November 28, 2013

TAXATION 2
SY2015-2016 (2nd Semester)
Course Outline
Professor
:

JUDGE GILG. BOLLOZOS, CPA

____________________________________________________________________________
A.

Course Description
A study on the provisions relating to estate taxes, donor's taxes, value added tax, other
percentage taxes, excise taxes on certain goods and documentary stamp tax including tax
remedies as provided by the National Internal Revenue Codes. The topics on local
taxation, real property taxation, tariff and customs code as well as the jurisdiction of the
Court of Tax Appeals are included.

PART I

I.

ESTATE TAX (Sec. 84-97, NIRC)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22

2.

DONOR'S TA X (Sec. 98-104, NIRC)

1
2
3

3.

Lorenzo vs. Posadas, 64 Phil. 353

Dizon vs. Posadas, 57 Phil. 465
Villa de Roces vs. Posadas, 58 Phil. 108
Collector vs. Fisher, L-11621, January 28, 1961
Wells Fargo vs. Collector, 70 Phil. 505
Velilla vs. Posadas, 62 Phil. 624
Collector vs. Lara, 102 Phil. 813
Delpher vs. IAC, 157 SCRA 349
Gallardo vs. Morales, 107 Phil. 903
BPI vs. Posadas, 56 Phil. 215
Marcos II vs. CA, G.R. No. 120880, June 5, 1997
Balboa vs. Fanales, 51 Phil. 498
Vera vs. Navarro, 79 SCRA 408
Ozaeta vs. Palanca, 101 Phil. 976
Sison vs. Teodoro, 100 Phil. 1056
Vera vs. Fernandez, 89 SCRA 199
Estate of Hilario Ruiz vs. CA, 252 SCRA 541
Elegado vs. CTA, 173 SCRA 285
Commissioner vs. Pineda, 21 SCRA 104
Gonzales vs. CTA, 101 SCRA 633
CIR vs. CA, G.R. No. 123206, March 22, 2000
Dizon vs. CTA, G.R. No. 140944, April 30, 2008

Pirovano vs. Commissioner, 14 SCRA 832

Lladoc vs. Commissioner, 14 SCRA 293
TANG HO vs. CA, 97 Phil. 890

VALUE ADDED TAX (Sec. 105-115, NIRC)

1

2
3
4
5
6

Sec. 105-115, NIRC as amended by RA 8424 & RA 9238, February 5, 2004 and RA
9337 effective July 1, 2005, implemented by RR 16-2005 (November 1,2005) & RR No.
4-2007 (February 7, 2007)
Tolentino v. CIR, 235 SCRA 630
Tolentino v. CIR, GR No. 115455, October 30, 1995
ABAKADA v. Ermita, GR No. 168056, September 1, 2005
Rev. Regs. 2-88, Rev. Memo Order No. 22-92
Rev. Regs. 7-95
RMO 39-95
RMC 1-96 up to 7-96
Philamlife, CA GR SP 31283, April 25, 1995 (definition of royalty)

8
9
10
11
12
13
14

15
16
17
18
19
20
21
22
23
24
25
26
27
28
29

30
31
32
33

Are reimbursements subject to VAT? CIR v Court of Appeals, et al., G.R. No. 125355,
March 30, 2000. See also RMC 9-2006, January 25, 2006; clarifying amount subject to
VAT of brokers; RMC No. 39-2007, January 22, 2007
Opinion 40. April 22, 1996 - effectivity of VAT on other taxpayers
Improved VAT (IVAT) - RA 8241, December 20, 1996 (effectivity date -January 1, 1997)
(Rev. Regs. 6-97, January 2, 1997)
RR 8-99, April 26, 1999 - penalties for indicating separately VAT in sales invoice or
O.R. on sale of goods or services
RR 1-2005, December 28, 2004 amends RR 7-95 & RR 8-2002 re: VAT exemption on
real estate sales and rentals
RR 13-97
RR 7-99 - submission of diskettes for summary list of sales and purchases within the
following month at the close of each calendar quarter
RMC 74-99, October 15, 1999 - tax treatment of sales of goods and services made by
suppliers from western territory to a PEZA registered enterprise and sale transactions
made by PEZA registered enterprises within and without the zone.(Destination or
Cross Border Principle first adopted November 5, 1998, BIR ruling 032-98, Shimizu
Philippines)
American Express v. Commissioner, CA GR SP 62727, February 28, 2002 (zero rated
sale of service), SC GR 152609, June 28, 2005
CIR v. Burmeister and Wain, GR No. 153205, January 22, 2007
CIR v. Magsaysay Lines, GR No. 146984, July 28, 2006 (No VAT on sale not made in
trade or business)
Rev. Regs. 6-2001, July 31, 2001 (payment of VAT within 10 days after end of the
month), as amended by RR 8-2002 (filing of VAT returns, June 13, 2002)\
RR 17-2003, VAT on refined sugar as amended by RR 2-2004 (March 1, 2004)and RR
16-2005 and amended by RR 13-2008 (September 14, 2008)
RA No. 9361 (December 13, 2006) Repeal of 70% input VAT Cap as implemented by
RR No. 2-2007 (December 29, 2006)
CIR v. Seagate Technology Phils., GR No. 153811, February 11, 2005(effectively zerorated transactions with PEZA)
Microsoft Philippines, Inc. v. CIR, G.R. No. 180173, April 6, 2011
Commissioner of Internal Revenue v. Sony Philippines, Inc., G.R. No. 178697,
November 17, 2010.
KEPCO Philippines Corporation v. CIR, G.R. No. 181858, November 24, 2010
AT & T Communications Services Philippines, Inc. v. CIR, G.R. No. 182364, August 3,
2010
Silicon Philippines, Inc. v. CIR, G.R. No. 172378, January 12, 2011
Renato V. Diaz and Aurora Timbol v. Secretary of Finance, G.R. No. 193007, July 19,
2011
PAGCOR v. BIR, G.R. No. 172087, March 15, 2011
(1 )
Atlas v. CIR, G.R. Nos. 141104 & 148763, June 8, 2007
(2 Commissioner of Internal Revenue v. Aichi Forging Company of Asia, G.R. No.
184823, October 6, 2010
(3 Mirant v. CIR, C.R. No. 172129, September 12, 2008
(4 CIR v. San Roque, etc., G.R. No. 187485, February 12, 2013
CIR v. San Roque, etc., G.R. No. 187485, October 8, 2013
120 + 30 Rule
Counting of the 2 year period to claim VAT Refund
Doctrine of Operative Act
Fort Bonifacio Devt. Corp. v. CIR, G.R. Nos. 158885 and 170680, April 2, 2009
Commissioner of Internal Revenue v. Benguet Corporation, G.R. Nos. 134587 and
134588. July 8, 2005
Commissioner of Internal Revenue v. SM Prime Holdings, Inc. et al, G.R. No. 183505,
February 26, 2010
Commissioner of Internal Revenue v. The Philippine American Accident Insurance
Company, et al., G.R. No. 141658, March 18, 2005
Revenue Regulations No. 18-2011(penalties for violation of requirement that output tax
be separately indicated in invoice/OR)
Revenue Regulations No. 16-2011 (increasing threshold amounts under Section 109
(p),(q) and (v))

4.

OTHER PERCENTAGE TAXES (Sec. 116-128, NIRC)

Sec. 116
Tax on persons exempt from VAT
Sec. 117-118 Carriers tax as amended by RA 9377 (July 1, 2005)
Revenue Regulations No. 11-2011 (20 July 2011) - Revenue Regulations
Defining Gross Receipts for Common Carrier's Tax for International Carriers
pursuant to Section 118 of the Tax Code Amending Sec. 10 of Revenue
Regulations No. 15-2002
Sec. 119
Tax on franchises
Sec. 120
Overseas communications tax
Sec. 121
Tax on banks and financial intermediaries as amended by RA 7716 & RA
9238 (China Banking Corp. v. CTA, SC GR 146749, June 10, 2003 (base of
5% GRT on interest income), RA 9238 as implemented by RR 9-2004 (GRT
on banks),RA 9337, effective July 1, 2005 on increase of GRT to 7% on
other income of banks)
Sec. 122
Tax on finance companies (BIR Ruling, August 16, 1990 on credit card
companies as amended by RA 9238)
Sec. 123
Tax on Insurance premiums, as amended by RA 10001
Sec. 124
Tax on agents of foreign insurance companies
Sec. 125
Amusement taxes (RMC 8-88, February 19, 1888, p. 785, Nolledo)
Sec. 126
Tax on winnings
Sec. 127
Percentage tax on IPOs
Sec. 128
Payment of percentage taxes
Rev. Regs. 6-2001, July 31, 2001
Republic of the Philippines v. Sunlife Assurance Company of Canada, G.R. No.
158085, October 14, 2005
CIR v. Lhuiller, SC GR 150947, July 15, 2003 (pawnshop are not lending investors)
First Planters Pawnshop, Inc. v CIR, G.R. No. 174134, July 30, 2008
RR 10-2004, 5% GRT on pawnshops (beginning January 2004); also Money Shops or
Forex Shops (RR 4-2007)
1
2
3
4
5
6

5.

CIR vs. Solidbank Corp., G.R. No. 148191, Nov. 25, 2003
CIR vs. Bank of Commerce, G.R. No. 149636, June 8, 2005
CIR vs. BPI, G.R. No. 147375, June 26, 2006
CIR vs. City Trust Investment Phils./Asianbank Corp. vs. CIR, G.R. No. 139786, G.R.
No. 140857, Sept. 27, 2006
Republic of the Philippines vs. Sunlife Assurance Company of Canada, G.R. No.
158085, Oct. 14, 2005
Phil. Basketball Association vs. CTA, G.R. No. 119122, Aug. 8, 2000

EXCISE TA XES ON CERTAIN GOODS (Sec. 129-172, NIRC)

Chapters 1 and 2
Sec. 129 to Sec. 140, NIRC, as amended by RA 9334 (January 1, 2005), implemented
by RR 12-2004 and RR 3-2006, implementing guidelines on revised tax rates on
alcohol, etc. (January 3, 2006)
Chapter 3 - Excise tax on alcohol products
RA 9334, implemented by RR 12-2004
Philippines-Taxes on Distilled Spirits WTD/S396/AB/R and WT/DS403/AB/R,
December 21, 2011
Chapter 4 - Excise tax on tobacco products
Sec. 144 - 147, NIRC
RA 7654 - revised excise tax on cigars and cigarettes
RR 22-2003 - cigarettes
RR-9334 implemented by RR 12-2004
British American Tobacco v Jose Camacho et al., G.R. No. 163583, August 20, 2008;
motion for reconsideration, April 15, 2009
Chapters 5 and 6 - Excise tax on petroleum products and miscellaneous articles
Sec. 148 - 150, NIRC as amended by RA 9337 effective July 1, 2005 (deleting excise tax
on certain petroleum products)
RR 4-2003, January 29, 2003, Revised Regulations on Excise Tax of Automobiles
amended RR 14-99, October 13, 1999 (before Amendment by RA No. 9224)

Exxonmobil Petroleum and Chemical Holdings, Inc. Philippine Branch v CIR, G.R. No.
180909, January 19, 2011
Commissioner of Internal Revenue v. Pilipinas Shell Petroleum Corporation, G.R.
No.188497. April 23, 2012
1
2
3

Phil. Geothermal, Inc. vs. CIR, G.R. No. 154028, July 29, 2005, 465 SCRA 308
SILKAIR Pte. Ltd. vs. CIR, G.R. No. 173594, Feb. 6, 2008
Apex Mining Co., Inc. vs. CIR, G.R. No. 122472, Oct. 20, 2005

Chapter 7 - Excise tax on mineral products

Sec. 151, NIRC as amended by RA 7729, June 2, 1994
RA 8240, revision of excise taxes on cigarettes and alcoholic beverages
Revenue Regulations 1-97, December 13, 1996, method of computing specific tax on
cigars and cigarettes
Excise tax on cars, RA 9224, October 2003
RR 25-2003, new rules implementing RA 9224
Revenue Regulations 2-97, Specific tax on beer and alcoholic drinks
RR 9-2003, February 17, 2003, amending RR 1-97 and RR 2-97, excise tax on alcohol
products, cigars and cigarettes
RR 7-2002, June 4, 2002, revalidation of issued permits to establishments subject to
excise tax
6.

DOCUMENTARY STAMP TAX (Sec. 173-201, NIRC)

1
2
3
4
5
6
7
8
9
10
11
12
13
14

Del Rosario vs. Hamoy, L-77154, June 30, 1987

CIR vs. Fireman's Fund, L-30644, March 9, 1987
CIR vs. Heald Lumber, 10 SCRA 376
Gabucan vs. Manta, 95 SCRA 752
Lincoln Phil. Life Insurance Company, Inc. (now Jardine-CMG Life Insurance Com., Inc.
) vs. CA, G.R. No. 118043, July 23, 1998
Int'l Exchange Bank vs. CIR, G.R. No. 171266, April 4, 2007
Banco de Oro Universal Bank vs. CIR, G.R. No. 173602, Jan. 15, 2007
China Banking Corp. vs. CIR, C.T.A. Case No. 6400, Jan. 3, 2006
Banco de Oro Universal Bank vs. CIR, G.R. No. 173602, Jan. 15, 2007
International Exchange Bank vs. CIR, G.R. No. 171266, April 4, 2007
CIR vs. Lincoln Phil. Life Insurance Company, Inc. G.R. No. 119176, March 19, 2002
RP vs. Sunlife Assurance Company of Canada, G.R. No. 158085, Oct. 14, 2005
Blue Healthcare, Inc. vs. Olivares, G.R. No. 169737, Feb. 12, 2008
Phil. Health Care Providers, Inc. vs. CIR, G.R. No. 167330, June 12, 2008

Sec. 173 - 201, NIRC, as amended by RA 8424 & RA 9243 (February 7, 2004) & RR132004
CIR v. Construction Resources of Asia, Inc. - 145 SCRA 673 (issuance of shares of stock)
Phil. Consolidated Coconut Industries ( 70 SCRA 22)
RMC 44-86, December 4, 1986, p. 877, Nolledo
RA 7660, December 23, 1993, effective January 14, 1994
Rev. Regs. 9-94, March 8, 1994, New DST Regulations
Rev. Regs. 6-2001, July 31, 2001 (Payment of DST within 5 days)
As amended by RR 15-2001 (October 16, 2001)
Exemption from DST of shares listed and traded in Stock Exchange for 5 years from2004
(RA 9243) and tax free exchanges (RA 9243) and RR 13-2004
Banco de Oro v. CIR, CTA E.B. No. 165 (August 15, 2005), SSA subject to DST as time
deposit certificate
CIR v. First Express Pawnshop Company, Inc., G.R. Nos. 172045-46, June 16, 2009
CIR v. Filinvest Development Corporation, G.R. No. 163653, July 19, 2011
CIR v. Manila Bankers' Life Insurance Corporation, G.R. No. 169103, March 16, 2011
Supreme Transliner, Inc. et al. v. BPI Family Savings Bank, Inc., G.R. No. 165617,February
25, 2011
7.

REMEDIES (Sec. 202-231, NIRC)

1

Sec. 4, NIRC, Power of Secretary of Finance to review rulings of CIR as implemented

by RMC 44-2201, October 11, 2001 and DOF Order 7-02, May 7,2002

2
3
4

5
6

Sec. 6 - Sec. 17, NIRC

Sec. 2002 - Sec. 282, NIRC
Rev. Regs. 12-99 implementing the provisions of the NIRC on rules of assessment,
civil penalties and interest and extra-judicial settlement of taxpayer's criminal violation
under RMO 1-905.
RR No. 11-2006, June 15, 2006 (Accreditation of Tax Practitioners to Practice before
BIR)
Cases:
a RP v. CTA & Nielson & Co., GR L-38540, 149 SCRA 351Demand letter/follow-up
letter for payment of taxes considered notice of assessment.
b Collector v. Bautista, L-12250, L-12259, May 27, 1959Notice of Assessment
deemed made when notice is released, mailed and does not require that notice be
received within 3 years period
CIR v. Metro Star Superama, Inc., G.R. No. 185371, December 8, 2010.
c Republic v. Ricarte, GR L-46893, November 12, 1985 (action to assess prescribed
since there was no proof that notice was sent)
d i)
Advertising Associates v. CTA, 133 SCRA 765, p. 939, Nolledo. Reviewable
decision of CIR is where he directs taxpayers to appeal to CTA not mere
issuances of warrants of distraint and levy
ii)
CIR v. Union Shipping, GR 66160, May 21, 1990. Demand to pay deficiency
tax considered final decision of CIR
iii) Surigao Electric v. CTA, 57 SCRA 523. CIR should categorically state whether
order is final determination so that it can be appealed to CTA
e
i) CIR v. Isabela Cultural Corporation, GR 135210, July 11,2001. Final demand
letter from BIR is tantamount to denial of request for reconsideration which is
therefore appealable to CTA
ii)
Oceanic Wireless Network v. CIR, GR 148380, December 9, 2005. Final
demand letter from Accounts Receivable Division Head was final decision of
the CIR and constituted appealable decision to CTA
f
Gibbs v. Commissioner, L-17406, November 29, 1965 (period to file refund claim)
and Gibbs v. Collector, GR No. L-13453, February 29,1960 (2-year period is
absolute)
(If income of taxpayer is withheld at source he is deemed to have paid his tax
liability at the end of the tax year. It is from this date that the 2-year period will run.)
g CIR v. TMX Sales & CTA, GR 83736, January 16, 1992 (when to count 2-year
period if on installment basis). If TP pays income tax on quarterly basis, the 2-year
period is counted from the time of filing final adjustment return.
Commissioner v. Philamlife Insurance Co., GR 105208, May 29, 1995. Obiter by
Justice Vitug referring the 10-year period on taxes not erroneously/illegally paid.
Likewise, the claim must be filed within 2 years regardless of supervening cause.
Also, this case, Pacific Pro., Ltd. Case (GR 68013, November 12, 1984) counting of
two-year prescriptive period for filing claim for refund of overpaid corporate income
tax starts from time final adjustment return is filed.
United Airlines v. CIR, G.R. No. 178788, September 29, 2010
h CIR v. Wyeth, GR 762281, September 30, 1991. (Sec. 222 & 223request for
reinvestigation suspends the 5-year period for collection of tax.
i
ABS-CBN Broadcasting Corp. v. CTA, 108 SCRA 143 (non-retroactivity of rulings)
requiring 3 years back taxes after previous circular violated Sec. 246
j
Emilio S. Lim v. Court of Appeals, GR L-48134-37, October 18, 1990. Prescriptive
period to file criminal case under Sec. 281, NIRC, 5 years from failure to pay tax
after notice and demand.
k Commissioner v. Court of Appeals, Lucio Tan, et al., GR 119322, June 4, 1996.
l
Commissioner v. Court of Tax Appeals and Fortune Tobacco, GR119761, August
29, 1996.
m CIR v. Pascor Realty & Development Corp., GR 128315, June 29, 1999.
Assessment not necessary before filing criminal complaint for tax evasion based
on Sec. 222 itself.
n CIR v Lascona Land Co., Inc. CA-G.R. SP No. 58061. October 25, 2005 When to
elevate assessment to CTA
o San Agustin v. CIR, GR 138485, September 10, 2001. TP can appeal a disputed
assessment despite payment of deficiency tax. Filing of refund not necessary for
this purpose.

Philippine Journalists, Inc. v. CIR, GR 162852, December 16, 2004. Waiver of

prescription must be executed properly per RMO 20-90, otherwise, invalid.
q CIR v. Phil. Global Communications, GR No. 167146, October 31, 2006.
Prescriptive period to collect taxes assessed by CIR.
r
RCBC v. CIR, GR No. 168498, April 24, 2007. Options for disputing tax
assessment mutually exclusive under Section 227.
s BPI v. CIR, GR No. 174942. Suspension of collection requires request for
reinvestigation to be granted.
t
Petron Corporation v. CIR, G.R. No. 180385, July 28, 2010.
u CIR v. Gonzales, et al., G.R. No. 177279, October 13, 2010
v Estate of Juliana Diez Vda. De Gabriel v. CIR, GR No. 15554E, January 27, 2004
Regulations
Revenue Regulations 12-85, November 27, 1985
Revenue Regulations 2-90, May 25, 1990
RR 12-99 implementing the provisions of the NIRC, Sec. 6, 7, 204, 228, 247,248 and
249 on assessments of taxes and civil penalties and interest and extrajudicial
settlement of taxpayers criminal violation under RMO 1-90
Revenue Regulations 2-78
RMC 48-90, April 23, 1990 (counting of 3-year period of 365 x 3 regardless of leap
year and Asianbank v. Commissioner, CTA Case No. 6095, October 9, 2001)
p

7.

CIR v. Enron Subic Power Corp. G.R. No. 166387, January 19, 2009
CIR v. FMF Development Corp. G.R. No. 167765, June 30, 2008
FEBTC v. CIR, G.R. No. 138919, May 2, 2006
CIR v. Azucena Reyes, G.R. No. 159694, January 27, 2006
Judy Anne L. Santos v. People of the Phils., G.R. No. 173176, August 26, 2008
Fitness by Design, Inc. v. CIR, G.R. No. 177982, October 17, 2008
Asia International v. Parayno, 540 SCRA 536 (2007)
British American Tobacco v. Camacho, 562 SCRA 511 (2008)
Atlas v. CIR, G.R. Nos. 141104 & 148763, June 8, 2007
Commissioner of Internal Revenue v. Aichi Forging Company of Asia, G.R. No. 184823,
October 6, 2010
Mirant v. CIR, C.R. No. 172129, September 12, 2008
CIR v. San Roque, etc., G.R. No. 187485, February 12, 2013
CIR v. San Roque, etc., G.R. No. 187485, October 8, 2013
120 + 30 Rule
Counting of the 2 year period to claim VAT Refund
Doctrine of Operative Act
8.

COMPLIANCE REQUIREMENTS (Sec. 232-246, NIRC)

1
2

9.

Thomson Shirt Factory vs. Collector, CTA Case No. 377, August 27, 1963
Lim Hoa Ting vs. Central Collector, 104 Phil. 573

STA TUTORY OFFENSES AND PENALTIES (Sec. 247-282, NIRC)

1
2
3
4
5
6
7
8
9
10
11
12

Manila B. Castro vs. Collector of Internal Revenue, G.R. No. L-12174, April 26, 1962
Hilado vs. Collector of Internal Revenue, et al., G.R. No. L-9408, October 31, 1956
CIR vs. City Trust Banking Corp., et al., G.R. No. 106611, July 21, 1994
Collector vs. Clement, G.R. No. L-12194, January 24, 1959
Collector vs. Solano, G.R. No. L-11475, July 31, 1958
Bisaya Land Transportation Co. Inc. vs. Collector, G.R. No. L-12100, May 29, 1959
Alfredo Bollozos vs. CTA, et al., G.R. No. L-16441
Republic vs. Pedro B. Patanao, G.R. No. L-22356, July 21, 1967
People vs. Gregorio Balagtas, G.R. No. L-10210, July 29, 1959
Philippine International Fair, Inc. vs. Collector, G.R. Nos. L-12928 and L-12932, March
31, 1962
People vs. Ildefonso Tierra, G.R. Nos. L-17177 to 17180, December 28, 1964
People vs. Gregorio Balagtas, G.R. No. L-10210, July 29, 1959

B.

PART II

1.

LOCA L TA XATION (R.A. 7160)

Section 5, Article X, 1987 Constitution
Local Government Taxation
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27

2.

Section 128 - 196 (LGC)

Alejandro Ty v. Hon. Trampe & Municipal Assessor of Pasig, GR 117577, December
1,1995
Rule XXX, Art. 217 - 287 (Rules and Regulations Implementing the Local Government
Code)
Local Finance Circular 1 - 93 (banks)
Local Finance Circular 2-93 (insurance companies)
Local Finance Circular 3-93 (finance companies)
Memo Circular 92-02, January 16, 1992, issued by the Department of Interior and
Local Government
Memo Circular 5-93, October 22, 1993, issued by the Department of Finance
Sec. Drilon v. Mayor Lim, GR 112497, August 4, 1994, Manila Tax Ordinance
Coca-Cola Bottlers Phils., Inc. v. City of Manila, GR No. 156252, June 27, 2006
(validity of Manila Tax Ordinance)
International Container Terminal Services, Inc. v. City of Manila, CTA A.C. No. 11,
May 22, 2006 (Manila Tax Ordinance Sec. 21(A) - Double Taxation)
Phil. Match Co., Ltd. v. City of Cebu, 81 SCRA 99, January 18, 1999 (situs of payment
of local business tax)
PLDT v. City of Davao, GR No. 143867, March 25, 2003. (PLDT liable to franchise tax
imposed by city)
Palma Development Corp. v. Municipality of Malangas, GR 152492, October 16, 2003
PLDT v. Province of Laguna, GR 151899, August 16, 2005
Yamane v. BA Lepanto Condo. Corp., SC GR 154993, October 25, 2005
(condominium corporation is not business entity)
Ericsson Telecoms Inc. v. City of Pasig, GR No. 176667, November 22, 2007
Lepanto Consolidated Mining Company v. Hon. Mauricio B. Ambaloc in his capacity
as the Provincial Treasurer of Benguet, G. R. No. 180639, June 29, 2010
Angeles City v. Angeles City Electric Corporation and Regional Trial Court Branch 57,
Angeles City, G.R. No. 166134, June 29, 2010
Mactan vs. Marcos, G.R. No. 120082, Sept. 11, 1996
City Gov't. of San Pablo vs. Reyes, G.R. No. 127708, March 25,1999
Prov. Of Bulacan vs. CA, G.R. No. 126232, Nov. 27, 1998
First Phil. Ind. Corp. vs. CTA, G.R. No. 125948, Dec. 29,1998
Manila Electric vs. Province of Laguna, G.R. No. 131359, May 5, 1999
PBA vs. CA, G.R. No. 119122, Aug. 8, 2000
Valley Trading Co. vs. CFI of Isabela, 171 SCRA 501
Estanislao vs. Costales, 196 SCRA 853

REAL PROPERTY TAXATION (R.A . 7160)

Section 197-294
A rticle 415, Civil Code of the Philippines
1
2
3
4

Sec. 197 to 283 Local Government Code

Definition of Machinery and Equipment
Sec. 199
Local Government Code
Sec. 299
Implementing Rules and Regulations

5
6
7
8
9
10
11
12
13
14
15

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

202
215-216
218
226-230
232-235
234
237
250-251
252
255
270

Declaration of real property

Classes of real property
Assessment levels
Local Board Assessment Appeals Central Board Assessment Appeals
Rates of levy
Exemption from real property tax
Idle lands
Payment of real property taxes and discounts
Protest
Interest on unpaid taxes
Period to collect real property taxes

Cases:
1.
2.
3.
4.
5.
6.
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

3.

Lung Center of the Philippines v. Quezon City, GR 144104, June 29, 2004
(Exemption based on actual use)
Mactan Airport Authority v. Pres. Marcos, GR 120082, September 11, 1996
(Exemption from real property tax lifted by RA 7160 (LGC))
Manila International Airport Authority v. Court of Appeals, GR No. 155650, July 20,
2006 (Exemption from RPT of MIAA)
Quezon City Gov't. v. BayanTel Corp., GR No. 162015, March 6, 2006
Sta. Lucia Realty and Development, Inc. v. City of Pasig, G.R. No. 166838, June
15, 2011
Ty vs. Trampe, G.R. No. 117577, Dec. 1, 1995
Callanta vs. Ombudsman, G.R. No. 11523-74, Jan. 30, 1998
Mactan vs. Marcos, G.R. No. 120082, Sept. 11, 1996
Testate Estate of Concordia Lim vs. City of Manila, G.R. No. 90639, Feb. 21, 1990
Mindanao Bus vs. CDO, G.R. No. L-17870, Sept. 29, 1962
Caltes vs. CBAA, G.R. No. L-47943, May 31, 1982
Meralco vs. CBAA, G.R. No. L-46245, May 31, 1982
City of Baguio vs. Busuego, G.R. No. L-29772, Sept. 18, 1980
SSS vs. City of Bacolod, G.R. No. L-35726, July 21, 1982
BOAA vs. Samar Mining, G.R. No. L-28034, Feb. 27, 1971
City Treasurer of QC vs. CA, G.R. No. 120974, Dec. 22, 1997
NPC vs. Presiding Judge of RTC-Branch 25, CDO, G.R. No. 72477, Oct. 16, 1990
Reyes vs. Almanzor, G.R. No. 49839 - 46, April 26, 1991
Pecson vs. CA, G.R. No. 105360, May 25, 1993
Mathay vs. Sec. of Finance, G.R. No. 102319, Dec. 16, 1993
Patalinghug vs. CA, G.R. No. 104786, Jan. 27, 1994
Sesbreo vs. CBAA, G.R. No. 106588, March 24, 1997
Lopez vs. City of Manila, G.R. No. 127139, Feb. 19, 1993
Cag. Robina vs. CA, G.R. No. 122451, Oct. 12, 2000
Light Rail Transit vs. CBAA, G.R. No. 127616, Oct. 12, 2000

THE TARIFF AND CUSTOM CODE

I. CONCEPT
A. The Tariff and Customs Code
B. The Bureau of Customs Duties, power and jurisdiction
II. ARTICLES SUBJECT TO DUTY
A. Export (suspended except on logs) and import duties
B. Meaning of Importation (Sec. 1201, 1202)
C. Classes of Importation
a. Dutiable importation - Section 100
b. Prohibited importations - Sec. 101, 1207
c. Conditionally-free importation - Sec. 105
III. RATES OF DUTY
A. General Rules (Sec. 104)
B. Basis of Duty (Secs. 201, 202, 204, 205, 1308-10, 1313)Customs Administrative
Order 2-96, June 14, 1996RA 8181 (transaction value), as amended by RA 9135CAO 2-99,
implementing RA 8181 on customs dutiable value and CAO05-2001 implementing RA 9135
C. Special Duties

a. Dumping Sec. 301

b. Countervailing Sec. 302
c. Marking Sec. 303
d. Discriminatory Sec. 304
D. Flexible Tariff rates (Sec. 401)
IV. IMPOSITION OF DUTIES
A. Persons liable - Sec. 1203-5
B. Declaration - Sec. 1302-1307
C. Examination, appraisal and classification - Sec. 1405-8 Commissioner of Customs v.
Marina Sales, Inc., G.R. No. 183868
D. Assessment of Taxes
E. Liquidation - Sec. 1601-1603
V. REMEDIES OF THE GOVERNMENT
A. Extrajudicial
1. Enforcement of Tax Lien - Sec. 1508
2. Seizure and Forfeiture - Sec. 2205, 2301-2316B. Judicial
VI. REMEDIES OF THE TAXPAYER
A Refund - Sec. 1707-8
B B. Protest - Sec. 2308, 2310, 2309, 2312
C Abandonment - Sec. 1801-3D. Amendments by RA 9135 - Sec. 3514 (post entry
audit);
Sec.
3517(compulsory
acquisition
of
grossly
undervalued
goods)Commissioner of Customs v. AGFHA Incorporated, G.R. No. 187425, March
28, 2011Chevron Philippines, Inc. v. Commissioner of the Bureau of Customs, G.R.
No. 178759,August 11, 2008
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

ASAALI v. COC, 26 SCRA 383

Felicisimo Rieta v. People of the Philippines, G.R. No. 147817, August 12, 2004; 436
SCRA 273
De la Fuente v. De Veyra, G.R. No. L-35385, January 31, 1983; 120 SCRA 451
National Development Company v. Collector of Customs, 9 SCRA 429
Chia v. Acting Collector of Customs, G.R. No. L-43810, September 26, 1989; 177
SCRA 755
Republic v. Court of First Instance of Manila, 213 SCRA 222
Jao v. CA, G.R. No. 104604, October 6, 1995
Ponce Enrile v. Vinuya, 37 SCRA 381
Collector of Customs v. Torres, 45 SCRA 273
Collector of Customs v. Villaluz, June 18, 1976, 71 SCRA 356
Mison v. Natividad, 213 SRCA 734
Zuno v. Cabredo, April 30, 2003, 402 SCRA 75
Bureau of Customs v. Ogario, G.R. No. 138081, March 30, 2000, 329 SCRA 289
Feeder International Line v. Court of Appeals, 197 SCRA 842
Tenorio v. Court of Appeals, G.R. No. 110604, October 10, 2003, 413 SCRA 234
Tong Tek, et al v. The Commissioner of Customs, G.R. No. L-11947, June 30, 1959,
105 SCRA 1071
Farolan, Jr. v. Court of Tax Appeals, 217 SCRA 298
Yaokasin v. COC, 180 SCRA 591
Negros Navigation Co., Inc. v. Commissioner of Customs, 8 SCRA 250
CMS State, Inc. v. Commissioner of Customs, 10 SCRA 14
People v. Court of First Instance of Rizal, 101 SCRA 86
Commissioner of Customs v. Alikpala, 36 SCRA 208
C.F. Sharp & Co., Inc. v. Commissioner of Customs, February 26, 1968, 22 SCRA 760
Verneza v. Commissioner of Customs, 24 SCRA 394
Llamado v. Commissioner of Customs, May 16, 1983, 122 SCRA 118
Commissioner of Customs v. Court of Tax Appeals, No. 131733, September 20, 1985,
138 SCRA 581
Commissioner of Customs v. Manila Star Ferry, Inc., October 21, 1993, 227 SCRA 317
Acting Commissioner of Customs v. Court of Tax Appeals, No. L-62636, April 27, 1984,
129 SCRA 70
Commissioner of Customs v. Navarro, No. L-33146, May 31, 1977, 77 SCRA 264
COC v. CTA, 328 SCRA 822

31
32
33
34

4.

Nestle v. CA, G.R. No. 134114, July 6, 2001

COC v. Phil. Phosphate, G.R. No. 144440, September 1, 2004
Viduya v. Berdiago, 73 SCRA 553
Pacis v. Pamaran, 56 SCRA 16

COURT OF TAX A PPEALS

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23

Rep. vs. Lim Tian Teng, 16 SCRA 584

CIR vs. Alikpala, L-32542, Nov. 26, 1970
CIR vs. Ayala, L-29485, May 31, 1976
CIR vs. Gonzales, L-19495, Nov. 24, 1966
Surigao Electric vs. CTA, L-25289, June 28, 1974
COC vs. Planters Product, 82018, March 16, 1989
DYPAC vs. CTA, L-31369, Oct. 18, 1977
Morales vs. CIR, L-16759, aug. 31, 1966
Tuazon & Legarda Vs. CIR, L-18552, Sept. 30, 1965
Roman Catholic vs. CIR, L-16683, Jan. 31, 1962
CIR vs. Union Shipping, No. 66160, May 21, 1990
Yabes vs. Flojo, L-46954, July 20, 1982
CIR vs. Concepcion, L-23912, March 15, 1968
Aguinaldo vs. CIR, L-29790, Feb. 25, 1982
CIR vs. Procter, No. 66838, April 15, 1988
CIR vs. Procter, No. 66838, Dec. 2, 1991 Resolution
Plaridel vs. CIR, L-21520, Dec. 11, 1967
CIR vs. Wander, No. 68375, April 18, 1988
Abra Valley vs. Aquino, L-39086, June 15, 1988
COC vs. Cloribel, 19 SCRA 234
Pantoja vs. David, 1 SCRA 608
Filipinas Investment vs. COMM, 20 SCRA 50
Advertising Asso. vs. CA, G.R. No. 59758, Dec. 26, 1984

C. Digest of cases shall be written in your OWN HANDWRITING on a notebook with table of
contents following the listing of cases as chronologically assigned.
Digest of cases covering Part I (General Principles of Taxation) shall be submitted on
the Midterm Exam schedule.
Digest of cases for Part II (Income Taxation, Remedies, Statutory Offenses) shall be
submitted on the Final Exam schedule.
Digest of cases shall be written using this format:
TITLE
FACTS
ISSUE/S
RULING
D.

Computation of Grades
1 MIDTERM GRADE (MG)
a 20% (Quizzes, Attendance, Recitation, Notebook)
b 30% (Prelim Exam)
c 50% (Midterm Exam)
2 FINAL GRADE
d 20% (Quizzes, Attendance, Recitation, Notebook)
e 30% (Semifinal Exam)
f 50% (Final Exam)
3 Average of Midterm and Final Grade will be the official grade to be submitted to the
Dean's Office.