tax review outline (1)

8/20/2019 Tax Review Outline (1)

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AQUINAS UNIVERSITY COLLEGE OF LAW

Legazpi City

OUTLINE IN TAXATION LAW

General Priniple! "# Ta$ati"n

I% Ta$ati"nA. Theory and basis of taxation

1. Necessity Theory2. Lifeblood Theory3. Benets-Received Princile

!A"#"$1. !o%%issioner of &nternal reven'e v. Al('e.) et.al. L-

2**+,) eb 1) 1+**2. !o%%issioner of &nternal Reven'e v. To/yo "hiin(

!o.) Ltd.) et.al. 0.R. No. ,*22) ay 2,) 1++3. BP&-a%ily "avin(s Ban/ &nc.) v. !o'rt of Aeals) et.al.

0.R. o. 1224*5) Aril 12) 25554. Philiine Ban/ of !o%%'nications v. !&R) et.al. 0.R.

No. 11+524) 6an. 2*) 1+++B. P'roses of taxation

1. Reven'e or scal2. Re('lation

3. Pro%otion of 0eneral 7elfare4. Red'ction of "ocial &ne8'ality. #nco'ra(e #cono%ic 0ro9th,. Protectionis%

!. Princiles of a "o'nd Tax "yste%1. iscal Ade8'acy

• !have: v. ;n(in.) et.al. 0.R. No. ,*) 6'ne ,) 1++52. #8'ality or Theoretical 6'stice3. Ad%inistrative easibility


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•

. "coe of the Le(islative taxin( Po9er!A"#= Roxas) et.al. v. !TA L-2543) Aril 2,) 1+,* Philiine >ealth care Providers) &nc. v. !&R 0.R. No.

1,335) "ete%ber 1*) 255+0. Po9er of 6'dicial Revie9 in Taxation

!A"#$1. !&R v. Lin(ayen 0'lf #lectric Po9er !o.) L-231) A'(. 4)

1+,*2. !&R vs. "antos etc. etla. 0.R. No. 11+22) A'(. 1*) 1++

>. Nat're of the o9er of Taxation1. &nherent in "overei(nty2. Le(islative in Nat're3. "'b?ect to !onstit'tional @ &nherent Li%itations

!A"#"$1. actan !eb' &nternational Airort A'thority v. arcos

etc. 0.R. No. 1255*2) "et. 11) 1++,2. L':on "tevedorin( !or. vs. !TA) et.al. L-35232) 6'ly

2+) 1+**&. #ssential !haracteristics of tax

!A"#"$1.


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*. Restrictions on the aroriation of roceeds of taxation+. Prohibition a(ainst infrin(e%ent of reli(io's freedo%15. ;thers

!A"#"$1. Tolentino v. The "ecretary of inance et.al. 0.R. No.

114) A'(. 2) 1++42. "ison 6r. v. Ancheta et.al. 0.R. No. +431) 6'ly 2) 1+*43. British A%erican Tobacco vs. !a%acho) et.al. 0.R. No.

1,3*3) Aril 1) 255+4. Aba/ada 0'ro Party Lit.) et.al vs. #r%ita) 0.R. No.

1,*5,) "ete%ber 1) 255. ille(as v. >i' !hion( Tsai Pao >o et.al.CL-2+,4,) Nov.

15) 1+*,. Province of Abra v. >ernando. #tc. et.al. L-4+33, A'(.

31) 1+*1

. !&R v. Lin(ayen 0'lf #lectric Po9er !o.) &nc. L-231)A'(. 4) 1+**

*. P'nsalan v. 'nicial Board f the !ity of %anila + Phil

4,+. !ocon't ;il Reners Association) &nc.) et.al. vs. Torres

et.al. 0.R No. 1322) 6'ly 2+) 25515. ;r%oc "'(ar !o.) &nc v. Treas'rer of ;r%oc !ity)

et.al. L-23+4) eb 1) 1+,*11. Philiine Airlins v. The "ecretary of inance 0.R.

No. 11*2) A'(. 2) 1++412. A%erican Bible "ociety v. !ity of anila ) 151 Phil

3*,13. !a(ayan #lectric Po9er @ Li(ht !o.) &nc. v. !&R

0.R. No. ,512,) "et. 2)1+*14. Abra alley !olle(e &nc. v. A8'ino et.al. L-3+5*,)

6'ne 1) 1+**1. The Ro%an !atholic Bisho of N'eva "e(ovia v.

Provincial Board of &locos Norte 1 Phil 321,. !&R v. Bisho of the issionary


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IV% *"'+le ta$ati"n1.


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. aceda vs. acarai() 6r. et.al. 0.R. No. **2+1) ay 31) 1++1,. !&R v. !o'rt of Aeals 0.R. No. 152+,) eb. 15) 2555. Re'blic v. >eirs of !esar 6alandoni) L-1*3*4) "et 25) 1+,*. "an Pablo an'fact'rin( !ororation vs. !&R 0.R. No.

144+) 6'ne 22) 255,

+. PhiliineBan/in( !ororation vs. !&R) 0.R. No. 154) 6an'ary 35) 255+

VII% S"'re ! "# ta$ La)!VIII% C"n!tr'ti"n "# Ta$ la)!

A. Nat're of internal reven'e la9sB. 0eneral r'les of constr'ction of tax la9s 1. R'le 9hen le(islative intent is clear 2. R'le 9hen there is do'bt 3. Provisions (rantin( exe%tions

&E% Ta$ A,&ini!trati"n an, En#"re&ent A. A(encies &nvolved in Tax Ad%inistration B. A(ents and


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TAX RE-E*IESA.Tax re%edies

1. i%ortance2. !lassication

B. Re%edies Available to taxayersa. B#;R# PAH#NT

1. ProtestI Re8'ire%ents of a valid rotestIail're of the B&R to act 9ithin the 1*5-day eriodIAd%inistrative actions ta/en d'rin( the 1*5-day eriodI #Ject of a rotest led o't of ti%eI Re%edies fro% a denial of a rotest

2. !o%ro%iseb. AT#R PAH#NT

1. Ref'ndI Re8'ire%ents for !lai%s for ref'ndI Period 9ithin 9hich to le a clai% for ref'ndI


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#. Re8'isites for &nco%e to be Taxable.


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2. BasisDtest3.Re8'isites for taxability4.or%s of !o%ensation

#. R&N0# B#N#&T

1. 7hat is a rin(e BenetG2 .Benets not s'b?ect to BT3 .Benets 9hich are considered necessary to the b'siness of the

e%loyer orare (ranted for the convenience of the e%loyer

4. Nat're of rin(e Benets tax. P'rose of BT,. 7ho "ho'ld ay the BTG. 7hy is BT collected fro% the e%loyerG*. BT is not an additional tax on the e%loyer.+. Benets s'b?ect to BT15. 7ho are considered as ana(ersG"'ervisorsG Ran/ and ileG

. Allo9able ealth andDor >ositali:ation &ns'rance

0. B"&N#""DTRA


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(. >o9 is !&T co%'tedGh. 7hen is the !&T reorted and aidi. !an the co%any clai% the !&T it aid as a ded'ction fro%

(rossinco%eG

?. 7hat is the carry for9ard rovision 'nder the !&TG


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3. Losses fro% 9ash sales of stoc/s orsec'rities

4. !ertain caital losses b't only fro% caital(ains

.


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vi. @


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vi. Ret'rns of (eneral rofessionalartnershi vii. id'ciary Ret'rns viii. &nfor%ation ret'rns ix. #lectronically led ret'rns

c. &ndivid'als re8'ired to le a ret'rnd. "'bstit'ted ilin( of &nco%e tax Ret'rnse. !ororations No %atter >o9 created or ;r(ani:ed incl'din(

0eneralrofessional artnershis

f. #state and Tr'sts en(a(ed in Trade of B'siness

CASES/

1 CIR VS. PETRON CORPORATION;GR No. 185568, March 21, 20122 LASCONA LAND CO. INC. VS. CIR;GR No. 171251, March 5, 2012

CIR !". PILIPINAS S#ELL PETROLE$M CORP;GR No. 188%&7, A'r() 25, 2012% ACCENT$RE INC. !". CIR;GR NO. 1&0102, *+) 11, 20125 ANGELES $NIVERSIT- O$NDATION !". CIT- O ANGELES /.a).

GR No. 18&&&&, *+/ 27, 2012;6 CIT- O IRIGA VS. CAMARINES S$R ELECTRIC COOP., INC.GR NO. 1&2&%5,

S/'/3/r 5, 20127 CIR !". Ph()(''(/ G)o3a) Co+(ca(o Ic.GR NO. 1671%6, Oco3/r 1,

20068 PROTECTORS SERVICES, INC. !". CA a4 CIRGR No. 118176, A'r() 12, 2000& CIR !". (r" E'r/"" Pa"ho' Co'a Ic.GR No. 1720%5%6, *+/ 16,

200&

10 AN9 O T#E P#ILIPPINE ISLANDS !". CIR GR No. 1&76, Oco3/r 17,2005

11 $NITED AIRLINES INC. VS. CIR;GR No. 178788, S/'/3/r 2&, 201012 ILINVEST DEVT CORP. VS. CIR;GR No. 1%6&%1, A+:+" &, 20071 CIR !". AIC#I ORGING COMPAN- O ASIA INC.;GR No. 18%82, Oco3/r 6,

20101% PANASONIC COMM$NICATIONS IMAGING CORPORATION O T#E P#ILS. V".

CIRGR No. 1780&0, /3r+ar 8, 2010;

15 ELLE CORP !". CIR;GR No. 1812&8, *a+ar 10, 201116 CIR !". #ANTE TRADING CO., INC.;GR No. 16&75, March 1, 2005

17 CIR !". METRO STAR S$PERAMA, INC.;GR No. 18571, D/c/3/r 8, 201018 CIR !". 9$DOS METAL CORPORATION;GR No. 178087, Ma 5, 20101& CIR !". #o. Ra+) M. Go


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TRANSFER TAXES

I% Tran!#er Ta$e! 0Re1en'e Reg'lati"n N"% 2324456A. odes of Proerty Transfer

1. 0rat'ito's Transfera. act of


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!. Finds of


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. Life ins'rance co%anies,. A%'se%ent laces. "ale of shares of stoc/s in a local stoc/ exchan(e*. "%all b'siness 9ith ann'al sales of P1)55)555 C no9

1)+1+)55 and belo9

!. 7ithholdin( of ercenta(e taxVII% EXCISE TAX

A.


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I s'rchar(es) interest and enalties

B. Re%edies Available to the taxayer1. Ad%inistrative

I aeal to the "ecretary of 6'sticeI rotest of the assess%entI !lai% for ref'ndIRe%edies fro% denial of the rotest

2. 6'dicial

. 0rant of Tax #xe%tion by L0s

REAL PROPERTY TAXATIONA.0overnin( la9B. Nat're of Real Proerty taxes!. 'nda%ental rinciles

. al'ation of 0oods

1. >o%e !ons'%tion al'e C>!2. Transaction al'e

&. lexible TariJ 6. sei:'re and orfeit're cases

!A"#"$1. M("o !. Na(!(4a4 GR No. 82526, S/'/3/r 11, 1&&22. N/")/ Ph()(''(/" !. Co+r o? A''/a)" G.R. No. 1%11%, *+) 6,

2001

. Pro!(4/ Tr// ar" !. aar(o G.R. No. &2285, March 28, 1&&%


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tax review outline (1)

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