mi charers ‘POWERS OF THE COMMISSIONER The Comminstoner can only ineorps Pu: the BIR Connlashior cunpoetn the oorsoe af ih pte, ‘Sie adnate sale ot cetera ithe it intended Wo ears out, Surely courte wil ot coustene ‘oem, Fire Ean GR No 2108008. Now Beat, Jonaary reuiremwnts net contempt by the hefalatune” (CHE 4 (Conura! Eason Drag CLR Nox 13647. Mat fs 2% Pxehinive Original Jursdetton subjees to Review by ta Bon) te FEN . mee nme > Thee cm ave in aa roves whate exaely the rojo hy hi mens ungSchaef come, and sete cae erect Shae: taesein” (Philippine amerioa life one Gensrat Dnmurence Company tx secretary} Faanes, Gt Ne GS0 Nosember 2035) > Exhaustion of sdmintsirative Remedies Exception rifed fas tant (partntary income tax and VAT Hail) Sate ormonsed and porated susie rpiearure recreation. Interrelation of the SaR€ prosisona on incor tat and VAT, Eildon, was rot designed “to imptoments primary lesioation Drpvouiding the deals thowof a i a lgiutative re Dal Pathe {ied Imtonded ents tc "prove guidaties tthe tae Unlon O48 Eowindotatve gens) sin charge of enforcing. at the sald Giver oes meet dures fo Sl fesense. fica imnovec and loners (oncermed to guide them tm tet xlorcemant of some fas and Uae Ince agate fore Seated Sdlon d aileT of e109? SIRE which provide Sexton 4 Bower of tha Commiatonr lo Ineo Ts Zoe ovnone of Be Code a obhey fax Tou shall be wser the Eikoe’ Sta “Grennal monectsson of the Commiononer ‘Blea review bythe Secciars of nance SEES pnts bupptied Femedics, the validity of AIC No. 85-2012 should have been first SELES fibre of ig Suzlon of Ponce bore ANDO Eipurcis'e logal question (au aboee-exploimed). or whan tio (Be sreumetantce dlating the urgency of hudiial intervention pins ccue unare memborse face eanonomanl dues and the like of all recreational cube wuld be imminently subjected to Bore ee and Ua “thn the dane of than of scoring, APCs recurs fo the RIC and nw fore this (Gavociation Of Non-Profit Clubs, ine. (ANPO), os Bureas: Of Enernal Hevenso Git. Ne: 58608, dane 202038) 2 Decide Tax Canes (Section 4 2° par) ~ subject to exunte Grecracus= ciniva Party Rute (section 4: Maxe Assessment ana Prescribed Adaitional Requirement for Tox Administration = (Section 5) arageaps ©) d(C) ‘Best Evidence Obtainatle Bale? Paresiaps D) Auton to Teraaaate Teenie Perc Pesegrapn (f) ~ autbonty to Preerite Real Property Values Purses @) —authong to lnquire ate Beak Deporte Paregraps(@) — suchen) to ccreac and Reguter Tax Areata "eregmaph Auton fe Presrte con rxeedarel or _Autnority to Delognte Power (Section 7) 1) Power t Recommend Promigaton of ies & Raguision by ohe Secretary of Finance Bower eo lese rungs fe First impression o to Revers, Revoke bet ae cng rai of Re Bae Py ° 1 ewer to ancgn or veasign inernal evenve omer to places&, Constsuctive Distesint of ectonsl Propeciy — (Section 290) 1 Dleteglnt of Porconal Propaxty & Levy on Real Property — Geetion 205) 5, Authority 19 Abate or Cancel a tax lability - Section 204 15D) 9, Autnosity o creat ov refund taxes - ection 204 (CD) to prescribe real property values (Section 8 (ED) AL, Power of me Commlssloner to Suspend Business persons Section 3) Sectlons Talra-pasty Rute > Crosse mit section 266 Paiute 9 Oper Sunes) > ar kc does not lavoive tases BIR hes no authority to paragraph A - BIR Ezansnere must be authorized op he Commatsaone: Guanine vuks oftaspajere Letter of AUUHOTIY GOS) se Lees Noster ND Hisr, en LOA advected to @ revenue officer fz epeciically tespaver may be had wre en LN ws neta inthe NIRC ond SLE ARSERS SPSS OS POS ‘LA pee oe roc ocr a @ Degg of 10 eave Th EPIN Goes cr coun sts s umutnnes (Medicand Phale oe Gin. oR No 229743, aprll 6 201 > Paragraph B Best Evidence Obtalnable Rule antes eo internation oa as tiers), smtorcnnpon Secrecy of > Always cross send Pasagraph Pith the lest paraaraph of an? of Revenue Officer Must have a valid > siee, there wae no new LOA sane meming Bogrsisnn ns the dew isianue odie who would couauct ie eeamuacich oe ‘Seqon 22 ot the SRC reaivee tat o revenue ofcer must be Himlayane Pilinine Plans Tue 12 Commissioner of internalsection Definitlone > Taso Now otparagsapa i) and cross 2eed wich Section 26 uberod te te frula Somperate ings ta ae te SUCH > Geceral Profeescal Parsnsthip i not a tacable oust inacfar at ‘bbe tar ss concern bur may be subjected focnertatee. > Representative Ofice vs RNG vs ROHG qwarasraphs DD & “Ine tora “opresquuaive otee ip pot extisiny dotinoa andor mae ict ts saecded: However, a delta therot can be und ie Seeisa fel We Tat the Iak'of a Ne sosi to smmnieg mcd 2 Reoeenacive of aio oon dete ee) with eat Sno ida coup nnd sr aap sunieed bye bend sue sselles gusty conte of products (leacese the ores ‘An RIEQ i an olce ringaly intended so moder nimiinative ip the managomert of any subeldeny or branes omice lew: eve i ee ee ee Sop oer company figs seamges sre hmecd to aaieg a tpersaors. communicators and ccrainating enter for eo eatos, fMtamanes or oranch oficer in te segioa in pecuming such Sctesties nn RAG ce got cara or dere income it sae Bhasppanee (Consequently the MIRC enemips RHge fom incon tnd VAT Im sank cntvast to an RHQ, en ROH i allowed by tw ta penirms ccvkiee tna genereto incdem im te Phikppines TRece cece, feoned an "quibing server hasiuge te Bowing” i) general sgsiniawation and planning, 2) business plauning ant soediaatcn: (yisucaspeouemect of saw manne sai compos Spent SEES sy Serta) ertetiag cov on ln ferns) taueach and, deve! sence, abd, Deduct, Dprosecaing and conmmamication ana 1s) Suesnese aevelgpment 3 However, siuiley to an REG, an ROWQ performs services ony ath ae iad ofises afiae, oragence or subudarce ROHGS are aos Deshaied ty aw aieecy cx Sidney maviee ce_ondt Sa [necmoca as an ROH is porary engogec im acces et generat ‘Sci inte pons, a onde cane sack unr he placate offer so RHQ. antan FORQ . 1 a representative cece and an RH are not alowed to engage in Say lomo tencroung anti in he Pauippuee an BOG on {Bs otis Bad provides quan eres a ober ase Bom representative offce and an REQ do not ean: cr dsice ‘Boone in te Pallppanee. Aa ROMQ i awed to drive inane seis Puonaee 13 Umike on RHQ ana an RONG ¢ nepreconttive once cee ‘eta pce empee's laut ad eee Wh the » 4 Under te SIRC, ae exatea RiG2 are exempt Com bors {Bega ta ana Vat so ong as Qe do aot sender any of tae Gunisgung secon waerens ROMs asl be sane toa tae ate Gites percent (so) a ta tasabe acon somes qualiing eects ant else percene 259 VAT as anced, rpcrrtnting fe el om ede he io‘Asseminstion, promotion of the parent company’s products ae well at fquaky comuct of products. These accvices, Me dived 'o tae Paseat companys diene, ase aot iasome geoeracing sar te te xciudes of au REQ and in stare contrast with the qualijing soiees Destanued by RONGe_ Ae auch 4 meoreeishae ioe should De ‘Heated and vaned ss same tanner as au SHO aad not aa AGG ‘Sets ctuervise ae 9 sersesencacne ome ie Oraunra? ancares ia ‘anne Satan acta Uke an EG. br sRaloes it aReMi bs Seusdered scent Sm ancane tm and (Al (Commissioner of Internal Revenue ts Shinko Electric Industries Cow Lid, O. Ne. #26397. July 6,021) > Passive Income (Interest Income & Dividends, etc) does snot convert RHQ Into ROHQ for purposes of Income (ex & sus, co apt fun by the CTA. tas amines and caudendellegeaty faraed by Shinko are conderea ap "penave income” In Chamber Beal Exate ani ular asoaauze lant Remus, tar Cout ‘plained that paste ince auch as Aadends or utesest ace Dok More ingest, ht hina acme ce ine cm toe, Sabicea age te se tne coum oe gene Skis wah sews to ROMG wo gees of dete mone, B ‘pecgny eons uncer Sea “SCE 0 the SURG, me ede ESERIES, sti haee @ soly sod pect SSaitg tenses un OMG ay pros Ar th a af bg prcomacte sire jraueeed bint erorm se Skeet Br tescr nyt te surbbune esse mts secacet Eirton ace memsomaurs cas nue Subspace Gu > cross-cend paragraphs “DD" with Section 284¢6) and Section 400 (2) - Regional or Arca Headquarters (RH) are exempt > Toke note of parasvapa *S* > Tate Now of Paragraph “W” meaning of “Deposit Substitutes? dendere” Would mean e¥ery Cansaction oecured in ce pina 2nd seccdety mater in connection with te pubshase of ele of ‘wnen, mouse any or whe sregoing wancasion, romae exe ‘ns are doemea dopnitsubvuiruee. Consequeny to SOLSr ie required to witaheld the 20% inal sathasiéing tar on the imputed interest neon fem the bonds For debe instrament that are not depost substitutes, regular Income tz appies mast be emplisiond, However, ant te det ‘Siete a or gape nt see te he Chapter, Conparain of Grow income Sram 3: (a ore ‘hicy tna a cue at esvely examine ae win te aes of tmaale income under cur inva" (BDO ve Hepublle, Gee. No. 108756, Januery 13,2015) Section 25 - Gonoral Principles iefsetoFigw 2) Section 24 —Tax on mneiviauais (9) Income Tex Rerurn (TR) is needed — Crovereed with ‘Seeson #2312 © “yee precens pwn innotion pues inciicual io ier a bracts cen ae dedsceous esl (jn snaisieuan waose doar inceme increases Sc cyst te est aes ged SAGO RT Seen Teter Sis Sentence aac attain 12 Sere, ae eb comempontng sneene te cot of SSR eal pecement a he cacpect yep canaries en worker et © pepovnon He her suarginal wom eate sles Eeessd co secu woud cctualy Do a Siewand nce tewaiers seal apse (sortano vs. Secretary of Finance, G.. Xo. armership, Ste 27 (4) vis See 22 (Bi) msctar Ccaptel Gains fom Sle of Real Propersy— 8% See me scepon in patauran 2nd cote read wath SEs + nip inseam ae allows ta clans his Ie done not tops eaporatons (4) = on Resident tien avRA) — Coniaerea ENGAGED IN BUSINESS Gp) if saseesne say os move sha 189 days Gusine © Subsection (2) - Compare tus with Section 24 (6) [2] = NRA Em is sabes to 00 FCT gm eah & propesy siden 0s (R= NBA not ened Trade ce Boies ETE) — Oren Ince (© to ¢€) Goose Income Tesation 2 USN Gee Grote Uacome ‘Tetation) = Tame note or ence provisions cou oe tes Seecene apna not ue appienbe eo Beetat ‘Teatgusiee ihey, “reel” ooeaine Shietione GSS, sites ester mr OBE Elenite Geo er cee, ie, Seauet ‘Demleai_—sensce —conacorsanc —subconnacans Dissent cueing oCoscintal Tas cee ot aad ‘Ehkosse shok sous is br sautled teasehet ae ge A edd aaa > wa tn ra vim i ae pc Sa Partnerships * > cross-rena witn Section 22 (B), Section 24 (B) [3] & Section 73 Seo Generel Proesiongl Parmnersnips (GPPS) are pet ie 16 Sn ra nea he parton an perc ae es (4) — ome Tax Rare Domest Corporation 20) 2 20s eects uy 1, 2020 ‘he yrindbal cnc, yee’ § equipment are bsatoa o- on pot Proprietary educational Tatituton & Hospitals — (GEuns toa goss neem, thon 280 Tas cate Bal DDS. + assem su 1, 2020 sone 20,202; Ccrsutend sith Seton 24 (AIS) op allomable desoesons Only Schools ae allowed to tseat at expense those ‘Shieh would othervise be “classed "cs Capital Expenalture: (©) Soernencewned cx Concoted Comores, Areces ot Soe SE eee NS See so * ° * fontocred under he farchice spsuealy from the perment of ferporasend), aoseeaton6, agoncyiet), of inaiiaual@) wes ‘Sion the PAGCOR cr operator hay any comartual seauonrhy 2B connectce wah the pezatons ofthe carmne) authored © Se Staomeres cer tar Foeasne, sero ea that in sonvasegs and (Beets sate seca aru’ (Bloomber Harts ond ‘Hoists BIR. GR 317530, ust 10,7018)ty this Seccon upon carorations or associations enesged in & Bisular bunese ssuueug. or acuety Dae Sim ‘puguceas nat tne funda ars income ance caine ‘air actealy goers BODAw Sapeaior ae Bogert hove itatp'tham a poeera low Goce. Voniyy tae special Ine {Re propersies ana ene aie proceeds speeiea uncer Section 8 of () (0 ~ Iasercorsorate Dividends — not subject to tex EXCEPT SooiRendent Foreign Conperesons RRC) wich ace oe ‘est aula Sar Yat Mned o noch aaa 1)_eniae at geet 29% ottas ontstancing snares otene © - Minimum Corporate income Tax QICIT) - 2% on Gross Income io sas! on ae jeu amimedintely bllgwise ae ik Som July 1, 2000 until June 90,2023, > DICIT Io cleverent trom the hasle corporate Income MELE og port cndnton noe Sovnn Oe acteraing wo the lat paragraph of Section 27 of the NRC SABE teas Dot es mst open sagen ne ena dies cote nnd pene creme ested ESuding a) salaries and’ employee benents of pesca, ‘Stosultass” nal sporti aimciy renaeieg the settee ad cont offi! ace ced prmsang the sree lamed than the gross icone teed mn the compuentin of Base seoox nx Couct herein treats MCIT ia. muich the same ‘Sag. Although both are income taxes the aCLT is fhe dase corporate come tax, when the former is higher tat ring the Goverameae the epporconty to collec the Mghee‘tom Seen ia oe Prettznnin Desee No Ieee, wen ewe ‘rapchive of At, sd emtzaton 2 sujocs the Ave Jot Beceee So. $820, st Bd not pay anything at al ar bane (Sites ceca or ane tn Aap a. old ‘his norte ste tine the cis mises tye some soe Come eyes fejected the Supzctuton Theor im Commoner of Geum Bevwase ts Puugpaae Surkaee tas” (CIR Us PAL, GR No. 150066, July 73000) Section 22- Rates of Income Tas on Poctigh Corporations (a) Resicent Foselan Comp (RPC) Tex rare= 25% ‘sunsections: (Gh RECs av leo zunec to cert >Demuceaye & Detention Fee — NOT past of Gross Philppine iting. 3 'Groer Phkopane Busse” (GED) anter Sectusn 26D {he Fappines up to final destinetion,reeercess ot the piece ‘oen thaws Gear ewes ao oer recurs Ut Co OPS ine. Furies, i ceniered.neome om rie faetes a sous cannot ty countered Pagan. “gular site tiseociation of Invernetional Ehipping Uimee, Tce APL Coy Poe Eide ad Mere other activities taxed under the resular rato “Tes cmc nteraminn of he ahve reins tat Philgpise Biting wnile menratensl cir cavers Wheto ‘au uae Lagu faa Som tae Phuppiaee bur momwealoes Sita vate of 306 (aow 20%) of such income” (SouthAfrican Airways vs Commissioner Of Internal Revenue, GUE No. 150338 Feoruarr 16,2010) > Right to Tas limited toa certain extent “At he cutee, we affirm: the Court of Tax Appests rating that Elgns ia tke Patippiaes, i aor dab to tax on Grose Pilldplte ‘Binns ander Secon 28 cae) ef Ge 108 ‘des the fnnssing provision, he tax ateachee only wher Sriginated mem’ che hbippines im continuous ‘and Ghariy not lntie ste Cress Palippine Bauéstan ‘op income tan purposes peisione® mile mien the seaninon (Sfesnideat Sestgn corporation under Section 28 Gi) ef the ‘ayy Neca imemal Revenue Code, thas many be abiecr Internat Rovoauo, tale court Felt chet Section 2505) 3)@ dies ae Gacroncally stomps al interannual a core Garis appacanie o a carpayer, men che general ale unde? Seite S805)() done got apply Tf boweret, Secuoa 2003) {dees nec spp, sn imergnionn ir covcn wou be Sabie Under Seciion 26/0() of mi 1007 National Iaterual Revenue ‘Palippiacs, lr could only be taxed at a maximum of 1: Shof wroms revenucn pursuant to Article Vill of the Republic of the Philippines Canada Tax Treaty. chat pple: to petiuoner a2 2 oregn carporaton crasnised and Shisung tuder the laws of Canaca Taz eeaties form part of the law of che tend, and Juneprateace “bas ‘applied te “statutory contraction Diindipie thai specific ine preva over genera once 2 the internavional operation of alvcrafe that fle “Bis reason of our bilateral negotiations with [Ganeda]. we have agvecd to have our ight to ta" ‘ited’ toa, ceriaim extentiy” Fu. we Sn boat co Phiippines tmaough local celea agent the bevodt ofa lower {tag equivalent to 1% *+ om business profits dersvea fom Sele af suemational ar sauneportioa (air Ganado t= (Tas on Branch Profit Remittances 1 -_Reptonal or Ares HQ (RAHA) and Regional Operating BG ROH) (@ BAH —not subject toe [dees mot exes sncome) (@ RONG ~ Beginning January 1, 2022 (©) @ 2econd paragraph — Tncome of nonsesitents dnsiviguate SPccmparenon) sin seposieary baniee onder Expenses Fares© Non-Resident Foreign Comp, GURFC) — 25 of rea ncome > Compare subparagraph 5) with Sostions 27 @) [and 26 A (a= ERC aed a8 FT tedden ed om 8 Eurnlucs Tex Companies that are allowed te accumulate 1 Seine ‘evan 39 Exemption trom Tax on Corporations - MEXIORIZE 8 > Section 30 (&) of te NIRC provides tata. eneritebie fection mat bet 2 Organized extuntcty fr chara proces: 5 Sptenessune or chraatl poten fhe teneseor ant meron creeacer,sGieror se apes ‘im ts he ormaiaton and operations of he asale ‘Te Gains o te iecwi were w capes Sine ee ‘citar rote memory, cused oy oteee ae ee Pete ‘Sette as nen a ersons sad whmates arn {iy poset tra suntane fuemn mon toc e pies Beck ogi athe surat ot aches ieaed once {BEEL_Me pots tame section 27 B) ofthe NIRC does oe remove tae [Esme ts eqeupeio of propriscary ow' prot bea unter Soca HP Geng Gr Section S Den ous ead sad See 995) ah Gp She Sikes nanan be costae sopenar menses me weal = ten te esemrion. The cree the intotoction or Seton 278) 2 suvest the amabie income of, owe specine nstntions, name, ropes aba pret eduatouat iectnuons6® ana pepritny Box Seen 2? aod) secu 27) er ce SIRE lapse aio ‘Huadu nekutone sad ( poopetary Soe pods opie ‘Teg only quaitcetione mr necitte ar chat they mrt be prprictary Et non pute "Drepnctar” means poate, ulswng Ce dein of Povenmmcat peri “Sen bro” means uo Hot igre oF ant secree Gr beens sup eniec ox opectie pecvoa wk all et ince ot ‘su: Tho Constitution enompts caritbieingtinuions oaty om zeal proper faces. igtae MIRC, Coanres decid to extend the semper: Stbesss taste nwese the wu Osmgrecs anes Seems 30) 22 {Re NIRC i meray sige fom Socsen 7s), avce VI or the Semruon,Secaon 99 @ eft NOR dedn ie coven of BSG) arcee Vor toe Consucution dees tow deGne & chaebie ‘nsorion ba, veges that tas inse‘uhen "ecu, ives an [Sse uss sh propery er a atahe purpowe ‘Goalies tne woras vorganized ena operated escsiet” Bee pe set tar gece ‘eases ens Gose (Paipnents Ia shor, the nat paragraph of Section 30 provides that if a tax ‘cme chaitanieinseation conducts way” etsy fr pris SSIES atin “tis “Eacinpt TA eerseaph uae oeequisemeats in Secion 90 (E) chat the “Talon sek corporation cr EISSENEEn bases be] sveonaeed and gpesned seeker se (Ghasiutig i purpovee sax” abewice quaies te requitemens operated excite for charitable purposes, s nevertheless aloes Wiengnae a wuvides qontucted br predic Without Ing Ks tak ‘epee rs sceptics Toe ony comoegrsns inetitation “om aay of ite actinstes conducted for prot, egardless of ‘he dspostaon made of soch income, shell be subset fo tae" Poe © the stodacun of section by sean ae catch Say ete [Else tne snmececnon or Sess 27) ew te mes ov D> (GIB 1s St. Lunes Meclcat Cnoter, GR No. 195608, Sepicmbor vez03 To be czar, or an msctaton w be completely exempt tom income sss Secs) (2) ane (6) of tae TON" MIRE sagas sud ones iC operate enclsinsfr asabs ov anil wells Dpove. Bi cerns ineeme om "es ee pred ectiges, it Wil-not Ine ts eat ‘Gstupana (CH ts St. Lukes Medical Conter, GR No, 203619, Fong gost “Thus, we dectare he last naxsaraph of Sectlon St of he Tax Gade" Sithoat fasee ans stiest fur “being caatiass to ie suai cets ane ekcsietsfoceenenciona mannose Spelt the primacy of the Conssteuoa Pinay. we ateoe tant Cat Eday' tet pore. cur wepcous eet seueruanl SIRS Ca Cane fod it Ne ae, Section 32(4)~ Gross Income - MEMORIZE, > Condominium aszociation ques, membership fees —NOT Secon $2 of RA 6424 deer not include sezaiation dues. ‘nexiasinin ince indies gaxeeameniachaners coleciaa oS ‘Sinden -cotpaations af seuss at enter Taeoma—Tae Siteqeent smesdnent unter the GRAIN Tow sobrastiay Cesc, RLIC No. 65.0039 expanded, sf nat altered, the st of {uable tems in the lew. EMC Ne. 65-2012, therefe, ss To adomiatum cerporetons on behalf ofthe condominium Sener ‘es dhaat cnatnateate-ar-enim To epest, mney are cole Dury for the bereft af the copctminiam caer and axe the Fpaorsioaiy te coe ore, tniin. or cep igre rersance (BIR ts Firet EDank, GB. No. 318000. No eg. January 1a, F020 citing Yomame vs Lapant, S10 PAL roa res 117 een (5) Exctusion om Grose Income > sunperazrepa “For te senrenaent hana t be zenipe fons the wasn Ing, the, tgarer 9 ardened te prove the concarenee the ‘itited by she opplyey (toe ety snc epi Seuss the searing socal er saplyer aor lee chan Sp {Soy pears of age at tm te cfs recrement: an Gy ae Denese ‘ad beau avalica et cur cuos” (Santos vs Servier Phils, GR. No 105577, November 25,2008)Ssona cra Raveane Code hich exempts sins darn as ce “pl awd in Ses £2 Toes wt sue Sur Sa echange oes of Ne ot ote (Gh atule terest hom boots of SSE cbedente of iedebeineas he Se of he Cereus om i, Stn 90 BV) (Seder Sesuons 24 28,27 and 2b in ie ssompeen Gj"qiin halsed Som ie tating of me bonds Cece chit ‘Susan dace whack se tbe Gaerence betre the enlane ore SSS ey seit sae senate ‘Super tends the rating fun shal Ue the sede of he olan hoe oer eg ue ce acpied ale rail ne 2ce ‘Bonet Tex ~ 52% of Gromee-up monetary Se ee it ae amas unde! Cass (lice See of Susie > MEMORIZE peragraph (B) & ©) persue the busines of the enplarar = not ausject 2 “Ine car pien extended by PAGCOR toe qualifea ccero eat cst tinge ncn np see sat fn the Donati receted Oy the employee, an coneeguency, In'pror to to wheener coer beneat lamted ew PAGCOR oliers ware, ia fact moeeauay EeGons vannese wiiheld te FET Sou ce ftcers ‘Nop have araedthemueves oft benef of he car aa, dni eaued Us some wo die BIR GIR Us SEC of Justice & PAGCOR, CR. 'Now 127235, November Bin tembersnip Fees and ques for Customers are not Considered Fringe Benefit Satie lsaldtite’d sue emi ont eesauest lable to withhold FBT from its employees" Suprs) > De minimis nenesie~ veneer one of maui sane Management | and Union amas ages or Colleniee Baezasniny Aeveemene © cannot be suayect to tne tll of the partes (Honda Cars ‘Pnits te “Henan” Cars. Teehnioat spectelist and Supervision Union, Ca Nov Z04ts2 November 15 dota)‘Seawenone 2 Reviene atone GRA) > Taxpayer bas the sight to claim for the Ordinacy & fcessays Expenses ~ CANNOT ve curialled by Revenue Besuinlon BR idou meaty pant ie tangas eat oo Sue Sivues Geiger eiesaeis anette Aelostiie in fall sqaiaer ite income subect @ sear cx Ae Sips wornd sh menses sr ines Ge sae ‘rreems Therein nossauitemens coallecate the common exeenaes ‘ips igs Suto Bat atsahauer Sater moans eae ‘cezaapa‘sxpeanca of capenuee that’ coat We specials issorines ‘er a yortowar ont chall be cents tassd ot Eres unonce anmancsvubject fo regular incon (ax and alta Eeiicing hove cup tom come tas" The aucune at Wake ting hone cemmp, om scoeng ax ie amoane aac Gg Sai coed tes seyoat be ontesp sti of Sen 30 curva, and essentially amend, the tex reliefs unequiecally ip sans ie a aie 2 ‘vnmntied ny oma Receipes otter naeqoe sere fre seu conemae gino the‘eiennncing tax rtaras, each vouchers, neeors ceruncetowe, end ‘Booaii Tai. au uh Gta ee Boge sues putty ia Sieteostisr ouan serge ueurd by uae seer povaiess SES, Cape Pewee, ine te Com Sa No Gp the baie of extinate #0 lng ab he taxpafer san courant Sow a Se oly were neared pees se rtm on Torminal Co. meee Cit GR No L-13°08 ay 30,1980) > Tax Benetie Rule is consigned. ‘Wien an feo was presioualy considered asa deduction but bbe Bente seers: > ake Note o¢ Poreqraph (L) ~ Optionel Stendand Desueion| (G85, a0 Gros Habe tpt BRA Cas exeaded 8F > ORD gn ont be ava one, siber tyme GPP or panes > Remember Paregraph (K) ~The estence ofthe zis provision s| Slowed aso Anduttion only if i shown tn Le tat eguired to EESSacon See SERA entices fs) pa ote Boon of 54 cp of the 1007 Nacenah ternal Retenus Cole) eADresale he tax seauiced to be withheld on the amount aldo Enel Reveaue ty the txsparer conrumured we 2 wuthbeliior Soduucaoa: Gem goss uous WAG Bankes Cit RNa, Jerers, July 25,2035) > Aavervsing ig comerale of ovo Kinds: ) arerding © Tepayers food oc Uashese or for tae mcusnry © peomenes of ace te topeser ie a member icake eaueniaues ge tr tae (Moernaing atthe Gest ind hes oor es eae cee Re ee ee fsaucnia ag husinase expanses. Ic nowerer, the expenticaes are Sr advertising of the cecond Riots hon nota choy helt be fpecad ou o1er a deascnable pened of time (CIR t& General Pobde, GR No 1G8P2 Aprit 3 3005)probative value. ar the CTA Ea Bans succinctly put it, the law ‘Eyubed Tombunting to support i cai fr dedutaens wath he Strespoucne omni sept sued ty ee senace prove S75379, July 298, 2013) mime ° Forminal Ca: ine ve Cit, GR Na! L-15%05, May 20) 1080), EXQES lpia ey be wened mw npenitrs Gadus) > Tax Benefit Rute is considers, onan pinot auction bt laa TREES tant ptei amt > Zaks rege of aresron OG) ~ Net Opercng Loss Cam > eke Note cf Paragraph (L) ~ Optional Stender Deduction > 08D can only be availed once, either bythe GPP or partners > Remember Paragraph (K) The saconca ct ne cnis provision ie ‘lowed as = deductot only fat se shown that the tax required to $e Seaton ena ine ceretor fel pa 0 toe Boren of ‘Secon 29 of te 1977 National Invenal Revenue Code (Section 30°C) ot the 987 Namen interns Revemer Cool eepesaaiy pales. asa condition for deduetibuive ofan expense, hat ihe tas yeaulred to ie wilted on the- amount pald-oF [ternal Revenue ty the tmeparer conmutured a = sathbolSine ‘Silbeay wit Secon 29 )efie 2075 Ege Gathee agi arene 55) on dotustou: Gem cou come UNG Bank ta: CIR GR 2 187679, July 25,2015) > Advertising le generally of two sings: () adverdsing to aspavers tece or Rosmess of or tae industry oF profession of When ihe taxpaver Da member ituhe aubenaicuan aie re ‘cima as bases aetna Sherine of hese Hea, ey aormaiy dey shld Ye Feeds, On Na 105e%S april Be 2005)(- Memorize ~ Loves fc Sle oc Bnchanee of Property = > Take soe of Paragraph () 20 wo the Belding period Section 40— Determination of Amount and Recognition of Gain or 3 Take nets of Paragraph (8) 8) receivedgiven in excess of the stock or securities Been ons tansnes excbance > Paragraph (©) toterpretation of Controt” Dessessng at lease fny-one percent (Sl) of the teal Hn (Oe Uansteor (9 tar Ganste made Ws benom acung aoe 2 secans oe stewent of conenot oe Cou, ie Faas ‘az_tuanstears iaaisGuale ees conmaal-ot-ine-seaasence ‘Seuudon ii-ake see natant unctancshan “the ‘Gndeine aauee Latex snce.of ie Manatee eine ‘i one of the wanatrses is already owing atleast £166 of te fbSies of the (ansiever corporat, ae eag ae ater he Satiag, I Ste, Se Sieg eee ‘Thane on Fire se COR ean ns no ba ci Seti s0¢c renin pein SNUG tae NUNC of Bovcobene cesiney ietatod tear coer cree Puce EGR SER! cloth maces Gee ee ‘posted pom mich fener foe Cot asst eopensene Shh peg waits ie cuir tinue ue nd Eine "Suc" emsnucd" Wommlanioner of Internal evoyue ve Licty Eo ot el, G8 No. t01421 Feprunry 2 rior Contcmaory Rating NOT sequired to aval of “EIR yuting> aro the omit position o¢ te Bareaa to quate ‘rlnary porpere ore Es ung csp to deermine wnether in eagerly cpr comin the epee of he i tae tenmastoe © coasideree exempt WAOWEr er BS Pass BIR suing war srusee by he nopaner‘Seat legal iy tai ght, the Courts ecoee ee ‘comid net have applied for a tax treaty relief within the period SREY SPELLS Ran Bee ESRD besos etn ul ae BEET a on nr as ‘but on the regular rate az prescribed by the NIRC. Hence, che ‘ct shat petitioner savaked the provisions of the RP-Germsy OSL Lee ‘Temeah tar to secoery when there ae Deen Al eeTOEeSut ‘oreorer, as correct pointed out by che CTA EB_thece is ‘TRE, Sh Soe ge patna oes re ‘Shieh srchices ibe taxner to neh cstace apeok somhomanc ‘Bline-betams tae uaaassi mac be conse aco cae ‘EEGiunse, The Bin shcuid nor Impowe eaaieonal requiencenee Soc brovited by law, wick would argate the avaumeat of He ‘Sdbstelaton she should bees mede'es own cctermination Se ts cae ee cit ack cy ea oat cn wage ‘Saseacton eact covered oy de sor exemipena” Ups) Sse ne eo taneotene Gy ste anwar ef fo Pane a Seat aeresatsclo an inte Papas, evcunee fs made by a person, acting alone or together wath cehers, not ‘Senssrat, ous or tavtias with omens, Ho seeding ur, MAB is exchange by shaves Consnaienis. respon kat Be jane sor cnatal asins uae aeons coxa cece ‘Siiudiat iaiauane fom ac suena at poo otabiy. ae Cevefcaion dated January 23, 2008, the CIR Frcoeuised vast the Set teamsacacn between HSBC sad CPAP Phas tye ve aot subject fo inceme var, ceprel ges Sspenced widnciing ta aad gress recep tas 1: showld be emphasized, omeves, that when the property oF Gnqrea of ctoce ceyuared through e” taree cxmengs ie ‘Sibeeaatn soi eed subeeguet sae tallow De sect ‘Sscommiton of pain x toss nrsing from tae suchange erly Geenea Ime secand tonnsaction whersin SSBCfubneaey uae is GP AP Ent shasee w GRAB Emad tual amily ot Pe Boaeiote Branch, GR. No. 22713) December 9 2020) » (cI ex Filinovst, GR. No. 165655, 167689, July 18, bois ceident fim the catezoie! language of Secon $4.6) of Sethhe Nike Sie Scan 25 6) Sn one ae Sppresiaea in cmbinacion win tro 4,5°7_0c0 new shame SL SO a SS co ‘Soa ‘concn Genus deed se waves of eas v's Speen preemie pean cb tt Bisnis SE Ge [a ef eae 3500 MIRC, che ctchange of Doren it sects perwest” FDC Fal ena FLt bane Eialig de a tau mee wanssction unGer arseropR 34 QD of bur w cichame Aside Wom tbe fact that the 10 September 2002 Declsion In CTA Case No, 4182 Splsidiny dhe'eatp! Stara the Zuendeae Fusedce costal Bitwele FDU bad’ PAT elumldeanty Enc iposiidon taken hy the HIN in so the effect that the Ise outa even en the exchanger seen Cecasbge’ ris eae SUUrunnd em, Wopeled an rls Siurns oie cusenaing ct sate Bik opinedcs Please be informed that regardless of che feregoing. the SSiscnbes, whether ter piopensy ov fer services. bythe only eee the see percentage of ane 20 317,000 Sera, Loti of oe cane a oe EL ‘comporationrs curetancing chares of stock whien is evisertiy SRSA STR es This mud wes admitea ty we partce in he 14 Fetranyfoie mam (Con ee Furness Gi Na 10255, Sectlon 42 Income trom Sources wel the Paliipplnes Section 43 - Accounting setnoa > Chole of Taxpayer so long as #¢ property renects true Hearn Sichuan baie sacs Soplictie ceourang method. Gis gs opr mse an ‘Mioiuae metho i anv o¢ te bln saakuons sae 2 Sean Sean setec the seame ct the acgaser Scum metose race ad eduction 8 Cagcer ik Te ate () Mmetaliment metnoe: (@ Berentage efctolon macho an ay of te frering emote ay Ne ctoyed ts a7 Droperg. Tho posullaniee of te usinece oF ooupetion Sitiged ity 2 tananes Wold argon ew fie at present. There io ao wing hat backs an nana ‘Soules Eve netgolnee gn acount tae at Seis eteaetes fre teens Sen, eee, Se ‘Tad uate tecmne We thus apie wath respondent that ty imposing the ellceton metned ender the RR. pecioners Sifted ceupondena nent vo aiipe se one Seo ‘Without any Sndiag chat dhe accounts mated excloved ty counting’ method fF ‘SSuimaceation of te sasgaters nit o-uee ane-accoaatiog Setheatie dase fo be sace te Cin may ony conse fe propre of me accounting methoa empiges ener te {espejer hes tied « tar seta fnvugn en auc’ Iaresdgesion pecperly make « fading ce the cawceace fa duce chat ESEQ'atne tie ecchoneng soetaed wosd hd’ ao eens erect Income Weparoment of Finance (DOF), ond te Bureau of tntornat Revenue (BER) vs aste Cubed Banh Section 48 Accousting for Lona: Term ContractsSection §0 Allocation of Income and Deduction '5 Section 60 applies only to “controlled taspever" when Dues ie Bennater Pole 2m 4002 gaily expands Section 50 afm Tax Cece. Unser Siianes apetioaese or alleen! (ye een rae ro proce een of Cet (0) eat Fees apmsing im essing We mat ene ontone ae a0 Sfocasecf RR e204, auspacet Gap. GIR the Supreme Court eqrinioes thee che parece ct ‘Slag yor ene ab expat Seer ee ee oper mer te Seer dybaid method of atsounting combining he cath paca uiccoaay be ope er SEGA soe tn te ners smi Siccome a tos 1 adequate, ie tas wil te ‘were, inoqvertentiy or ty Gesign, the net income is ‘Giried aioaer dealing ar ara oat wih Se SP SER soe tine pthenay fr sinng cos Seoe eom cate tetera set Pasay) sepctly snakes Section 20 of the Tax Coie mit Sa wnsrner cr nor seppnaea tne Puipoiaee owed oecgnroued creeds ce, sueeay ty she same intra, if Scien onder ocean lee ee acme gt ok Stinonasd to make Canoter prong adluseaeactt" Seplythee se oeerine the sm ent pc al Sinoust Gf the soyred Givese of thr eosanicennes Sage Cierny tgs or ieee rene win See Dane oe Enoncnh {Bistape Unde he Benghe See be Pptne B80) ree Engen Aare 18 GEES te Gone See et Sis Oyun en part ata ape baat ot Snaocal source Ip ee = > =Deepite tho iced parameters previced, nowersr, we fina {an the Che's povere er aieetoution, epporecnment or aloeeton ce he Toot Sane pow Sesion 50, ater the coms ree EEkeF bss Singhs patsy sriede ance ast SESE SSS Eee icy tpl omens ‘"Yeuce widia @ oped Wak or comoiae aunt Som Pibject alvances and areeer deiency income taser eres fhe Citi Cole ef the Philippine, ap iniereet cal be ue shaves bac bee sapirecly supanted sn wrvang. Censking ‘te eppictnis sreate expresey and cer decteres, the Tue S| Anewuse coved that tax statutes ust Ue coustrued. actly Against tae goteraniea! and bers i favor on the taxpaver ‘Bisorduais. che generat rule of requutng adhersnce tothe eer‘ogete the wu seusen bv goverment sll (Ct ua lllmvost ‘Section 64 Individual Returns > RULE ON MINIMUM WAGE EARNER @IWE) “To be eaemct. cae gust be an MIE a term shat os dacs Premmnect enpleses aus one i iter an MUTE or hee i ec Stor Sig ieee Reis sung aon sue SPLgataccaincerty tie meee ce fe ery itome no euger demining rem thems a centipaton for me speracino of government, ty He Way ef the x ezeuBUON pemeted a Conversely benefice in excess of 750.000 Ere subject (o tax and now, wages in excess of the SAW ‘Wns te erature io enenating i the MESS mince age ‘cher rms sttorary compensotion ke Rota pe, rereme pay, igh anit auger pep. ad hecara pay TRese [re pot hemuses cr erer vont esos ae eee ‘The amendment i allent on whether compensation Felsted benefits esceeding the PSO000 rerb0ld Would ‘Ener Oa” on the tale Income received mente of mirimamy Sefiees nao tecelte be Stator minima nese ee isle pag romain ee Tne receipt ara omer income ‘itis? the sear doee not dlsquni temas aes Tht Soesse shey seats cee shan ae LINEe may be subected 2 Rppopant ase (Soriane wap Septery of Fnaneey ok Section 66 - Parmant ana Assessment of Income Tax for Incivicuals na Corporations “tue asesament proces wats wl he lag of tartare SESS ania Seen eee Betir propos sl teang: pas Be SEREISC Soy ies Se Srsection 47 witnnoiaing > the withholding of neat ane] wes devise fer three Deter pride the epeyer a convenient manner to ‘cet ls probabie Income tax ably Groene te ot ot subseantaly roduecd 0uPA MATS wo Seis eonewpenane tum) 2 snd ans. to improve we governments cab How, Tht ‘Siecioa of tae, peevenion of deliqaamcie and seduction Scheie! Soe SIS Se ee Gnd Sulldere’secctations, Ine. te Romulo, GR. Ne, Serie, atarch & 2010 614 SCRS 86s) vee ‘SGhong may oust beheld we inlude the cuore ea (Gin sa. Procter & Gamble, GH No Ls0558, December 2, oo > income earner NOT obliged to proce remittance of taxes samnnena of tie Goat wethliar eo sel the Agvat Baus ae oe Gren the above provisions, te flue of the Ageat Banke wo Sittuble sitsbelog a tn a Suet ies 2 Siacalse usd to sstuonsie the Fung cpt? al Nihbclding ERD Se ecru Aa spear oe trannels est incono, Gil te ‘Coraer of Tica) Tax perjury” (PAL 0s CIR, G.R. Nos. 206079-89, Sanuary 17, 2015) gree wid Jim ines See Se Seb eeiw ase Senaeny 5 2015) vine ee *‘Section 73 -Dletibutlon of Dividends or Assets bs Corporations > Distribution in Liquidation NOT subject to tas “Siete Sub lected nvr oe ete {Ee Panpae, Acorangyeuemacy sagt te ana fo the phe ofthe oresoing, the Cust shecefoce holds shat the. ‘Sdcttion orice cepcesentind the amonaat af eae = ‘Sccigmatan dividends In arzears thet-could te-aunseccea HBGgsURMEE, Veni repentoees AFS covering ‘he oars 250 ‘tos show tate it da aa as paste pina nas Shlacce aiearacin Te ir ie is atpenttat pen’ se Selig eee sees Cae Seat company.” * 7+ (snemeneny, Federal (pos TSse, 25s xia tine @ cow Ine or veer, 76 Pha 638 tee > Takes pararasbe EC) &D) ESE "GHRET are’ sine of Ge pear Sone or sepa ae eeos tds ope roving Westen spe prevows owe Secuin eesenne foe eceegnetr purse aut no benerce sree Sssr @) fo seep omer ena app she venpayment as cas Sait Tote de teugstea “quareny mean tae anbisuee fake ‘Siecting tabie sea (ies snows ay autcmatuc sat sre) ‘Spal fay uitzee opsening thar oro prccenpurs poted) and (Bho apot fr earn nual or vance ota tax cea cateate Sistescties ty te mesmo edt on ne ee 7S apecunsins acing at ae ne esau cca at (eSiecane cote seme ee cane ot ae ee pees senay ee See wah tee ee oe yefund or tas ceeait cercincete allo irrevocable, Eben they WOuld Shy deny peace ‘aig an_ihe tas doos oct ponent a taspasae whe sieinalicantateastind ort cod cao eSin.me_comy-cos> of me excoas cucianle rasee to me casanie ‘Shaniens of ie auaceecing tauibe tears Honetarin-caee ‘Sanat Secs io ste coon ia scanek a ak ‘Eien ouis-ngtin shea tua the anesamnaemaie at Eeson 70 aneqevoniy provides, ce he ocon carrer ‘rieened (9 the tule on ioectiy (Cnloeraly Phoalelans ‘Services Ine-Managomeni, ine ts CIR, GH Nor 208955, > Duty of the BIR to verify whether or not the claimant had Revives, es implemencea oy the_appticale rules end ° aus ‘eetod by ts bao 1 chepopechouine de erly a scosteny tld ty he Gout, cosy ie inna he eosiere ao besarte ae 10 Comoraton, the Court sued ton hae taaake ache GAs = SEU URande yeas, as well as dodutons nad fax conte pevvonaey Scponca ce Guvisd cuer in te Quarry 118 ir the oupect, Deeg rhe Annual FER oe Fok Adusnent Rerarn fr oe Doce can susidens rorecl mhether 4 calry over tes iscooding quarters wao mate oveu Fea eicimant hae previously ‘oven the chun ot refund af or tax cect for the aimed CE, (Gunumieslenss a. ialars oe Section 79 £8 -Wiennolding on Wages > A Union nas no crue of action auninat the company ‘Setnere was crvonsaus witnnoiaing of ee Se ‘pelerees mae — Second sacorernce Sauce of aeton ageiact the company. The company mores Seplegs tiem br te mere act of wrtmnldin we tex tet Smosh eeeSone Se Se Gaia ie eis ‘Thus, if @e BIR megaty or emonsousy exleted tax. tae {ecire ofthe taxpaten, aod in proper azes Ge witanoidiag Sgeue ip afunet Gar BER and aot agninet the Wnnwlcing Teennicat Speciatist ane” supervision Uniony Coke NO 04138, Nooemper 9, 018) > ovilgation to Deduer ana Witnnelé arises om tne time ‘hie income ‘was actually pald or accrued, whlcnover ‘comes frst. SL SLL Ego ee ST SEESESnay so lnicng oe tne tr “cempenenten mes spesticny esciaaeg tincnr sections 25 (9) ana've 1A) athe 1997 EGSRRTESS, EGG seca snd samen’ rv, meciee “snc, prone INO Bask Une for he withing os o2 Seog oe ioe Foy over wocnslding be suis at Geaiuet ana wriennotd the related wiehnelding ‘ax eres ot tpense she paporsieayisgurs books whlenever comes Se sitcner ING Boek accud cr secocéed che nonsses at SESS tia eee (Sit bacnaes ee tne oben eae ee ‘Eiiiinaumea (NG Bon ea Cin 107070 Jat 3s 2025) ‘Sn-tsitons nots cften cee waite only propesien ‘Sismaistne pais sana aectoter fan sits we se gnieisafiana Lavy cae ene asceoeee Es sieancn ip ean care aisjonees ve Cemalaes “o Sens= Aonation ie inter JPx0e, Stcepance ie requirement 2 Sung the doncis iwusms Gealopa tes CA, OR [Hisbe, October 52000) section £6 Dequetlons trom Gross Estate > Cinims against tne estate (eaceof death salvation ‘Ie deere eam, eg nie n ropa US. wee & hr che dete of the Qecuence death, the Tat Cane the Eaieasbnaoey seta leer"amsen do Seosarianly confiem cho geneva? principle thet post-cecth [Sor We exprese cur agreement win the aateay deat [aiuatlon ruse, race pursuant 9 tag ame of oe US Rifles Spr acs Trt Co w Cand Se Pi Ghaspis ahd parucuary pres the povedeath ‘ot tbe innpoeed, aor presumed to be impceed, beyond what Be arate pect th Se pet wn Sache lee Sberaly Heche eet caston second ach Specat Procedings Wherein the toma “Saume’ requred tc SiGeeceed somes sdedeate eu gems ‘Gece or Diy actuated tp ie dacated Daw is Glniteant o, nd eheuld ee “mato the vaso ote ‘Scetmunacon of tlowabe daduewoos™ icon ve CAG No i40bes, April $0,005) > Property Previously Taxed (Cantshing Deduction) ‘The value of the property ef a tazpayer a dest wich Be SUE eres » Family Home. Sites ne ting of the tars 1 Sensor eta i ered tmsougn cours: Rfenesienactseniedewe eelSection $2 - Discharge of Executor of Administrator fom Personal Elaalite > Ego prea Habe me asin a tse {heres a cerasentc fom BIR tha the ena ass pA ‘bonds or rigats ‘ncn fee a gerur conembaton oes COMELEC {ide atari ve oma an dcuaive area, va > Section 105 Filing of Return and Payment of Tax 2 Pg otytums ana payment of Tex salt be doe natin 30 days emer the ext as een business wnete gross eales or receipts exceeds PM (Section 236(6)) Imports Geos sess_ue alstingulsn vetween the tax Mails that arlees Foch ic Saponion of UAT and the obignion of the retined soca. To specintclty soonest poss a baeoaures Under these reglans, VAT on the ie of sesued suger thet, Daud ia vane tee the 1efiod suger can evan be wutaraa Sebago ese prods or mie. Simply sted Va eral ares tent on ecru se, Doe. oF eNO BRD ‘ me suger induwur, raw sugar Je pease ie a retzerimit [ice cures then wisndbawa oe talou out of aa reeryaadl ‘Into we customers der tie Gow, be wiharawal cr teed [ger seuss tenee pace pst tots snle Toe Ul smpaseione fe witht of Fetioed sugar forma th aUea? fees mlPREPS RES lee Setter n spect ecto Wie ie ‘Bem tne subeequont slot, nonstrcles, aecay Tequted © De ala camer, wniea i befre mo wiencrawal ofthe goods Bom TRS Hier reacts ma Biclatoe panne oat rs oth he poveent ect act ese pa may be eaten “ado ee ere ccuperatves (CI to United Coals Sugar Farmers, Ge NO. 30Bt75, December 7.2018) > VAT Js inairect tax and the amount may ne shined or Gisermucioa proceas cu the sale, barter, cudhange of foods oF ‘pets and co the peccrmuace of servicer sven mn the abeencr ef proft stbutahie theret. The (ene tn the course of wade Brot snentea “Cie be Cle Commonueal:h & Management ‘Sovvices Corp, GR No. 128858 Maren 30,2000) Smog and eftcency in tax collection, the VAT imposed net ‘ined a rtundot cue 9 te Vay prerioni po ty ome no ‘Bectss that dhe tnupayer pays tie VAT only ce tbe value Gat be SSG5'6 Wat ponies properties cr sericea he aun acl (CUR v8 San Roque Power Corp, O.R. No. 187688, February ia 201 Ge not 2 tax om the exereine of a privilege, much leas = ‘Constitutional right itis composed cate sels, barr lense, Ot (Setbange of goede or Properties or the ale cr exchange “sss seller who i direct end egaly abe or payment of (Ea lninece can surh tr VAT on gubas arte aot ‘Soceseny ths person who utinaccty bears the burden cf che ‘hime ene ieee nm parecer or coueumer suse posse = Sereices wee atnvugn not direc and epaily lable he Eaves eres snaaaee beg be patient te an (Contes > vAscoring to tne Destination Principle, goods ané services Seorctie wach the sci peincgte, the Grove Border Docitine ‘Suecneer eine ns Ua aati be impcnca to Sem pave st ee soot st {Bp pest decned tor cenwumpcion acne i twentoral borer wall thowe tasted, be use, or consumption win ts Phitppines thal be imposed with 10% Var Sapor procestng ‘ones ane tobe mutnaged sea separate customs erty fom the eve ef toe Prauppines and, thy, fo tax purposes, ave eecarely (Saullered an eign tervicry For ts reason sales Uy persoad ‘Sem the Phihgyint cartons terntory te thee ine the export Processing tones are aiveagy tanta. as export” (Alles Consolidated Sining vs CIR, June 8, 3007) foie Re ox ezchange 2 geod 2: prperag, ae 28 Einburemeat tes came Ar ANPC ape poisted out ‘Seatertie hee atnennent dy abd be Le ae ot susesrrce tothe member. Convegely the members are ct busing foscseton du Such there soulie-no ales Maree or sac Pinece ar sian or cae ofS anrece ane at es Seuc shea ie susest seat uncer ke 0082S SGosoclation Of Non Profit Clubs, Ine. GINPO), te Bureatt Optaterma! Revenve (BIR) Co: Na, 225852, June 25 2010) Soptice ner, Sacha oe Seated potas nude a Sotimal mannose vuspese aad curctre of SOALaY are (Sbisiis sted in Secon Sool he EPIRA iw ‘PSALM is Limited to cing only PC askew nd IPP contract ot DE. The sae of NPC esate by PSALM not ip Ue cae Gale or tunes” tut purely br the speate pupeos. of Faveusue NPC auect ip Grist w Lqudat a SPC Ananciel PEAEM fo stmt © pina Dr de epacmement oy the Jone ‘Plsincs imposed ty We EPIRA iow “ {B84 he ake of tho power plane im this ease io not subjecx o stree tig ree aeto ene, > Subsidy trom parent company NOT subject VAT hat belcre transaction ue inpened UAE # amie barat c= Sees fel opens ane ods cece a te en Seat Commissioner of Internal Retenue cx Sainko Fhectrc Industries Cov Lia: OB Nev 13627 July 20 > Take note of ZERO rated transactions in subparagra we 2 Condominium association ues end membership fees ~ NOT subject OAT Bom unter RA 8424 ectione 10510752 and 108 and she eae keen te se enon at anacenan es ‘Bimbeaue dees aad other auetementatarves sected OF ‘Seaemniun orjeratoa being sues © VAT" Aad Tidy 20« a oy i ‘Sitang soir the uncer oe SmRMEM ‘ita Avocinon dine mmbstiag fe sed tet ‘Sponoos and ether eanieistatie expenses” (BIR ve Fit E > teolated Transseron si the course of trace oF busines=™ ‘Etrancaction inclaental terete” subject te VAT sy Sedged = ring of Section 109 of she 1997 Tax, Code EiSGows uy mg agnel's gop moe ise oe Soe Wehat s Gab el comet oil's (atinganag it Geothermal Partnership vs Citi, GR. Ne, Fre RS LWAT on tmnportation of Goods Tene note ofperagrap B) > Paragraph (2) Zero Raced Trancacons “an Burin, the Cour caiea chat an exec conten to (gonig tr ons Tetng snes mo atnequoves gown fv tna She cersiceracinlent must be dolns tusinest outside te Eblisaines om ‘he Tax Code act cay meuices that the serie be Giier tne Saosreaae aasuctws pecans SSE Ee oan Bnet Gace te Cis ak No Boise Feoraary Sas NPN > “Sates of “other uervices” such a tove qualifias secacee faite G SYS Ea a ee ‘Elta contest tt Pueh se Seria Umi, ‘Simaes AReC stars, ie Gina tee ent was-esabisbed SS SS eee ‘Risesg ia ine Pouuoues. Ta oe aune caete aur be aunt Bau oe = De oes Ge Puuausac (Commissioner of Dnternat Revenue ts Deuische Rnowledge Seriicen Pie. Lid GR No. 234045 uy 15, 3080) Tints ot erviceo™ rendered isthe Phypines for « fe, ncading ot eutuene, 3) uelibing “sowvces nh te Words “ll ndfence ests appenton. Jaueaer acne aaron ‘ncioec aaa on of seins" cencened rae ana oe sgES kdl nist ons boomin arias casos smaaes ru sue nc cloner cans ae Secon 18 aes ‘Seehtr Sy norte personnes taeuet sas tae eecce Doc "ges or nunca! fosonee™ Teens tant ‘ces nee sect Sa VA anes pat fll maar Re aaa ‘eau tiers humans tener nad ae be ot only a courayoperatrs come under the bese tm “ut ‘eserves de Sect 108 ts "ll ener amcnise raw” who art Subject to Vai vexcepetaooe unser Sete Sro.a tas Cece” BEE Sees Finente No Ha2007 Jal te Section 100 Esempe Trensectlons > automatic Zero Rating vs. Ettctive Zero Rating Azptving toe destination prinepte othe exporaton of gots, ‘titomatie zero cating‘ mari nconded wo bo smpoyed fy te fet reraaional emt by auowing tna eta rapt Shar asccur ac lenip ani arte pepnuoe ofthe Ut wa ‘lsmatas tour the busion othe es fea by the cupptee 2 paca aa cae purr i awed acy “pm Tae fect ot exemption nom we VAT may eitner ve te Gervice shih bp tele naate, are eyeicaly hed an ad sora usta fs the Yan eae tn Ge att SLLUS ganrebasmcuse cater at Bae ‘\Gonmisaioner Of Internal Racanue ts Seagate Fechnolony ae RN hee ‘aot pete ma fms, tepso ai ace™‘Thn owever Bot {he cen e te song o czas armen pistes oF Hine SE5G01 preaeey Secure the Valine war nteates © epee She percentage toa serena eeracee Toe eve ac Sa tnt {cs fare by the cel govemamene uri and nor by he national {ssetunent sigma oe Ssat Fa Case tomuuene Soper Slat ee, eopa cornea by eemaentet ‘GE pias of smugemeat taea ty De manoaal govermmear aad {ioe Taio ty Ge loca govemnaenc’ GIR te. SM Prime Hoiaingo, OR Nos 185508: Foorunr) 26,3010)‘tho constratTea the Uuluay ewaed by soutracee WHO, and scious sesing rah PAGCOR i see ptrancns ese Bacon” ACCOR ts BIR, OR. Nor 172087, March 13, 3on) = —— = Srstinal sunt ahah aekabe acnactsueat VAT Zee Sere hea ao sutnat tll be due on such snes Toba Sie Wateegeed mopar aloes Gs or Eincceatstneimat Atom anihasie In et, Se, 310/8 of the Tax Code of 1007, a9 amensod, saree ‘hat “alny VAT sguened penton Wows suite cre sao vared ot ‘ian serovted yt abpU fe he unanie of tt Sete ore agp sen pats, Tae meee a pet igus be apn int apninet stent VAT dom tbe ‘hice may ely te myue VAT 1 may ao be te'mere pace ir mat prove ari hae et peviguyataed se of bodes pues Suc neneenry mplcates fal dure thar put satin the Sia open seat we eespapr cos not Seats cae Uae) dada recta tte SE steep Se ae polunese ot Hapucta emcee PAtinon ican the lowe Fes Siget tee gene tow nage otic Mo) te Tee cone or Ise, 85 amemtes the epee VAT torre Fee roed ns mays creed gece a carer room wns under Sec L1G othe same Cote Beanie Sap nuinr Suges UAE. Nomeiesy this aprte Glmrenet Socal say Be gos anes sens wae apart See Bb ote das Gols ee We) we aeonted Gy Ra Se, ‘npat VAT abel onic be alowed aus Decesanes ak 2003; aner ‘whee “empajers Wik Unie’ wpa VAT on Cpl goes ‘ursesed or imported shall be auowes Co apply Che 0s 62sphuled ad Gly uiced Ts ntst sendaat of Se Ta Seccign 12 Refunds of Tax Credit of nput Tax Amended by ale Boeever, wil ast ape secontveiy vo Say cae wh TRAIN caw (Commissioner of mternal Revenue ta Taganito Mining Cotimlasioner Sf Internat Rerwtue, OR Nor 2196333 Section 11 TransitlonayPresumptlve Input Tes Crealts—2% of he Prior payment of sax fe mot needed co cain mis SESE poses Res ad Ihe hve ecard in our Septomber 4 2012 Desiuon, "Tes ae Evnoc smoagmour to tat retina Tex tein OsGnae a0 che ‘Sey Set tape cnn ocean (Eheciy bes snes tne tre uur Ine anp muons pees Giger ar srubuip. sound Se ap ours © emma ‘Eine cram neg amy sper shes pir permet mes SEicies sporting Var eeuurd maperam hod oo nee Sees apes "tes on tenaond peta ee ‘Scepter tones Shtauving homers ehor fay waite eae oom Benepe it Cat Sou 100s Hossa S28 obisingy Laden and VAP dcinraion ast Spe at thoes nouutmemee ies the nw aoe st peoase Ee SS Soca eed ciel te ‘Guied by me trecoing pzncte, we age no reas © desert fom the atioge and eacunen af the CTA. Ae tho CTA oP Heit, an to wl te dncusted bon, Maza uae nate in ae ‘Has-ceae ora Si Geo vais mais suse na a ‘esis fouris ana muntna- VA ceagacone Me pereaTSne Sea anaes mes ee ened ak siege was moming in sein 1) ont 326 Sdiieiby' See iat wi die Tee Coles a waplemeated fy Senco Sts ier ote ne iestch meats ae momer = ‘ay TAT oa monty basis, the Tax Cour and estan oven SE Re RS eee Siig emt coca that Pace Mang cutaway proved [Esurens cfs lo Commlastner oy nterat Revensie teConsidered ai sere-raicdcaport sales ” * “Pract ot acsaakempsmacion of guage ania a valne Aces Tat Gataegeeet ener ie 2 means oe incase RO ‘Hepstesa eniemnnee esas Sas anuacion eae eon Sous oe Thcemnal Revene’ IF) clanited Met clee nate to PEZS Teperered encerpriseo quai’ fot serovetng yurouant to Che WEE SeGEORE SSeS Sot cece mamutct: ‘Seatac eventually Wansats into munumecured produce Whica re eer actualy exported to fovegn sountses, mn Wid care, ‘bo VAT chal frm part ot the expote pre, oF actually cod © Serpe she Gone erckors, ewe sae, the TeEAE Accords, tal mae ro 4 BOLsenagees nuver ae pore Manuisecuenpronucst: @) the over’. progusts ans 200% [poet aot em Bos surisea eat one Bagar spores oom Inaeeg, while tne BOT certfcaton allows the eoler to aecora emptod ty the coniton thar the Bor repetored bayer accualy {a evenly epee sue produce fue contre Sorstir tee srncipis thar goods are conse ony oma coum Of he seen order of th Paginas =\Commtaione of Gam Nos 256595 Septemner 16.202) " > Outline of te Rute on Refund (Prior te TRAIN) Wen to fle judletat calm withthe CTs ‘he asuaieraure us br she Cin ce ‘Beginning Jenuary 1, 1508 (eeceely ef 1007 Riko) GRE ceed aot awnt uke eqinuce of be daarEni 2s Baling soa 259 ost e, s0i0 qremlgston at Ai (Wisayas Geothermal Pawer Company v. Commis Gelatin Revene 8 Pan aut tas) > tae supparting aocomente ust be completely ‘Wniied within he Bvent pemsrthe pesod {SR aprieten fr retund? Or sated cerenty" Under present laws then” Spout the” ubmisslon of documents be ‘deemed scompetea” for purposes of actermining [Re onming ofthe 12-day perfoa “nai, pen Sing hie sina cn ogre na (ean the 120 pata tr guante te CoP mee ue > aonce he Dette he ma eap the tence or he cai’ Tooter, Hoa hustuets hats Sled wishin wate aces acim is aline tp Geweing hanees wo dh aw ahormn ‘Who ultimately determines when complet documents nave Dest Clnpied the cneeane? Soemmnnes ft momese be Sled Me Soe ae day be was “sed Se Soe I othe ack te {easiness appre cn Dek FEesna sf goes mothowe snsng mar ste spyseent sno me “Tac, wats See Segue ov Actually comes at ‘ESldes, a oetvees a wusaverappucant we seeks the tena 2a Seite ip a ad ect x ana cied e ‘Lait be micunaerstod, tha ened gien tothe expayer 9 Ss She acoaver decmmnts sal soot such evans ‘Sinan Go) daye Gem Sequert of tie inesugsung procera ‘hee. agen ase, by hat ofa roquect nom fe tay sleet ‘Sina oduct cee Susan asspsn ee nso he ae cone oounetta Paid paar hs oo cia riites areas ESEES SSE SRE EP ee ee TEES Oh So ee ‘Ble to Support hie sialiy must be completed within the ‘Woear perlod under Section 112°Ca) of the MIRC. The CUEE pee wes een ue ia meme {o those clalme for tas crete vehund fea prior to June TLUJRES See aot da cn bench as ow stant OIC ay docemance wien te tepanes wil preset fo spo=7¢ ‘Nikcred ty the Bonsded Dawetrs ofthe company ‘Wpon evtimission of me adminstrecive calm and ie Ekle de Cnmanoa neice uments Spire ote cnciice acon nesranen ate Depress tne ups Dal Leese ‘Tous, under the current rate, he reckoning of ce 120. Dass tas bean witaacawe dots he ceapayer ob RAGS S4-2014, Shee Te keautes on at ihe time ne fies hls claim <0, ‘compte-his supgorsine documents aud attest tnat ne Slaisa further tae tacower ae bared som ubmtne ‘ittina decctieat ater bree Sad ha seeasteuecre da (Plipinas Total Gas, Ine. te CIR, GR. No DOTS, Becember 5 2018) TAME Se Bes preserve vecod te ane @ Pee ne a ae eee Se iber afte pur Vad act “qareruety couected tant Stas petece aie ior she tas actanily rave sce tana was it ganiy dus, the aupaver must Ge « jude lem for Petued "yom Bi ate of petment. Onir che person sp to See josie laine Shae? Sacto Under Section 110 @) and Section 112 (AL the prescnptire end of tng ¢ Jada! sein for eueece" par VAT I two See Dao ae ie fest teat hae we pg the weep,seg ot oss cum on ener var une sein 122 [Sn a ane es cee were aeouee oat Siena at pote alg at eS ov oe cP ope, Tak tinue we used tur aie Coe oie te TAP 'aer ad pesoe sao eeniy saa oe noe CAE Bog cata roti eeteatnes nly stele Tapes op ear fe nails of aor Scala tae aia. al a Vr soinpa: VAT that ae auore than what is legaliy due. Hews oot the taues attributable to cerorates sales As beld in Microsoft {Exper who ogy peice npat Vat (em te tndonne Puipoues fet oR Secinermat Parersnlp, GR. No s0!%06, Sanary 75 sie + Tp iva uenene ara Var eget get > "Ta octane vba see nrg nt eile, 0 SLE arepsame cupegtr eeguiee on Testa te burbs carey tint. Foe Cure meet Fob Sc tenner ae ee er an er Ee Baar cine tat Tat Chatv'e an" aneke ctee Gas Var ta Schau Seger Varun Seige aed ia ania ME aha ao ge ato any gt ox Miro oy, Sioa ieee eee tne pa RGLg alsa somata Sar ava 5 ‘Pavenata Comp ve Cin. 198521, CORALS CIR, GA, No, 171307, August 25, 2015) Bteber 15.2015) > Non-imprlnment of Zero Rated” -etfeet on Zero Section 158 tnvoleIng and accounting requirements for VAT. fared Pransactions Resisterea persons 2 scage aw acres tat fm a claim for tax refund or tax Excel oie epicont moat prove matey crea So the (aise must te eedencee by a VAT mace oe cca feet ‘ec Si, a arm cy Sa Sens 95S 38 0 os ecuenear sana = Sitar ain ES entice ty mre em Po coe Oe fuerte tbe einisn, une comp weno sie ane > istinction between 2 VAT invoice & VAT oficial Sibi pete cine ome dys cam ore peeape 2 -Sevten 115 of me NIRC of 1007 char a WAT inuuce 1m eis eave, cord sews tar of me export ceee invoieee Becseegy a ene ane anes a encannge at gee asasuenaee, while» VAT athnal ecg sraneteaetice so Eke sss asmueiee Ae uses Esato ‘S:VAT nso ee slays bast pont a he ae of cue Sr ternses to tho baer, wale « UAbNeelutie me aes seseencence ot pacment at nce ap cermcee eed Sa Gorsiatrgevhee fone the vases te tro ta oe eed SEesauieh “Andanao "Power comperaiton “a. Commissionor of terns Revenue, GR No. 138115, Febvuary 10, 5015 180 SCRA 155, 197 788.9) > Take note orPareerann © > Take note otPareeraph D) eccion 115 - Power ortme Commissioner to Suspend Business o° Exece duly» 2010-dune 30 2025 etese 2% > Pawnaope aap abie to Perentape Tazact Val DOCUMENTARY STAMP Tax (=) “DSP i nature, an ec ae enc ee o the mrces b (Bereon of prions confred hy lu ‘Thavepivlge ay cost Bie"tealion meditation ov tormtnaion of conracuat ‘ekatonahie by ecenting spec documents ihe desis of sae Ieavtnaes pledges sya ats tama op trae of toh Fore Bonifacio Development Corp ts CIR, GR Na. 160188 FESS retrwert "25, 2042 “iting Philipaine Home Besrance Corporction 2 Court of Aepeeln, S61 Phil. 385, SESE Goss) > Mr54, persons primary lahie fe DTS ‘ue persone peimaiy ile or tbe payment of the DET are the 1S Ristpg a texans aocoment,gerunent or papers shou cet cmap would then be babe UPhilecor Creit Gory. > matructional Letters Journal Entries or Cash Vouchers Ineeiving Advances art considered decuments which are ‘Steet to Documentary Stamp Tax (S1) SRL Seale Rat te Same Ste fcinans, which fay be evseacee Oy credcaste meme os or aevviny ey say Sea of chee of tare! #9 devine tne fond rison ote cnt of Sch tt Find ‘Suchers eacencng tne aeons FOC cence foe ahi fe ‘See and i907 ‘quatfed a inom agreement upon cn decumeniary samp tunes cy be impoted "(CIR ts Fates, apersor Suyjoctes Stampa tbe stamped abd whch has been signed. evund accepted & ame ‘tout Dae duty sane shal oo be [siacnce in any Soar wna the ropa stamp 6 stan‘oat nave been anes mereto ana sanceleg Fie no nd mack in pessoas concecon, hae Sfatsechon whore reel propery te conveyed ta Purchaser Eaaclecsed or obuonise soureped’ te qualdwa by the weed ‘SShuiersuoe” undoubtedly irate to dae conatusioa at panes cfvea! property ave eomtemgistee there set peithaec! i seacy suse tne tel properaee subject ot SLTERE wee met sierbed op thes cueing Getaed stroaateaty Canatired co and fst Geeamepeary ctamp te= Impcoea ery all sonvepanoet, SSursjea to a parenecer ov paraneers, Tne tana of conrrotes to be paia os contemplate under secvon 195 ot Sn/15) 2015 ceing ceramlantoncr af tated core yes50s Santen ber 29, S00, »