Dawaton, Rolex Jurister G.

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PART I
1)TRUE. But upon recommendation of the BIR commissioner.

2)TRUE

3)FALSE. PAN is not required when a taxpayer failed to pay the excise tax due on
excisable articles.

4)FALSE. Publication in three (3) consecutive days in newspaper of local

circulation.

5)FALSE. If the warrant of distraint or levy is timely served it suspends the

running of prescriptive period to collect tax deficiency extending even after the
lapse of statutory period to collect tax.

6) FALSE. A motion for reconsideration is not mandatory and jurisdictional from

appealing the decision of the commissioner on the disputed assessment with the
CTA.

7) TRUE

8) FALSE. The Sanggunian has the power to grant relief such as compromise of
local taxes as it may deem necessary through ordinances duly approved.

9) FALSE. The CIR has the power to prescribed real property values, but not to a
fix values.

10)TRUE.
Dawaton, Rolex Jurister G.
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PART II.
No. 1) The requisites of a valid tax are as follows:
a) It should be for public purpose,
b) It should be uniform,
c) That either the person or property being taxed be within the
jurisdiction of the taxing authority, And
d) The tax must not impinge on the inherent and constitutional limitations
on the power of taxation.

No. 2)
The concept of benefit rule Tax is that if a taxpayer received a tax benefit from
deducting national or local taxes in a prior taxable year and the taxpayer recovers
all or a portion of those taxes in the current taxable year, the taxpayer must include
in gross income the lesser of the difference between the taxpayer’s total itemized
deductions taken in the prior year.
This concept applies for the recovery of any national or local taxes.

No. 3)
a) Tax amnesty vs tax abatement
As to ground, in the former, there is no specific ground. The grant is based
on the discretion of the taxing authority. Wherein, in the latter, the ground are the
followings a) there is unjust or excessive assessment, and b) the administration and
collection costs involved do not justify the collection of the amount due.
As to how it applied, in the former, it applied retroactively. Wherein in the
latter, it applied prospectively.

b) Itemized deduction vs optional standard deduction

As to rate, in the former, there is no specific, but you can list all the
necessary allowable deduction. Wherein the latter, the deduction is fixed at 40% of
gross receipts or gross sales
Dawaton, Rolex Jurister G.
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In the former, you should be meticulous in your in auditing your records to
avoid errors in your tax computation. Wherein in the latter, it doesn’t require
listing, tracking, and in computing your expense
In the former, you have control in your taxable income. On the other hand,
In the latter, the tax due is more predictable because the taxable income is
automatically 60% of your gross sales/receipts.

No. 4)
I will rule in favor of BTS Corp. on the ground of invalid assessment.
Under the law, a final assessment notice does not only include a computation of
tax liabilities; it should also include a demand for payment within a period
prescribed. Without which the assessment is mere request and violative of the right
to due process.

No. 5) Yes, the period of assessment has already prescribed.

Jurisprudence states a defense of fraud is a question of fact that should be
alleged and duly proven. Therefore, it should be indispensable for the
commissioner to include such allegation to the assessment notice. Failure to do so
the will violate the right of the taxpayer to due process.
In this case, the allegation of fraud, based on the tip of the informant, is not
sufficient to uphold the allegation of fraud.
Hence, 10-year prescriptive period to assess the taxpayer is not justified.

No. 6) Assessment made by Brngy. T is correct.

Under the LGC, the Barangays may levy taxes on stores or retailers with a
fixed establishment with a gross sales or receipts of 30,000 or less at a rate of not
exceeding 1% of such gross sales or receipts.
Here, the gross sale of the sari-sari store is 28,000 pesos only.
As to municipality X, the assessment is not correct.
Stores or retailer with a gross sales or receipt of 30,000 or less shall be taxable
exclusive by the Barangay. In this case the gross sale of the sari-sari store is 28,000
pesos, below the threshold amount.
Dawaton, Rolex Jurister G.
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No. 7) No, the taxpayer is not entitled to a refund of CWT by reason of

prescription.
Under the law, a claim for tax refund must be in writing and it must be filed
within the prescriptive period of 2 years from the date of payment.
Here, the claim for refund was only expressly signified by taxpayer. It is not
written.
In addition, the prescriptive period commences to run from the date where
the refund was ascertained, the date such tax was paid.
In this case, the taxable year of 2016. Hence, the claim of refund by the year
2019 was beyond the prescriptive period.

No. 8) “Charitable institutions, churches, and parsonages or convents,

appurtenant thereto, mosques, non-profit cemeteries, and all lands, building, and
improvements, actually, directly, and exclusively used for religious, charitable, or
educational purposes shall be exempt for taxation”.
This provision of the constitution directly affects the power of taxation because
it restricts the government to tax them, even knowing that they profit well as
evidenced by the amounts and numbers of infrastructure, they manage to
established.
Dawaton, Rolex Jurister G.
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