DE LA SALLE UNIVERSITY

TAÑADA – DIOKNO SCHOOL OF LAW

ADVANCED TAXATION LAWS

Course Syllabus
Atty. Jackie Lou D. Lamug, CPA

I. VALUE-ADDED TAX (VAT)

1. Concept
2. Characteristics/Elements of a VAT-Taxable transaction
3. Impact of tax
4. Incidence of tax
5. Tax credit method
6. Destination principle
7. Persons liable
8. VAT on sale of goods or properties
9. Zero-rated sales of goods or properties, and effectively zero-rated sales of goods or Properties
10. Transactions deemed sale
11. Change or cessation of status as VAT-registered person
a) Subject to VAT
b) Not subject to VAT
12. VAT on importation of goods
13. VAT on sale of service and use or lease of properties
14. Zero-rated sale of services
15. VAT exempt transactions
18. Persons who can avail of input tax credit
19. Determination of output/input tax; VAT payable; excess input tax credits
20. Substantiation of input tax credits
21. Refund or tax credit of excess input tax
a) Who may claim for refund/apply for issuance of tax credit certificate
b) Period to file claim/apply for issuance of tax credit certificate
c) Manner of giving refund
d) Destination principle or cross-border doctrine
22. Invoicing requirements
23. Filing of return and payment
24. Withholding of final VAT on sales to government

Relevant Jurisprudence and BIR Issuances:

• Eufemia Almeda and Romel Almeda vs. Bathala Marketing Industries, GR No. 150806,
January 28, 2008
• CIR vs. Mirant Pagbilao Corp, GR No. 172129, September 12, 2009
• San Roque Power Corp vs. CIR, GR No. 180345, November 25, 2009
• Renato V. Diaz and Aurora Ma. F. Timbol vs. Secretary of Finance and CIR, GR No. 193007,
July 19, 2011
• CIR vs. Toledo Power, Inc. GR No. 183880, January 20, 2014
• JRA Philippines Inc. vs. CIR, GR No. 171307, August 28, 2014
• Republic Act No. 11534 (CREATE Law)
• Republic Act No. 11976 (EOPT Law)

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• RR 03-24
• RR 07-24
• RMC 65-24
• RR No. 16-05
• RMC 54-2014
• RMO 64-2015

II. LOCAL GOVERNMENT CODE OF 1991

A. LOCAL GOVERNMENT TAXATION

1. Fundamental principles
2. Nature and source of taxing power
3. Local taxing authority
4. Scope of taxing power
5. Specific taxing power of Local Government Units
a) Taxing powers of provinces
b) Taxing powers of cities
c) Taxing powers of municipalities
d) Taxing powers of barangays
e) Common revenue raising powers
f) Community tax
6. Common limitations on the taxing powers of LGUs
7. Collection of business tax
8. Taxpayer’s remedies
a) Periods of assessment and collection of local taxes, fees or charges
b) Protest of assessment
c) Claim for refund of tax credit for erroneously or illegally collected tax, fee or charge
9. Civil remedies by the LGU for collection of revenues
a) Local government’s lien for delinquent taxes, fees or charges
b) Civil remedies, in general

Relevant Jurisprudence and BIR Issuances:

• Albon vs. Fernando, GR No. 148357, June 30, 2006
• Philippine Fisheries Development Authority vs. CA, GR No. 150301, October 2, 2007
• Ericsson Telecommunications Inc vs. City of Pasig, GR No. 176667, November 22, 2007
• CIR vs. SM Prime Holdings, GR No. 183505, February 26, 2010
• Cagayan Electric Power and Light Co vs. City of Cagayan De Oro, GR No. 191761, November
14, 2012

B. REAL PROPERTY TAXATION

1. Fundamental principles
2. Nature of real property tax
3. Imposition of real property tax
4. Appraisal and assessment of real property tax
5. Collection of real property tax
a) Date of accrual of real property tax and special levies
b) Collection of tax
c) Periods within which to collect real property tax
d) Special rules on payment

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 e) Remedies of LGUs for collection of real property tax
6. Refund or credit of real property tax
a) Payment under protest
b) Repayment of excessive collections
7. Taxpayer’s remedies
a) Contesting an assessment of value of real property
b. Payment of real property tax under protest

Relevant Jurisprudence and BIR Issuances:

• FELS Energy Inc., vs. Province of Batangas, GR No. 168557, February 16, 2007
• Digitel Telecommunications Phils vs. Province of Pangasinan, GR No. 152534, February 23,
2007
• NAPOCOR vs. CBAA, GR No. 171470, January 30, 2009
• Philippine Fisheries Development Authority vs. CBAA of Lucena City, GR No. 178030,
December 15, 2010
• City of Pasig vs. Republic of the Philippines, GR No. 185023, August 24, 2011
• Camp John Hay Development Corporation vs. CBAA, GR No. 169234, October 2, 2013
• Mactan-Cebu International Airport Authority (MCIAA vs. City of Lapu-lapu, et. al., GR No.
181756, June 15, 2015
• Pucyutan vs. MERALCO, GR No. 197136, April 18, 2016

III. CUSTOM MODERNIZATION AND TARIFF ACT (CMTA) OF 2016 RA No. 10863
A. Tariff and duties, defined
B. General rule: all imported articles are subject to duty.
C. Purpose for imposition
D. Flexible tariff clause
E. Requirements of importation
F. Importation in violation of tax credit certificate
G. Classification of goods
H. Classification of duties
1. Ordinary/regular duties
2. Special duties
I. Remedies
1. Government
a) Administrative/extrajudicial
b) Judicial
2. Taxpayer
a) Protest
b) Abandonment
c) Abatement and refund

Relevant Jurisprudence and BIR Issuances:

• Asian Terminals vs. Bautista-Ricafort, et al., GR No. 166901, October 27, 2006
• Chevron Philippines vs. COC, GR No. 178759, August 11, 2008
• El Greco Ship Manning and Management Corp vs. COC, GR No. 177188, December 4, 2008
• CJH Development Corporation vs. BIR, GR No. 172457, December 24, 2008
• COC and the District Collector of the Port of Subic vs. Hypermix Feeds Corp, GR No. 179579,
February 1, 2012

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III. TAX REMEDIES UNDER THE NIRC
1. Assessment
a. Concept of assessment
b. Power of the Commissioner to make assessments and prescribe additional
requirements for tax administration and enforcement
c. When assessment is made
d. General provisions on additions to the tax
i. Civil penalties
ii. Interest
iii. Compromise penalties
e. Assessment process
i. Letter of Authority
ii. Tax audit
iii. Notice of informal conference
iv. Issuance of preliminary assessment notice, Exemptions
v. Formal Letter of Demand/Final Assessment Notice
vi. Final Decision on Disputed Assessment
vii. Protesting assessment
viii. Commissioner’s Action on the Protest
ix. Remedies of taxpayer to action by Commissioner

2. Administrative Remedies of the Taxpayer

a. Protest
b. Tax Refund/Tax Credit
i. Grounds and requisites for refund
ii. Requirements for refund as laid down by cases
iii. Legal basis of tax refunds
iv. Statutory basis for tax refund under the tax code
v. Who may claim/apply for tax refund/tax credit
vi. Prescriptive period for recovery of tax erroneously or illegally collected
vii. Other consideration affecting tax refunds
c. Compromise
d. Abatement

3. Administrative Remedies of the Government

a. Collection
b. Distraint of personal property including garnishment
c. Levy and Sale of Real Property
d. Forfeiture to government for want of bidder
e. Further distraint or levy
f. Suspension of Business Operations
g. Non-availability of injunction to restrain the collection of tax
4. Statutory offenses and penalties
a) Civil penalties
(i) Surcharge
(ii) Interest

Relevant Jurisprudence and BIR Issuance:

• BPI vs. CIR, GR No. 174942, March 7, 2008
• CIR vs. FMF Development Corporation, GR No. 167765, June 30, 2008

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• CIR vs. ENRON Subic Power Corp, GR No. 166368, January 19, 2009
• Adamson et al., vs. CA, GR No. 120935, May 21, 2009
• CIR vs. Kudos Metal Corporation, GR No. 178087, May 5, 2010
• CIR vs. Metro Star Superama, GR No. 185371, December 8, 2010
• CIR vs. Mirant (Philippines) Operations Corp, GR Nos. 171742 and 176165, June 15, 2011
• RCBC vs. CIR, GR No. 170257, September 7, 2011
• CIR vs. Aichi Forging Company of Asia Inc, GR No. 184823, October 6, 2010
• Silkair (Singapore) Pte Ltd., vs. CIR, GR No. 166482, January 25, 2012
• Lascona Land Co. vs. CIR, GR No. 171251, March 5, 2012
• Accenture Inc vs. CIR, GR No. 190102, July 11, 2012
• CIR vs. San Roque Power Corporation, GR Nos. 187485, 196113, 197156, February 12, 2013
• Team Energy Corporation vs. CIR, GR 197760, January 13, 2014
• Team Energy Corporation vs. CIR, GR 190928, January 13, 2014
• CIR vs. Mindanao II Geothermal Partnership, GR No. 191498, January 15, 2014
• CIR vs. United Salvage and Towage (Phils.) GR No. 197515, July 2, 2014
• Bank of the Philippine Islands vs. CIR, GR No. 181836, July 9, 2014
• CIR vs. Team Sual Corporation, GR 205055, July 18, 2014
• CIR vs. PNB, GR No. 180920, September 29, 2014
• CIR vs. Burmeister and Wain Scandanavian Contractor, GR No. 190021, October 22, 2014
• CIR vs. BASF Coating + Inks Philippines, GR No. 1987677, November 26, 2014
• BIR vs. CA, Sps. Antonio Villan Manly and Ruby Ong Manly, GR No. 197950, November 24,
2014
• Samar-I Electric Cooperative vs. CIR, GR No. 193100, December 10, 2014
• CIR vs. Next Mobile, GR No. 212825, December 7, 2015
• Ace/Saatchi and Saatchi Advertising vs. CIR, CTA Case No. 8439, April 30, 2015, and
Amended Decision dated December 09, 2015
• CIR vs. Liquigaz Philippines Corp, GR Nos. 215534 & 215557, April 18, 2016
• CIR v. Philsaga Mining, CTA E. B. Case No. 2262, September 23, 2021
• RMC 34-2014 in relation to RR 30-2002
• RR 18-2013 as clarified by RMC 11-2014
• RR 17-2013 as amended by RR 5-2014
• RR 09-2013
• RR 7-2018
• RR 22-2020
• RMO 20-90 and RMO 14-2016
• RMO 26-2016

IV. JUDICIAL REMEDIES (R.A. No. 1125, as amended, and the Revised Rules of the Court
of Tax Appeals)

A. Jurisdiction of the Court of Tax Appeals

1. Exclusive appellate jurisdiction over civil tax cases
a) Cases within the jurisdiction of the court en banc
b) Cases within the jurisdiction of the court in divisions
2. Criminal cases
a) Exclusive original jurisdiction
b) Exclusive appellate jurisdiction in criminal cases

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B. Judicial procedures
1. Judicial action for collection of taxes
a) Internal revenue taxes
b) Local taxes
2. Civil cases
3. Criminal cases

C. Taxpayer’s suit impugning the validity of tax measures or acts of taxing authorities
1. Taxpayer’s suit, defined
2. Distinguished from citizen’s suit
3. Requisites for challenging the constitutionality of a tax measure or act of taxing authority

Relevant Jurisprudence and BIR Issuances:

• Asia International Auctioneers and Subic Bay Motors Corporation vs. Hon. Guillermo Parayno,
GR No. 163445, December 18, 2007
• CIR vs. United International Pictures, GR No. 169565, January 21, 2009
• Pilipinas Shell Petroleum Corporation vs. COC, GR No. 176380, June 18, 2009
• CIR vs. Fort Bonifacio Development Corporation, GR No. 167606, August 11, 2010
• CIR vs. Hambrecht & Quist Philippines, GR No. 168225, November 17, 2010
• SM Land Inc vs. City of Manila, GR No. 197151, October 22, 2012
• CIR vs. Das Engineering Philippines, Inc. GR No. 184145, December 11, 2013
• The City of Manila vs. Hon. Caridad H. Grecia-Cuerdo, GR No. 175723, February 2, 2014
• CIR vs. PNB, GR No. 180920, September 29, 2014
• Duty Free Philippines vs. BIR, GR No. 197228, October 8, 2014
• Philippine American Life and General Insurance vs. Secretary of Finance, GR No. 210987,
November 24, 2014
• Bureau of Customs vs. Devanadera, GR No. 193253, September 8, 2015
• Spouses Pacquiao vs. CTA, GR No. 213394, April 6, 2016

**This course syllabus is merely a guide to the students on the flow and topics to be
discussed in class. The professor reserves the right to assign additional topics and
cases she may deem necessary.

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GRADING SYSTEM:

Class Standing 50%

Mid-Term Exams 25%
Final Exams 20%
TOTAL 100%

Note:
1. Class Standing includes, but is not limited to, recitation, quizzes and over-all performance
and participation in class.
2. Random recitations are conducted every day. Books and codals are allowed to be read in
class. However, books, codals, notes and gadgets are PROHITED WHILE RECITING.
3. Final Exams are comprehensive, i.e., scope is from Day 1.
4. Students are free to use whatever reference book or annotated work by any author.
However, bar review materials and notes and another persons’ case digests are
ABSOLUTELY PROHIBITED.

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