Taxation 2

Course Outline
ATTY. XANDRIX J. PERALTA, CPA

Part 1
A) Authority and Function of Secretary of Finance – Sec. 2, 4
(NIRC)
B) Powers and Duties of Bureau of Internal Revenue(BIR) – Sec. 2
i. Assessment and Collection
ii. Enforcement of forfeitures, penalties, and fines
iii. Execution of judgments
C) Bureau of Internal Revenue(BIR) Officers in General
i. Chief officials – Sec. 3, NIRC
ii. Other officers – Sec. 10, Sec. 11
D) Powers of the Commissioner of Internal Revenue(CIR)
i. Interpret and Decide Tax Case – Sec. 4
Know the Terms of the following:

• Revenue Regulations
• BIR Rulings
• Revenue Memorandum Circulars
• Revenue Memorandum Orders
• Revenue Audit Memorandum Orders
• Revenue Memorandum Rulings
• Revenue Bulletins
I. Interpret and Decide Tax Case

1. Power Sector Assets v. CIR, GR 198146, 8 Aug 2017

2. CIR v. Fortune Tobacco, GR 167274, 21 July 2008
3. Misamis Oriental Association v. Dept. of Finance, 238
SCRA 632
4. Non-retroactivity of Rulings – Sec. 246
II. Obtain Information, to Summon, Take
Testimony, etc. – Sec. 5, Section 3, TRAIN.

• CIR v. Gonzales, GR 177279, 13 Oct 2010

• Fitness by Design, Inc. v. CIR, GR 177982, 17 Oct
2008
III. Power to make Assessments, Etc. – Sec. 6; Section 4, TRAIN.

1. Examination of Returns and Determination of the Tax

Due
2. Best Evidence Obtainable
– CIR v. Hantex Trading, GR 136975, 31 Mar 2005
3. Authority to Terminate Taxable Period
4. Prescribed Real Property Values
5. Inquire Bank Deposits
IV. Delegation of Power; exception – Section 7

V. Other Powers
1. Power to Assign Internal Revenue Officers and
Employees – Sec. 16, Sec. 17

2. Power to Suspend Business