Law on Taxation I

Course Outline
Atty. Marefel B. Añora, CPA

II. ORGANIZATION AND FUNCTION OF THE BUREAU OF INTERNAL REVENUE

(BIR)

Topic Outline

A. Powers and duties of the Bureau of Internal Revenue (Section 2, NIRC)

B. Rule-making authority of the Secretary of Finance (Section 244, NIRC)
C. Bureau of Internal Revenue (BIR) Organizational Structure (refer to
www.bir.gov.ph)
D. Power of the Commissioner of Internal Revenue to Interpret Tax Laws and to
Decide Tax Cases (Section 4, NIRC)
E. Power of the Commissioner of Internal Revenue to Obtain Information, and to
Summon, Examine, and Take Testimony of Persons (Section 5, NIRC)
F. Power of the Commissioner of Internal Revenue to Make Assessments and
Prescribe Additional Requirements for Tax Administration and Enforcement
(Section 6, NIRC)
G. Non-delegable powers of the Commissioner of Internal Revenue (Section 7,
NIRC)
H. Agents and deputies for collection of national internal revenue taxes (Section 12,
NIRC)
I. Revenue Regulations, Revenue Memorandum Circulars, and BIR Rulings
J. Kinds of BIR Rulings
K. Submission of Report and Pertinent Information by the Commissioner of Internal
Revenue (Section 20 of the NIRC, as amended by the CREATE Law)
L. Power or Authority of BIR Commissioner to Distribute or Allocate Income and
Deductions (Section 50, NIRC)
M. Non-retroactivity of rulings (Section 246, NIRC)
N. Informer’s Reward (Section 282, NIRC)

Laws and Administrative Issuances

1. National Internal Revenue Code of 1997, as amended by Republic Act No.

10963 (Tax Reform for Acceleration and Inclusion Law or TRAIN Law), and as
further amended by Republic Act No. 11534 (Corporate Recovery and Tax
Incentives for Enterprises Act or CREATE Law)
2. Republic Act No. 10021 (Exchange of Information on Tax Matters Act of 2009)
3. Revenue Regulations (RR) No. 10-2010, as amended by RR 3-2014
4. Revenue Regulations (RR) No. 4-2014 [Policies and guidelines in the monitoring
of service fees of professionals]
5. Revenue Memorandum Circular (RMC) No. 12-2018 [Power of BIR
Commissioner to Obtain Information from Third Party Sources vis-à-vis Attorney-
Client Privilege]
6. Revenue Administrative Order No. 01-2003
7. Revenue Memorandum Order (RMO) No. 9-2014 [Request for BIR Rulings]
8. National Privacy Commission (NPC) Advisory Opinion No. 2020-002 dated
February 6, 2020 [Re: Publication of the Full Content of BIR Rulings in the BIR
Website]
9. National Privacy Commission (NPC) Advisory Opinion No. 2021-028 dated July
16, 2021 [Re: Disclosure of Personal Information of Tenants by a Condominium
Corporation to the BIR]
10. National Privacy Commission (NPC) Advisory Opinion No. 2021-045 dated
December 29, 2021 [Re: Access to Subscriber Records for Internal Revenue Tax
Purposes]

Cases

1. Philippine American Life and General Insurance vs. Secretary of Finance (G.R.
No. 210987, November 24, 2014)
2. Commissioner of Internal Revenue vs. Court of Tax Appeals and Petron
Corporation (G.R. No. 207843, July 15, 2015)
3. Commissioner of Internal Revenue vs. Court of Tax Appeals and Petron
Corporation (G.R. No. 207843, February 14, 2018)
4. St. Mary’s Academy Caloocan City, Inc. vs. Hon. Kim Jacinto S. Henares, et al.
(G.R. No. 230138, January 13, 2021)
4. Secretary of Finance vs. Oro Maura Shipping Lines (G.R. No. 156946, July 15,
2009)
5. Commissioner of Internal Revenue vs. Hantex Trading Co. (G.R. No. 136975,
March 31, 2005)
6. Commissioner of Internal Revenue vs. Aquafresh Seafoods, Inc. (G.R. No.
170389, October 20, 2010)
7. San Miguel Corporation vs. Commissioner of Internal Revenue (G.R. Nos.
257697 and 259446, April 12, 2023)