TAX LAW REVIEW

GENERAL PRINCIPLES OF TAXATION

I. Definition of Taxation

1. City of Milwaukee v. Milwaukee and Suburban Transport Corporation,

6 Wis. 2d 299 (1959), see its citation of 51 Am. Jur., Taxation, p. 34,
Section 2.

II. Characteristics of Taxation

1. Comprehensive
2. Unlimited
3. Plenary
4. Supreme
5. Cases:
a. Mactan Cebu International Airport Authority v. Hon. Ferdinand
J. Marcos, G.R. No. 120082, 11 September 1996;
b. Philippine Health Care Providers, Inc. Vs. CIR, G.R. No. 167330,
18 September 2009;
c. Sison vs. Ancheta, 130 SCRA 654, G.R. No. L-59431, July 25,
1984;
d. Tio v. Videogram Regulatory Board, 151 SCRA 208;
e. Tolentino v. Secretary of Finance, 235 SCRA 730;
f. Antonio Roxas, Eduardo Roxas v. Court Of Tax Appeals, G.R. No.
L-25043, April 26, 1968.

III. Theories in Taxation

1. Lifeblood Theory

2. Necessity Theory

3. Benefits-Protection Theory

4. Symbiotic Relationship Theory

5. Cases:
a. Commissioner Of Internal Revenue v. Algue, Inc., and The Court
Of Tax Appeals, G.R. No. L-28896, February 17, 1988
b. Commissioner Of Internal Revenue v. Pilipinas Shell Petroleum
Corporation, G.R. No. 197945, July 09, 2018
c. CIR v. Nippon Express Phils., 771 SCRA 27
d. CIR V. Dash Engineering Philippines, 712 SCRA 347

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IV. Nature of Taxation

1. Attribute of Sovereignty
a. The Philippine Guaranty Co., Inc. v. The Commissioner Of
Internal Revenue And The Court Of Tax Appeals, G.R. No. L-
22074, April 30, 1965
b. Batangas City v. Pilipinas Shell Petroleum Corporation, G.R. No.
187631, July 8, 2015
c. Film Development Council Of The Philippines v. Colon Heritage
Realty Corporation, G.R. No. 203754, June 16, 2015

2. Legislative
a. Pepsi Cola Bottling Co. of the Phils. Inc. vs Municipality of
Tanauan, Leyte G. R. L-31156
b. Pepsi vs. City of Butuan, 24 SCRA 827

3. Non-delegable
Exceptions:
a. Taxing power of local governments (Section 5, Art. X, 1987
Constitution)
b. When allowed by the Constitution [Section 28(2), Article VI, 1987
Constitution]
i. Hon. Exec. Sec V. Southwing Heavy Industries, et al., GR
No. 164171
c. Administrative Implementation
i. Cervantes v. Auditor Gen. 91 Phil. 359
ii. Maceda v. Macaraig, 197 SCRA 771
iii. CIR v. Central Luzon Drug, G.R. No. 159647, 15 April 2005
iv. Secretary v. Lazatin, G.R. No. 210588, 29 November 2016
v. Abakada Guro Party List (Formerly Aasjas) Officers Samson
S. Alcantara And Ed Vincent S. Albano v. The Honorable
Executive Secretary Eduardo Ermita; Honorable Secretary
Of The Department Of Finance Cesar Purisima, G.R. No.
168056, September 01, 2005
vi. Icard v. City Council of Baguio, G.R. No. L-1281, 31 May
1949
vii. Pelizloy v. Province of Benguet, G.R. No. 183137, 10 April
2013

4. Not the contract between the State and its citizens.

a. Francia v. Intermediate Appellate Court, G.R. No. L-67649, 28
June 1988

5. Not political
a. Emilio Y. Hilado v. The Collector Of Internal Revenue And The
Court Of Tax Appeals, G.R. No. L-9408, 31 October 1956

6. Subject to Constitution and Inherent limitations.

a. Inherent Limitations
i. Public purpose
1. Planters Products, Inc. v. FertiPhil Corp., G.R. No.
166006, 14 March 2008
2. Bagatsing v. Ramirez, 74 SCRA 306

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3. Gomez vs. Palomar, 24 SCRA 827
4. Pascual vs. Secretary of Public Works, 110 Phil 331
5. Lutz vs. Araneta, 98 Phil 148, G.R. No. L-7859, 22
December 1955
6. Ferrer v. Bautista, 760 SCRA 652
• Taxpayer’s Suit:
i. Tolentino v. Comelec, G.R. No. 148334, 21
January 2004
ii. Sanidad v. Comelec, 73 SCRA 333
iii. Jumamil v. Café, G. R No. 144570
iv. Pascual v. Secretary of Public Works, 110
Phil. 331
v. Landbank of the Philippines v. Cacayuran,
G.R. No. 191667, 17 April 2013
ii. Non- delegability
iii. Exemption of the Government
1. LRTA vs. CBAA, G.R. No. 127316, 12 October 2000
2. MCIAA vs. Marcos, G.R. No. 120082, 11 September 1996
3. MIAA vs. Paranaque, G.R. No. 155650, 20 July 2006
4. MIAA vs. Pasay City, G.R. No. 163072, 02 April 2009
5. Republic v. Parañaque, G.R. No. 191109, July 18, 2012,
677 SCRA 246
6. MCIAA v. Lapu-Lapu, G.R. No. 181756, 15 June 2015
iv. International Comity
1. Sec 2, Article II of the Philippine Constitution
2. See Resolution in the First National Tax Association cited
in International Comity in Taxation by Clyde J.
Crobaugh, University of Chicago Press, p. 269.
v. Territorial Jurisdiction or Situs
1. CIR v. Marubeni Corp. G.R No. 137377
2. Commissioner v. British Overseas Airways Corporation,
149 SCRA 395

b. Constitutional Limitations

i. Due Process Clause (Section 1, Article III, 1987 Constitution)

1. Villegas v. Hiu Chiong Tsai Pao Ho, 86 SCRA 270
2. CREBA v. Exec. Sec Romulo, 09 March 2010
3. City of Baguio v. De Leon, 25 SCRA 938
4. CIR v. M.J. Lhuiller Pawnshop, Inc., 15 July 2003
5. Province of Abra v. Hernando, 107 SCRA 104
6. Francis A. Churchill v. Venancio Concepcion, G.R. No.
11572, September 22, 1916
7. British American Tobacco v. Camacho, G.R. No. 163583,
15 April 2009

ii. Equal Protection Clause (Section 1, Article III, 1987

Constitution)
1. Commissioner of Customs v. Hypermix Feeds
Corporation, G.R. No. 179579, February 1, 2012
2. ABAKADA Guro Party List v. Purisima, G.R. No.
166715, 14 August 2008
3. Kapatiran v. Tan, 30 June 1988
4. Tan v. Del Rosario, 3 October 1994

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5. Abakada Guro Party List (Formerly Aasjas) Officers
Samson S. Alcantara And Ed Vincent S. Albano v. The
Honorable Executive Secretary Eduardo Ermita;
Honorable Secretary Of The Department Of Finance
Cesar Purisima, G.R. No. 168056, September 01, 2005

iii. The rule of taxation shall be uniform and equitable. The

Congress shall evolve a progressive system of taxation
(Section 28[1], Article III, 1987 Constitution)
1. Punzalan v. Mun. Board of Manila, 96 Phil. 46
2. British American Tobacco v. Camacho, G.R. No. 163583,
15 April 2009
3. Association of Customs Brokers v. City of Manila, 93
Phil. 107
4. Abakada Guro Party List v. The Honorable Executive
Secretary Eduardo Ermita, G.R. No. 168056, September
01, 2005
5. Francis A. Churchill v. Venancio Concepcion, G.R. No.
11572, September 22, 1916

iv. No law impairing the obligation of contracts shall be passed

(Section 10, Article III, 1987 Constitution)
1. Casanovas v. Hord, 8 Phil 125
2. RCPI v. Provincial Assessor of South Cotabato, 13 April
2005
3. City Government of Quezon City v. Bayantel, 06 March
2006
4. Smart Communications v. City of Davao, 16 September
2008
5. Quezon City v. ABS-CBN, 06 October 2008

v. No person shall be imprisoned for debt or non-payment of a

poll tax (Section 20, Article III, 1987 Constitution)

vi. The free exercise and enjoyment of religious profession and

worship, without discrimination or preference, shall forever
be allowed (Section 5, Article III, 1987 Constitution)
1. American Bible Society v. City of Manila, 101 Phil.386,
G.R. No. L-9637, 30 April 1957;
2. Tolentino v. Secretary of Finance, G.R. No. 115455, 25
August 1994.

vii. Freedom of the Press (Section 4, Article III, 1987

Constitution)
1. Philippine Press Institute, et al. v. Chato, et al., G.R. No.
115754, August 25, 1994

viii. Tax Exemption of Properties for Religious, Charitable, and

Education Purposes [Section 28(3), Article VI, 1987
Constitution)
1. Hospital de San Juan de Dios v. Pasay City, 16 SCRA
226, G.R. No. L-19371, 28 February 1966;
2. Abra Valley College v. Aquino, G.R. No. L-39086, 15
June 1988;

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3. Commissioner v. Court of Appeals, G.R. No. L-124043,
October 14, 1998;
4. Lung Center of the Philippines v. Quezon City, 433
SCRA 119, G.R. 144104, 29 June 2004.
ix. All appropriation, revenue of tariff bills shall originate from
the House of Representatives, but the Senate may propose or
concur with amendments (Section 24, Article VI, 1987
Constitution)
1. ABAKADA Guro Party List v. Hon. Exec. Sec. Ermita, 01
September 2005

x. No law granting any tax exemption shall be passed without

the concurrence of a majority of all the members of the
Congress [Section 28(4), Article VI, 1987 Constitution]
1. John Hay Peoples Alternative Coalition, et al. v Lim, G.R.
No.119775, October 24, 2003

xi. Every bill passed by Congress shall be embrace only one

subject, which shall be expressed in the title thereof [Section
26(1), Article VI, 1987 Constitution]
1. Philippine Airlines v. Secretary of Finance and
Commissioner, G. R. No. 115873, August 25,1994

xii. Congress shall evolve a progressive system of taxation

[Section 28(1), Article VI, 1987 Constitution]

xiii. The President shall have the power to veto any particular
item or items in an appropriation, revenue, or tariff bill, but
the veto shall not affect the item or items to which he does
not object [Section 27(2), Article VI, 1987 Constitution]

xiv. The Congress may, by law, authorize the President to fix

within specified limits, and subject to such limitations and
restrictions as it may impose, tariff rates, import and export
quotas, tonnage and wharfage dues, and other duties or
imposts within the framework of the national development
program of the Government [Section 28(2), Article VI, 1987
Constitution]

xv. All revenues and assets of non-stock, non-profit educational

institutions used actually, directly, and exclusively for
educational purposes shall be exempt from taxes and duties
[Section 4(3), Article XIV, 1987 Constitution]
1. Commissioner Of Internal Revenue v. De La Salle
University, Inc., G.R. No. 196596, 9 November 2016
xvi. No public money or property shall be appropriated, applied,
paid, or employed, directly or indirectly, for the use, benefit,
or support of any sect, church, denomination, sectarian
institution, or system of religion, or of any priest, preacher,
minister, or dignitary as such, except when such priest,
preacher, minister, or dignitary is assigned to the armed

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forces, or to any penal institution, or government orphanage
or leprosarium [Section 29(2), Article VI, 1987 Constitution]
1. Aglipay v. Ruiz, G.R. No. L-45459, 13 March 1937;
2. Re: Letter of Tony Q. Valenciano, Holding of Religious
Rituals at the Hall of Justice Building in Quezon City,
A.M. No. 10-4-19-SC, 7 March 2017;
3. Peralta v. Philippine Postal Corporation, G.R. No.
223395, 04 December 2018.

xvii. Supremacy of the National Government over Local

Government.
1. Manila International Airport Authority v. Court of
Appeals, G.R. No. 155650, July 20, 2006
2. Mactan Cebu International Airport Authority v. Hon.
Ferdinand J. Marcos, G.R. No. 120082, 11 September
1996

V. Purposes and Objectives of Taxation

1. Raising Revenue

2. Regulatory
a. Lutz v. Araneta, G.R. No. L-7859, 22 December 1955
b. Caltex Philippines v. Commission on Audit, 208 SCRA 726
c. Philippine Airlines v. Edu G. R. L-41383

3. Promotion of General Welfare

a. Republic of the Philippines v. Central Azucarera Del Danao, G.R.
No. L-19842, 26 December 1969

4. Reduction of Social Inequality

a. National Power Corporation v. City of Cabanatuan, G.R. No.
149110, 9 April 2003

5. Encourage Economic Growth by granting Incentives and Exemptions

6. Protectionism

VI. Stages or Aspects of Taxation

1. Levy

2. Assessment and Collection

3. Payment

VII. Basic Principles of Sound Tax System

1. Fiscal Adequacy

2. Administrative Feasibility
a. Diaz v. Secretary of Finance, 19 July 2011

3. Theoretical Justice

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a. Article VI, Section 28, Phil. Constitution

VIII. Definition of Taxes

IX. Attributes or Characteristics of Taxes

1. It is a forced charge, imposition or contribution.

a. Panay Electric Co. v. Collector of Internal Revenue, L- 10574, May
28, 1958

2. It is assessed in accordance with some reasonable rule of

apportionment which means that conformably with the constitutional
mandate for Congress to evolve a progressive tax system, taxes must
be based on taxpayer’s ability to pay [Section 28(A), Article VI, 1987
Constitution]

3. It is pecuniary burden payable in money.

a. Borja v. Gella, 8 SCRA 602

4. It is imposed by the State on person, property, or excises within its

jurisdiction, in accordance with the principle of territoriality.

5. It is levied by the legislative body of the State.

6. It is levied for a public purpose.

7. It is personal to the taxpayer.

X. Taxes Distinguished from Other Impositions

1. Taxation v. Eminent Domain v. Police Power
a. Quezon City v. Ericta, 122 SCRA 759
b. Velasco v. Villegas, 120 SCRA 568
c. Tio v. Videogram, 151 SCRA 208

2. Tax v. Debt
a. Commissioner Of Internal Revenue v. Carlos Palanca, Jr., G.R.
No. L-16626, 29 October 1966

3. Tax v. Toll

4. Tax v. License Fee

a. Progressive Development Corporation v. Quezon City, G.R. No.
L-36081, 24 April 1989)
b. Land Transportation Office v. City of Butuan, G.R. No. 131512,
20 January 2000

5. Tax v. Penalty

6. Tax v. Special Assessment

XI. Classification of Taxes

1. As to subject matter:
a. Personal, Capitation, or Poll

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b. Property
c. Excise or Privilege
d. Custom Duties

2. As to purpose:
a. General, Fiscal or Revenue
b. Special or Regulatory

3. As to who bears the burden:

a. Direct Tax
b. Indirect Tax

4. As to graduation or rate:
a. Proportional
b. Progressive or graduated
c. Regressive

5. As to Taxing Authority:
a. National Tax
b. Local/ Municipal Tax

6. As to scope:
a. General
b. Special

7. As to basis of amount
a. Specific
b. Ad Valorem

XII. Double Taxation

1. Kinds:
a. Indirect duplicate taxation
b. Direct duplicate taxation (obnoxious double taxation)

2. Requisites

3. Schemes to Avoid Double Taxation

a. Tax Credit
b. Tax Deductions
c. Tax Reduction
d. Tax Exemption
e. Tax Treaties

4. International Juridical Double Taxation (IJDT)

5. Cases:
a. Compania General de Tabacos de Filipinas v. City of Manila, 8
SCRA 367
b. City of Baguio v. de Leon, G.R. No. L-24756
c. Serafica v. City Treasurer of Ormoc, G.R. No. 24813, 28 April 1968
d. Acebedo Optical Company v. Court of Appeals, G.R. No. 100152, 31
March 2000

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e. Pepsi Cola Bottling Co. of the Phils. Inc. vs Municipality of
Tanauan, Leyte G. R. L-31156
f. Villanueva v. City of Iloilo, 26 SCRA 578
g. Nursery Care Corporation v. Anthony Acevedo, G.R. No. 180651, 30
July 2014
h. Ferrer v. Bautista, 760 SCRA 652
i. City of Manila v. Coca-Cola Bottlers Philippines, Inc., 595 SCRA
299
j. Commissioner Of Internal Revenue v. Central Luzon Drug
Corporation, G.R. No. 159610, 12 June 2008

XIII. Exemption from Taxation

1. Classifications:
a. As to source:
1. Constitutional
2. Statutory/Ordinance
3. Treaty/Executive Order
4. Contractual
b. As to manner:
1. Express
2. Implied
c. As to scope:
1. Total/Full
2. Partial

2. Characteristics:
a. It is not presumed.
b. It must be justified by words too plain to be mistaken.
c. It is a personal privilege.
d. It is not created by implication.
e. There must be convincing proof.
f. Equity does not apply.
g. Tax exemption is not inherent.
h. It cannot be granted by regulation.
i. There is no vested right in a tax exemption, more so when the latest
expression of legislative intent renders its continuance doubtful.

3. Cases:
a. David Nitafan v. CIR, G.R. No. L-78780
b. Mactan Cebu International Airport Authority v. Hon. Ferdinand J.
Marcos, G.R. No. 120082, 11 September 1996
c. Meralco v. Vera, 67 SCRA 351
d. Commissioner Of Internal Revenue v. A. D. Guerrero, G.R. No. L-
20942, 22 September 1967
e. CIR v. Solidbank Corporation, 462 SCRA 96 (2003)
f. Smart Communications, Inc., v. The City Of Davao, G.R. No. 155491,
July 21, 2009
g. Commissioner Of Internal Revenue v. St. Luke’s Medical Center,
Inc., G.R. No. 203514, 13 February 2017
h. Commissioner Of Internal Revenue v. Philippine-Aluminum
Wheels, Inc., G.R. No. 216161, 9 August 2017
i. Esso Standard Eastern, Inc. v. Acting Commissioner of Customs,
18 SCRA 488

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XIV. Escape from Taxation

1. Forms:
a. Tax Shifting
b. Tax Capitalization or Amortization
c. Tax Transformation
d. Transfer Pricing
e. Resorting to Tax Haven
f. Tax Deferral
g. Tax Shelter
h. Doctrine of Equitable Recoupment
i. Tax Avoidance
j. Tax Dodging or Tax Evasion

2. Cases:
a. CIR v. The Estate of Benigno P. Toda, Jr., G.R. No. L-147188
b. CIR v. Seagate Technology (Phils.), G.R. No. 153866, 11 February
2005
c. CIR v. PLDT, 15 December 2005
d. Contex v. CIR, 02 July 2004
e. Republic v. Mambulao Lumber Company 4 SCRA 622
f. Francia v. Intermediate Appellate Court, G.R. No. 76749, 28 June
1988
g. Commissioner of Internal Revenue v. Spouses Remigio P. Magaan
and Leticia L. Magaan, G.R. No. 232663, 3 May 2021

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INTERNAL REVENUE TAXES

A. Income Tax
1. General Principles
a. Systems
1. Global;
2. Schedular;
3. Semi-Schedular or Semi-Global;
b. Criteria in Imposing Income Tax
1. Citizenship principle;
2. Residence principle;
3. Source principle;
4. Territoriality principle;
c. Kinds of Taxpayers (Section 22)
1. See also Revenue Regulations No. 10-2012
d. Definition (Section 31)
1. Requisites of Taxable Income
2. Income v. Capital
3. Cases:
a. Vicente Madrigal And His Wife, Susana Paterno, v.
James J. Rafferty, G.R. No. L-12287, 7 August 1918;
b. Conwi v. Court of Tax Appeals, 213 SCRA 83, G.R. No.
48532 August 31, 1992
c. Eisner v. Macomber, 252 US 189 (1920);
d. Commissioner Of Internal Revenue v. The Court Of
Appeals, Court Of Tax Appeals and A. Soriano Corp.,
G.R. No. 108576, 20 January 1999;
e. Tests in Determining Income
1. Realization Test
2. Claim of Right Doctrine or Doctrine of Ownership,
Command, or Control
3. Income from Whatever Source
4. Economic Benefit Test or Doctrine of Proprietary Interest
5. Severance Test
f. Recognition of Income and Methods of Accounting
1. All-events Test
2. Accrual Method
3. Cash Method
4. Installment Method
5. Deferred Payment
6. Percentage of Completion
7. Case:
a. Commissioner v. Isabela Cultural Corporation, G.R. No.
172231, 12 February 2007
g. Determination of Net Taxable Income
1. Expenditure Method
2. Net Worth or Inventory Method
3. Sales or percentage of receipts method
4. Case:
a. Bureau of Internal Revenue v. Court of Appeals and Sps
Manly, G.R. No. 197590, 24 November 2014.
h. Situs
1. Section 23; 42
2. Cases:

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a. Commissioner Of Internal Revenue v. V. E. Lednicky
And Maria Valero Lednicky, G.R. Nos. L-18169, L-
18286, & L-21434, 31 July 1964;
b. Tan v. Del Rosario, 237 SCRA 324, G.R. No. 109289, 3
October 1994;
c. Manila Gas Corporation v. The Collector Of Internal
Revenue, G.R. No. 42780, 17 January 1936;
d. Commissioner v. British Overseas Airways
Corporation, 149 SCRA 395;
e. CIR v. Marubeni Corp., G.R No. 137377, 18 December
2011;
f. Marubeni Corporation v. Commissioner of Internal
Revenue, G.R. No. 76573, 14 September 1989;
g. Commissioner Of Internal Revenue v. Juliane Baier-
Nickel, G.R. No. 153793, 29 August 2006;
h. National Development Corporation v. Commissioner,
151 SCRA 472, G.R. No. L-53961, 30 June 1987

2. Gross Income
a. Distinguish: Gross Income, Net Income, and Taxable Income;
b. Sources (Section 32):
1. Compensation for services in whatever form paid,
including, but not limited to fees, salaries, wages,
commissions, and similar items;
2. Gross income derived from the conduct of trade or business
or the exercise of a profession;
3. Gains derived from dealings in property;
4. Interests (Section 24, 25, 27(D)(1), 28(A)(4), 28(A)(7)(a) &
(b), 28(B)(1) & (5)
a. Revenue Regulations No. 14-2012;
b. Definition
c. Exempt from Income Tax
d. Tax Rates on Interest Income
5. Rentals
a. Definition
b. Leasehold Improvements:
i. Outright Method
ii. Spread-Out Method
c. Treatment of Security Deposit
6. Dividends
a. Definition (Section 73)
b. Kinds
c. Tax Sparing Rule
d. Dividends Exempt from Income Tax
e. Rules on Intercorporate Dividends
f. Cases:
i. Marubeni Corporation v. Commissioner of
Internal Revenue, G.R. No. 76573, 14
September 1989
ii. CIR v. Wander Phils., G.R. No. L-68375, 15
April 1988
7. Annuities
8. Prizes and Winnings
a. Conditions for taxability

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9. Pensions
10. Partner's distributive share from the net income of the
general professional partnership
11. Others:
a. Illegal gains;
b. Recovery of damages if they represent lost profit;
i. Tax benefit rule or the Doctrine of equitable
benefit
c. Bad debts recovery;
i. Tax benefit rule or the Doctrine of equitable
benefit
d. Tax refund.

3. Exclusions from Gross Income

a. Exclusion v. Deduction;
b. Life insurance;
c. Amount Received by Insured as Return of Premium;
d. Gifts, Bequests, and Devises;
e. Compensation for Injuries or Sickness;
f. Income Exempt under Treaty;
g. Retirement Benefits, Pensions, Gratuities, etc.;
h. Retirement Benefits;
1. Requisites;
a. Miguel J. Ossorio Pension Foundation,
Incorporated v. Court Of Appeals And
Commissioner Of Internal Revenue, G.R. No.
162175, 28 June 2010;
b. Santos v. Servier Philippines, Inc., 572 SCRA 487;
2. Separation benefits;
3. Social security benefits;
4. United States Veterans Administration;
5. Benefits received from or enjoyed under the Social Security
System;
6. Benefits received from the GSIS.
i. Miscellaneous Items:
1. Income Derived by Foreign Government;
2. Income Derived by the Government or its Political
Subdivisions;
3. Prizes and Awards;
a. Conditions for exemption;
4. Prizes and Awards in sports Competition;
a. Conditions for exemption;
5. 13th Month Pay and Other Benefits;
6. GSIS, SSS, Medicare and Other Contributions;
7. Gains from the Sale of Bonds, Debentures or other
Certificate of Indebtedness;
8. Gains from Redemption of Shares in Mutual Fund;
9. Income derived from the Sale of Gold Pursuant to Republic
Act No. 7076 - Republic Act No. 11256 adding Section
32(B)(7)(i).

4. Deductions of Gross Income

a. The Cohan Rule Principle;
b. Exclusion v. Deduction;

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c. Tax Credit v. Tax Deduction;
1. Commissioner of Internal Revenue v. Central Luzon Drug
Corporation, G.R. No. 159647, 15 April 2005
2. Commissioner of Internal Revenue v. Central Luzon Drug
Corporation, G.R. No. 159610, 12 June 2008
d. Kinds of Allowable Deductions:
1. Itemized Deductions
2. Optional Standard Deduction
a. Revenue Regulations No. 16-2008;
b. Revenue Regulations No. 2-2010;
c. Revenue Regulations No. 8-2018;
e. Substantiation Requirements
1. H. Tambunting Pawnshop, Inc., v. Commissioner Of
Internal Revenue, G.R. No. 173373, 20 July 2013
2. Commissioner v. Isabela Cultural Corporation, G.R. No.
172231, 12 February 2007
f. Examples of Business Expenses:
1. Compensation;
2. Travelling expenses;
3. Representation and entertainment;
a. Revenue Regulations No. 10-2002;
4. Advertising and promotional expenses;
a. Commissioner v. General Foods, Inc., 401 SCRA
545
5. Rent;
6. Cost of materials and supplies;
7. Repairs.
g. Applicability of Section 34:
1. Citizens;
2. Resident aliens;
3. NRAETB;
4. General professional partnerships and partners;
5. Domestic corporations; and
6. Resident foreign corporations.
h. Removed deductions by Republic Act No. 10963:
1. Personal Exemption (Section 35);
2. Additional Exemption (Section 35);
3. Premium Payments on Health and/or Hospitalization
Insurance of an Individual Taxpayer – Removed under RA
10963 [Section 34(M)];
i. Interest;
1. Requisites for deductibility;
a. Revenue Regulations No. 13-2000;
2. Tax Arbitrage Scheme on Deductible Interest;
j. Taxes;
1. Requisites for deductibility;
k. Losses;
1. Types of Losses;
a. Net Operating Loss Ordinary Losses;
1. Revenue Regulations No. 14-2001;
2. Taxpayers entitled:
a. Individuals; and
b. Domestic and resident foreign
corporations;

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b. Casualty Losses;
1. See also Revenue Memorandum Order No. 31-
2009;
c. Capital Losses;
d. Special Losses:
1. Losses from wash sales of stocks or securities;
2. Wagering losses; and
3. Abandonment losses.
2. Requisites for deductibility;
3. Cases:
a. Marcelo Steel Corporation v. Collector, 109 Phil.
921;
b. Collector v. Asturias Sugar Central, Inc., 2 SCRA
1140;
c. Philippine Sugar Estate Development Company v.
Posadas, 68 Phil. 216
d. Cu Unjieng Sons, Inc. v. Board of Tax Appeals and
Collector, 100 Phil. 1
l. Bad Debts;
1. Revenue Regulations No. 25-2002;
2. Requisites for deductibility;
a. PRC v. CA, 256 SCRA 667, G.R. No. 118794 May 8,
1996
b. Collector v. Goodrich International Rubber, G.R.
No. 22265, 22 December 1967
m. Depreciation;
1. Requisites for deductibility;
n. Depletion of Oils and Gas Wells and Mines;
1. Requisites for deductibility;
o. Charitable and Other Contributions;
1. Requisites for deductibility;
2. Contributions deductible in full;
3. Contribution subject to limitation;
4. Deductible under Special Law;
p. Research and Development;
1. Requisites for deductibility;
q. Pension Trusts;
1. Requisites for deductibility;
r. Additional Requirements for Deductibility of Certain
Payments;
s. Nondeductible Items (Section 36);

5. Individual Income Tax

a. Sections 24-26;
b. Revenue Regulations No. 8-2018;
c. Revenue Regulations No. 11-2018;
d. Revenue Regulations No. 2-2021;
e. Citizens and Resident Aliens:
1. Tax Regimes:
a. Graduated Tax Rates;
b. 8% Income Tax on Gross Sales or Receipts;
2. Compensation Income (Section 78)
a. Existence of employer-employee relationship;
b. Rule on Back Wages

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 TAX LAW REVIEW
1. Revenue Memorandum Circular 39-2012
c. 13th month pay and other benefits
d. Fringe Benefits (Section 33)
1. Convenience of Employer Rule
2. Statutory Taxpayer
3. Who pays for the Fringe Benefits Tax
4. Fringe benefits of those persons under Section
25(C)(D)(E)(F);
5. Exemptions.
e. Exempt from Income Tax:
1. Minimum Wage Earner
2. Individuals Exempt Under International
Agreements
3. Passive Income:
a. Interest Income from any currency bank;
b. Interest Income received from depository bank
under the expanded foreign current deposit
system;
c. Interest income from a 5-year long-term deposit;
d. Royalties on books as well as other literary works
and musical compositions;
e. Regular royalties;
f. Prizes;
g. Other winnings;
h. Cash and property dividends from:
1. A domestic corporation;
2. ROHQ of a multinational corporation;
3. The share of an individual in the distributable
net income of an after tax of a partnership,
except from a general professional partnership
of which the taxpayer is a partner; or
4. The share in the net income after tax in a joint
venture or consortium of which the taxpayer is
a co-venturer;
i. Net capital gains from sale of shares of stocks in a
domestic corporation not listed and traded in the
stock exchange;
j. On presumed capital gains from sale of real
property located in the Philippines classified as
capital assets, except the sale of a principal
residence;
k. Gross income derived from contracts by
subcontractors from service contractors engaged in
petroleum operations;
f. Nonresident Alien Individuals Engaged in Trade or Business
in the Philippines
1. Test to determine NRA if engaged in trade or business
within the Philippines or not;
2. Taxation of Passive Income of NRAETB:
a. Interest income from any currency bank deposit;
b. Yield or any monetary benefit from deposit
substitute;
c. Interest income and yield from trust funds and
similar arrangements;

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 TAX LAW REVIEW
d. Royalties in any form;
e. Royalties on books, literary works, and musical
compositions;
f. Prizes;
g. Winnings;
h. Gross income from all sources within the
Philippines derived by nonresident
cinematographic film owners, lessors, or
distributors;
i. Interest income from a 5-year long-term deposit;
j. Cash or property dividends actually or
constructively received from domestic corporations,
etc.;
k. Net capital gains from sale of shares of stocks of
domestic corporations not listed and traded in the
stock market;
l. Presumed capital gains from sale of real property
situated in the Philippines considered as capital
assets;
m. Gross income derived from contracts by
subcontractors from service contractors engaged in
petroleum operations;
g. Nonresident Alien Individuals Not Engaged in Trade or
Business in the Philippines;
1. Test to determine NRA if engaged in trade or business
within the Philippines or not;
2. Revenue Regulations No. 11-2010;
3. Tests to determine whether a Filipino working in the
ROHQ/RHQ is qualified to the 15% preferential tax rate
(take note of the changes brought by RA 10963):
a. Position and function test;
b. Compensation threshold test;
c. Exclusivity test;
4. See also Section 24(F);
h. Partnerships
1. General Professional Partnership
a. Revenue Memorandum Circular 3-2012;
b. Revenue Regulations No. 2-2012;
c. See also Revenue Memorandum Circular 16-2010;
d. Revenue Regulations 8-2018;
2. Taxable partnerships:
a. Partnerships which are not GPP;
b. When is a joint venture or consortium not taxable
as a corporation? (See Presidential Decree No, 929);
3. Taxation of the Income of Partners
i. Cases:
1. Soriano v. Secretary of Finance, G.R. No. 184450, 24
January 2017
2. Nitafan v. Commissioner, 152 SCRA 284
3. Commissioner v. Secretary of Justice, G.R. No. 177387, 9
November 2016
4. COURAGE v. Commissioner, G.R. No. 213446, 3 July 2018.

6. Corporate Income Tax

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 TAX LAW REVIEW
a. Sections 27-30;
b. Revenue Regulations No. 5-2021;
c. Taxable corporations:
1. Rallos v. Rallos, 2 Phil. 509;
2. Evangelista v. Collector, 102 Phil. 140;
3. Ona v. Commissioner, G.R. No. L-19342, 25 May 1972;
4. Pascual and Dragon v. Commissioner, 166 SCRA 560;
5. Obillos v. Commissioner, 139 SCRA 436;
6. Afisco Insurance Corporation v. Court of Appeals, 302
SCRA 1;
7. CIR v. Ledesma, G.R. No. L-17509, 30 January 1970
d. Private Educational Institution and Non-Profit Hospital;
1. Predominance Test;
2. Cases:
a. Commissioner of Internal Revenue v. St. Luke's
Medical Center, G.R. No. 195909 and 195960, 26
September 2012
b. Commissioner v. St. Luke's Medical Center, Inc.,
G.R. No. 203514, 13 February 2017
c. Commissioner v. De La Salle University, G.R. No.
196596, 9 November 2019
d. CIR vs. De La Salle University, Inc., GR No.
196596, November 9, 2016
e. Government-Owned-and-Controlled Corporations
1. Exempt GOCCs:
a. GSIS;
b. SSS;
c. PhIC;
d. PCSO (removed by Republic Act No. 10963);
e. PAGCOR (removed by Republic Act No. 9337);
f. Local Water Districts.
2. Case:
a. PAGCOR v. BIR, G.R. No. 172087, 15 March 2011
f. Domestic Corporation:
1. Passive Income:
a. Interest income from any currency bank deposit;
b. Yield or any monetary benefit from deposit
substitute;
c. Interest income and yield from trust funds and
similar arrangements;
d. Royalties derived from sources within the
Philippines;
e. Interest income derived from a depository bank
under the FCDU;
f. Interest income from foreign currency loans
granted by depository bank under the expanded
foreign currency deposit system to residents other
than OBUs in the Philippines or other depository
banks under the expanded depository system;
g. Net capital gains from sale of shares of stocks of
domestic corporations not listed and traded in the
stock market;

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 TAX LAW REVIEW
h. Presumed capital gains from sale of real property
situated in the Philippines considered as capital
assets;
i. Gross income derived from contracts by
subcontractors from service contractors engaged in
petroleum operations;
2. Minimum Corporate Income Tax – Section 27(E)
a. Revenue Regulations No. 12-2007;
b. Purpose and nature;
c. Coverage;
d. Suspension or relief;
e. Computation;
f. Carry forward;
g. Cases:
1. Chamber of Real Estate and Builders’
Association, Inc. v. Romulo, G.R. No. 160756,
09 March 2010
2. Commissioner of Internal Revenue V.
Philippine Airlines, Inc. (PAL), G.R. No.
179259, 25 September 2013
3. Manila Banking Corporation v.
Commissioner, 499 SCRA 782
3. Improperly Accumulated Earnings Tax (Section 29);
a. Revenue Regulations No. 2-2001;
b. Revenue Memorandum Circular No. 35-2011;
c. Rationale;
d. Accumulation of Profits;
e. Immediacy test or Reasonable needs of the
business;
f. Removed under RA 11534
g. Cases:
1. Basilan Estates, Inc. v. CIR, 21 SCRA 17
2. The Manila Wine Merchants, Inc. v. The
Commissioner Of Internal Revenue, G.R. No.
L-26145, 20 February 1984
3. Cyanamid Philippines, Inc. v. Court of
Appeals, G.R. No. 108067, 20 January 2000
g. Resident Foreign Corporation
1. Doing Business and Taxability of Income
a. Commissioner of Internal Revenue v. Atlas
Consolidated Mining and Development
Corporation, G.R. No. 104151, 10 March 1995
b. British Traders Insurance Co., Ltd. v.
Commissioner of Internal Revenue, 13 SCRA 719;
c. South African Airways v. Commissioner of
Internal Revenue, 612 SCRA 665, G.R. No. 180356,
16 February 2010
d. Air Canada v. Commissioner of Internal Revenue,
G.R. No. 169507, 11 January 2016
2. Minimum Corporate Income Tax on RFC
a. Same as MCIT in Domestic Corporations;
b. Not applicable to:

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 TAX LAW REVIEW
1. RFC engaged in business as international
carrier subject to tax at 2 ½% of their gross
Philippine billings;
2. RFC engaged in business as OBUs on their
income from foreign currency transactions
with local commercial banks, including
branches of foreign banks, authorized by the
BSP to transact business with OBUs,
including interest income from foreign
currency laons granted to resdients of the
Philippines, subject to a final income tax at
10% of such income;
3. RFC engaged in business as ROHQs subject
to tax at 10% of their taxable income; and
4. Firms that are taxes under special income tax
regime such as those covered in accordance
with RA 7916 and RA 7227;
3. International Carriers
a. Air;
b. Shipping;
c. Gross Philippine Billings;
d. Revenue Regulations No. 15-2002;
e. Cases:
1. South African Airways v. Commissioner of
Internal Revenue, 612 SCRA 665, G.R. No.
180356, 16 February 2010
2. United Airlines, Inc. v. Commissioner of
Internal Revenue, 631 SCRA 567, G.R. No.
178788, 29 September 2010
3. CIR v. BOAC, G.R. No. L-65773-74, 30 April
1987
4. Association of International Shipping Lines,
Inc., APL Co., Pte Ltd., and Maersk-Filipinas,
Inc. v. Secretary of Finance and
Commissioner of Internal Revenue, G.R. No.
222239, 15 January 2020
5. Air Canada v. Commissioner of Internal
Revenue, G.R. No. 169507, 11 January 2016
4. Offshore Banking Units:
a. Definition;
b. Foreign Currency Deposit Unit;
1. RCBC v. CIR, G.R. No. 170257, 7 September
2011
5. Regional or Area Headquarters and Regional Operating
Headquarters of Multinational Companies
a. Definition of multinational company;
b. Definition of regional or area headquarters;
c. Taxation of income;
6. Branch Profit Remittance Tax
a. Bank of America NT & SA v. Court of Appeals, 234
SCRA 302
b. Commissioner v. Marubeni, 177 SCRA 500
c. Marubeni v. Commissioner, G.R. No. 76573, 14
September 1989

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 TAX LAW REVIEW
d. Deutsche Bank AG Manila v. Commissioner, 704
SCRA 216, G.R. No. 188550, 19 August 2013
h. Nonresident Foreign Corporation [Section 28(B)]:
1. Definition;
2. Taxation of Income;
3. Tax Credit Rule;
4. NRFCs subject to preferential rates.
a. Commissioner of Internal Revenue v. Procter and
Gamble PMC, G.R. No. 66835, 15 April 1988;
i. Tax-Exempt Corporations (Section 30);
1. Revenue Memorandum Order No. 38-2019;
2. Revenue Memorandum Order No. 44-2016;
3. Revenue Memorandum Circular No. 64-2016;
4. Cases:
a. Collector v. Sinco Educational Institution, 100
Phil. 127;
b. Manila Gas Corporation v. Collector, 62 Phil. 895;
c. Commissioner of Internal Revenue v. Court of
Appeals, G.R. No. 124043, 14 October 1998;
d. Association of Non-Profit Clubs, Inc. (ANPC),
herein represented by its authorized
representative, Ms. Felicidad M. Del Rosario Vs.
Bureau of Internal Revenue (BIR), herein
represented by Hon. Commissioner Kim S.
Jacinto-Henares, G.R. No. 228539, 26 June 2019;
e. In The Matter Of Declaratory Relief On The
Validity Of Bir Revenue Memorandum Circular
No. 65-2012 "Clarifying The Taxability Of
Association Dues, Membership Fees And Other
Assessments/Charges Collected By Condominium
Corporations, G.R. No. 215801, 15 January 2020
f. Lung Center of the Philippines v. Quezon City, 433
SCRA 119;
g. Commissioner of Internal Revenue v. St. Luke’s
Medical Center, G.R. No. 195909 and 195960, 26
September 2012;
h. Abra Valley College, Inc. v. Aquino, 162 SCRA 106;
i. Commissioner v. De La Salle University, G.R. No.
196596, 9 November 2019;
j. Henares v. St. Paul College of Makati, G.R. No.
215383, 8 March 2017.
j. Allocation of Income and Deductions
1. Section 50;
2. Revenue Regulations No. 2-2013;
3. Commissioner of Internal Revenue v. Filinvest
Development Corporation, G.R. Nos. 163653 and 167689,
19 July 2011.

7. Dealings in Property
a. Shares of Stocks:
1. Net capital gains from sale, barter, exchange, or other
disposition of shares of stock of a domestic corporation held
as capital asset not listed and traded in the local stock
exchange;

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2. Sale, barter, exchange, or other disposition of shares of
stock of a domestic corporation which are traded and listed
in the local stock exchange;
3. If stocks are held as ordinary assets, what happens to the
resulting gain or loss?;
b. Real Property:
1. Section 24(D)(1)&(2);
2. Section 6(E);
3. Revenue Regulations No. 11-2018;
4. Revenue Memorandum Circular No. 9-2018;
5. Revenue Regulations No. 9-2012;
6. Revenue Memorandum Circular No. 55-2011;
7. Doctrine of Presumed Gain;
8. Capital gains if the seller is:
a. Habitually engaged in the real estate business;
b. Not habitually engaged in the real estate business;
9. Sale of Principal Residence [Section 2.57-1(A)(7)];
a. Conditions for exemption from capital gains tax;
c. Capital gains and losses:
1. Section 39;
2. Kinds of Assets:
a. Capital Asset v. Ordinary Asset;
b. Revenue Regulations No. 7-2003;
c. Capital gains v. Ordinary gains;
3. Rules:
a. Holding period rule;
b. Capital loss limitation rule;
c. Net capital loss carry over;
1. NCLCO v. NOLCO;
4. Case:
a. Supreme Transliner v. BPI Family Savings Bank,
Inc., 644 SCRA 59;
d. Recognition of Gains or Losses:
1. Section 40;
2. Revenue Regulations No. 6-2008;
3. Tax-Free Exchanges
a. Commissioner Of Internal Revenue v. Lucio L. Co,
Susan P. Co, Ferdinand Vincent P. Co, And
Pamela Justine P. Co, G.R. No. 241424, 26
February 2020
b. Commissioner of Internal Revenue v. The
Hongkong Shanghai Banking Corporation Limited
– Philippine Branch, G.R. No. 227121, 9 December
2020

8. Withholding Taxes
a. Sections 57, 58, 79, 80, 81
b. Revenue Regulations 2-98 and its amendments;
c. Revenue Regulations 11-2018 and its amendments;
d. Revenue Regulations 2-2021;
e. Three-fold purpose of withholding tax system;
f. Duties of a Withholding Agent
g. Kinds of Withholding:
1. Final Withholding Tax

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 TAX LAW REVIEW
2. Creditable Withholding Tax:
a. Expanded Withholding Tax
b. Withholding Tax on Compensation
1. Year-end adjustment;
h. Withholding on Fringe Benefits
i. Cases:
1. Chamber of Real Estate and Builders' Association, Inc. v.
Executive Secretary, G.R. No. 160756, 9 March 2010;
2. Ing Bank N.V. v. Commissioner Of Internal Revenue, G.R.
No. 167679, 22 July 2015;
3. Benguet Corporation v. Commissioner of Internal
Revenue, G.R. No. 141212, 22 June 2006;
4. Commissioner v. Malayan Insurance Co., Inc., 21 SCRA
944
5. Bank of America v. Commissioner, 234 SCRA 302;
6. Commissioner of Internal Revenue v. Court of Appeal 361
Phil. 103;
7. Chamber of Real Estate and Builders' Association, Inc. v.
Romulo, G.R. No. 160756, 09 March 2010;
8. Honda Cars Philippines, Inc. v. Honda Cars Technical
Specialist and Supervisors Unions, G.R. No. 204142, 19
November 2014;
9. PAGCOR v. Commissioner, G.R. No. 210704-90, 22
November 2017;
10. PAL v. Commissioner of Internal Revenue, G.R. No.
206079-80, 17 January 2018;
11. Edison Cogeneration Corporation v. Commissioner of
Internal Revenue, G.R. No. 201665, 30 August 2017;
12. Metrobank v. Commissioner of Internal Revenue, G.R. No.
182582, 17 April 2017;
13. Commissioner of Internal Revenue Vs. La Flor Dela
Isabela, Inc., G.R. No. 211289, 14 January 2019.

9. Income Tax Return

a. Accounting Periods (Section 43):
1. Calendar accounting period;
2. Fiscal accounting period;
b. Accounting Methods (Section 43):
1. Cash;
2. Accrual;
3. Installment payment;
4. Deferred payment;
5. Percentage-of-completion;
c. Returns - Individuals (Section 51):
1. Individuals required to file ITR;
2. Individuals not required file ITR;
a. Substituted Filing (Section 51-A);
1. Conditions;
d. Returns - Corporations (Section 52);
e. Returns - General Professional Partnerships (Section 55);
f. Payment and Assessment of Income Tax Returns (Section 56):
1. Installment payment;
g. Declaration of Income Tax - Individuals (Section 74);

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 TAX LAW REVIEW
1. Individuals not required to render a declaration of
estimated income tax:
a. Nonresident citizens with respect to income
without the Philippines;
b. NRANETB;
2. Due dates;
h. Declaration of Income Tax - Corporations (Sections 75 & 77);
1. Due dates;
i. Where to file;
j. Final Adjusted Return (Section 76);

B. Value-Added Tax
1. Sections 105 - 115;
2. Revenue Regulations No. 16-2005;
3. Revenue Regulations No. 13-2018;
4. Revenue Regulations No. 4-2021;
5. Concepts:
a. Definition;
b. Nature and Characteristics:
1. Indirect tax: Impact and Incidence of Tax;
2. Sales Tax;
3. Tax on Consumption;
4. Tax credit method;
5. It is not a cascading tax. There is no tax pyramiding;
6. Cross Border Doctrine and Destination Principle;
c. Cases:
1. Toshiba Information Equipment (Phils.), Inc. v. CIR,
157594, 9 March 2010;
2. CIR vs. American Express International, Inc., GR No.
152609, 29 June 2005;
3. CIR vs. Seagate Technology (Philippines), GR No.
153866, 11 February 2005;
6. Persons Liable (Section 105);
7. Registration:
a. Mandatory VAT registration;
b. Optional VAT registration;
c. Persons required to register as non-VAT or VAT-exempt
persons;
8. Imposition of VAT:
a. Transaction in the course of trade or business;
b. Incidental transactions;
c. Cases:
1. CIR v. Sony Phils., Inc., 635 SCRA 234;
2. Mindanao Geothermal II Partnership vs. CIR, GR No.
193301, 11 March 2013;
3. CIR vs. CA and COMASERCO, GR No. 125355, 30
March 2000;
4. MEDICARD Phils., Inc. vs, CIR, GR No. 222743, 5
April 2017;
5. TFS, Inc. vs. CIR, GR No. 166829, 19 April 2010;
6. CIR vs. SM Prime Holdings, Inc., GR No. 183505, 26
February 2010;
7. Diaz vs. The Secretary of Finance, GR No. 193007, 19
July 2011;

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 TAX LAW REVIEW
8. PSALM v. Commissioner of Internal Revenue, G.R.
No. 226556, 3 July 2019;
9. PSALM v. Commissioner of Internal Revenue, G.R.
No. 198146, 8 August 2017;
10. Association of Non-Profit Clubs, Inc. (ANPC), herein
represented by its authorized representative, Ms.
Felicidad M. Del Rosario Vs. Bureau of Internal
Revenue (BIR), herein represented by Hon.
Commissioner Kim S. Jacinto-Henares, G.R. No.
228539, 26 June 2019;
11. In The Matter Of Declaratory Relief On The Validity
Of Bir Revenue Memorandum Circular No. 65-2012
"Clarifying The Taxability Of Association Dues,
Membership Fees And Other Assessments/Charges
Collected By Condominium Corporations, G.R. No.
215801, 15 January 2020
9. VAT on Sale of Goods or Properties (Section 106)
a. Requisites for the imposition of VAT;
b. Gross selling price;
c. Allowed deductions;
d. Transactions - Deemed Sale [Section 106(B)];
10. VAT on the Sale of Services and Use or Lease of Properties (Section
108)
a. Requisites for the imposition of VAT;
b. Gross receipts;
11. VAT on Importation of Goods (Section 107);
12. Zero-Rated Sales
a. Automatically Zero-Rated Transactions v. Effectively Zero-
Rate Transactions;
b. Zero-Rated Export Sales of Goods or Properties [Section
106)(A)(2)];
c. Zero Rated Sale of Services [Section 109(B)]
d. Cases:
1. Coral Bay Nickel Corporation vs. CIR, GR No. 190506,
13 June 2016;
2. CIR vs. Cebu Toyo Corp., GR No. 149073, 16 February
2005;
3. CIR vs. Seagate Technology (Philippines), GR No.
153866, 11 February 2005;
4. Sitel v. Commissioner, G.R. No. 201326, 8 February
2017;
5. Commissioner v. Euro-Philippines Airline Services,
Inc., G.R. No. 222436, 23 July 2018;
13. VAT – Exempt Transactions;
a. VAT-Exempt Transactions v. VAT-Exempt Entity;
b. VAT-exemption v. Zero-rating;
c. Transactions (See Section 109)
14. Tax Credits (Section 110);
a. Input Tax v. Output Tax;
b. Creditable input taxes;
1. Sources of Creditable Input Taxes;
2. Claimant of input tax credit;
3. Determination of Input Tax creditable during a
taxable month or quarter;

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 TAX LAW REVIEW
a. The amortization of the input VAT shall only be
allowed until December 31, 2021 after which
taxpayers with unutilized input VAT on capital
goods purchased or imported shall be allowed to
apply the same as scheduled until fully utilized;
c. Apportionment of Input on Mixed Transactions;
d. Other Types of Input Tax (Section 11):
1. Transitional Input Tax Credits;
a. Available to:
1. A person who becomes liable to VAT; or
2. Any person who elects to be VAT-
registered.
2. Presumptive Input Tax Credits;
a. Available to:
1. Persons engaged in the processing of
sardines, mackerel, milk; and
2. Manufacturers of refined sugar, cooking
oil, and packed noodle-based instant
meals.
3. Cases:
a. Fort Bonifacio Development vs. CIR, GR No.
158885, 2 April 2009;
b. Fort Bonifacio Development Corporation vs. CIR,
GR No. 173425, 4 September 2012;
15. Refunds or Tax Credit of Input Tax (Section 112)
a. Contex Corporation v. CIR, G.R. No. 151135, 2 July 2004;
b. Philippine Geothermal v. CIR, 154028, 29 July 2005;
c. San Roque Power Corporation v. Commissioner of Internal
Revenue, G.R. No. 180345, 25 November 2009;
d. CIR v. Aichi Forging Co. of Asia, Inc., G.R. No. 184823, 6
October 2010;
e. Commissioner of Internal Revenue v. San Roque Power
Corporation, G.R. No. 187485, 12 February 2013
f. San Roque Power Corporation v. Commissioner of Internal
Revenue, G.R. No. 203249, 23 July 2018
16. Invoicing and Accounting Requirements for VAT-Registered Persons
(Section 113);
17. Return and Payment of Value-Added Tax (Section 114);
18. Power of the Commissioner to Suspend the Business Operations of a
Taxpayer (Section 115);
a. Oplan Kandado;
19. Other Cases:
a. CIR v. Seagate Technology Phils., G.R. No. 153866, 11
February 2005;
b. CIR v. Mirant Pagbilao Corp., G.R. 172129, 12 September
2008;
c. Atlas Consolidated v. CIR, G.R. Nos. 141104 & 148763, June
8, 2007;
d. CIR vs. Sony Philippines, Inc., GR No. 178697 dated
November 17, 2010;
e. Commissioner of Internal Revenue v. Negros Consolidated,
G.R. No. 212735, 5 December 2018;

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 TAX LAW REVIEW
TAX REMEDIES

I. BUREAU OF INTERNAL REVENUE

B. Organizational Structure

1. Chief Officials of the Bureau of Internal Revenue (Section 3)

2. Agents of the Commissioner of Internal Revenue (Section 12)

C. Powers and Duties of the BIR

1. Powers and Duties of the Bureau of Internal Revenue (Section 2)

2. Power of the Commissioner to Interpret Tax Laws and to Decide Tax

Cases (Section 4)

3. Power of the Commissioner to Obtain Information, and to Summon,

Examine, and Take Testimony of Persons (Section 5)
a. CIR v. Raul M. Gonzales, G.R. No. 177279, 13 October 2010
b. Fitness by Design v. CIR, G.R. No. 177982, 17 October 2008

4. Power of the Commissioner to Make Assessments and Prescribe

Additional Requirements for Tax Administration and Enforcement
(Section 6)
a. Revenue Memorandum Circular No. 23-2000
b. Oceanic Wireless Network, Inc. v. CIR, G.R. No. 148380, 9 December
2005
c. CIR v. Aquafresh Seafoods, Inc., G.R. No. 170389, 20 October 2010

5. Authority of the Commissioner to Delegate Power (Section 7)

6. Duty of the Commissioner to Ensure the Provision and Distribution of

Forms, Receipts, Certificates, and Appliances, and the Acknowledgment
of Payment of Taxes (Section 8)

II. PRESCRIPTIVE PERIODS

A. Imprescriptibility of taxes
Exceptions:
1. Section 222
2. Section 430, RA No. 10863
3. Section 194, LGC
4. Section 270, LGC

B. Sections 203, 222, 223

1. Fraud v. Fraudulent Return
2. See Section 248(B)
3. Cases:
a. See Section 6(A)
b. See RMC 6-2005 for the format of the Waiver
c. Revenue Memorandum Order No. 14-2016
d. Revenue Memorandum Circular No. 141-2019

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e. CIR v. United Salvage and Towage, 729 SCRA 113, G.R. No.
197515, 2 July 2014
f. CIR v. Court of Tax Appeals, G.R. No. 258947, 29 March 2022
g. BPI v. CIR, G.R. No. 139736, 17 October 2005
h. Commissioner Of Internal Revenue v. Transitions Optical
Philippines, Inc., G.R. No. 227544, 22 November 2017
i. Republic Of The Philippines v. GMCC United Development
Corporation, G.R. No. 191856, 07 December 2016
j. CIR v. FMF Dev. Corp., 556 SCRA 698
k. CIR vs. Stanley Works (Phils.) Incorporated, GR No. 187859, 3
December 2014
l. CIR vs. Kudos Metal, GR No. 178087, 5 May 2010
m. CIR v. Systems Technology Institute, Inc., G.R. No. 220835, 26 July
2017
n. RCBC v. CIR, G.R. No. 170257, 7 September 2011
o. CIR v. Phoenix Assurance Inc., L-19727, 20 May 1965
p. BPI v. CIR, G.R. No. 139736, 17 October 2005
q. Aznar vs. CTA, GR No. L-20569, 23 August 1974
r. CIR vs. Philippine Daily Inquirer, GR No. 213943, 22 March 2017
s. CIR vs. Asalus Corporation, GR No. 221590, February 22, 2017
t. CIR v. Ayala Securities Corp., 101 SCRA 231
u. Commissioner of Internal Revenue v. La Flor dela Isabela, Inc.,
G.R. No. 211289, 14 January 2019
v. Commissioner of Internal Revenue v. Bank of the Philippine
Islands, G.R. No. 227049, 16 September 2020
w. Commissioner of Internal Revenue v. Unioil Corporation, G.R. No.
204405, 4 August 2021

III. ASSESSMENT

A. BASIS OF ASSESSMENT

1. Question of Fact

2. Question of Law
a. Commissioner v. CA & YMCA, 298 SCRA 83
b. Cyanamid Philippines v. CA, 322 SCRA 639

B. ASSESSMENT PROCESS

1. Revenue Regulations No. 12-99 as amended by Revenue Regulations No.

18-2013 and as further amended by Revenue Regulations No. 22-2020
a. Revenue Memorandum Order No. 26-2016
b. Revenue Memorandum Order No. 40-2019
c. Revenue Memorandum Circular No. 15-2020

2. Kinds of Assessment:
a. Voluntary Assessment or Self-Assessment
b. Jeopardy Assessment
c. Deficiency Assessment

3. Taxpayer’s Part:

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a. Self-assessment;
b. Filing of tax return;
c. Payment of tax

4. Government’s part:

a. Letter of Authority
a. See Section C of Revenue Memorandum Order No. 43-90 dated
September 20, 1990
b. CIR v. Sony Phils. Inc., 635 SCRA 234
c. CIR vs. De La Salle University, Inc., GR No. 196596, November
9, 2016;
d. MEDICARD Phils., Inc. vs, CIR, GR No. 222743, 5 April 2017;
e. Commissioner of Internal Revenue v. Mcdonald’s Philippines
Realty Corp., G.R. No. 242670, 10 May 2021
f. Himlayang Pilipino Plans, Inc. v. Commissioner of Internal
Revenue, G.R. No. 241848, 14 May 2021

b. Letter Notice
a. Medicard Philippines, Inc. vs. CIR, GR No. 222743, 5 April
2017

c. Persons authorized to issue Letter of Authority

a. CIR v. Sony Phils. Inc., 635 SCRA 234

d. Examination of books of accounts and other accounting records of

taxpayers by revenue officers to determine correct tax liability
[Sections 5(B) and 6(A)]
i. Best Evidence Obtainable [Section 6(B)]
1. Commission Of Internal Revenue v. Hantex Trading Co.,
G.R. No. 136975, 31 March 2005
ii. Net-worth Method of Investigation
1. Section 43
2. Eugenio Perez v. The Court Of Tax Appeals, G. R. No. L-
10507, 30 May 1958

e. Requisites of a valid assessment (Section 228)

a. Basilan Estates v. CIR, L-22492, 5 Sept. 1967
b. CIR vs. United Salvage Towage (Phils.), Inc., GR No. 197515, 4
July 2014
c. SMI-ED Technology Corporation, Inc. vs. CIR, GR No. 175410,
12 November 2014
d. Samar-I Electric Cooperative v. CIR, GR No. 193100, 10
December 2014
e. Cagayan Robina Sugar Milling v. CA, 122451, 12 October 2000
f. Commissioner Of Internal Revenue v. De La Salle University,
Inc., G.R. No. 196596, 9 November 2016
g. Section 235
h. CIR vs. Fitness By Design, GR No. 215957, 9 November 2016
i. Oceanic Wireless Network, Inc. v. CIR, G.R. No. 148380, 9
December 2005
Notice of Discrepancy
f. Notice of Discrepancy
a. Revenue Regulations No. 22-2020;

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b. Annex A of Revenue Memorandum Circular 15-2020;
c. Removed: Notice of Informal Conference.
d. Issuance of Preliminary Assessment Notice (PAN)
a. Section 228
b. See Revenue Regulations No. 12-99 as amended by Revenue
Regulations No. 18-2013 and further amended by Revenue
Regulations No. 7-2018
e. Reply
f. In both issuance of PAN and FAN, modes of service:
i. Personal Service to the taxpayer:
1. At the registered address, or if not possible;
2. At the known address, or
3. Both simultaneously.
ii. Substituted Service only in case service cannot be made to the
taxpayer himself:
1. To be done at the registered or known address personally
by the revenue officer concerned
iii. By Registered Mail
1. LG Collins Electronics Phil. Inc. v. CIR, CTA Case No.
6186, June 9, 2004
2. Adamson v. CA, 588 SCRA 27
3. Commissioner v. Enron Subic Power Corp., G.R. No.
166387
4. Republic v. CA, 149 SCRA 35
5. CIR v. Metro Star Suprema Inc., 185371, 8 December 2010
g. Issuance of Formal Assessment Notice (FAN) or Formal Letter of
Demand (FLD)
a. Requisites
b. Instances when the FAN becomes final, executory, and
demandable
1. CIR vs. Metro Star Superama, Inc., GR No. 185371, 8
December 2010
2. CIR vs. Enron, GR No. GR No. 166387, 19 January 2009
h. Protest
ii. Requisites
iii. 2 types of protest:
1. Request for reconsideration
2. Request for reinvestigation
i. Denial of protest by Commissioner or his authorized representative
and Final Decision on Disputed Assessments
j. Actions of the BIR considered as a denial of a pending protest:
a. Issuance of a Warrant of Distraint of Levy
b. Filing of Collection Case
c. Issuance of a Final Notice before Seizure
d. Issuance of a Final Demand Letter
k. Appeal
l. Cases:
a. Fishwealth Canning Corporation v. CIR, 179343, 21 January
2010
b. CIR vs. First Express Pawnshop, GR Nos. 172045-46, 16 June
2009
c. CIR vs. Liquigaz Phils. Corporation, GR No. 215534, 18 April
2016
d. RCBC v. CIR, G.R. No. 170257, 7 September 2011

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e. PAGCOR vs. BIR, GR No. 208731, 27 January 2016
f. Lascona Land vs. CIR, GR No. 171251 dated March 5, 2012
g. Allied Banking Corporation vs. CIR, GR No. 175097, 5
February 2010
h. Commissioner of Internal Revenue v. V.Y. Domingo Jewellers,
Inc., G.R. No. 221780, 25 March 2019.
i. Misnet, Inc. v. Commissioner of Internal Revenue, G.R. No.
210604. 3 June 2019
j. Commissioner of Internal Revenue v. T Shuttle Services Inc.,
G.R. No. 240729, 24 August 2020
k. Commissioner of Internal Revenue v. Unioil Corporation, G.R.
No. 204405, 4 August 2021
l. Commissioner of Internal Revenue v. Court of Tax Appeals,
G.R. No. 239464, 10 May 2021
m. Commissioner of Internal Revenue v. Yumex Philippines
Corporation, G.R. No. 222476, 5 May 2021
n. Light Rail Transit Authority v. Commissioner of Internal
Revenue, G.R. No. 231238, 20 June 2022

IV. COMPROMISE AND ABATEMENT

A. Differentiate Compromise from Abatement (Section 204)

B. Compromise v. Compromise Penalty

C. Revenue Regulations No. 7-2001 as amended by Revenue Regulations

No. 30-2002

V. TAX CREDIT AND TAX REFUND

A. Nature
1. Section 204(C), 229, 230
2. FEBTC v. CIR, G.R. No. 149589, 15 September 2006
3. CIR v. Fortune Tobacco Corporation 559 SCRA 160 (2008)
4. CIR v. PNB, G.R. No. 161997, 25 October 2005
5. Philippine Phosphate Fertilizer Corp. v. CIR, G.R. No. 141973, 28
June 2005

B. Tax Credit v. Tax Refund

C. What may be the subject of tax credit and tax refund

1. Taxes erroneously or illegally received
2. Penalties imposed without authority
3. Documentary Stamps

D. When to file request for Tax Credit/Refund:

1. Administrative – Section 229
2. Judicial – Section 230

E. When to start counting the 2-year prescriptive period

1. Lu Do & Ym Corp. v. Central Bank, 108 Phil. 566
2. Banco Filipino v. CA, CTA, and CIR, 155682, 27 March 2007

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3. CIR vs. Far East Bank & Trust Company, GR No. 173854, 15 March
2010
4. Metropolitan Bank & Trust Company v. The Commissioner Of
Internal Revenue, G.R. No. 182582, 17 April 2017
5. See Section 76
6. Belle Corporation vs. CIR, GR No. 181298, 10 January 2011
7. See also Resolution on the Motion for Clarification dated March 2,
2011 on the same case in f. above
8. CIR vs. BPI, GR No. 178490, 7 July 2009
9. Winebrenner & Inigo Insurance Brokers, Inc. vs. CIR, GR No. 206526,
28 January 2015
10. Systra Phils. Inc. vs. CIR, GR No. 176290, 21 September 2007
11. Commissioner of Internal Revenue v. Univation Motor Philippines,
Inc., G.R. No. 231581, 10 April 2019
12. Commissioner of Internal Revenue v. Philippine National Bank, G.R.
No. 212699, 13 March 2019
13. Commissioner of Internal Revenue v. Philippine Bank of
Communications, G.R. No. 211348, 23 February 2022

F. Final Adjusted Return (Section 76)

1. Paseo Realty and Development Corporation v. Court of Appeals, G.R.
No. 119286, 13 October 2000;
2. Commissioner of Internal Revenue v. Philamlife and General
Insurance Corporation, G.R. No. 175124, 29 September 2010;
3. Philam Asset Management, Inc. v. Commissioner of Internal
Revenue, G.R. Nos. 156637, 162004, 14 December 2005;
4. Commissioner of Internal Revenue v. Mirant, G.R. 171742, 15 June
2011;
5. Commissioner of Internal Revenue v. Bank of the Philippine Islands,
G.R. No. 178490, 7 July 2009;
6. Commissioner of Internal Revenue v. McGeorge Food Industries,
Inc., G.R. No. 174157, 20 October 2010;
7. University Physicians Services, Inc. – Management, Inc., v.
Commissioner of Internal Revenue, G.R. No. 205955, 7 March 2018;
8. Commissioner of Internal Revenue v. Philippine National Bank, G.R.
No. 212699, 13 March 2019

G. Person entitled to refund:

1. Statutory taxpayer
2. Withholding agent
a. CIR v. Smart Communication Inc. 629 SCRA 342
b. Silkair v. Commissioner of Internal Revenue, G.R. No. 184389, 25
February 2010

H. Remedies

VI. VAT REFUND

A. Zero-rated sales of goods [Section 106 (A)(2)]

B. Zero-rated sales of services [Section 108 (B)]

C. Effectively zero-rated sales [Section 108(B)(3)]

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1. CIR v. Seagate Technology Phils., G.R. No. 153866, 11 February
2005

D. Tax credit method

E. Quantum of evidence needed to prove claim

1. CIR v. Mirant Pagbilao Corp., G.R. 172129, 12 September 2008

F. Proper party to claim refund/credit

1. Contex Corporation v. CIR, G.R. No. 151135, 2 July 2004
2. Philippine Geothermal v. CIR, 154028, 29 July 2005

G. Prescriptive Period [Section 112(C)]

1. Administrative
2. Judicial

H. Cases:
1. Contex Corporation v. CIR, G.R. No. 151135, 2 July 2004
2. CIR v. Seagate Technology Phils., G.R. No. 153866, 11 February
2005
3. Philippine Geothermal v. CIR, 154028, 29 July 2005
4. Atlas Consolidated v. CIR, G.R. Nos. 141104 & 148763, June 8, 2007
5. CIR v. Mirant Pagbilao Corp., G.R. 172129, 12 September 2008
6. San Roque Power Corporation v. Commissioner of Internal
Revenue, G.R. No. 180345, 25 November 2009
7. Panasonic Communications Imaging Corporation of the Philippines
v. CIR 612 SCRA 28, G.R. No. 178090, 8 February 2010
8. CIR v. Aichi Forging Co. of Asia, Inc., G.R. No. 184823, 6 October
2010
9. J.R.A. Philippines, Inc. vs. CIR, GR No. 177127, 11 October 2010
10. Silicon Philippines, Inc. vs. CIR, GR No. 172378 17 January 2011
11. Southern Philippines Power Corp. v. CIR, 179632, 19 October 2011
12. Commissioner of Internal Revenue v. San Roque Power
Corporation, G.R. No. 187485, 12 February 2013
13. Pilipinas Total Gas, Inc. vs. CIR, GR No. 207112, 8 December 2015
14. CE Luzon Geothemal Power Company, Inc. v. Commissioner
Internal Revenue, G.R. No. 197526, 26 July 2017
15. San Roque Power Corporation v. Commissioner of Internal
Revenue, G.R. No. 203249, 23 July 2018
16. Steag State Power, Inc. v. Commissioner of Internal Revenue, G.R.
No. 205282, 14 January 2019
17. Commissioner of Internal Revenue v. Team Energy Corporation,
G.R. No. 230412, 27 March 2019
18. Commissioner of Internal Revenue v. Chevron, G.R. No. 233301, 17
February 2020
19. Zuellig-Pharma Asia Pacific Ltd. Phils. ROHQ v. Commissioner of
Internal Revenue, G.R. No. 244154, 15 July 2020
20. Commissioner of Internal Revenue v. Philex Mining Corporation,
G.R. No. 218057, 18 January 2021
21. Commissioner of Internal Revenue v. Taganito Mining Corporation,
G.R. No. 219630-31, 07 December 2021

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22. Harte-Hanks Philippines, Inc. v. Commissioner of Internal
Revenue, G.R. No. 205189, 07 March 2022

VII. CIVIL PENALTIES

A. Surcharge (Section 248)

B. Interest (Section 249)

1. Delinquency Tax v. Deficiency Tax

C. Compromise Penalty

VIII. COLLECTION

A. Administrative Remedies
1. Tax Lien (Section 219)
a. CIR v. NLRC, G.R. No. 74965, November 9, 1994
2. Distraint of personal property, or levy of real property, or
garnishment of bank deposits [Section 205(A)]
b. Actual Distraint [Section 207(A)]
c. Constructive Distraint (Section 206)
i. BPI v. Commissioner, G.R. No. 139736
3. Sale of property (Section 209, 213)
4. Forfeiture (Section 215)
5. Compromise and Abatement (Section 204)
6. Penalties and fines
7. Suspension of business operations

IX. JUDICIAL REMEDIES OF THE GOVERNMENT

A. Civil Actions
1. Form and Mode of Proceeding in Actions Arising under this Code
(Section 220)
2. Injunction not Available to Restrain Collection of Tax (Section 218)
3. Jurisdiction
4. Cases:
a. Republic v. Hizon, 320 SCRA 574
b. CIR v. Court of Tax Appeals, G.R. No. 258947, 29 March 2022

B. Criminal Actions
1. Chapter II, Title X, NIRC
2. Cases:
a. Ungab v. Cusi, Jr., GR No. L-41919-24, 30 May 1980
b. Commissioner of Internal Revenue v. Spouses Remigio P.
Magaan and Leticia L. Magaan, G.R. No. 232663, 3 May
2021
c. CIR v. CA, GR No. 119322, 4 June 1996
d. CIR v. Pascor, 309 SCRA 402

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COURT OF TAX APPEALS
REPUBLIC ACT NO. 1125, AS AMENDED BY RA 3457, RA 9282, and RA
9503

I. Revised Rules of the Court of Tax Appeals

II. Cases:
A. CIR v. Hambrecht & Quist Philippines, Inc., GR No. 169225, 17 November
2010
B. CIR v. CTA and Petron, GR No. 207843, 15 July 2015
C. BDO v. Republic, GR No. 198756, 16 August 2016
D. CIR v. Lancaster Philippines, G.R. No. 183408, 12 July 2017
E. PSALM v. CIR, G.R. No. 198146, 8 August 2017
F. Nippon v. Commissioner of Internal Revenue, G.R. No. 191495, 23 July
2018;
G. PAL v. Commissioner of Internal Revenue, G.R. No. 206079-80, 17 January
2018;
H. Association of Non-Profit Clubs, Inc. (ANPC), herein represented by its
authorized representative, Ms. Felicidad M. Del Rosario Vs. Bureau of
Internal Revenue (BIR), herein represented by Hon. Commissioner Kim S.
Jacinto-Henares, G.R. No. 228539, 26 June 2019;
I. Commissioner of Internal Revenue v. Lancaster Philippines, G.R. No.
183408, 12 July 2017;
J. CIR v. Standard Insurance, G.R. No. 219340, 28 April 2021
K. CIR v. Court of Tax Appeals, G.R. No. 258947, 29 March 2022

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THE LOCAL GOVERNMENT CODE
REPUBLIC ACT NO. 7160

I. LOCAL GOVERNMENT TAXATION

1. Authority of Local Government Units:
a. Power to Create Sources of Revenue – Section 129
b. Fundamental Principles – Section 130
c. Local Taxing Authority – Section 132
d. Limitations – Section 133
e. Common Revenue-Raising Powers – Sections 153 – 155
f. Power to Levy Other Taxes, Fees, or Charges – Section 186
g. Tax Ordinances – Section 187
h. Adjustment of Rates of Ordinances – Section 191
i. Grant of Tax Exemption Privileges – Section 192
j. Provinces:
i. Scope of Taxing Powers of Cities – Section 151
ii. Scope of Taxing Powers of Provinces – Section 135
iii. Professional Tax – Section 139
iv. Amusement Tax – Section 140
k. Municipalities:
i. Scope of Taxing Powers of Cities – Section 151
ii. Scope of Taxing Powers of Municipalities – Section 142
iii. Tax on Business – Section 143
iv. Fees and Charges – Section 147
v. Situs of Tax – Section 150
2. Collection
a. Sections 165 to 170
3. Prescription and Assessment
a. Section 171 – Assessment
b. Section 194 – Prescriptive Period
c. Section 195 – Protest
d. Section 196 – Refund
4. Civil Remedies
a. Section 173 to 185
5. Cases:
a. Municipality of Cainta v. City of Pasig and Uniwide Sales Warehouse
Club, Inc., G.R. No. 176703, 28 June 2017;
b. Capitol Wireless, Inc. v. The Provincial Treasurer of Batangas, G.R. No.
180110, 30 May 2016
c. Mindanao Shopping Destination Corporation v. Hon. Rodrigo R. Duterte,
G.R. No. 211093, 06 June 2017;
d. City of Manila v. Cosmos Bottling Corporation, G.R. No. 196681, 27 June
2018;
e. Pelizloy v. Province of Benguet, G.R. No. 183137, 10 April 2013;
f. City Treasurer of Manila v. Philippine Beverage Partners, Inc., G.R. No.
233556, 11 September 2019
g. University of the Philippines v. City Treasurer of Quezon City, G.R. No.
214044, 19 June 2019
h. City of Iloilo v. Philippine Ports Authority and Development Bank of the
Philippines, G.R. No. 233861, 12 January 2021
i. City of Makati v. City of Bakun, et al., G.R. No. 225226, 05 July 2020

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II. REAL PROPERTY TAXATION
1. General Provisions
a. Section 198
b. Actual Use as Basis of Assessments – Section 217
c. Valuation of Property – Section 220
d. Effectivity of Assessment – Section 221
e. Assessment of Property Subject to Back Taxes – Section 222
f. Power to Levy Real Property Tax – Section 232
2. Imposition
a. Rate of Levy – Section 233
b. Exemptions from Real Property Tax – Section 234
3. Collection
a. Accrual of Tax – Section 246
b. Collection of Tax – Section 247
4. Remedies
a. Section 252 – Payment Under Protest
b. Section 253 – Refund
c. Sections 254 – 270
5. Appeals
a. Local Board of Assessment Appeals (LBAA) – Section 226
b. Powers of the LBAA – Section 227
c. Action by the LBAA – Section 229
d. Central Board of Assessment Appeals (CBAA) – Section 230
e. Effect of Appeal – Section 231
6. Cases:
a. Manila Electric Company v. City Assessor and City Treasurer of Lucena
City, G.R. No. 166102, 05 August 2015;
b. Metropolitan Waterworks and Sewerage System v. The Local Government
of Quezon City, G.R. No. 194388, 07 November 2018;
c. Capitol Wireless, Inc. v. The Provincial Treasurer of Batangas, G.R. No.
180110. 30 May 2016;
d. Caltex Phils. Inc. v. Central Board of Assessment Appeals, 114 SCRA 296;
e. National Power Corporation v. Province of Pangasinan, G.R. No. 210191, 4
March 2019;
f. University of the Philippines v. City Treasurer of Quezon City, G.R. No.
214044, 19 June 2019
g. National Power Corporation v. the Province of Pangasinan and the
Provincial Assessor of Pangasinan, G.R. No. 210191, 4 March 2019

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