SAN BEDA UNIVERSITY

College of Law
COURSE SYLLABUS
For
TAXATION REVIEW

COURSE CREDIT: 2 UNITS

TERM/ACADEMIC YEAR: SECOND SEMESTER SCHOOL YEAR 2020-2021
COURSE DELIVERY MODE: FULL ONLINE

COURSE DESCRIPTION:

A detailed evaluation of laws on taxation, national and local (including pertinent

portions of the NIRC on income tax, estate and donor’s tax, and value added tax),
including general principles of taxation, limitations on taxation, sources of tax
laws as well as judicial and administrative remedies in taxation.

COURSE GOALS: Expected College of Law Graduate Attributes (ELGAs)

Know and understand the laws, cases and administrative issuances, memorize
important provisions and doctrines, critical and analytical thinking, effective in
written and oral communication, logical reasoning, and sound judgment, exercise
of proper professional and ethical responsibilities.

LEARNING OBJECTIVES/OUTCOMES (LOs):

1. Knowledge/Remembering: define, list, recognize

2. Comprehension/Understanding: describe, explain, identify, recognize
3. Application/Applying: choose, demonstrate, implement, perform
4. Analysis/Analyzing: analyze, categorize, compare, differentiate
5. Evaluation/Evaluating: assess, critique, evaluate, rank, rate
6. Synthesis/Creating: construct, design, formulate, organize, synthesize

Upon completion of Taxation 1 course, the student is expected to be able to:

Expected College of
Law Graduate LEARNING OUTCOMES (LOs)
Attributes (ELGAs)
Critical and analytical LO1. Explain how law is created and enforced by executive,
thinking legislative, and regulatory bodies during class recitation and
discussion.
Effective in written and
oral communication LO2. Analyze the practical and policy implications of current and
proposed statutes, regulations, judicial rulings, legal arguments, and
Logical reasoning
strategies in preparing a Legal Case.
Sound judgment LO3. Assess client concerns and translating them into responsive legal
Exercise of proper arguments and strategies.
professional and ethical LO4. Utilize legal research tools to gather information that aids in the
responsibilities analysis of legal issues in submitting the Research Paper.
ASSESSMENT/GRADING SYSTEM:

The student will be graded according to the following:

Percentage
Scope of (Weight is based
Requirements (Based on the Learning Outcomes) Work(Individu on
al) theimportance
of the LO)
LO1Class recitations and Quizzes Individual
LO2 Individual
LO3 Individual
LO4 - - Research Paper/Case study – optional on part of
professor

Class Standing before Midterms Individual 16.67%

Midterm Examination Grade Individual 16.67%
Class Standing after Midterms Individual 33.33%
Final Examination Grade Individual 33.33%
TOTAL 100%

LEARNING PLAN:

Design or the structure of the course that includes content/topics to be covered;

learning resources to be used; weekly schedule of the topicst o be taken up; and
the learning methods to be utilized that are most likely to lead students towards
the goals and learning outcomes that were defined.
 LEARNING
WEEK/
METHODS
TOPIC/CONTENT LEARNING DATE
(activities designed or
(arrangement or sequence of RESOURCES (Schedule of
deployed by the
the major topics is based on a (print and non-print each Topic,
teacher to bring
logical order) materials and online/ Assign, Exam
about, or create the
open-access resources) for the entire
conditions for
semester)
learning)

Course Introduction
Ÿ Course overview Syllabus Aug. 10-29, Lecture
Ÿ Course assignments Student’s Handbook 2020 Open Forum
Ÿ Course requirements Discussion
Ÿ Course expectations
Ÿ Difficulty of hurdling
taxation subject in the annual
bar examinations

All subsequent Modules will be conducted under the following:

Ÿ Recitations;
Ÿ Lectures (optional on part of Professor); and
Ÿ Quizzes.

Module 1 - General principles

a. Definition of Taxation
b. Definition of Taxes
c. Nature of Taxation

• CREBA, Inc. v. Romulo, 614 SCRA 605

• Mactan Cebu International Airport Authority v. Marcos, 261 SCRA 667
• Republic v. Caguioa, 536 SCRA 193
• National Telecommunications v. CA, 311 SCRA 508
• Paseo Realty & Dev't. Corp. v. CA, 309 SCRA 402
• Pepsi Cola Bottling Co. (Phils.) v. Mun. Of Tanauan, Leyte, 69 SCRA 460
• CIR v. Fortune Tobacco Corp., 559 SCRA 160
• Phil Guarantee Company v. CIR, 13 SCRA 775
• NPC v. Province of Albay, 186 SCRA 198

d. Attributes of Taxation
e. Characteristics of Taxes/Requisites of a Valid Tax

• Planters Products, Inc. v. Fertiphil Phil. Corporation, 548 SCRA 485

 • Tio v. Videogram Regulatory Board, et al., 151 SCRA 213

f. Kinds of taxes
Direct taxes

• Maceda v. Macaraig, Jr., 223 SCRA 217

• CIR v. PLDT Company, 478 SCRA 61

Indirect taxes

• Diaz & Timbol v. Sec. Of Finance, 654 SCRA 96

• Phil. Acetylene Co., Inc. v. CIR, 20 SCRA 1056
• Silkair (Sing) Pte., Ltd. v. CIR, 571 SCRA 1431
• Asia Int'l. Auctioneers, Inc. v. CIR, 682 SCRA 49
• CIR v. Acesite (Phils) Hotel Corp. v. CIR, 516 SCRA 93

g. Taxation as Inherent Power of State

h. Taxation distinguished from 2 other inherent powers
i. Purposes/Objectives of Taxation

• Lutz v. Araneta, 98 Phil 148

• Gerochi v. DOE, 527 SCRA 696
• Gaston v. Republic Bank, 158 SCRA 626
• Chevron Phils., Inc. v. Bases Conversion Dev't. Authority, 630 SCRA 519
• Terminal Facilities & Services Corp. v. Phil. Ports Authority, 378 SCRA 81
• Manila Memorial Park, Inc. v. Secretary of DSWD, 711 SCRA 302

j. Aspects/Stages of Taxation

• CIR v. United Salvage & Towage (Phils.) Inc., 729 SCRA 113
• Alhambra Cigar & Cig. Mfg., Co. v. Collector, 105 Phil 1337
• CIR v. The Stanley Works Sales (Phils.), Inc. 743 SCRA 642
• Ungab v. Cusi, Jr., 97 SCRA 877
• CIR v. Pascor Realty Development Corp., 309 SCRA 402
• CIR v. Hantex Trading, 454 SCRA 301
• CIR v. BPI, 411 SCRA 456
• First Lepanto Taisho Ins. Corp. v. CIR, 695 SCRA 639

k. Characteristics/Principles of a Sound Tax System

• Chavez v. Ongpin, 186 SCRA 331

• Timbol & Diaz v. Sec. Of Finance, 654 SCRA 96

l. Taxes as distinguished from other impositions/exactions/levies

 • Ermita-Malate Hotel & Motel Operators Asso., Inc. v. City of Manila, 20 SCRA 47
• Gerochi v. Department of Energy, 527 SCRA 696
• Cojuangco, Jr. v. Republic, 686 SCRA 472
• Angeles University Foundation v. City of Angeles, 675 SCRA 359
• Smart Telecommunications, Inc. v. Mun. Of Malvar, Batangas, 716 SCRA 677
• Progressive Dev't. Corp. v. Quezon City, 172 SCRA 629
• Land Transportation v. City of Butuan, 322 SCRA 805
• CIR v. Maritime Shipping, 238 SCRA 42
m. Taxes vs. Set Off/Legal Compensation

• CIR v. Toledo Power Company, 775 SCRA 709

• Republic v. Ericta, 172 SCRA 623
• CIR v. Esso Standard Eastern, Inc., 172 SCRA 364
• Republic v. Mambulao Lumber Company, 4 SCRA 622
• Domingo v. Garlitos, 8 SCRA 443
• Francia v. IAC, 162 SCRA 753
• Philex Mining Corp. v. CIR, 294 SCRA 687
• CIR v. Citytrust Banking Corporation, 499 SCRA 477
• CIR v. UST, 104 Phil 1062

n. Equitable Recoupment
o. Lifeblood Doctrine

• Pilmico-Mauri Foods Corp. v. CIR, 802 SCRA 618

• CIR v. Next Mobile, Inc., 776 SCRA 343
• CIR v. Dash Engineering Philippines, Inc., 712 SCRA 347
• Camp John Hay Development Corporation v. CBAA, 706 SCRA 547
• First Lepanto Taishu Insurance v. CIR, 695 SCRA 639
• CIR v. San Roque Power Corporation, 690 SCRA 336
• CIR v. BPI, 521 SCRA 373
• CIR v. Pineda, 21 SCRA 105
• Vera v. Fernandez, 89 SCRA 199
• CIR v. CTA, 234 SCRA 348
• CIR v. Algue, Inc, 158 SCRA 9
• YMCA v. CIR, 298 SCRA 83
• Davao Gulf Lumber Corp. v. CIR, 293 SCRA 77
• Marcos II v. CA, 273 SCRA 47
• Reyes v. Almanzor, 196 SCRA 322
• PB Com v. CIR, 302 SCRA 250
• Phil. Guaranty, Co., Inc. v. CIR, 13 SCRA 775
• Philex Mining Corp. v. CIR, 294 SCRA 687
• North Camarines Lumber Co. v. CIR, 109 Phil 511

p. Necessity Theory
 • Phil. Guaranty Co. v. CIR, 13 SCRA 775
• Gerochi v. DOE, 527 SCRA 696

q. Benefits-Protection Theory

• CIR v. Algue, Inc. v. CTA, 158 SCRA 9

• Abakada Guro Party List v. Exec. Sec. Eduardo Ermita, 469 SCRA 1

r. Power to Tax involves the Power to Destroy

s. Kinds of Double Taxation

• Manufacturers Life v. Meer, 89 Phil 210

• CIR v. SC Johnson & Son, Inc., 309 SCRA 87
• Ericsson Telecommunications, Inc. v. City of Pasig, 538 SCRA 99
• Nursery Care Corp. v. Acevedo, 731 SCRA 280
• La Suerte Cigar & Cig. Factory v. CA, 739 SCRA 489
• Villanueva v. City of Iloilo, 26 SCRA 578
• Compania General de Tabacos de Filipinos v. City of Manila, 8 SCRA 367
• CIR v. Solidbank Corp., 416 SCRA 436

t. Kinds of Tax Exemptions

• John Hay Special Economic Zone v. Lim, 414 SCRA 356

• CIR v. Phil. Associated Smelting & Refining Corp., 737 SCRA 328
• Batangas Power Corp. v. Batangas City & NPC, GR No. 152675, April 28, 2004
• Tolentino v. Sec. Of Finance, 235 SCRA 630
• CIR v. MERALCO, 725 SCRA 384
• Western Minolco Corp. v. CIR, 124 SCRA 121
• MCIAA v. Marcos, 261 SCRA 667
• FELS Energy, Inc. v. Province of Batangas, 516 SCRA 186

Revocation of tax exemption

• Tolentino v. Sec. of Finance, 235 SCRA 630

• Provincial Treasurer of Province of Misamis Oriental v. Cagayan Electric Power &
Light Co., Inc., 181 SCRA 38
• Batangas Power Corp. v. Batangas City & NPCX, 428 SCRA 250
• Phil. Basketball Asso. v. CA, 337 SCRA 358

Construed strictly against the taxpayer

• MCIAA v. Marcos, 261 SCRA 667

• CIR v. Phil. American Accident Ins. Co., Inc., 453 SCRA 668
• NPC v. City of Cabanatuan, 401 SCRA 259
u. Principles/Interpretations/Construction on Tax Laws and Tax Exemptions
v. Prospectivity of Tax Laws

• CIR v. Acosta, 529 SCRA 177

• CIR v. CA, 267 SCRA 576

w. Non retroactivity under NIRC

• CIR v. Filinvest Dev't. Corp., 654 SCRA 56

• Supreme Transliner, Inc. v. BPI Family Savings Bank, Inc., 644 SCRA 59
• CIR v. CA, 267 SCRA 557
• CIR v. Burroughs, Inc., 142 SCRA 324
• British American Tobacco, Inc. v. Camacho, 562 SCRA 511

x. Prescriptability/Imprescriptability of Taxes
y. Forms of Escape from Taxation
z. Difference between Tax Evasion vs. Tax Avoidance
Tax pyramiding
• People v. Sandiganbayan, 467 SCRA 137
• CIR v. American Rubber Co., 18 SCRA 842

Escapes from taxation

• CIR v. Pilipinas Shell Petroleum Corp., 717 SCRA 53

• Phil. Acetylene Co., Inc. v. CIR, 20 SCRA 1056

Tax avoidance

• Gala v. Ellice Agro Industrial Corp., 418 SCRA 431

• Heng Tong Textiles Co., Inc. v. CIR, 24 SCRA 767
• Delpher Trades Corp. v. IAC, 157 SCRA 349

Tax evasion

• CIR v. Estate of Benigno Toda, Jr., 438 SCRA 290

aa. Tax refund

bb. Tax credit
cc. Tax amnesty

• People v. Castañeda, 165 SCRA 327

• Asia International Auctioneers, Inc. v. CIR, 682 SCRA 49
• Special Economic Zone v. Lim, 414 SCRA 356
dd. Compromise vs. abatement

• Wonder Mechanical Engineering Corp. v. CA, 64 SCRA 555

ee. Judicial Review of Taxation

ff. Taxpayer’s Suit

• Gonzales v. Marcos (65 SCRA 624)

• Maceda v. Macaraeg, Jr. (197 SCRA 771)

• Abaya v. Ebdane (515 SCRA 720)

• Dela Llana v. COA (665 SCRA 176)

gg. Read selected cases
(i) CIR vs. ALGUE, INC. [G.R. No. L-28896. February 17, 1988.]
(ii) REPUBLIC vs. MAMBULAO LUMBER [G.R. No. L-17725. February 28,
1962.]
(iii)ENGRACIO FRANCIA vs. IAC [G.R. No. L-67649. June 28, 1988.]
(iv) MELECIO R. DOMINGO vs. HON. LORENZO C. GARLITOS [G.R. No. L-
18994. June 29, 1963.]
(v) Executive Secretary vs. Southwing Heavy Industries (G.R. No. 164171, February
20, 2006)
(vi) John Hay People’s Alternative Coalition vs. Lim (G.R. No. 119775, October 24,
2003)
(vii) Delpher Trades Corp and Pacheco vs. IAC (G.R. No. L-69259, January
26, 1988)
(viii) CIR vs. Lincoln Philippine Life Insurance (G.R. No. 119176, March 19,
2002)
(ix) CIR vs. Estate of Benigno Toda (G.R. No. 147188, September 14, 2004)
(x) City of Iloilo vs. Smart Communications (G.R. No. 167260, February 27, 2009)
(xi) National Power Corporation vs. CBAA (G.R. No. 171470, January 30, 2009)
(xii) Winebrenner & Inigo Insurance Brokers, Inc. vs. CIR (G.R. 206526,
January 28, 2015)
(xiii) Fluor Daniel Phil. Inc. vs. CIR (G.R. 200620, March 18, 2015)
(xiv) China Banking Corp. vs. CIR (G.R. 172509, February 4, 2015)
(xv) CBK Power Co. Ltd. Vs. CIR (G.R. 193383-84, January 14, 2015)
(xvi) Philippine National Bank vs. CIR (G.R. 206019, March 18, 2015)
(xvii) Covanta Energy Philippine Holdings Inc. vs. CIR, G.R. 203160, January
24, 2018
(xviii) Philippine Airlines vs. CIR, G.R. 206079-80, January 17, 2018
(xix) University Physicians Services Inc. vs. CIR, G.R. 205955, March 7, 2018
 (xx) Bank of the Philippine Islands vs. CIR, G.R. 224327, June 11, 2018
(xxi) Asian Transmission Corp. vs. CIR, G.R. 230861, Sept. 19, 2018
(xxii) Land Bank of the Phil. Vs. Cacayuran, G.R. 191867, April 22, 2015

Module 2 - Limitations

a. Constitutional Limitations – Memorize all tax related provisions (direct and indirect).
Read entire 1987 Constitution again
1. Uniformity and Equality Clause

• CIR v. SM Prime Holdings, Inc., 613 SCRA 774

• PAGCOR v. CIR, 645 SCRA 338
• Phil. Trust BL Company v. Yatco, 69 Phil 420
• Tan v. Del Rosario, 237 SCRA 324
• CREBA, Inc. v. Exec. Sec. Romulo, 614 SCRA 605
• Roxas v. CTA, 23 SCRA 276
• British Tobacco v. CIR, 562 SCRA 511
• Punsalan v. City of Manila, 95 Phil 46
• Juan Luna Subdivision, Inc. v. Sarmiento, 91 Phil 371
• Pepsi Cola Bottling Co., Inc. v. City of Butuan, 24 SCRA 789

2. Non-impairment of Contract Clause

• Casanovas v. Hord, 8 Phil 25

• Mactan Cebu International Airport Authority v. Marcos, 261 SCRA 667
• Tolentino v. Sec. of Finance, 235 SCRA 630

3. Due Process Clause

• PB Communications v. CIR, 302 SCRA 241
• Tanada v. Tuvera, 136 SCRA 27
• CIR v. Metro Star Superama, Inc., 637 SCRA 633

4. Tax exemptions of religious, educational and charitable institutions/organizations

from property tax

• CIR v. YMCA, 298 SCRA 83

• Lladoc v. CIR, 14 SCRA 292
• Hodges v. Mun. Board of Iloilo City, 19 SCRA 28
• Lung Cancer of the Philippines v. QC, 433 SCRA 119
• St. Luke's Medical Center, Inc. v. CIR, 682 SCRA 66
• Angeles University Foundation v. City of Angeles, 675 SCRA 359

5. Free Exercise of Religous Profession and Worship

 • American Bible Society v. City of Manila, 101 Phil 386
• Tolentino v. Secretary of Finance, 235 SCRA 630

b. 5 Inherent Limitations

• NPC v. Province of Albay, 186 SCRA 198

• Quezon City, et al. v. Bayan Telecommunications, Inc., 484 SCRA 169
• Pepsi-Cola Bottling Co. v. Mun. Of Tanuan, Leyte, 69 SCRA 460
• Planters Products, Inc. v. Fertiphil Corp., 548 SCRA 485
• ACMDC v. CIR, 524 SCRA 73
• CIR v. Mitsubishi Metal Corp., 181 SCRA 214
• CBK Power Co., Ltd. v. CIR, GR No. 192283, January 14, 2015
• Abakada Guro Party List v. Ermita, 469 SCRA 1
• Southern Cross Cement Corp. v. Cement Manufacturers Asso. Of the Phils., GR No.
158540, August 3, 2005
• Camarines North Elec. Cooperative v. Torres, GR No. 127249, February 27, 1998
• Phil. Fisheries Dev't. Authority v. The Municipality of Navotas, 534 SCRA 490
• City of Lapu Lapu v. PEZA, 742 SCRA 524
• MIAA v. Parañaque City, 495 SCRA 591
• Mactan-Cebu International Airport Authority (MCIAA) v. City of Lapu-Lapu, 757
SCRA 323

c. Tax Treaty – Read and compare RP-USA Tax Treaty and RP-China Tax Treaty
d. Review landmark cases under PoliLaw relating to constitutional and inherent limitations
e. Read selected cases
(i) Bagatsing vs. Ramirez [G.R. No. L-41631. December 17, 1976.]
(ii) Abakada Guro Party List vs. Executive Secretary [G.R. No. 168056. September 1,
2005.]
(iii)Eastern Theatrical vs. Alfonso [G.R. No. L-1104. May 31, 1949.]
(iv) British American Tobacco vs. Camacho [G.R. No. 163583. August 20, 2008 and
April 15, 2009.]
(v) La Sallian Educational Innovators Foundation vs. CIR, G.R. 202792, February
27, 2019

Module 3 - Sources of Tax Laws (NIRC)

a. Nature and General Principles

b. Characteristics of Philippine Income Tax Law
c. Criteria in imposition of Philippine Income tax
d. Kinds of Taxpayers
e. Individual Income Taxation
f. Situs of Income Taxation
g. Tests of determining income and classes of income
h. Methods of accounting
i. Corporate Income Taxation
j. Filing of IncomeTax Returns
k. Concept of Withholding Tax
l. Train Law amendment on Income Taxes
m. Sections 1 to 21 (Organization and Function of the BIR plus sources of revenues)
n. Section 23 (General Principles of Income Taxation
o. Section 42 (Income from sources within the Philippines)
p. Sections 202 to 231 (Remedies in General)
q. Sections 244 – 246 (Rules and Regulations)
r. Sections 247 to 249 (Penalties/Additions to Tax)
s. Memorize Sections 203, 204, 222, 228 and 246
t. Study RevRegs No. 12-1999, RevRegs No. 18-2013, RevRegs No. 7-2018, RMO No. 26-
2016, and RMC No. 11-2014 (Section 228);
u. Study RevRegs No. 30-2002, RevRegs No. 08-2004, RevRegs No. 9-2013, and RMC No.
34-2014;
v. Study RMO No. 20-1990, RDAO No. 05-2001, RMC No. 06-2005, RMC No. 29-2012
and RMO No. 14-2016 (waivers);
w. Read selected cases:
(i) Commissioner of Internal Revenue vs. Isabela Cultural (361 SCRA 71);
(ii) Commissioner of Internal Revenue vs. Union Shipping Corp (185 SCRA 547);
(iii) Advertising Associates vs. CA (133 SCRA 765);
(iv) Commissioner of Internal Revenue vs. Metro Star Superama Inc. (GR No.
185371, Dec 8, 2010);
(v) Lascona Land vs. Commissioner of Internal Revenue (GR No. 171251, March 5,
2012);
(vi) Rohm vs. CIR (GR No. 168950, Jan 14, 2015);
(vii) RCBC vs. CIR (GR No. 170257, Sept 7, 2011);
(viii) CIR vs. Hambrecht (GR No. 169225, Nov 17, 2010);
(ix) CIR vs. Next Mobile (GR No. 212825, Dec. 7, 2015);
(x) Lanao Del Norte Electric Cooperative vs. CIR, CTA Case No. 8769 dated
October 11, 2019;
(xi) CIR vs. Azucena Reyes, GR No. 159694 dated January 27, 2006;
(xii) Association of Non-Profit Clubs Inc. vs. CIR, G.R. 228539, June 26, 2019;
(xiii) Banco de Oro vs. CIR ( G.R. 198756, January 13, 2015);

a. Taxpayer’s remedies
a) Assessment
Case: Adamson v. CA (588 SCRA 27)
(i) Concept of assessment
Cases:
• ACMDC v. CIR (242 SCRA 289)
 • RP v. CA (149 SCRA 351)

(a) Requisites for valid assessment

Case: CIR v. Pascor (309 SCRA 402)

(b) Constructive methods of income determination

(c) Inventory method for income determination

Case: Perez v. CTA (103 Phil 167)

(d) Jeopardy assessment

Revenue Regulations 7-2001

(e) Tax delinquency and tax deficiency

(ii) Power of the Commissioner to make assessments and prescribe additional

requirements for tax administration and enforcement

(a) Power of the Commissioner to obtain information, and to

summon/examine, and take testimony of persons

(iii) When assessment is made

Case: CIR v. Pascor (309 SCRA 402)

(a) Prescriptive period for assessment

Case: CIR v. Phoenix Assurance Co., Ltd. (14 SCRA 52)

(1) False, fraudulent, and non-filing of returns

(b) Suspension of running of statute of limitations

Cases:

• CIR v. Kudos Metal Corporation, (620 SCRA 232)

• Fernandez Hermanos, Inc. v. CIR (29 SCRA 552)

(iv) General provisions on additions to the tax

(a) Civil penalties
(b) Interest
(c) Compromise penalties

(v) Assessment process (Revenue Regulations No. 18-2013)

 (a) Tax audit
(b) Notice of informal conference
(c) Issuance of preliminary assessment notice
(d) Issuance of preliminary assessment notice
(e) Exceptions to issuance of preliminary assessment notice
(f) Reply to preliminary assessment notice
(g) Issuance of formal letter of demand and final assessment notice
(FLD/FAN)
(h) Disputed assessment
(i) Administrative decision on a disputed assessment

(vi) Protesting assessment

(a) Protest of assessment by taxpayer
(1) Protested assessment
(2) When to file a protest
(3) Forms of protest
(4) Content and validity of protest
(b) Submission of documents within 60 days from filing of protest
(c) Effect of failure to protest
(d) Period provided for the protest to be acted upon

Cases:
1. Samar-I Electric Cooperative v. CIR (744 SCRA 459)
2. Lascona Land Co., Inc. v. CIR (667 SCRA 455)

(vii) Rendition of decision by Commissioner

(a) Denial of protest
(1) Commissioner’s actions equivalent to denial of protest
Cases:
• CIR v. Isabela Cultural Corp. (361 SCRA 71)
• Republic v. Lim (16 SCRA 584)

(a) Filing of criminal action against taxpayer

(b) Issuing a warrant of distraint and levy

(2) Inaction by Commissioner

(viii) Remedies of taxpayer to action by Commissioner

(a) In case of denial of protest
(b) In case of inaction by Commissioner within 180 days from
submission of documents
Cases:
• RCBC v. CIR (522 SCRA 144)
• Lascona Land Co., Inc. v. CIR (667 SCRA 455)

(c) Effect of failure to appeal

b) Collection
(i) Requisites
(ii) Prescriptive periods
(iii) Distraint of personal property including garnishment
(a) Summary remedy of distraint of personal property
(1) Purchase by the government at sale upon distraint
(2) Report of sale to the Bureau of Internal Revenue (BIR)
(3) Constructive distraint to protect the interest of the government

(iv) Summary remedy of levy on real property

(a) Advertisement and sale
(b) Redemption of property sold
(c) Final deed of purchaser

(v) Forfeiture to government for want of bidder

(a) Remedy of enforcement of forfeitures
(1) Action to contest forfeiture of chattel
(b) Resale of real estate taken for taxes
(c) When property to be sold or destroyed
(d) Disposition of funds recovered in legal proceedings or obtained from
forfeiture

(vi) Further distraint or levy

(vii) Tax lien

(viii) Compromise
(a) Authority of the Commissioner to compromise and abate taxes

(ix) Civil and criminal actions

(a) Suit to recover tax based on false or fraudulent returns

c) Refund
(i) Grounds and requisites for refund
Case: Andrea Vda de Aguinaldo v. CIR (13 SCRA 269)

(ii) Requirements for refund as laid down by cases

(a) Necessity of written claim for refund
(b) Claim containing a categorical demand for reimbursement
(c) Filing of administrative claim for refund and the suit/proceeding
before the CTA within 2 years from date of payment regardless of any
supervening cause

Cases:
 • CIR v. TMX Sales, Inc. (205 SCRA 184)
• CIR v. CA (301 SCRA 435)
• BPI v. CIR (363 SCRA 840)
• CIR v. Philamlife (244 SCRA 446)
• CIR v. PNB (474 SCRA 303)
• CIR v. Primetown Property Group (531 SCRA 436)
• CIR v. Goodyear Philippines, Inc. (799 SCRA 489)

(iii) Legal basis of tax refunds

(iv) Statutory basis for tax refund under the tax code
(a) Scope of claims for refund
(b) Necessity of proof for claim or refund
(c) Burden of proof for claim of refund
(d) Nature of erroneously-paid tax/illegally assessed collected
(e) Tax refund vis-à-vis tax credit
(f) Essential requisites for claim of refund

(v) Who may claim/apply for tax refund/tax credit

Cases:
• Procter and Gamble Phils. (204 SCRA 377)
• Silkair Singapore (571 SCRA 141)

(a) Taxpayer/withholding agents of non-resident foreign corporation

(vi) Prescriptive period for recovery of tax erroneously or illegally collected

(vii) Irrevocability rule

Cases:
1. Rhombus Energy, Inc. v. CIR, G.R. No. 206362, 1 August 2018
2. University Physicians Services, Inc. v. CIR, G.R. No.
205955, 7 March 2018
3. Belle Corporation v. CIR (644 SCRA 433)
4. CIR v. DERF Realty (557 SCRA 165)
5. Philam Asset Management v. CIR (447 SCRA 772)

2. Government remedies
a) Administrative remedies
(i) Tax lien
(ii) Levy and sale of real property
(iii) Forfeiture of real property to the government for want of bidder
(iv) Further distraint and levy
(v) Suspension of business operation
(vi) Non-availability of injunction to restrain collection of tax

b) Judicial remedies
 3. Statutory offenses and penalties
a) Civil penalties
(i) Surcharge
(ii) Interest
(a) In general
(b) Deficiency interest
(c) Delinquency interest
(d) Interest on extended payment
4. Compromise and abatement of taxes
a) Compromise
b) Abatement

F. Organization and Function of the Bureau of Internal Revenue

1. Rule-making authority of the Secretary of Finance
a) Authority of Secretary of Finance to promulgate rules and regulations
b) Specific provisions to be contained in rules and regulations
c) Non-retroactivity of rulings
2. Power of the Commissioner to suspend the business operation of a taxpayer

Module 4 - Custom Modernization and Tariff Act (CMTA)

a. Read Sections 103, 104, 106, 113, 114, 120, 401, 402, 404, 423, 700, 701, 702, 703, 704,
705, 706, 709, 714, 800, 900, 913, 1000, 1002, 1003, 1100, 1106, 1126, 1127,
1128, 1136
b. Memorize all Special Duties & Trade Remedy Measures
c. Special attention to provisions related to Remedies
d. Read selected cases

• Commissioner of Customs v. Capistrano (G.R. No. L-11075, June 30, 1960)

• Kurst Nilsen v. Commissioner of Customs (89 SCRA 43)
• C.F. Stamp v. Commissioner of Customs (22 SCRA 760)
• Llamado v. Commissionerof Customs (G.R. No. L-28809, May 16, 1983)
• Commissioner of Customs v. Pascual (138 SCRA 581)
• Gako v. Commissioner of Customs (344 SCRA 178)
e. Read selected BOC issuances

Module 5 - Local Taxation

a. Read Sections 128 to 196 – RA No. 7160 (LGC)

 b. Memorize Sections 130 (Fundamental Principles), 133 (Common Limitations), 150
(Situs), and 195 (Protest).
c. Read pertinent portions of IRR of LGC related to item (a) above
d. Read selected cases

(i) Demaala vs. Comm. On Audit , ( G.R. 199752, February 17, 2015);
(ii) Prieto vs. City of Manila, G.R. 221366, July 18, 2019;
(iii)Randy Allied Ventures Inc. vs. City of Davao, G.R. 241697, July 29, 2019;
(iv) Cosmos Bottling Corp. vs. City of Manila, G.R. 196681, June 27, 2018;
(v) Noemi Cruz vs. City of Makati, G.R. 210894, September 12, 2018.
(vi) Matalin Coconut Company v. Malabang (143 SCRA 404)
(vii) Villanueva v. Iloilo (26 SCRA 578)
(viii) Ormoc Sugar Company v. Ormoc City (20 SCRA 739)
(ix) NPC v. City of Cabanatuan (401 SCRA 259)
(x) San Pablo v. Reyes (305 SCRA 353)
(xi) Meralco v. Lagura (306 SCRA 750)
(xii) PLDT v. City of Davao (363 SCRA 522)
(xiii) Phil. Petroleum Corporation v. Municipality of Pililia (198 SCRA 82)
(xiv) LTO v. City of Butuan (322 SCRA 805)
(xv) MIAA v. Parañaqe (495 SCRA 591)

e. Read selected local finance circulars/DILG circulars

Module 6 - Real Property Taxation

a. Read Sections 197 to 283 – RA No. 7160 (LGC)

b. Memorize Section 198 (Fundamental Principles), 215 (Classes of Real Property), 216
(Special Classes), 234 (Exemptions), 235 (SEF), 236 to 238 (Idle lands) and 270
(Period to collect)
c. Read pertinent portions of IRR of LGC related to item (a) above
d. Read selected cases:

(i) Mactan-Cebu Int’l Airport Authority vs. Lapu-Lapu City (G.R. 181756, June 15,
2015);
(ii) National Power Corp. vs. Province of Pangasinan, G.R. 210191, March 4, 2019;
(iii)University of the Philippines vs. City Treasurer of Quezon City, G.R. 214044,
June 19, 2019;
(iv) Army & Navy Club v. Trinidad (44 Phil 383)
(v) Reyes v. Almanzor (196 SCRA 322)
(vi) Allied Banking Corp. v. Quezon City (472 SCRA 303)
 (vii) Meralco v. CBAA (114 SCRA 260)
(viii) Caltex v. CBAA (114 SCRA 296)
(ix) Mindoro Bus Company v. City Assessor (6 SCRA 197)
(x) MIAA v. Parañaque (495 SCRA 591)
(xi) GSIS v. Iloilo City (493 SCRA 169)
(xii) Republic v. Kidapawan (477 SCRA 324)
(xiii) Lung Center v. Quezon City (433 SCRA 119)
(xiv) Serfino v. CA (164 SCRA 19)
(xv) Estate of the Late Jacob v. CA (283 SCRA 474)
(xvi) Talusan v. Tayag (356 SCRA 263)
(xvii) Tan v. Bantegui (473 SCRA 663)

e. Read selected local finance circulars/DILG circulars

Module 7 - CTA/Judicial Remedies

1. CTA Jurisdiction under CTA Laws (RA No. 1125, 9282 and 9503) – collection of taxes,
civil cases and criminal cases, appeal to CTA En Banc, Petition for Review to SC
2. CTA Rules of Court
3. Suspension of collection of taxes
4. Review again remedies under NIRC, CMTA and LGC and correlate with CTA
Laws/Rules of Court
5. Read selected cases

a. V.Y. Domingo Jewellers, Inc. vs. CIR, G.R. 221780, March 25, 2019;
b. Roca Security & Investigation Agency Inc. vs. CIR, G.R. 241338, April 10,
2019;
c. Misnet Inc. vs. CIR, G.R. 210604, June 3, 2019.
d. Yaokasin v. Commissioner of Customs (180 SCRA 591)
e. CIR v. Ayala Securities (70 SCRA 204)
f. Surigao Electric Company v. CTA (57 SCRA 523)
g. Oceanic Wireless Network v. CIR (477 SCRA 205)
h. Allied Banking Corporation v. CIR (611 SCRA 692)
i. Fishwealth Canning Corporation v. CIR (610 SCRA 524)
j. City of Manila v. Grecia-Cuerdo (715 SCRA 182)
k. Philamlife v. Secretary of Finance (741 SCRA 578)
l. Banco De Oro v. Secretary of Financce (800 SCRA 392)
m. Pacquiao v. CTA (789 SCRA 19)
n. PSALM v. CIR (835 SCRA 235)
o. Philippine Ports Authority v. City of Davao, G.R. No. 190324, 6 June 2018
p. CIR v. Kepeo Ilijan Corporation (794 SCRA 193)
q. CIR v. Leal (392 SCRA 9)
r. Commissioner of Customs v. Marina Sales, Inc. (635 SCRA 606)
s. Asia Trust Development Bank v. CIR (823 SCRA 648)
Other cases for research:

1. Univation Motor Phil. Inc. vs. CIR, G.R. No. 231581, April 10, 2019
2. Misnet Inc. vs. CIR, G.R. 210604, June 3, 2019
3. Bank of the Philippine Islands vs. CIR, G.R. 224327, June 11, 2018
4. V.Y. Domingo Jewellers, Inc. vs. CIR, G.R. 221780, March 25, 2019
5. Transfield Philippines vs. CIR, G.R. 211449, January 16, 2019
6. City of Manila vs. Coca Bottlers Inc., G.R. No. 181845, August 4, 2009
7. Covanta Energy Philippines Inc. vs. CIR, G.R. 203160, January 24, 2018
8. Capitol Wireless Inc. vs. Provincial Treasurer of Batangas, G.R. No. 183416, May 30,
2016
9. Coral Bay Nickel Corp. vs. CIR, CTA EB Nos. 1735 and 1737, July 18, 2019
10. BPI vs. CIR, G.R. 139736, October 17, 2000
11. Philippine Daily Inquirer vs. CIR, G.R. 213943, March 22, 2017
12. CIR vs. Fortune Tobacco Corp. G.R. No. 167274-75 (2008)
13. CIR vs. De La Salle University Inc. G.R. No. 196596, Nov. 9, 2016
14. PLDT vs. City of Davao, et al, G.R. No. 173867, August 22, 2001
15. ING Bank NV vs. CIR, G.R. No. 167679, April 20, 2016
16. CIR vs. Toledo Power Co, G.R. No. 196415, December 2, 2015
17. LG Electronics Phil. Inc. vs. CIR, G.R. No. 165451, December 3, 2014
18. Land Bank of the Phil. Vs. Cacayuran, G.R. No. 191667, April 17, 2013
19. Soriano vs. Secretary of Finance, G.R. No. 184450, Jan. 24, 2017
20. CIR vs. St. Lukes Medical Center Inc., G.R. No. 203514, February 13, 2017

MIDTERMS CUT-OFF (DATE IS TBD)

TEXTBOOK/REFERENCE BOOK:

Read as many taxation books as possible

POLICIES:
Policies and values that the professor might want to communicate through the
syllabus concerning attendance, participation, academic integrity (e.g.plagiarism,
cheating, fabrication), missing assignments, missed exams, recording classroom
activities, online behavior during synchronous sessions, etc.

1. Attendance will be checked by the beadle every online meeting.

2. Students who missed an announced quiz will get a grade of 65.
3. Students are prohibited from recording the online class as this is a violation of the
Copyright of the Professor.
Approved by:

Atty. Marciano G. Delson

Dean, College of Law