Tax I Syllabus SY 2014 2015 1 Atty.

Jon Ligon
Lyceum College o La!
PART I TAXATION IN GENERAL
CHAPTER I: GENERAL PRINCIPLES OF TAXATION
i. TAXATION
A. Definition 71 Am Jur 2
nd
342
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B. Nature of Internal Revenue Law Hild! " CIR 1## P$il 2%%
C. Scoe and Nature of !a"ation
#. Scoe 71 Am Jur 2
nd
3&4'3&(
Si)!n " An*$+, 13# SCRA -(4
*i,in. C.J. J!$n /r)$ll 0/*Cull!*$ " /r1lnd2
nd J. H!lm+) 0Pn$ndl+ Oil C!. " /i))i))i33i2
R+1+) ". Almn4!r 1&- SCRA 322
$. Nature 71 Am Jur 2
nd
3&7'3&%
S2% A5I6 1&%7C!n),i,u,i!n
%. Cases CIR " Pin+d 21 SCRA 1#(
P$il. Gurn,1 " CIR 13 SCRA 77(
C!ll+*,!r " 7u)+*! 3 SCRA 313
CIR " Al.u+6 In*. L'2%%&- F+8 176 1&%%
D. Asects of !a"ation 71 Am Jur 2
nd
342
&. 'nderl(ing t)eor( and basis 71 Am Jur 2
nd
34-'347
*. +rinciles of a sound ta" s(ste, C$"+4 " On.3in 1%- SCRA 331
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G. Co,arison wit) +olice +ower and &,inent Do,ain
#. Si,ilarities
$. Distinctions 71 Am Jur 2
nd
3&('3&7
%. Cases P$il /,*$ C!. ". C+8u %1 SCRA &&
/,lin " /un. C!un*il !; /l8n. 143 SCRA 4#4
Lu,4 " Arn+, &% P$il 4%
NTC " CA 311 SCRA (#%
ii. TAXES
A. Definition 71 Am Jur 2
nd
343'34-
B. &ssential C)aracteristics of !a"es
C. !a"es distinguis)ed fro,:
#. Debts 71 Am Jur 2
nd
34('34-
Cl,+9 " COA 2#% SCRA 72-
Frn*i " IAC 1-2 SCRA 7(3
RP " Eri*, nd Sm3.ui, Pi*,ur+) 172 SCRA -(3
Tax I Syllabus SY 2014 2015 2 Atty. Jon Ligon
Lyceum College o La!
>!min.! " Crli,!) % SCRA 443
$. License *ees. 71 Am Jur 2
nd
3(2'3(3
Pr!.r+))i"+ >+". C!r3. " ?C 172 SCRA -2&
PAL " Edu 1-4 SCRA 32#
ESSO " CIR 17( SCRA 14&
%. Secial Assess,ents 7now secial levies under t)e #//# Local
Govern,ent Code8
A3!),!li* Pr+;+*, " Tr+)ur+r !; @.ui! 71 P$il. (47
0. !olls 71 Am Jur 3(1
9. +enalties N>C " CIR 1(1 SCRA 472
:. Custo, duties
iii. CLASSIFICATION OF TAXES
A. As to sub;ect ,atter 71 Am Jur 2
nd
3(7'3-1
B. As to incidence 71 Am Jur 2
nd
3(4
C. As to deter,ination of a,ount 71 Am Jur 2
nd
3((
D. As to uroses
&. As to scoe
*. As to graduation or rate
CHAPTER II: LI/ITATION <PON THE POAER OF TAXATION
I. INHERENT LI/ITATIONS
A. +ublic +uroses
#. <eaning of ublic urose
$. Cases: Lu,4 " Arn+, &% P$il. 4%
P)*ul " S+*. O; Pu8li* A!r=) 11# P$il. 331
B. !a"ing ower ,a( not be delegated
#. In general = -elegata #otestas non #otest 'elega.i
$. &"cetions
%. Cases: P$il C!mm. S,+lli,+ C!r3. ". Al*u4 1%# SCRA 21%
/+rl*! ". Pr!". O; L.un 3#- SCRA 7(#
P+3)i'C!l C!. " Ci,1 !; @u,un 24 SCRA 7%&
Smi,$ @+ll B C!. " CIR6 L'2%271 Jul1 2(6 1&7(
C. &"e,tion of govern,ent agencies
#. Reason for t)e e"e,tion
$. &"cetion
a. S270C2 ) m+nd+d 81 RA &337
8. S3#0I2 NIRC
*. S320@2072082
%. &"e,tions on G3CCs
. P$ili33in+ P!r,) Au,$!ri,1 "). Ci,1 !; Il!il! GR N!.
1#&7&16 Jul1 146 2##3
8. /IAA "). CA GR 1((-(# Jul1 2#6 2##-
*. P$ili33in+ Fi)$+ri+) >+"+l!3m+n, Au,$!ri,1 "). CA GR
1-&%3- Jul1 316 2##7
D. International Co,it(
6 in #a. #a.em/ non "abet im#e.ium
&. !erritorialit( or Situs of !a"ation
#. <eaning and scoe of li,itation
$. Situs of !a"ation
a. <eaning
b. Deter,ination of Situs
c. Situs of sub;ects of ta"ation
Tax I Syllabus SY 2014 2015 & Atty. Jon Ligon
Lyceum College o La!
i. +ersons S1(7'1(%6 1&&1 LGC
ii. Le" Situs or Le" Rei Sitae 6 Real +roert(
iii. <obilia Se>uuntur +ersona, 6 +ersonal +roert(
iv. Inco,e
v. Business? 3ccuation? !ransaction
vi. !ransfer of roert( b( deat) or gift
d. <ultile situs of ta"ation
%. Cases /nil G) ". C!ll+*,!r -2 P$il %&(
5+.+,8l+ Oil C!r3. " Trinidd 4( P$il. %22
A+ll) Fr.! @n= " C!l 7# P$il. 32(
II. CONSTIT<TIONAL LI/ITATIONS
A. Due rocess Clause
S1012 AIII6 1&%7 C!n),i,u,i!n
C!m. !; Cu),!m) " CTA B Cm3!) Ru+d C!. 1(2 SCRA -41
P$il @n= !; C!mm ". CIR 3#2 SCRA 241
Si)!n " An*$+, 13# SCRA -(4
B. &>ual +rotection Clause
S1 AIII6 1&%7 C!n),i,u,i!n
Orm!* Su.r C!. ". Tr+)ur+r !; Orm!* Ci,1 22 SCRA -#3
5ill+.) ". H)ui C$i!n. T)i P! %- SCRA 27#
S$+ll C!. " 5n! &4 P$il. 3%%
Tiu ". CA 3#1 SCRA 27&
C. Rule of !a"ation s)all be 'nifor, and &>uitable
S2%012 A5I6 1&%7 C!n),i,u,i!n
P+3)i C!l " @u,un Ci,1 24 SCRA 7%&
/nil R*+ H!r)+ " d+l Fu+n,+6 %% P$il. -#
Si)!n ". An*$+, 13# SCRA -(4
T!l+n,in! ". S+* !; Fin*+ 24& SCRA -2%
D. Non6I,air,ent of Contracts
S1# AIII B S116 AXII6 1&%7 C!n),i,u,i!n
CIR " Lin.1+n Gul; El+*,ri* C!. 1-4 SCRA -7
/i)mi) Ori+n,l " CEPALCO6 1%1 SCRA 3%
/+rl*! ". Pr!". O; L.un 3#- SCRA 7(#
&. Non6i,rison,ent for non a(,ent of oll ta"
S2# AIII6 1&%7 C!n),i,u,i!n.
*. +ro)ibition against ta"ation of religious? c)aritable entities
S2%032 A5I6 1&%7 C!n),i,u,i!n
>+lin. Ci,$ ,$+ PD+r!:) E J!Fuin @+rn)
$,,3:GG!3ini!n.inFuir+r.n+,G7(1%Gd+lin.'Ci,$',$+'
H+2H%#H&%3D+r!)H+2H%#H&&
Lld!* " CIR 14 SCRA 2&2
Pr!"in*+ !; A8r " H+rnnd! 1#7 SCRA 1#21
Lun. C+n,+r " ?C +,. l. GR N!. 1441#46 Jun+ 2&6 2##4
G. +ro)ibition against ta"ation of non6stock non6rofit educational
institutions
S4032 AXI56 1&%7 C!n),i,u,i!n
S3#0H26 NIRC
@IR R+"+nu+ /+m!rndum Cir*ulr 0R/C2 N!. 4('&(
CIR ". CA B 7/CA 2&% SCRA %3
@. *reedo, of religious rofessional and wors)i
S( AIII6 1&%7 C!n),i,u,i!n
Am+ri*n @i8l+ S!*i+,1 " /nil6 1#1 P$il. 3%-.
I. +assage of ta" bills - Granting of ta" e"e,tion
S24 A5I6 1&%7 C!n),i,u,i!n
S2%042 A5I6 1&%7 C!n),i,u,i!n
Tax I Syllabus SY 2014 2015 4 Atty. Jon Ligon
Lyceum College o La!
T!l+n,in! " S+*r+,r1 !; Finn*+ 24& SCRA -2%
A. Beto ower of t)e +resident S27022 A5I6 1&%7 C!n),i,u,i!n
C. Non6i,air,ent of SC Aurisdiction S(022082 A5III6 1&%7 C!n),i.
III. >O<@LE TAXATION
A. Definition and Nature. 71 Am Jur 2
nd
3-2'3-(
B. Cases: Pr!*,+r B Gm8l+ C!. " /un !; J.n &4 SCRA %&4
Sn*$+4 " CIR &7 P$il. -%7
Pun4ln " /un @!rd !; /nil &( P$il. 4-
C. <et)ods of avoiding t)e occurrence of double ta"ation
CIR ". SC J!$n)!n B S!n)6 In*. 3#& SCRA %7
CHAPTER III: EXE/PTIONS FRO/ TAXATION
I. IN GENERAL
A. Definition
B. Cinds of &"e,tion
C. Rationale of giving ta" e"e,tion
D. Nature of ower to grant ta" e"e,tion
&. Grounds for ta" e"e,tion
*. &"a,les of &"e,tion
1. Constitutional &"e,tion
2. Legislative grant of e"e,tion
3. &"e,tion created b( !reat(
G. Cases: CIR " @!,+l$!
S$i33in. C!r3. 2# SCRA 4%7
CIR " CTA6 GCL R+,ir+m+n, Pln6 2#7 SCRA 4%7
CIR " Gu+rr+r!6 21 SCRA 1%#
P$il. A*+,1l+n+ " CIR6 2# SCRA 1#(-
/*+d " /*ri.6 Jr 1&7 SCRA 771
S+'Lnd S+r"i*+ ". CA 3(7 SCRA 441
@. !a" &"e,tion vs. !a" A,nest(
1. >+;ini,i!n
2. P+!3l+ " C,n+d GR N!. L'4-%%16 S+3, 1(6 1&%%
3. P$il. @n=in. ").CIRI GR N!. 17#(746 Jn. 3#6 2##&
4. CIR " /ru8+niI GR N!. 137377 >+* 1%6 2##1
(. Sm3l+ Amn+),1 Pr!.rm: RA N!. &4%#
I. !a" &"e,tion vs. !a" Avoidance vs. !a" &vasion
1. >+;ini,i!n)
2. CIR ". T$+ E),,+ !; @+ni.n! P. T!d GR 1471%%6 S+3, 146 2##4
3. CIR "). Ari+,I GR. N!. 1-41(2 Jn. 216 2#1#
II. CONSTR<CTION OF STAT<TOR7 EXE/PTIONS
A. General rule
B. Alicabilit( to Clai,s for Refund
C. 2)en e"e,tion statutes are liberall( construed
D. Cases: E. R!dri.u+46 In*. " C!ll+*,!r 2% SCRA 11&
R+3u8li* Fl!ur /ill) " CIR6 31 SCRA 14%
A!nd+r /+*$ni*l En.in++rin. " CTA -4 SCRA (((
Lu4!n S,+"+d!rin. C!r3. " CTA 1-3 SCRA -47
Fl!r! C+m+n, " H+n. G!r!)3+ 2## SCRA 4%#
CIR " L+d+)m 31 SCRA &(
R+)in)6 In*. " Audi,!r G+n. 2(6 SCRA 7(4
Tax I Syllabus SY 2014 2015 5 Atty. Jon Ligon
Lyceum College o La!
CIR ". CA B 7/CA 2&% SCRA %3
CHAPTER I5: SO<RCES AN> CONSTR<CTION OF TAX LAAS
I. SO<RCES OF TAX LAA
A. Statutes
B. Revenue Regulations
C. Revenue <e,orandu, Circulars-3rders
' @IR R+"+nu+ Admini),r,i"+ Ord+r 0RAO2 N!. 2'2##1
D. BIR Rulings
6 @IR R+"+nu+ Admini),r,i"+ Ord+r 0RAO2 N!. 2'2##1
6 R+"+nu+ R+.ul,i!n ('2#12
&. 3inions of t)e Secretar( of Austice
*. Legislative <aterials
G. Court Decision
II. THE STAT<TE
A. &"isting !a" Law
#. National
a. National Internal revenue Code of #//D
b. !ariff and Custo,s Code
$. Local
a. Book II? #//# Local Govern,ent Code
III. RE5EN<E REG<LATIONS
A. BIR6RR
#. Aut)orit( to ro,ulgate. S244
$. Secific rovisions to be contained in RR. S24(
%. 2)at is t)e force and effect of RR4
Ar,. 76 Ci"il C!d+
A),uri) Su.r C+n,rl " C!mm.6 2& SCRA -17
I5. @IR R<LINGS
A. +ower of CIR to Interret !a" Laws. S4
B. Non6Retroactivit( of Rulings S24-
CIR " @urr!u.$) L,d.6 G.R. ---(3. Jun+ 1&6 1&%-
CIR " /+. G+n. /+r*$ndi)in. 1-- SCRA 1--
#. &"cetions
P@CO/ "). CIR 3#2 SCRA 241
5. CONSTR<CTION OF TAX LAA
A. General Rules of Construction of !a" Laws
S,+"+d!rin. " Trinidd6 43 P$il. %#3
B. <andator( vs. Director( +rovisions
S+r;i* " Tr+)ur+r !; Orm!* Ci,1 27 SCRA 11#
C. Alication of !a" Laws
/AN>ATOR7 REFERENCE
N,i!nl In,+rnl R+"+nu+ C!d+ !; 1&&7
R+3u8li* A*, %424
Tax I Syllabus SY 2014 2015 0 Atty. Jon Ligon
Lyceum College o La!
Am+ndm+n,) ,! Ti,l+ II !; NIRC !; 1&&7
R+3u8li* A*, N!. &2&4
R+3u8li* A*, N!. &337
R+3u8li* A*, N!. &2(7
R+3u8li* A*, N!. &(#4
O,$+r S<GGESTE> REFERENCES:
*unda,entals of !a"ation b( De Leon
+)iliine Inco,e !a" b( <a,alateo
!a"ation and Aurisrudence b( Austice Bitug
Inco,e !a"? Law E Accounting b( Birgilio Re(es
3t)er !a" Books-Reviewers
Note:
FRRG = BIR Revenue Regulations
FR/CG = BIR Revenue <e,orandu, Circulars