DE LA SALLE UNIVERSITY

COLLEGE OF LAW

TAXATION LAW 2
Atty. Martin Ignacio D. Mijares

Course Description
This is a course on the taxes imposed under Title III to VII, National Internal Revenue Code of
1997 (Tax Code). This course also covers the taxes imposed under the Local Government
Code of 1991 (LGC), as amended, and the Tariff and Customs Code of 1978 (TCC), as
amended. Finally, this course discusses the administrative remedies under Title VIII to X, Tax
Code and the judicial remedies under Republic Act (RA) No. 1125, as amended and the
Revised Rules of the Court of Tax Appeals (RRCTA).
Course Coverage
Estate Tax
Donors Tax
Value-added Tax
Percentage Tax
Documentary Stamp Tax
Remedies under the Tax Code
Taxes under the LGC
o
Local government taxation
o
Real property taxation
Tariff and customs duties under the TCC
Judicial remedies under RA No. 1125, as amended and the RRCTA
Course Outline
PART I
A.

B.

ESTATE TAX

Basic Principles of Estate Tax

1.
Estate Tax Defined
2.
Nature and Purpose of Estate Tax
3.
Time of Transfer of Properties
Pablo Lorenzo, as trustee of the Estate of Thomas Hanley v. Juan Posadas, Jr.,
Collector of Internal Revenue, G.R. No. 43082, June 18, 1937
4.
Governing Law
Determination of Gross Estate
Section 85, Tax Code (unless otherwise stated, section references are to the 1997 Tax
Code)
Revenue Regulations (Rev. Regs.) No. 02-03 (December 16, 2002)
1.
Classification of Decedents
Section 85, Tax Code
a.
Citizen and Resident Resident Citizen, Non-resident Citizen, and Resident
Alien
b.
Non-resident Alien
2.
Composition of Gross Estate in General
Section 4, Rev. Regs. No. 02-03

These topics are not included in the 2015 Bar Examination Coverage for Taxation Law.
Atty. Martin Ignacio D. Mijares | TAXATION LAW 2

Concept of Residence for Estate Tax Purposes

Items to be Included in Determining Gross Estate
Section 85(A) to (G), Tax Code
a.
Decedents interest
b.
Prior interests
c.
Transfers in contemplation of death
Zapanta , et al. v. Posadas, Jr., et al., G.R. No. 29204-09, December 29, 1928
d.
Revocable transfers
e.
Transfers with retained interest
f.
Property passing under a general power of appointment
g.
Transfers for insufficient consideration
h.
Proceeds of life insurance
5.
Specific Items to be included in Gross Estate
Section 104, Tax Code
6. Valuation of the Gross Estate
Section 88, Tax Code
Section 5, Rev. Regs. No. 02-03
Determination of Net Estate
Section 86, Tax Code
1.
Net Estate of Decedent Who is a Citizen or Resident of the Philippines
Section 86(A), Tax Code
a.
Expenses, losses, indebtedness, and taxes
Section 6(A)(1), Rev. Regs. No 02-03
(1) Funeral expenses
(2) Judicial expenses of the testamentary and intestate proceedings
Commissioner of Internal Revenue (CIR) v. Court of Appeals and
Pajonar, G.R. No. 123206, March 22, 2000
Rules 81 and 86, Revised Rules of Court
(3) Claims of deceased against insolvent persons
(4) Casualty losses
(5) Claims against the estate
Dizon v. CTA and CIR, G.R. No. 140944, April 30, 2008
i.
Requisites for deductibility
Section 6(A)(3)(i), Rev. Regs. No. 02-03
ii.
Substantiation requirements
Section 6(A)(3)(ii), Rev. Regs. No. 02-03
(6) Unpaid mortgages
(7) Taxes
b.
Property previously taxed (Vanishing Deduction)
c.
Transfer for public use
d.
Family home
Section 6(D), Rev. Regs. No. 02-03
e.
Standard deduction
Section 6(E), Rev. Regs. No. 02-03
f.
Medical expenses
Section 6(F), Rev. Regs. No. 02-03
g.
Amounts received by heirs under RA No. 4917
h.
Net share of surviving spouse in the conjugal partnership or community
property
2.
Net of Estate of Decedent who is a Non-resident Alien of the Philippines
Section 86(B), Tax Code
3.
4.

C.

Atty. Martin Ignacio D. Mijares | TAXATION LAW 2

D.

E.

F.

Section 7, Rev. Regs. No. 02-03

a.
Expenses, loses, indebtedness, and taxes
b.
Property previously taxed
c.
Transfer for public use
d.
Net share of surviving spouse in the conjugal partnership or community
property
Exclusions from Gross Estate (Exemptions of Certain Acquisitions and
Transmissions)
1.
Capital of Surviving Spouse
Section 85(H), Tax Code
Articles 148, 150, 201, Civil Code
Articles 91, 92, 109, Family Code
2.
Proceeds of Life Insurance where Designation of Beneficiary is Irrevocable
Section 85(E), Tax Code
3.
Proceeds of Life Insurance where Decedent was the Insured but not the Policy
Owner
4.
Exemptions of Certain Acquisitions/Transmissions
Section 87, Tax Code
5.
Exemptions under Special Laws
Computation of Estate Tax
1.
Tax Rate
Section 84, Tax Code
2.
Tax Credit for Estate Taxes paid to a Foreign Country
Section 86(E), Tax Code
Filing of Notice of Death and Estate Tax Returns;Payment of Estate Tax
1.
Requirement for Filing of Notice of Death
Section 89, Tax Code
2.
Estate Tax Returns
Section 90, Tax Code
Section 9(A), 9(B), 9(C), Rev. Regs. No. 02-03
a.
Requirements
b.
Time for filing
c.
Extension of time to file
d.
Place of filing return
3.
Payment of Estate Tax
Section 91, Tax Code
Secs. 9(D), 9(E), 9(F), 9(G), Rev. Regs. No. 02-03
a.
Time for payment
b.
Extension of time to pay estate tax
c.
Payment of estate tax by installment
d.
Liability for payment

PART II
A.

DONORS TAX

Basic Principles of Donors Tax

1.
Concept of Donors Tax
Lladoc v. CIR, G.R. No. L-19201, June 16, 1965
Abello v. CIR, G.R. No. 120721, February 23, 2005
Spouses Gestopa v. CA, G.R. No. 111904, October 5, 2000
Gibbs v. Collector, G.R. No. L-14166 & 14320, April 28, 1962
Atty. Martin Ignacio D. Mijares | TAXATION LAW 2

2.

Pirovano v. CIR, G.R. No. L-19865, July 31, 1965

Nature of Donors Tax

Purpose of Donors Tax

a.
Requisites of a Valid Donation
Article 735, New Civil Code
Article 736, New Civil Code
b.
Transfers which may be treated as a donation
(1) Sale/exchange/transfer of property for less than adequate and full
consideration
Section 100, Tax Code
(2) Condonation/remission of debt
(3) Renunciation of inheritance
4.
Law Governing Imposition of Donors Tax
Section 11, Rev. Regs. No. 02-03
Determination of Gross Gift
1.
Classification of Donors
a.
Citizens/Residents Resident Citizen, Non-resident Citizen, and Resident
Alien
b.
Non-resident Alien
2.
Gross Gift
3.
Exemption of Certain Gifts from Donors Tax
a.
Gifts made by Residents
Section 101(A), Tax Code
(1) Services/gifts made on account of marriage by parents to children
(2) Gifts made to or for the use of national government
(3) Gifts in favor of education/charitable institution
b.
Gifts Made by a Non-resident Alien
Section 101(B), Tax Code
4.
Exemptions from Donors Tax under Special Laws
Valuation of Gifts Made in Property
Section 102 and 88(B), Tax Code
Computation of Donors Tax
1.
Person liable
2.
Tax Base
Section 99, Tax Code
Section 11, Rev. Regs. No. 02-03
3.
Tax Rates
Section 99(A) and (B), Tax Code
a.
Donations to a donee who is not a stranger
b.
Donations to a stranger
4. Computation of Tax
Section 12, Rev. Regs. No. 02-03
5. Tax Credit for Donors Taxes Paid to a Foreign Country
Sec. 101(C), Tax Code
6. Filing of Returns and Payment of Donors Tax
Section 103, Tax Code
Section 13, RR 02-03)
3.

B.

C.
D.

Atty. Martin Ignacio D. Mijares | TAXATION LAW 2

PART III
A.

B.

VALUE-ADDED TAX

Introduction
1.
Nature and Characteristics of VAT
Contex Corporation v. CIR, G.R. No. 151135, July 2, 2004
2.
Benefits under the VAT System
3.
Sources of Fraud under the VAT System
Transactions Subject to Regular VAT
1.
In General
Sections 105, 106, Tax Code
CIR v. Court of Appeals and Commonwealth Management & Services Corp., G.R.
No. 125355, March 30, 2000
See Lapanday Foods Corp. v. CIR, CTA E.B. No. 367 (CTA Case No. 7097), Jan.
29, 2009
CIR v. Sony Philippines, Inc., CTA EB Case No. 90, May 17, 2007
CIR v. Magsaysay Lines, Inc., G.R. No. 146984, July 28, 2006
CS Garments, Inc. v. CIR, CTA EB Case No. 287 (April 2, 2008)
2.
Sale of Goods or Properties
a.
Transactions Covered
(1) Actual sale
Section 106(A)(1), Tax Code
(2) Transactions deemed sale
Section 106(B), Tax Code
Section 4.106-7, Revenue Regulations (Rev. Regs.) No. 16-2005,
September 1, 2005, as amended (hereafter, Rev. Regs. No. 16-2005)
(3) Changes in or cessation of status of a VAT-registered person
Section 106(C), Tax Code
Section 4.106-8, Rev. Regs. No. 16-2005
b.
Taxable Base
(1) Gross selling price
Section 106(A)(1), 2nd par., Tax Code
Section 4.106-4, Rev. Regs. No. 16-2005
(2) Sales discounts, returns, and allowances
Section 106(D), Tax Code
Section 4.106-9, Rev. Regs. No. 16-2005
(3) Taxable base for transactions deemed sale and below market gross
selling price
Section 4.106-7(b), Rev. Regs. No. 16-2005
3.
Sale of Services
a.
Meaning of Sale or Exchange of Service
Section 108(A), Tax Code
Section 4.108-2, Rev. Regs. No. 16-2005
Diaz v. Secretary of Finance, G.R. No. 193007, July 19, 2011
b.
Taxable Base: Gross Receipts Actually and Constructively Received
Section 108(A), Tax Code
Section 4.108-4, Rev. Regs. No. 16-2005
(1) Amounts earmarked for payment to third parties
Section 4.108-4, Rev. Regs. No. 16-2005
Collector v. Manila Jockey Club, Inc., G.R. No. L-13887 and L-13890,
June 30, 1960
CIR v. Tours Specialists, Inc., G.R. No. L-66416, March 21, 1990
Atty. Martin Ignacio D. Mijares | TAXATION LAW 2

C.

D.

(2) Reimbursement of expenses

Section 4.108-4, Rev. Regs. No. 16-2005
4.
Importation of Goods
Section 107, Tax Code
Transactions Subject to Zero-rated VAT
1.
Difference Between 12%, Zero-Rated and Exempt
Sections 4.106-5, 1st par., and 4.108-5(a), Rev. Regs. No. 16-2005
Cf. Section 4.109-1(A), Rev. Regs. No. 16-2005
Revenue Memorandum Circular No. 74-99, October 15, 1999
CIR v. Cebu Toyo Corporation, G.R. No. 149073, February 16, 2005
CIR v. Seagate Tech. (Phil.), G.R. No. 153866, February 11, 2005
CIR v. Toshiba Information Equipment (Phils.), Inc., G.R. No. 150154, August 9,
2005
Cf. Contex Corp. v. CIR, G.R. No. 151135, July 2, 2004
2.
Automatically Zero-Rated Transactions
a.
Sale of goods and properties
Section 106(A)(2)(a)(1), (2), (4) and (b), Tax Code
CIR v. Benguet Corporation, G.R. Nos. 134587 & 134588, July 8, 2005
b.
Sale of services
Section 108(B)(1), (2), (6) and (7), Tax Code
CIR v. Placer Dome Technical Services (Phils.), Inc., G.R. No. 164365,
June 8, 2007
CIR v. American Express Intl, Inc. (Phil. Branch), G.R. No. 152609, June 29,
2005
CIR v. Burmeister & Wain Scandinavian Contractor Mindanao, Inc., G.R. No.
153205, January 22, 2007
c.
Meaning of Accounted for in Accordance with the Rules and Regulations of
the BSP
3.
Effectively Zero-Rated Transactions
a.
Sale of Goods and Properties
Section 106(A)(2)(3), (5), (6) and (c), Tax Code
Section 4.106-6, Rev. Regs. No. 16-2005
Atlas Consolidated Mining and Development Corporation v. CIR, G.R. Nos.
141104 & 148763, June 8, 2007 and G.R. No. 146221, September 25, 2007
b.
Sale of Services
Section 106(B)(3), (4) and (5), Tax Code
Section 4.108-6, Rev. Regs. No. 16-2005
CIR v. Acesite (Philippines) Hotel Corporation, G.R. No. 147295, February 16,
2007
CIR v. John Gotamco & Sons, Inc., G.R. No. L-31092, February 27, 1987
Transactions Exempt from VAT
1.
Coverage of Exemption
Section 109(1), Tax Code
Rev. Regs. No. 16-2011, Oct. 27, 2011
Revenue Memorandum Circular (RMC) No. 36-2011, Aug. 26, 2011
RMC No. 34-2011, Aug. 15, 2011
Philippine Acetylene Co., Inc. v. CIR, G.R. No. L-19707, August 17, 1967
CIR v. Philippine Health Care Providers, Inc., G.R. No. 168129, April 24, 2007
PAGCOR v. The Bureau of Internal Revenue, et. al., G.R. No. 172087, March 15,
2011
CIR v. John Gotamco & Sons, Inc., G.R. No. L-31092, February 27, 1987
Atty. Martin Ignacio D. Mijares | TAXATION LAW 2

2.
E.

Waiver of VAT Exemption/Election to be Subject to VAT

Section 109(2), Tax Code
Input Tax Credits and Refunds
1.
Input Tax Credit
Section 110, Tax Code
Section 4.110-1, Rev. Regs. No. 16-2005
a.
Persons who can avail of the input tax credit
Section 110(A)(1)(b) and (A)(2), Tax Code
Section 4.110-2, Rev. Regs. No. 16-2005
b.
Special rules on amortization of input tax on depreciable goods
Section 110(A), proviso, Tax Code
Section 4.110-3, Rev. Regs. No. 16-2005
Sillcon Philippines, Inc. v. CIR, supra
c.
Special rules on apportionment of input tax on mixed transactions
Section 110(A)(3), Tax Code
Section 4.110-4, Rev. Regs. No. 16-2005
d.
Substantiation of input tax credits
Section 4.110-8, Rev. Regs. No. 16-2005
Atlas Consolidated Mining and Development Corporation v. CIR, G.R. Nos.
141104 & 148763, June 8, 2007
CIR v. Manila Mining Corporation, G.R. No. 153204, August 31, 2005
CIR v. Phil. Health Care Providers, Inc., G.R. No. 168129, April 24, 2007
2.
Transitional Input Tax
Section 111(A), Tax Code
Section 4.111-1(a), Rev. Regs. No. 16-2005
3.
Presumptive Input Tax
Section 111(B), Tax Code
Section 4.111-1(b), Rev. Regs. No. 16-2005
4.
Final Withholding VAT
Section 114(C), Tax Code
Section 4.114-2(a), Rev. Regs. No. 16-2005
AT&T Communication Services Phils., Inc. v. CIR, G.R. No. 182364, August 3, 2010
5.
Claims for Refund or Issuance of Tax Credit Certificates
Section 112, Tax Code
a.
Zero-Rated or Effectively Zero-Rated Transactions
Section 112(A), Tax Code
AT&T Communication Services Phils., Inc. v. CIR, G.R. No. 182364, August 2,
2010
Intel Technology v. CIR, G.R. No. 166732, April 27, 2007
CIR v. Team Energy Corp., CTA EB No. 652, October 4, 2011
b.
Cancellation of VAT registration
Section 112(B), Tax Code
c.
Period within which refund or tax credit of input tax shall be made
Section 112(C), Tax Code
Correlate with Section 229, Tax Code
Atlas Consolidated Mining and Development Corporation v. CIR, G.R. Nos.
141104 & 148763, June 8, 2007
CIR v. Mirant Pagbilao Corporation, G.R. No. 172129, Sept. 12, 2008
CIR v. Aichi Forging Company of Asia, Inc., G.R. No. 184823, Oct. 6, 2010
CIR v. San Roque Power Corporation, G.R. No. 187485, February 12, 2013
CIR v. Mindanao II Geothermal Partnership, G.R. No. 191498, January 15,
Atty. Martin Ignacio D. Mijares | TAXATION LAW 2

F.

2014
Administrative Requirements
1.
Registration of VAT Taxpayers
Section 9.236-1 Section 9.236-6, Rev. Regs. No. 16-2005
2.
Invoicing and Bookkeeping Requirements
Section 4.113-1 Section 4.113-4, Rev. Regs. No. 16-2005
3.
Filing of VAT Returns and Payment of VAT
Section 4.114-1 Section 4.114-3, Rev. Regs. No. 16-2005
4.
Requirement to Obtain Approved Application for Effective Zero-Rating
Deleted by Rev. Regs. No. 4-2007, Feb. 7, 2007
Section 4.106-6, Rev. Regs. No. 16-2005 (which deleted par. requiring approved
application for effective zero-rating)
CIR v. Seagate Technology (Philippines), G.R. No. 153866, February 11, 2005
4.
Printing of Words Zero-Rated on Invoices/Receipts
Microsoft Philippines, Inc. v. CIR, G.R. No. 180173, April 6, 2011
Panasonic Communications Imaging Corp. of the Philippines v. CIR, G.R. No.
178090, February 8, 2010
Silicon Philippines, Inc. v. CIR, G.R. No. 172378, Jan. 17, 2011
Kepco Philippines Corp. v. CIR, G.R. No. 179961, Jan. 31, 2011
Intel Technology Philippines, Inc. v. CIR, G.R. No. 166732, April 27, 2007

/to be continued.
Modes of instruction
Recitations
Written exercises
Lectures
Grading Criteria
Attendance
Class participation
Mid-term examination
Final examination
Total

5%
20%
35%
40%
100%

Suggested References
NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED (TAX CODE)
Benjamin B. Aban, LAW OF BASIC TAXATION IN THE PHILIPPINES, LATEST REvised Edition,
National Books Store, Inc.
Hector S. De Leon and Hector S. De Leon, Jr., THE FUNDAMENTALS OF TAXATION, 2012
Edition, Rex Books Store, Inc.
Hector S. De Leon and Hector S. De Leon, Jr., THE LAW ON TRANSFER AND BUSINESS
TAXATION, 2013 Edition, Rex Book Store
Jose C. Vitug and Ernesto D. Acosta, TAX LAW AND JURISPRUDENCE, Latest Edition, Rex
Book Store, Inc.
Victorino C. Mamalateo, Value Added Tax, Latest Edition, Kalayaan Press Mktg, Ent.,
Inc.
Decisions of the Court of Tax Appeals and the Supreme Court
Atty. Martin Ignacio D. Mijares | TAXATION LAW 2

BIR issuances, including Revenue Regulations, Revenue Memorandum Orders, Revenue

Memorandum Circulars, BIR Rulings, and other issuances
MDM-08162015
1st Semester, AY 2015-16

Atty. Martin Ignacio D. Mijares | TAXATION LAW 2

DE LA SALLE UNIVERSITY
COLLEGE OF LAW
PART IV

TAXATION LAW 2
Atty. Martin Ignacio D. Mijares

OTHER TAXES

I.

Other Percentage Taxes

A.
Nature of the Tax
B.
Imposition of the Tax
Sections 116 to 127, Tax Code
C.
Returns and Payment of the Tax
Section 128, Tax Code

II.

Excise Taxes on Certain Goods

A.
Nature of the Tax
Section 129, Tax Code
B.
Goods Subject to Tax
Sections 141 to 151, Tax Code
C.
Returns and Payment of the Tax
Sections 130 and 131, Tax Code

III.

Documentary Stamp Tax

A.
Nature of the Tax
Section 173, Tax Code
Section 199 (a) to (n), Tax Code
B.
Documents and Transactions Subject to DST
Sections 174 to 198, Tax Code
C.
Returns and Payment of the Tax
Section 200, Tax Code
Revenue Regulations (Rev. Regs.) No. 6-2001 (August 1, 2001)
Section 201, Tax Code

PART V
I.

RIGHTS AND REMEDIES UNDER THE TAX CODE

Rights and Remedies of the Government under the Tax Code

A. Examination and Audit of Returns
Section 5 and 6, Tax Code
B. Investigative/Enforcement Authority
Section 5(B), (C), (D), Tax Code
Section 6(C), (E), (F), (G), Tax Code
C. Informers Reward
Section 282, Tax Code
Revenue Memorandum Circular (RMC) No. 86-2010, Nov. 15, 2010
D. Power to Make Assessments
Section 6(A), (B), (C), (D), Tax Code
Section 228, Tax Code
Rev. Regs. No. 12-99 (September 6, 1999), as amended by Rev. Regs. No. 18-2013
(November 28, 2013)
CIR v. Mindanao Sanitarium and Hospital, Inc., CTA EB Case No. 1147, October 5,
2015
Derek Arthur P. Ramsay v. CIR, CTA Case No. 8456, September 17, 2015
E.
Issuance of Tax Verification Notices and Letter Notices
Atty. Martin Ignacio D. Mijares | TAXATION LAW 2

F.

G.

H.

Revenue Memorandum Order (RMO) No. 46-2004, Sept. 2, 2004

RMO No. 7-2010, Jan. 25, 2010
Collection of Unpaid Taxes
1.
Distraint, Garnishment, Levy and Seizure
Sections 205-217, 224-225 Tax Code
Section 202, Tax Code
Section 11, RA No. 1125, as amended by RA No. 9282
RMO No. 39-2007, Dec. 12, 2007
2.
Civil Action
Section 205, Tax Code
Section 220, Tax Code
Section 7(b)(2)(c), RA No. 1125, as amended
4.
Criminal Action
Section 220, Tax Code
Section 7(b)(1), RA No. 1125, as amended
5.
Anti-Injunction Rule
Section 218, Tax Code
Section 11, RA No. 1125, as amended
Rule 10, Revised Rules of the CTA (S.C. A.M. No. 05-11-07-CTA, Nov. 22,
2005) (RRCTA)
6.
Nature and Extent of Tax Lien
Section 219, Tax Code
7.
Compromise and Abatement
Section 204 (A) and (B), Tax Code
8.
Liability of Corporate Officers and Stockholders
Imposition of Surcharge, Interest, and Compromise Penalty
1.
Civil Penalties
Section 248, Tax Code
Sections 250-252, Tax Code
Sections 4 & 5, Rev. Regs. No. 12-99, as amended
Aznar v. CTA, G.R. No. L-20569, August 23, 1974
CIR v. Ayala Hotels, Inc., CA-G.R. SP No. 70025, April 19, 2004
CIR v. Javier, G.R. No. 78953, July 31, 1991
Estate of Fidel F. Reyes, et al. v. CIR, CTA EB No. 189 (CTA Case No. 6474),
March 21, 2007.
2.
Interest
Section 249, Tax Code
Section 5, Rev. Regs. No. 12-99, as amended
3.
Compromise Penalty
Section 6, Rev. Regs. No. 12-99, as amended
Statute of Limitations
1.
Period to Assess
Sections 203, 222, 223, Tax Code
a.
Ordinary Prescription
Section 203, Tax Code
HPCO Agridev Corporation v. CIR, CTA Case No. 6355, July 18, 2002.
See also Avon Products Mfg., Inc. vs. CIR, CTA Case No. 5908, January
20, 2005
b.
Extraordinary Prescription
Section 222(a), Tax Code
c.
Waiver of Prescriptive Period
Atty. Martin Ignacio D. Mijares | TAXATION LAW 2

I.

II.

Section 222(b), Tax Code

Philippine Journalists, Inc. v. Commissioner of Internal Revenue, G.R.
No. 162852, December 16, 2004
Revenue Memorandum Order No. 20-90
Revenue Delegation Authority Order No. 05-01
Revenue Memorandum Circular (RMC) No. 029-12, June 9, 2012
CIR v. Kudos Metal Corporation, G.R. No. 178087, May 5, 2010
CIR v. FMF Development, G.R. No. 167765, June 30, 2008
Maruka Enterprises, Inc. v. CIR, CTA Case No. 5977, February 2, 2005
Kabalikat Para Sa Maunlad Na Buhay, Inc. vs. CIR, CTA Case No. 8336,
June 20, 2014
d.
Suspension of Prescriptive Period
2.
Period to Collect
Sections 203, 222, 223, Tax Code
3.
Period to Prosecute Violations of Tax Code
Section 281, Tax Code
Rule-Making Authority
Section 4, Tax Code
Section 7, Tax Code
Section 244, Tax code

Rights and Remedies of Taxpayers under the Tax Code

A. Amend Tax Return
Section 6(A), Tax Code, last paragraph
B. Administrative Protest of an Assessment
Rev. Regs. No. 12-99, as amended
1.
Effect of Failure to Receive PAN
2.
Requirement to Inform Taxpayer of Factual and Legal Basis of Assessment
Section 228, Tax Code
CIR v. Fax n Parcel, Inc., CTA EB No. 883, February 14, 2013
3.
Submission of Supporting Documents and Effect of Non-Compliance
Section 228, Tax Code
4.
Effect of Failure to File Protest
Section 228, Tax Code
C. Judicial Protest of an Assessment
1.
Final Decision on Disputed Assessment
a.
Final Notice Before Seizure
b.
Final Demand Letter
c.
Filing of Collection Suit
d.
Referral to Solictor General for Collection
e.
Issuance of Warrant of Distraint and Levy
f.
Effect of MR of Denial of Protest
2.
Scope of Jurisdiction of CTA/What is Appealable to CTA
Section 4, 2nd par., Tax Code
Section 228, Tax Code
Section 7, Rep. Act No. 1125, as amended by Rep. Act No. 9282
3.
Matters Not Appealable to CTA
a.
Tax Rulings
b.
Unfair Competition
c.
Declaratory Relief
4.
Application of 180-day Rule
Atty. Martin Ignacio D. Mijares | TAXATION LAW 2

Section 3(a)(2), Rule 4 and Section 3(a), Rule 8, RRCTA

Mode of Appeal and Effect of Appeal
a.
Appeal to a Division of the CTA
Section 11, RA No. 1125, as amended
b.
Appeal to CTA En Banc
Section 18, RA No. 1125, as amended
6.
Period to Appeal
Section 228, last par., Tax Code
Section 11, RA No. 1125, as amended
Judicial Appeal of Collection Proceedings
Appeal to Supreme Court
Section 19, RA No. 1125, as amended
1.
Mode of Appeal
2.
Effect of Appeal to Supreme Court
Refund and/or Tax Credit of Erroneously Paid Tax
1.
What Constitutes Erroneous Payment
2.
Requirement of Filing Administrative Claim
3.
Exception to Requirement of Filing Administrative Claim
Section 204(C), Tax Code
Section 229, Tax Code, proviso, last paragraph
4.
Effect of Supervening Event
Section 229, Tax Code
5.
Payment Under Protest Not Needed
6.
Utilization of Tax Credit Certificate; Meaning of Tax Debit Memo
Section 204(C), Tax Code, 2nd paragraph
7.
Forfeiture of Refund or Tax Credit
Section 230, Tax Code
Appeal in Case of Denial of Refund/Tax Credit Claim
1.
CTA (Division and En Banc)
Section 7(a)(1), (2), RA No. 1125, as amended
Section 11, RA No. 1125, as amended
Section 18, RA No. 1125, as amended
CTA Circular No. 1-95
RMC No. 49-2003, Aug. 15, 2003
2.
Supreme Court
Section 19, RA No. 1125, as amended
Statute of Limitations
1.
Period to File Protest
Section 228, Tax Code
2.
Period to File Refund or Tax Credit Claim
Section 204(C), Tax Code
Section 229, Tax Code
CIR v. TMX Sales, Inc. and CTA, G.R. No. 83736, January 16, 1992
Request for Ruling
Rev. Mem. Order No. 45-99
1.
Procedure
Section 4, Tax Code
2.
Appeal Procedure
Section 4, Tax Code
Revenue Administrative Order No. 3-2001, Oct. 22, 2001
RMC No. 40-A-2002, May 7, 2002
5.

D.
E.

F.

G.

H.

I.

Atty. Martin Ignacio D. Mijares | TAXATION LAW 2

3.

J.
PART VI

Non-Retroactivity of Revocation of Rulings or Regulations

Section 246, Tax Code
ABS-CBN Broadcasting Corporation v. CTA, G.R. No. L-52306, October 12,
1981
4.
Weight of BIR Rulings
5.
Reliance on Ruling Issued to Third Party
6.
Authority of Regional Directors to Issue Certain Rulings
RMC No. 3-2001, Jan. 31, 2001
Amnesty, Abatement and Compromise
LOCAL BUSINESS TAXES

I.

Introduction
Section 1, Article X, Constitution

II.

Taxing Powers of Local Governments

A. Local Taxing Power in General
Sections 128 to 133, Local Government Code (LGC)
B. Taxing Powers of Local Government Units
1.
Provinces
Sections 134 to 141, LGC
2.
Municipalities
Section 142 to 150, LGC
3.
Cities
Section 151, LGC
4.
Barangays
Section 152, LGC
5.
Common revenue raising powers
Section 153 to 155, LGC
C. Community Tax
Sections 151 to 164, LGC
D. Tax Ordinance
Sections 186 to 191, LGC
E.
Collection of Taxes
Sections 165 to 171, LGC
F.
Civil Remedies for Collection of Revenues
Sections 172 to 184, LGC
G. Taxpayers Remedies
Section 194 to 196, LGC

PART VI REAL PROPERTY TAXATION

I.

Introduction
Section 197, 198, and 200, LGC

II.

Appraisal and Assessment of Real Property

Sections 201 to 225, LGC
A. Appeals of Assessment
Sections 226 to 231, LGC
B. Imposition of the Tax
Sections 232 to 234, LGC
Atty. Martin Ignacio D. Mijares | TAXATION LAW 2

C.
III.

Special Levies on Real Property

Sections 235 to 245, LGC

Collection of the Tax

Sections 246 to 270, LGC

PART VII TARIFF AND CUSTOMS CODE

I.

Concept

II.

Articles Subject to Duty

A.
Export and Import Duties
B.
Meaning of Importation
Sections 1201, 1202, Tariff and Customs Code (TCC)
C.
Classes of Importation
1. Dutiable importation
Section 100, TCC
2. Prohibited importation
Sections 101, 1207, TCC
3. Conditionally-free importation
Section 105, TCC

III.

Rates of Duty
A.
General Rules
Section 104, TCC
B.
Basis of Duty
Sections 201, 202, 204, 205, 1308-10, 1313, TCC
RA No. 8181, as amended by RA No. 9135
C.
Special Duties
1. Dumping duties
Section 301, TCC
2. Countervailing duties
Section 302, TCC
3. Marking duties
Section 303, TCC
4. Discriminatory duty
Section 304, TCC
D.
Duties imposed under the Flexible Tariff System
Section 401, TCC

IV.

Imposition of Duties
A.
Persons Liable
Sections 1203 to 1205, TCC
B.
Declaration
Sections 1302 to 1307, TCC
C.
Examination, Appraisal, and Classification
Section 1405 to 1408, TCC
D.
Assessment of Duties and Taxes
E.
Liquidation
Sections 1601 to 1603, TCC
Atty. Martin Ignacio D. Mijares | TAXATION LAW 2

VI.

Remedies of the Government

A.
Extrajudicial
1. Enforcement of tax lien
Section 1508, TCC
2. Seizure and forfeiture
Sections 2203 to 2209, 2301 to 2316, TCC
3. Judicial

VI.

Remedies of the Taxpayer

A.
Refund
Sections 1707 to 1708, TCC
B.
Protest
Sections 2308, 2309, 2310, 2312, TCC
C.
Abandonment
Sections 1801 to 1803, TCC
D.
Amendments by RA No. 9315
Section 3154, TCC
Section 3517, TCC

PART VIII THE COURT OF TAX APPEALS

I.
II.

Composition
Section 1, RA No. 1125, as amended by RA Nos. 9282 and 9503
Section 2, RA No. 1125, as amended by RA Nos. 9282 and 9503
Jurisdiction
Section 7, 11, 18, and 19, RA No. 1125 as amended by RA No. 9282

/end
Suggested References
! NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED (TAX CODE)
! LOCAL GOVERNMENT CODE OF 1991
! TARIFF AND CUSTOMS CODE
! Hector S. De Leon and Hector S. De Leon, Jr., THE LAW ON TRANSFER AND BUSINESS
TAXATION, 2013 Edition, Rex Book Store
! Victorino C. Mamalateo, TAX RIGHTS AND REMEDIES, Latest Edition, Kalayaan Press
Mktg, Ent., Inc.
! Hector S. De Leon and Hector S. De Leon, Jr., THE FUNDAMENTALS OF TAXATION, 2012
Edition, Rex Books Store, Inc.
! Hector S. De Leon and Hector S. De Leon, Jr., THE LAW ON TRANSFER AND BUSINESS
TAXATION, 2013 Edition, Rex Book Store
! Jose C. Vitug and Ernesto D. Acosta, TAX LAW AND JURISPRUDENCE, 2006 Edition, Rex
Book Store, Inc.
! Decisions of the Court of Tax Appeals and the Supreme Court
! BIR issuances, including Revenue Regulations, Revenue Memorandum Orders,
Revenue Memorandum Circulars, BIR Rulings, and other issuances
/MDM-03152015

Atty. Martin Ignacio D. Mijares | TAXATION LAW 2