193100 dated December 10, 2014.
7. CIR vs. Avon Products Manufacturing, Inc., GR Nos. 201398-99 dated October 3,
2018.

E. Protesting an assessment
1. Reinvestigation vs. Reconsideration
a. RR No. 18-2013 dated November 28, 2013.
b. BPI vs. CIR, GR No. 139736 dated October 17, 2005.
2. Submission of relevant documents / 60-day
period a. RR No. 18-2013 dated November 28,
2013.
b. CIR vs. First Express Pawnshop, GR Nos. 172045-06 dated June 16, 2009.
(STA. CRUZ, SAYAO AND ALVAREZ)

F. Decision / Inaction on the Pending Protest / Appeal to the Court of Tax Appeals
1. The 180-day period to
Decide a. Sec. 228 of the
NIRC.
b. RR No. 18-2013 dated November 28,
2013.
2. Final Decision on a Disputed Assessment
(“FDDA”) a. RR No. 18-2013 dated November
28, 2013.
b. CIR vs. Liquigaz Philippines Corporation, GR No. 215534 dated April 18,
2016.
3. Inaction during the 180-day period / Appeal to the Court of Tax
Appeals a. Sec. 228 of the NIRC.
b. RR No. 18-2013 dated November 28, 2013.
c. Revised Rules of the CTA, AM No. 05-11-07-CTA dated November 22, 2005,
as amended on September 16, 2008.
d. Lascona Land vs. CIR, GR No. 171251 dated March 5,
2012. e. RCBC vs. CIR, GR No. 168498 dated April 24,
2007.
f. PAGCOR vs. BIR, GR No. 208731 dated January 27, 2016.
g. Fishwealth Canning Corp. vs. CIR, GR No. 179343 dated January 21,
2010. h. Allied Banking Corporation vs. CIR, GR No. 175097 dated
February 5, 2010. i. MISNet, Inc. vs. CIR, GR No. 210604 dated June 3,
2019
j. CIR vs. V.Y. Domingo Jewellers, Inc., GR No. 221780 dated March 25,
2019 4. Administrative Appeal with the CIR
a. RR No. 18-2013 dated November 28, 2013. (ARCILLA, ABENIO AND BABIANO)

G. Collection / Remedies of the

Government 1. Prescriptive period to
collect
a. Secs. 222(C) and 222(A) of the NIRC.
2. Administrative remedies / Summary Remedies / Judicial
Collection a. Secs. 205 and 220 of the NIRC.
b. Republic vs. Hizon, GR No. 130430 dated December 13, 1997.
c. CIR vs. Hambrecht & Quist Philippines, Inc., GR No. 169225 dated
November 17, 2010.
3. No injunction to restrain collection of
 taxes a. Sec. 218 of the NIRC.
b. Rule 10, Revised Rules of the CTA, AM No. 05-11-07-CTA dated November
22, 2005, as amended on September 16, 2008.
c. Spouses Pacquiao vs. the CTA, GR No. 213394 dated April 6, 2016.
d. Tridharma Marketing Corporation vs. CTA, GR No. 215950 dated June 20,
2016.
(CANETE AND BUNAL)

H. Claims for refund and credit of taxes

1. Taxpayer / Withholding Agent / Proper Party to file the claim for refund
a.CIR vs. Smart Communications, Inc., GR Nos. 179045-46 dated August 25,
2010. b. Honda Cars Philippines, Inc. vs. Honda Cars Technical Specialist
and Supervisors
Union, GR No. 204142 dated November 19,
2014. c. Diageo Philippines, Inc. vs. CIR, GR No.
183553.
2. Requisites for a valid claim for refund / Creditable Withholding Tax Cases
a. CIR vs. Meralco, GR No. 181459 dated June 9, 2014.
b. CIR vs. Far East Bank, GR No. 173854 March 15, 2010.
c. Metrobank vs. CIR, GR No. 182582 dated April 17, 2017.
d. CIR vs. PNB, GR No. 180290 dated September 29, 2014. (CODIZAL AND DE
LARA)
3. Refunds where written claim is not
needed a. Secs. 204(C) and 229 of the
NIRC.
4. Refunds of Corporate taxpayers / Irrevocability
Rule a. Sec. 76 of the NIRC.
b. CIR vs. TMX Sales, Inc., GR No. 83736 dated January 15, 1992.
c. Systra Phils. Inc. vs. CIR, GR No. 176290 dated September 21, 2007.
d. Winbrenner & Inigo Insurance Brokers, Inc., GR No. 206526 dated January
28, 2015.
e. University Physicians Services, Inc. – Management vs. CIR, GR No. 205955
dated March 7, 2018.
f. Rhombus Energy, Inc. CIR, GR No. 206362 dated August 1, 2018. (GARCIA-
AZCUE AND ERANA)

I. The Court of Tax Appeals

a. RA No. 9282, as amended by RA No.
9503. b. Jurisdiction in civil and criminal
cases.
c. Revised Rules of the CTA, AM No. 05-11-07-CTA dated November 22, 2005,
as amended on September 16, 2008.
d. Banco De Oro vs. Republic, GR No. 198756 dated January 13, 2015 and
resolution on the Motion for reconsideration, GR No. 198756 dated August
16, 2016
e. City of Manila vs. Grecia-Cuerdo, GR No. 175723 dated February 4,
2014. f. Asiatrust Development Bank, Inc. vs. CIR, GR No. April
19, 2017.
g. Power Sector Assets and Liabilities Management Corporation vs. CIR, GR
No.
198146 dated August 8, 2017.
h. Gaw, Jr. vs. CIR, GR No. 222837 dated July 23, 2018.
i. Ignacio vs. Office of the City Treasurer of Quezon City, GR No. September
11, 2017.

J. Abatement of Tax / Tax

Compromise a. Secs. 7 and
204 of the NIRC.
 K. Civil Penalties

L. 1. Surcharge
a. Sec. 248 of the NIRC.
3. New Rule on Interest
a. Sec. 249 of the NIRC. (as amended by RA
10963) b. RR No. 21-2018. (GACULA AND
MACASINAG)
V. TRANSFER TAXES

A. Estate Tax
1. Basic principles, concepts and definition
a. Kinds of decedents / Situs rules - Secs. 85 and 104 of the NIRC – Sec. 4 of RR
No. 12-2018.
b. Rules on Intangible Personal Property - Sec. 104 of the NIRC.
c. Rule on Reciprocity - Sec. 104 of the NIRC.
• Collector vs. Fisher, GR Nos. L-11622 and L11668 dated January 28, 1961.
d. Inclusion Rules
• Property Passing under a General Power of Appointment – Sec. 85(D) of
the NIRC correlate with Sec. 87(B) and (C) of the NIRC.
• Proceeds of Life Insurance – Sec. 85(E) of the NIRC.
2. Deductions
a. Allowed to a Citizen or a Resident – Sec. 86(A) of the NIRC – Sec. 6 of RR No.
12- 2018. (as amended by RA 10963)
b. Allowed to a Nonresident alien – Sec. 86(B) of the NIRC – Sec. 7 of RR No. 12-
2018. (as amended by RA 10963)
c. Date of death valuation principle
• Dizon vs. CTA, GR No. 140944 dated April 30, 2008.
3. Exclusions
a. Sec. 87 of the NIRC – correlate with Sec. 85(D) of the NIRC.
4. Filing of Estate Tax Return and Payment of Estate Tax
a. Secs. 90 and 91 of the NIRC – Sec. 9 of RR No. 12-2018. (as amended by RA
10963)
b. Payment by Installment
• Sec. 91(C) of the NIRC – Sec. 9 of RR No. 12-2018. (as amended by RA
10963)
5. Other TRAIN law amendments
i. Rule on withdrawal of bank deposit – Sec. 97 of the NIRC – Sec. 10 of RR
No. 12-2018, RMC No. 62-2018. (as amended by RA 10963)

B. Donor’s Tax
1. Basic principles, concepts and definition
a. Kinds of donors / Situs rules – Sec. 104 of the NIRC – Sec. 4 of RR No. 12-2018.
b. Rules on Intangible Personal Property - Sec. 104 of the NIRC.
c. Rule on Reciprocity - Sec. 104 of the NIRC.
d. New Tax Rate as amended by the TRAIN law – Sec. 99 of the NIRC (as
amended by RA 10963)
e. Rule on Political Contributions
• Sec. 99(C) of the NIRC.
• Secs. 13 and 14 of RA No. 7166.
• RR No. 7-2011 dated February 16, 2011.
• RMC No. 30-2016 dated March 14, 2016.
2. Requisites of a valid donation
a. Abello vs. CIR, GR No. 120721 dated February 23, 2005.
b. Capacity to Buy
• Sps. Evono vs. DOF, CTA EB Case No. 705 dated June 4,
2012.
3. Transfers considered a donation
 a. Condonation of debt
b. Transfers for insufficient consideration
• Sec. 100 of the NIRC (as amended by RA 10963)
• Compare with old rule - Philamlife vs. SOF, GR No.
210987 dated November 24, 2014.
• RMC No. 30-2019.
c. Renunciation of Conjugal or Community Property/Share in the Inheritance
i. Sec. 12 of RR No. 12-2018.
4. Exempt Gifts
a. Sec. 101 of the NIRC. (as amended by RA 10963)
• RR No. 9-2020 dated April 6, 2020.
b. Administrative Requirements including deductibility
c. Sec. 34(H) of the NIRC.
i. Sec. 15(C) of RR No. 12-2018.
• RMC No. 86-2014 dated December 5, 2014.
• RR No. 9-2020 dated April 6, 2020.