GARCIA, MYLENE F.

Taxation I
3rd year – 1st sem Atty. Mae Diane Azores

LIST OF CASES

A. GENERAL PRINCIPLES OF TAXATION

I. TAXATION

A. Definition

B. Nature of Internal Revenue Law

1. Hilado v CIR, G.R. No. L-9408, October 31, 1956 100 Phil
288………………………………………1

C. Scope and Nature of Taxation (or the characteristics of Taxing Power)

1. Sison v Ancheta, G.R. No. L-59431, July 25, 1984, 130 SCRA 654……………………………...…
2
2. Phil. Guaranty v CIR, G.R. No. L-22074, April 30, 1965, 13 SCRA
775…………………………….4
3. Tio v Videogram Regulatory Board, G.R. No. 75697 (1987)
………………………………………….5
4. Republic v Caguioa G.R. No. 168584 (2007)-tax exemption…………………………….
…………..6
5. CIR v Algue, Inc., L-28896, Feb. 17, 1988……………………………………………………………..
…..9

D. Underlying Theory and Basis; Lifeblood Theory; Necessity Theory; Benefit-

Received Principle
1. Commissioner v. Algue, G.R. No. L-28896, February 17, 1988, 158 SCRA
9………………….11
2. Lorenzo v. Posadas, G.R. No. 43082, June 18, 1937, 64 Phil
353……………………………….12
3. Paseo Realty & Development Corporation v. CA, G.R. No. 119286 (2004)…
……………….14
4. NPC v. Cabanatuan, GR149110, April
19,2003………………………………………………………….16
5. YMCA vs CIR………………………………………………………………………………………………..………
18

E. Purpose of Taxation
1. Napocor v Province of Albay G.R. No. 87479, 4 June
1990………………………………………...19
2. Tolentino v. Secretary of Finance, G.R. No. 115455, August 8, 1994, 235 SCRA 630;
249 SCRA 628………………………………………………………………………………………………………
20
3. Southern Cross Cement Corporation v. Cement Manufacturers Association of
the Philippines, et al., G. R. No. 158540 (2005)…………………………………………………………
21
4. Osmena v. Orbos, G.R. No. 99886, March 31, 1993, 220 SCRA
703…………………………….23
5. PAL v Edu, G.R. No. L-41383, 164 SCRA 320………………………………..…………………………
24

F. Principles of a Sound Tax System

1. Chavez v Ongpin, G.R. No. 76778, June 6, 1990, 186 SCRA 33…………………………………26
2. Taganito Mining v CIR CTA Case 4702 April 28, 1995………………………………………..………
27
3. Roxas v. CTA, G.R. No. L-25043, April 26, 1968, 23 SCRA 276…………………………….……28
4. LTO v. City of Butuan, G.R. No. 131512, Jan. 20, 2000………………………………………………
29
 5. Lutz v. Araneta, G.R. No. L-7859, December 22, 1955, 98 Phil 48………………………………
31
6. NTC v. CA, G.R. No. 127937, July 28, 1999, 311 SCRA 508…………………………………………
32
7. Matalin v Mun. Council of Malabang, 143 SCRA 404……………………………………………….…
34
8. Gerochi v Department of Energy G.R. No. 159796, July 17, 2007………………………………
35

II. LIMITATIONS UPON THE POWER OF TAXATION

A. Inherent Limitations
1. Planters Products, Inc. v. Fertiphil Corporation, 548 SCRA 485…………………………..………
36
2. Lutz v Araneta, G.R. No. L-7859, December 22, 1955, 98 Phil. 48……………………….………
38
3. Pascual v Sec. of Public Works, G.R. No. L-10405, December 29, 1960,
110 Phil. 331…………………………………………………………………………………………………..……
39
4. Commissioner of Internal Revenue v. Central Luzon Drug Corporation,
G.R. No. 159647 (2005) …………………………………………………………………………….…………
40
5. Phil Comm. Satellite Corp. v Alcuaz, G.R. No. 84818, December 18, 1989,
180 SCRA 218………………………………………………………………………………………………………
42
6. LTO v. City of Butuan, G.R. No. 131512, January 20, 2000…………………………….…………
44
7. City Government of Quezon City v. Bayantel, G.R. No. 162015, Mar. 6, 2006………..……
46
8. Garcia v. Executive Secretary, G.R. No. 101273, July 30, 2012, 210 SCRA 219……………
47
9. Osmena v. Orbos, G.R. No. 99886, March 3, 1993, 220 SCRA 703………………………….……
48
10. CIR v. CA, G.R. No. 119761, August 29, 1996……………………………………………………..……
49
11. Abakada Guro Party List v. Ermita……………………………………………………………………..……
51
12. Maceda v. Macaraig, G.R. No. 88291, June 8, 1993, supra……………………………………..…
53
13. Mactan Cebu Airport v. Marcos, G.R. No. 120082, Sept. 11, 1996………………………………
54
14. Manila International Airport Authority v. CA G.R. No. 155650. July 20, 2006…………….…
56
15. MCIAA vs. City of Lapu-Lapu G.R. No. 181756. June 15, 2015………………………………….…
57
16. Collector v. Bisaya Land Transportation, 105 Phil. 338 (1959) …………………………….……
59
17. PEZA vs Lapu Lapu City, G.R. No. 184203, November 26, 2014…………………………………
60
18. ACMDC vs CIR………………………………………………………………………………………………………
62
19. Manila Gas v. Collector, G.R. No. L-42780, January 17, 1936, 62 Phil 895………………..…
63
20. Vegetable Oil Corp. v Trinidad, G.R. No. 21475, March 26, 1924, 45 Phil. 822………………
64
21. Wells Fargo Bank v Col, G.R. No. L-46720, June 28, 1940, 70 Phil. 325………………………
66
22. CIR v. BOAC, G.R. Nos. L-65773-4, April 30, 1987, 149 SCRA 395…………………………….…
67
23. Collector v. Lara, G.R. No. L-9456 & L-9481, January 6, 1958, 102 Phil 813……………..…
69
 24. Mitsubishi Corp. v. CIR, CTA Case 6139, Dec. 17, 2003………………………………………………
71

B. Constitutional Limitations
1. Ormoc Sugar Co. vs. Treasurer of Ormoc City, G.R. No. L-23794, February 18,
1968…….72
2. CIR v. SM Prime Holdings, Inc., 613 SCRA 774…………………………………………………………
73
3. PAGCOR v. CIR, 645 SCRA 338………………………………………………………………………………
74
4. Phil. Trust BL Company v. Yatco, 69 Phil 420……………………………………………………………
76
5. CREBA, Inc. v. Exec. Sec. Romulo, 614 SCRA 605………………………………………………..……
77
6. Roxas v. CTA, 23 SCRA 276………………………………………………………………………………..…79
7. British Tobacco v. CIR, 562 SCRA 511………………………………………………………………..……
80
8. Punsalan v. City of Manila, 95 Phil 46………………………………………………………………………
82
9. Juan Luna Subdivision, Inc. v. Sarmiento, 91 Phil 371………………………………………….……
83
10. Pepsi Cola Bottling Co., Inc. v. City of Butuan, 24 SCRA 789………………………………….……
84
11. MERALCO vs. Province of Laguna, G.R. No. 131359, May 5, 1999………………………….……
85
12. Mactan Cebu International Airport Authority v. Marcos, 261 SCRA 667……………………..…
86
13. Tolentino v. Sec. of Finance, 235 SCRA 630………………………………………………………..……
87
14. Reyes vs Almanzor…………………………………………………………………………………………….…88
15. PB Communications v. CIR, 302 SCRA 241………………………………………………………………
89
16. Tanada v. Tuvera, 136 SCRA 27……………………………………………………………………..………
90
17. CIR v. Metro Star Superama, Inc., 637 SCRA 633……………………………………………..………
91
18. CIR v. YMCA, 298 SCRA 83…………………………………………………………………………….………
92
19. Lladoc v. CIR, 14 SCRA 292…………………………………………………………………………….…..…
94
20. Hodges v. Mun. Board of Iloilo City, 19 SCRA 28……………………………………………….………
95
21. Lung Cancer of the Philippines v. QC, 433 SCRA 119……………………………………….…………
96
22. St. Luke's Medical Center, Inc. v. CIR, 682 SCRA 66…………………………………….……………
97
23. Angeles University Foundation v. City of Angeles, 675 SCRA 359………………..………………
98
24. CIR vs DLSU, GR No. 196596, November 9,2016………………………………………………………
99
25. American Bible Society v. City of Manila, 101 Phil 386……………………………………..………
100
26. Tolentino v. Secretary of Finance, 235 SCRA 630……………………………………………………
101

III. STAGES OR ASPECTS OF TAXATION

1. CIR v. United Salvage & Towage (Phils.) Inc., 729 SCRA 113………………………………………
102
2. Alhambra Cigar & Cig. Mfg., Co. v. Collector, 105 Phil 1337…………………………………………
104
3. CIR v. The Stanley Works Sales (Phils.), Inc. 743 SCRA 642…………………………………………
105
 4. Ungab v. Cusi, Jr., 97 SCRA 877……………………………………………………………………..…………
107
5. CIR v. Pascor Realty Development Corp., 309 SCRA 402………………………………………………
108
6. CIR v. Hantex Trading, 454 SCRA 301………………………………………………………………………110
7. CIR v. BPI, 411 SCRA 456…………………………………………………………………………..……………
112
8. First Lepanto Taisho Ins. Corp. v. CIR, 695 SCRA 639…………………………………….……………
113

IV. TAXES

A. Definition

B. Essential Characteristics of Taxes

1. Tan v. Del Rosario, G.R. No. 109289, October 3, 1994, 237 SCRA 324………………………
115
2. Gaston v. Republic Planters Bank, G.R. No. 77194 (1988)
………………………………………..116
C. Taxes as distinguished
1. Caltex v COA, G.R. No. 92585, May 8, 1992, 208 SCRA 726………………………………………
118
2. Republic v. Mambulao Lumber Company, G.R. No. L-17725, 4 SCRA 622……………...…
119
3. Philex Mining v. CIR, G.R. No.125704, August 28, 1998…………………………………….……
121
4. Domingo v Garlitos, G.R. No. L-18994, June 29, 1963, 8 SCRA 443………………….………
123
5. Progressive Dev. Corp. v QC, G.R. No. L-36081, April 24, 1989, 172 SCRA 629….………
124
6. Ferrer, Jr. V. Bautista, G.R.No. 210551, June 30, 2015……………………………………………
126
7. Gonzalo Sy Trading vs. Central Bank of the Phil., G.R. No. L-41480 (1976) ………….……
128
8. Angeles University Foundation vs City of Angeles……………………………………………………
130
9. Apostolic Prefect v Treasurer of Baguio, G.R. No. L-47252, April 18, 1941,
71 Phil. 547……………………………………………………………………………………….………………132
10. City of Ozamis v. Lumapas, GR No. L-30727, July 15, 1975………………………………………
133
11. Diaz vs Secretary of Finance…………………………………………………………………………………
134
12. NDC v CIR 151, G.R. No. L-53961, June 30, 1987, SCRA 472……………………………………
136

V. DOCTRINES IN TAXATION
1. CIR v. Acosta, 529 SCRA 177……………………………………………………………………..………………
137
2. CIR v. CA, G.R. No. 117982. February 6,1997………………………………………………………………
138
3. CIR v. Filinvest Dev't. Corp., 654 SCRA 56……………………………………………………………………
140
4. Supreme Transliner, Inc. v. BPI Family Savings Bank, Inc., 644 SCRA 59…………………………
142
5. CIR v. CA, 267 SCRA 557……………………………………………………………………………..……………
144
6. CIR v. Burroughs, Inc., 142 SCRA 324…………………………………………………………………………
146
7. British American Tobacco, Inc. v. Camacho, 562 SCRA 511……………………………………………
147
8. Phil Bank of Communications v. CIR, 302 SCRA 241………………………………………..……………
149
9. Team Energy Corp. v. CIR, GR No. 197760……………………………………………………….…………
151
10. CIR v. Burroughs, Inc., 142 SCRA 324…………………………………………………………………………
153
11. CIR v. Aichi Forging Co. Of Asia, Inc., 632 SCRA 422……………………………………………………
154
12. CIR v. Ayala Securities Corp., G.R. No. L-29485, November 21, 1980, 189 Phil 159-168.…
155
13. Commissioner v. Standard Chartered Bank, G.R. No. 192173 (2015) ………………….…………
156
14. Silicon Phils., Inc. v. CIR, 717 SCRA 30………………………………………………………………….……
158
15. City of Lapu-Lapu v. PEZA, 742 SCRA 524……………………………………………………………………
160
16. Comm. Of Customs v. Oilink Int'l. Corp., 728 SCRA 469…………………………………………………
162
17. CIR v. SC Johnson & Son, Inc., 309 SCRA 87………………………………………………………….……
163
18. Manufacturer’s v Meer G.R. No. L-2910 June 29, 1951………………………………………….………
165
19. Ericsson Telecommunications vs. City of Pasig…………………………………………………….………
167
20. Ericsson Telecommunications, Inc. v. City of Pasig, 538 SCRA 99……………………………………
169
21. Nursery Care Corp. v. Acevedo, 731 SCRA 280…………………………………………………….………
170
22. CIR v. SC Johnson & Son, Inc., 309 SCRA 87……………………………………………………….………
171
23. La Suerte Cigar & Cig. Factory v. CA, 739 SCRA 489………………………………………………..……
173
24. Villanueva v. City of Iloilo, 26 SCRA 578………………………………………………………………………
175
25. Compania General de Tabacos de Filipinos v. City of Manila, 8 SCRA 367…………………………
176
26. CIR v. Solidbank Corp., 416 SCRA 436…………………………………………………………………..……
177
27. People v. Sandiganbayan, 467 SCRA 137…………………………………………………………….………
179
28. CIR v. American Rubber Co., 18 SCRA 842……………………………………………………………..……
181
29. CIR v. Pilipinas Shell Petroleum Corp., 717 SCRA 53……………………………………………………183
30. Phil. Acetylene Co., Inc. v. CIR, 20 SCRA 1056……………………………………………………………185
31. Gala v. Ellice Agro Industrial Corp., 418 SCRA 431………………………………………………………186
32. Heng Tong Textiles Co., Inc. v. CIR, 24 SCRA 767……………………………..
………………………..188
33. Delpher Trades Corp. v. IAC, 157 SCRA 349…………………………………..……………………………
189
34. CIR v. Estate of Benigno Toda, Jr., 438 SCRA 290…………………………………………………………
191
35. John Hay Special Economic Zone v. Lim, 414 SCRA 356…………………………………………………
193
36. CIR v. Phil. Associated Smelting & Refining Corp., 737 SCRA 328…………………………..………
195
37. Batangas Power Corp. v. Batangas City & NPC, GR No. 152675, April 28, 2004…..……………
197
38. Tolentino v. Sec. Of Finance, 235 SCRA 630…………………………………………………………………
198
39. CIR v. MERALCO, 725 SCRA 384…………………………………………………………………………………
200
40. Western Minolco Corp. v. CIR, 124 SCRA 121………………………………………………………………
202
 41. John Hay Special Economic Zone v. Lim, 414 SCRA 356………………………….……………………
204
42. MCIAA v. Marcos, 261 SCRA
667………………………………………………………………………………..206
43. FELS Energy, Inc. v. Province of Batangas, 516 SCRA 186……………………………………………
208
44. Tolentino v. Sec. of Finance, 235 SCRA 630…………………………………………………………………
210
45. Provincial Treasurer of Province of Misamis Oriental v. Cagayan Electric Power
& Light Co., Inc., 181 SCRA 38……………………………………………………………..……………………
212
46. Batangas Power Corp. v. Batangas City & NPCX, 428 SCRA 250………………………………..……
213
47. Phil. Basketball Asso. v. CA, 337 SCRA 358…………………………………………………………….……
214
48. MCIAA v. Marcos, 261 SCRA 667…………………………………………………………………………..……
215
49. CIR v. Phil. American Accident Ins. Co., Inc., 453 SCRA 668……………………………………..……
217
50. NPC v. City of Cabanatuan, 401 SCRA 259………………………………………………………………..…
218
51. Wonder Mechanical Engineering Corp. v. CA, 64 SCRA 555……………………………………………
220
52. People v. Castañeda, 165 SCRA 327……………………………………………………………………………
221
53. Asia International Auctioneers, Inc. v. CIR, 682 SCRA 49………………………………………………
223
54. Special Economic Zone v. Lim, 414 SCRA 356………………………………………………………………
224
55. Collector v. Univ of Sto. Tomas, G.R. No. 11274, 104 Phil. 1062………………………………….…
226
56. Bagatsing v. San Juan, GR No. 97787, Aug 1, 1996, 329 Phil. 8-15…………………………………
227
57. Gonzales vs. Marcos, G.R. No. L-31685. July 31, 1975…………………………………………….……
229

VI. CONSTRUCTION AND INTERPRETATION OF TAX LAWS

1. Stevedoring v Trinidad, G.R. No. L-18316, September 23, 1922, 43 Phil. 803…………………
230
2. Lorenzo v. Posada, G.R. No. L-43082, June 18, 1937, 64 Phil 353……………………………….…
231
3. Umali v. Estanislao, G.R. No. 104037, May 29, 1992, 209 SCRA 446………………………….……
234
4. CIR v. Solidbank, G.R. No. 148191, Nov. 25, 2003…………………………………………………….…
236
5. Collector v. La Tondena, G.R. No. L-10431, April 30, 1964, 5 SCRA 665……………………….…
237
6. Serafica v Treasurer of Ormoc City, G.R. No. L-24813, April 28, 1969, 27 SCRA 110……….…
239
7. Roxas v. Rafferty, G.R. No. 12182, March 27, 1918, 37 Phil 958………………………………….…
240
8. Pecson v. CA, G.R. No. 115814, May 26, 1995, 222 SCRA 580…………………………………….…
242
9. CIR v. CA, G.R. No. 119761, August 29, 1996………………………………………………………………
244
10. CIR v. Michel Lhuillier, G.R. No. 150947, July 25, 2003……………………………………………….…
246
11. CIR v. Benguet Corp., G.R. No. 134587, July 8, 2005………………………………………………….…
248

VII. NATIONAL INTERNAL REVENUE CODE OF 1997, as amended by RA 10963 (TRAIN

Law) and RA 11534(CREATE Law)
A. Organization and Functions of the BIR
1. CIR v. CA, CTA, and Fortune Tobacco Corporation, 261 SCRA 236 (1996) ……………………
250
2. Marcos v CA, 339 Phil 253, 271-273 (1997) ………………………………………………………..……
252
3. Philippine Bank of Communications v. CIR, 203 SCRA 241 (1999) ………………………………
253
4. Secretary of Finance v La Suerte Cigar, GR No. 166498, June 11, 2009………………………
255
5. ABS-CBN Broadcasting Corporation v. CTA, 108 SCRA 142…………………………………..……
256
6. CIR v. Hedcor Sibulan, Inc. - G.R. No. 209306 (2017) ……………………………………….………
257
7. Mitsubishi Cor-Manila Br. V CIR, GR No. 175772, Jun 5, 2017………………………………….…
259
8. Oceanic Wireless Network v. CIR - G.R. No. 148380 (2005) ………………………………….……
261
9. Commissioner of Customs vs. Hypermix Feeds Corp., GR No. 179579, 2012…………………
263
10. Deutsche Knowledge Services vs. CIR, GR No. 197980, 2016……………………………………
265

B. Income taxation
1. Tan v. Del Rosario, 237 SCRA 324…………………………………………………………………………
267
2. CIR v. BOAC, 149 SCRA 395…………………………………………………………………………………
269
3. South African Airways v. CIR, 612 SCRA 665………………………………………………….………
270
4. Alexander Howden & Co., Ltd. v. Collector13 SCRA 601…………………………………..………
271
5. CIR v. Baier-Nickel, 500 SCRA 87………………………………………………………………….………
273
6. Madrigal v. Rafferty, 38 Phil. 414………………………………………………………………….………
275
7. Fisher vs Trinidad, 43 Phil 973………………………………………………………………………………
276
8. Chamber of Real Estate and Builders’ Association vs. Romulo…………………………..………
277
9. Conwi v. CTA, 213 SCRA 83………………………………………………………………………….………
278
10. CIR v. Manila Jockey Club, Inc., G.R. Nos. L-13887 & L-13890, June 30, 1960…….………
280
11. Association of Non-Profit Clubs, Inc. v. Bureau of Internal Revenue,
G.R. No. 228539 (2019) ………………………………………………………………………………..……
282
12. CIR v. BOAC, 149 SCRA 395…………………………………………………………………………………
284
13. CIR v. Tours Specialist, 183 SCRA 402…………………………………………………………..………
285
14. CIR vs Lancaster Philippines, GR No. 183408, 2017………………………………………..………
286
15. CIR v. Manila Electric Company, CTA EB No. 773, November 13, 2012………………………
288
16. Republic v. Dela Rama, 18 SCRA 861………………………………………………………….…………
290
17. CIR v. Javier, 199 SCRA 824…………………………………………………………………………………
291
18. CIR v. CA, CTA & Anscor, 301 SCRA 152 (1999) ……………………………………….……………
292
 19. CIR vs Citytrust Investment Phils., GR No. 139786, 2006…………………………………………
294
20. CIR vs Isabela Cultural Corporation, GR No. 172231, 2007………………………………………
296

VIII. GROSS INCOME: INCLUSIONS AND EXCLUSIONS

A. In General
1. Gutierrez v. Collector, G.R. Nos. L-9738 & L-9771, May 31, 1957 101 Phil 713.……………
298
2. CIR v. BOAC, G.R. No. L-65773-74, April 30, 1987, 149 SCRA 395……………….……………
300
3. CREBA vs Romulo………………………………………………………………………………….……………
301
4. NDC v. CIR, G.R. No. L-53961, June 30, 1987, 151 SCRA 472…………………………………
303
5. Air Canada v. CIR, CTA EB No. 86. Aug. 26, 2005……………………………………………………
304
6. CIR v. CTA, G.R. No. 81446, August 18, 1988, 127 SCRA 9………………………………………
306
7. CIR v. Marubeni, G.R. No. 137377, December 18, 2001…………………………………..………
307
8. CIR v. Baier-Nickel, G.R. No. 165793, August 29, 2006……………………………………………
309
9. Manila Electric v. Yatco, G.R. No. 45697, November 1, 1939 69 Phil 89………………………
311
10. Phil. Guaranty v. CIR, G.R. No. L-22074, Apr. 30, 1965……………………………………………
312

B. Compensation
1. Henderson v. Collector, 1 SCRA 649………………………………………………………………………
314
2. CIR v. Castaneda, G.R. No. 96016, October 17, 1991, 203 SCRA 72…………….……………
315
3. Polo v. CIR, G.R. No. L-78780, July 23, 1987…………………………………………….……………
316
4. Endencia v. David, G.R. No. L-6355-56, July 23, 1987, 93 Phil 696……………….……………
317
5. Kuenzle v. CIR, G.R. No. L-18840, May 29, 1969, 28 SCRA 365…………………………………
318
6. CIR v. Castaneda, G.R. No. 96016, October 17, 1991, 203 SCRA 72…………….……………
320
7. Reagan v. CIR, G.R. No. L-26379, December 27, 1969, 30 SCRA 968…………………………
321

C. Pensions/Retirement Benefits/Separation Pay

1. CIR v. CA, G.R. No. 96016, Oct 17, 1991, 203 SCRA 72……………………………………………
322
2. CIR v. GCI Retirement, G.R. No. 95022, March 23, 1992, 207 SCRA 487………….…………
323
3. In re Zialcita, AM No. 90-6-015-SC, Oct. 18, 1990…………………………………………..………
326