BASIC TAXATION

(Tax 1)
COURSE SYLLABUS
S.Y. 2024-2025
First Semester

RANJAN KALYL U. WANGET

COURSE REQUIREMENT

1. Students must be able to submit a syllabus-based reviewer incorporating

the listed cases and other landmark cases not included while discussing the
provision of the concepts, principles, and doctrines in Taxation. It must also
include frequently asked bar exam questions. The reviewer must reflect the
students comprehensive understanding of the subject.
2. Each student must have a passing rate on all their exams, quizzes,
assignments, and recitations.

CLASS RULES

1. Students have maximum of 3 absences – excused or unexcused. Students

with more than 3 absences will be considered dropped.
2. Assignments including final outputs for case digests and reviewers shall be
submitted on time.
3. Students are expected to come to class on time and prepared. Recitations
and quizzes will be given any time.
4. Do not use your gadgets (Cellphones, Laptops, etc.) while in class. Make
use of your notebooks/pads for taking down notes.
5. Each class shall have their class emails where exams, assignments, and
quizzes will be submitted.
6. Use your own laptops during exams and quizzes.

GRADING SYSTEM:

1. MIDTERM SCORE (40% of FG)

2. FINAL EXAM (40% of FG)

3. CLASS STANDINGS (20%)

Guide References:
 Taxation by Barlis
 Taxation by Mamalateo
 Taxation by Capuno
 Taxation by Recalde

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 GENERAL PRINCIPLES OF TAXATION

I. Taxation

II. Characteristics of Taxation

1. Comprehensive
2. Unlimited
3. Plenary
4. Supreme
5. Cases:
a. Mactan Cebu International Airport Authority v. Hon. Ferdinand
J. Marcos, G.R. No. 120082, 11 September 1996
b. Philippine Health Care Providers, Inc. Vs. CIR, G.R. No. 167330,
18 September 2009
c. Sison vs. Ancheta, G.R. No. L-59431, 25 July 1984
d. Tio v. Videogram Regulatory Board, G.R. No. L-75697, 18 June
1987
e. Tolentino v. Secretary of Finance, G.R. No. 115455 25 August
1994
f. Antonio Roxas v. Court Of Tax Appeals, G.R. No. L-25043, 26
April 1968

III. Theories in Taxation

1. Lifeblood Theory
2. Necessity Theory
3. Benefits-Protection Theory
4. Symbiotic Relationship Theory
5. Cases:
a. Commissioner Of Internal Revenue v. Algue, Inc., and The
Court Of Tax Appeals, G.R. No. L-28896, 17 February 1988
b. Commissioner Of Internal Revenue v. Pilipinas Shell Petroleum
Corporation, G.R. No. 197945, 09 July 2018
c. Commissioner Of Internal Revenue v. Dash Engineering
Philippines, G.R. No. 184145, 11 December 2013

IV. Nature of Taxation

1. Attribute of Sovereignty
a. Philippine Guaranty Co., Inc. v. Commissioner Of Internal
Revenue, G.R. No. L-22074, 30 April 1965
b. Batangas City v. Pilipinas Shell Petroleum Corporation, G.R. No.
187631, 8 July 2015
c. Film Development Council of The Philippines v. Colon Heritage
Realty Corporation, G.R. No. 203754, 16 June 2015

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2. Legislative
a. Saint Wealth Ltd. v. Bureau of Internal Revenue, et al., G.R. No.
252965, 254102, 10 January 2023

3. Non-delegable
Exceptions:
a. Local Governments
b. President’s Power
c. Administrative Implementation
d. Cases:
i. Hon. Exec. Secretary v. Southwing Heavy Industries, et al.,
G.R. No. 164171, 20 February 2006
ii. Cervantes v. Auditor Gen., G.R. No. L-4043, 26 May 1952
iii. Maceda v. Macaraig, G.R. No. 88291, 31 May 1991
iv. CIR v. Central Luzon Drug, G.R. No. 159647, 15 April 2005
v. Secretary v. Lazatin, G.R. No. 210588, 29 November 2016
vi. Abakada Guro Party List v. The Honorable Executive
Secretary Eduardo Ermita, G.R. No. 168056, September 01,
2005
vii. Icard v. City Council of Baguio, G.R. No. L-1281, 31 May
1949
viii. Pelizloy v. Province of Benguet, G.R. No. 183137, 10 April
2013
ix. Petron Corporation v. Commissioner of Internal Revenue,
G.R. No. 255961, 20 March 2023

4. Not the contract between the State and its citizens.

a. Francia v. Intermediate Appellate Court, G.R. No. L-67649, 28
June 1988

5. Not political
a. Emilio Y. Hilado v. The Collector Of Internal Revenue And The
Court Of Tax Appeals, G.R. No. L-9408, 31 October 1956

6. Subject to Constitution and Inherent limitations.

a. Inherent Limitations
i. Public purpose
1. Planters Products, Inc. v. FertiPhil Corp., G.R. No.
166006, 14 March 2008
2. Bagatsing v. Ramirez, G.R. No. L-41631, 17 December
1976
3. Pascual vs. Secretary of Public Works, G.R. No. L-10405,
29 December 1960
4. Lutz vs. Araneta, G.R. No. L-7859, 22 December 1955
5. Ferrer v. Bautista, G.R. No. 210551, 30 June 2015

Taxpayer’s Suit:

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 i. Landbank of the Philippines v. Cacayuran, G.R.
No. 191667, 17 April 2013
ii. Tolentino v. Comelec, G.R. No. 148334, 21 January
2004

ii. Non- delegability

iii. Exemption of the Government
1. LRTA v. City of Pasay, G.R. No. 211299, 28 June 2022
2. PHC v. Quezon City, G.R. No. 225409, 11 March 2020
3. MIAA vs. Paranaque, G.R. No. 155650, 20 July 2006
4. LRTA vs. CBAA, G.R. No. 127316, 12 October 2000
5. MCIAA vs. Marcos, G.R. No. 120082, 11 September
1996
6. MIAA vs. Pasay City, G.R. No. 163072, 02 April 2009
6. Republic v. Parañaque, G.R. No. 191109, July 18, 2012
7. MCIAA v. Lapu-Lapu, G.R. No. 181756, 15 June 2015

iv. International Comity

1. Air Canada v. Commissioner of Internal Revenue, G.R.
No. 169507, 11 January 2016

v. Territoriality
1. Commissioner v. British Overseas Airways Corporation,
G.R. No. L-65773-74, 30 April 1987
2. Capitol Wireless, Inc. v. The Provincial Treasurer of
Batangas, G.R. No. 180110. 30 May 2016

b. Constitutional Limitations

i. Due Process Clause (Section 1, Article III, 1987

Constitution)
1. Villegas v. Hiu Chiong Tsai Pao Ho, 86 SCRA 270
2. CREBA v. Exec. Sec Romulo, 09 March 2010
3. City of Baguio v. De Leon, 25 SCRA 938
4. CIR v. M.J. Lhuiller Pawnshop, Inc., 15 July 2003
5. Province of Abra v. Hernando, 107 SCRA 104
6. Francis A. Churchill v. Venancio Concepcion, G.R. No.
11572, September 22, 1916
7. British American Tobacco v. Camacho, G.R. No.
163583, 15 April 2009

ii. Equal Protection Clause (Section 1, Article III, 1987

Constitution)
1. Commissioner of Customs v. Hypermix Feeds
Corporation, G.R. No. 179579, February 1, 2012
2. ABAKADA Guro Party List v. Purisima, G.R. No. 166715,
14 August 2008
3. Kapatiran v. Tan, 30 June 1988

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 4. Tan v. Del Rosario, 3 October 1994
5. Abakada Guro Party List v. The Honorable Executive
Secretary Eduardo Ermita, G.R. No. 168056, September
01, 2005

iii. The rule of taxation shall be uniform and equitable. The

Congress shall evolve a progressive system of taxation
(Section 28[1], Article III, 1987 Constitution)
1. Punzalan v. Mun. Board of Manila, 96 Phil. 46
2. British American Tobacco v. Camacho, G.R. No.
163583, 15 April 2009
3. Abakada Guro Party List v. The Honorable Executive
Secretary Eduardo Ermita, G.R. No. 168056, September
01, 2005
4. Francis A. Churchill v. Venancio Concepcion, G.R. No.
11572, September 22, 1916

iv. No law impairing the obligation of contracts shall be

passed (Section 10, Article III, 1987 Constitution)

v. No person shall be imprisoned for debt or non-payment of

a poll tax (Section 20, Article III, 1987 Constitution)

vi. The free exercise and enjoyment of religious profession

and worship, without discrimination or preference, shall
forever be allowed (Section 5, Article III, 1987 Constitution)
1. American Bible Society v. City of Manila, 101 Phil.386,
G.R. No. L-9637, 30 April 1957
2. Tolentino v. Secretary of Finance, G.R. No. 115455, 25
August 1994

vii. Freedom of the Press (Section 4, Article III, 1987

Constitution)
1. Philippine Press Institute, et al. v. Chato, et al., G.R. No.
115754, August 25, 1994

viii. Tax Exemption of Properties for Religious, Charitable, and

Education Purposes [Section 28(3), Article VI, 1987
Constitution)
1. Hospital de San Juan de Dios v. Pasay City, 16 SCRA
226, G.R. No. L-19371, 28 February 1966;
2. Abra Valley College v. Aquino, G.R. No. L-39086, 15
June 1988;
3. Commissioner v. Court of Appeals, G.R. No. L-124043,
October 14, 1998;
4. Lung Center of the Philippines v. Quezon City, G.R.
144104, 29 June 2004.

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ix. All appropriation, revenue of tariff bills shall originate from
the House of Representatives, but the Senate may
propose or concur with amendments (Section 24, Article
VI, 1987 Constitution)

x. No law granting any tax exemption shall be passed

without the concurrence of a majority of all the members
of the Congress [Section 28(4), Article VI, 1987
Constitution]

xi. Every bill passed by Congress shall be embrace only one

subject, which shall be expressed in the title thereof
[Section 26(1), Article VI, 1987 Constitution]

xii. Congress shall evolve a progressive system of taxation

[Section 28(1), Article VI, 1987 Constitution]

xiii. The President shall have the power to veto any particular
item or items in an appropriation, revenue, or tariff bill, but
the veto shall not affect the item or items to which he
does not object [Section 27(2), Article VI, 1987
Constitution]

xiv. The Congress may, by law, authorize the President to fix

within specified limits, and subject to such limitations and
restrictions as it may impose, tariff rates, import and export
quotas, tonnage and wharfage dues, and other duties or
imposts within the framework of the national
development program of the Government [Section 28(2),
Article VI, 1987 Constitution]

xv. All revenues and assets of non-stock, non-profit

educational institutions used actually, directly, and
exclusively for educational purposes shall be exempt
from taxes and duties [Section 4(3), Article XIV, 1987
Constitution]
1. Commissioner Of Internal Revenue v. De La Salle
University, Inc., G.R. No. 196596, 9 November 2016

xvi. No public money or property shall be appropriated,

applied, paid, or employed, directly or indirectly, for the
use, benefit, or support of any sect, church,
denomination, sectarian institution, or system of religion,
or of any priest, preacher, minister, or dignitary as such,
except when such priest, preacher, minister, or dignitary
is assigned to the armed forces, or to any penal institution,
or government orphanage or leprosarium [Section 29(2),
Article VI, 1987 Constitution]
1. Aglipay v. Ruiz, G.R. No. L-45459, 13 March 1937;

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 2. Re: Letter of Tony Q. Valenciano, Holding of Religious
Rituals at the Hall of Justice Building in Quezon City,
A.M. No. 10-4-19-SC, 7 March 2017;
3. Peralta v. Philippine Postal Corporation, G.R. No.
223395, 04 December 2018.

xvii. Supremacy of the National Government over Local

Government.
1. Manila International Airport Authority v. Court of
Appeals, G.R. No. 155650, July 20, 2006
2. Mactan Cebu International Airport Authority v. Hon.
Ferdinand J. Marcos, G.R. No. 120082, 11 September
1996

V. Purposes and Objectives of Taxation

1. Raising Revenue
2. Regulatory
3. Promotion of General Welfare
4. Reduction of Social Inequality
5. Encourage Economic Growth by granting Incentives and
Exemptions
6. Protectionism

VI. Stages or Aspects of Taxation

1. Levy
2. Assessment and Collection
3. Payment

VII. Basic Principles of Sound Tax System

1. Fiscal Adequacy
2. Administrative Feasibility
3. Theoretical Justice

VIII. Taxes

1. Definition
2. Attributes

IX. Taxes Distinguished from Other Impositions

1. Taxation v. Eminent Domain v. Police Power

2. Tax v. Debt
3. Tax v. Toll
4. Tax v. License Fee
5. Tax v. Penalty

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 6. Tax v. Special Assessment

X. Classification of Taxes

1. As to subject matter:
a. Personal, Capitation, or Poll
b. Property
c. Excise or Privilege
d. Custom Duties

2. As to purpose:
a. General, Fiscal or Revenue
b. Special or Regulatory

3. As to who bears the burden:

a. Direct Tax
b. Indirect Tax

4. As to graduation or rate:
a. Proportional
b. Progressive or graduated
c. Regressive

5. As to Taxing Authority:
a. National Tax
b. Local/ Municipal Tax

6. As to scope:
a. General
b. Special

7. As to basis of amount
a. Specific
b. Ad Valorem

XI. Interpretation

1. Saint Wealth Ltd. v. Bureau of Internal Revenue, et al., G.R. No.

252965, 254102, 10 January 2023
2. Petron Corporation v. Commissioner of Internal Revenue, G.R. No.
255961, 20 March 2023
3. San Miguel Corporation v. Commissioner of Internal Revenue,
G.R. No. 257697, 12 April 2023

XII. Double Taxation

1. Kinds:

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 a. Indirect duplicate taxation
b. Direct duplicate taxation (obnoxious double taxation)

2. Requisites

3. Schemes to Avoid Double Taxation

a. Tax Credit
b. Tax Deductions
c. Tax Reduction
d. Tax Exemption
e. Tax Treaties

4. International Juridical Double Taxation (IJDT)

5. Cases:
a. Compania General de Tabacos de Filipinas v. City of Manila, 8
SCRA 367
b. City of Baguio v. de Leon, G.R. No. L-24756
c. Serafica v. City Treasurer of Ormoc, G.R. No. 24813, 28 April 1968
d. Pepsi Cola Bottling Co. of the Phils. Inc. vs Municipality of
Tanauan, Leyte G. R. L-31156
e. Nursery Care Corporation v. Anthony Acevedo, G.R. No. 180651,
30 July 2014
f. City of Manila v. Coca-Cola Bottlers Philippines, Inc., 595 SCRA 299
g. Commissioner Of Internal Revenue v. Central Luzon Drug
Corporation, G.R. No. 159610, 12 June 2008

XII. Exemption from Taxation

1. Classifications
2. Characteristics
3. Cases:
a. Esso Standard Eastern, Inc. v. Acting Commissioner of Customs,
G.R. No. L-21841, 28 October 1966
b. David Nitafan v. CIR, G.R. No. L-78780, 23 July 1987
c. Mactan Cebu International Airport Authority v. Hon. Ferdinand J.
Marcos, G.R. No. 120082, 11 September 1996
d. Commissioner Of Internal Revenue v. A. D. Guerrero, G.R. No. L-
20942, 22 September 1967
e. Smart Communications, Inc., v. The City Of Davao, G.R. No.
155491, July 21, 2009
f. Commissioner Of Internal Revenue v. St. Luke’s Medical Center,
Inc., G.R. No. 203514, 13 February 2017
g. Commissioner Of Internal Revenue v. Philippine-Aluminum
Wheels, Inc., G.R. No. 216161, 9 August 2017

XIII. Escape from Taxation

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1. Forms:
a. Tax Shifting
b. Tax Capitalization or Amortization
c. Tax Transformation
d. Transfer Pricing
e. Resorting to Tax Haven
f. Tax Deferral
g. Tax Shelter
h. Doctrine of Equitable Recoupment
i. Tax Avoidance
j. Tax Dodging or Tax Evasion

2. Cases:
a. CIR v. The Estate of Benigno P. Toda, Jr., G.R. No. L-147188
b. CIR v. Seagate Technology (Phils.), G.R. No. 153866, 11 February
2005
c. CIR v. PLDT, 15 December 2005
d. Contex v. CIR, 02 July 2004
e. Republic v. Mambulao Lumber Company 4 SCRA 622
f. Francia v. Intermediate Appellate Court, G.R. No. 76749, 28 June
1988
g. Commissioner of Internal Revenue v. Spouses Remigio P. Magaan
and Leticia L. Magaan, G.R. No. 232663, 3 May 2021

MIDTERM

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 TAX REMEDIES

I. BUREAU OF INTERNAL REVENUE

A. Organizational Structure

1. Chief Officials of the Bureau of Internal Revenue (Section 3)

2. Agents of the Commissioner of Internal Revenue (Section 12)

B. Powers and Duties of the BIR

1. Powers and Duties of the Bureau of Internal Revenue (Section 2)

2. Power of the Commissioner to Interpret Tax Laws and to Decide Tax

Cases (Section 4)

3. Power of the Commissioner to Obtain Information, and to Summon,

Examine, and Take Testimony of Persons (Section 5)
a. CIR v. Raul M. Gonzales, G.R. No. 177279, 13 October 2010
b. Fitness by Design v. CIR, G.R. No. 177982, 17 October 2008

4. Power of the Commissioner to Make Assessments and Prescribe

Additional Requirements for Tax Administration and Enforcement
(Section 6)
a. Revenue Memorandum Circular No. 23-2000
b. Oceanic Wireless Network, Inc. v. CIR, G.R. No. 148380, 9
December 2005
c. CIR v. Aquafresh Seafoods, Inc., G.R. No. 170389, 20 October 2010

5. Authority of the Commissioner to Delegate Power (Section 7)

6. Duty of the Commissioner to Ensure the Provision and Distribution of

Forms, Receipts, Certificates, and Appliances, and the
Acknowledgment of Payment of Taxes (Section 8)

II. PRESCRIPTIVE PERIODS

A. Imprescriptibility of taxes

B. Sections 203, 222, 223

1. Fraud v. Fraudulent Return
2. Section 248(B)
3. Section 6(A)
4. RMC 6-2005
5. Revenue Memorandum Order No. 14-2016
6. Revenue Memorandum Circular No. 141-2019
7. Waiver
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 8. Cases:
a. Mcdonald’s Philippines Realty Corporation v. Commissioner of
Internal Revenue, G.R. No. 247737, 8 August 2023
b. Commissioner of Internal Revenue v. Court of Tax Appeals
Second Division and Ql Development, Inc., G.R. No. 258947, 29
March 2022
c. CIR v. United Salvage and Towage, 729 SCRA 113, G.R. No.
197515, 2 July 2014
d. BPI v. CIR, G.R. No. 139736, 17 October 2005
e. Commissioner Of Internal Revenue v. Transitions Optical
Philippines, Inc., G.R. No. 227544, 22 November 2017
f. Republic Of The Philippines v. GMCC United Development
Corporation, G.R. No. 191856, 07 December 2016
g. CIR v. FMF Dev. Corp., G.R. No. 167765, 30 June 2008
h. CIR vs. Stanley Works (Phils.) Incorporated, GR No. 187859, 3
December 2014
i. CIR vs. Kudos Metal, GR No. 178087, 5 May 2010
j. CIR v. Systems Technology Institute, Inc., G.R. No. 220835, 26
July 2017
k. RCBC v. CIR, G.R. No. 170257, 7 September 2011
l. CIR vs. Philippine Daily Inquirer, GR No. 213943, 22 March 2017
m. CIR vs. Asalus Corporation, GR No. 221590, February 22, 2017
n. Commissioner of Internal Revenue v. Bank of the Philippine
Islands, G.R. No. 227049, 16 September 2020
o. Commissioner of Internal Revenue v. Unioil Corporation, G.R.
No. 204405, 4 August 2021
p. Asian Transmission Corporation v. Commissioner of Internal
Revenue, G.R. No. 230861, 14 February 2022

III. ASSESSMENT

A. BASES

1. Question of Fact

2. Question of Law
a. Commissioner v. CA & YMCA, 298 SCRA 83
b. Cyanamid Philippines v. CA, 322 SCRA 639

B. ASSESSMENT PROCESS

1. Revenue Regulations No. 12-99 as amended by Revenue Regulations

No. 18-2013 and as further amended by Revenue Regulations No. 22-
2020
a. Revenue Memorandum Order No. 26-2016
b. Revenue Memorandum Order No. 40-2019
c. Revenue Memorandum Circular No. 15-2020
d. Revenue Memorandum Order No. 6-2023

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2. Kinds of Assessment:
a. Voluntary Assessment or Self-Assessment
b. Jeopardy Assessment
c. Deficiency Assessment

3. Taxpayer’s Part:
a. Self-assessment;
b. Filing of tax return;
c. Payment of tax

4. Government’s part:

a. Letter of Authority
a. See Section C of Revenue Memorandum Order No. 43-90
dated September 20, 1990
b. Revenue Memorandum Circular No. 82-2022
c. CIR v. Sony Phils. Inc., 635 SCRA 234
d. CIR vs. De La Salle University, Inc., GR No. 196596, November
9, 2016;
e. MEDICARD Phils., Inc. vs, CIR, GR No. 222743, 5 April 2017;
f. Commissioner of Internal Revenue v. Mcdonald’s Philippines
Realty Corp., G.R. No. 242670, 10 May 2021
g. Himlayang Pilipino Plans, Inc. v. Commissioner of Internal
Revenue, G.R. No. 241848, 14 May 2021

b. Letter Notice
a. Medicard Philippines, Inc. vs. CIR, GR No. 222743, 5 April 2017

c. Persons authorized to issue Letter of Authority

a. CIR v. Sony Phils. Inc., 635 SCRA 234

d. Examination of books of accounts and other accounting records

of taxpayers by revenue officers to determine correct tax liability
[Sections 5(B) and 6(A)]
i. Best Evidence Obtainable [Section 6(B)]
a. Commission Of Internal Revenue v. Hantex Trading Co.,
G.R. No. 136975, 31 March 2005
i. Net-worth Method of Investigation
a. Section 43
b. Eugenio Perez v. The Court Of Tax Appeals, G. R. No. L-
10507, 30 May 1958

e. Requisites of a valid assessment (Section 228)

a. Republic of the Philippines, represented by the Bureau of
Internal Revenue v. First Gas Power Corporation, G.R. No.
214933, 15 February 2022
b. CIR vs. United Salvage Towage (Phils.), Inc., GR No. 197515, 4
July 2014

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 c. SMI-ED Technology Corporation, Inc. vs. CIR, GR No. 175410,
12 November 2014
e. Samar-I Electric Cooperative v. CIR, GR No. 193100, 10
December 2014
f. Cagayan Robina Sugar Milling v. CA, 122451, 12 October
2000
g. Commissioner Of Internal Revenue v. De La Salle University,
Inc., G.R. No. 196596, 9 November 2016
h. Section 235
i. CIR vs. Fitness By Design, GR No. 215957, 9 November 2016
j. Oceanic Wireless Network, Inc. v. CIR, G.R. No. 148380, 9
December 2005

f. Notice of Discrepancy
a. Revenue Regulations No. 22-2020;
b. Annex A of Revenue Memorandum Circular 15-2020;
c. Removed: Notice of Informal Conference.

g. Issuance of Preliminary Assessment Notice (PAN)

i. Section 228
ii. See Revenue Regulations No. 12-99 as amended by Revenue
Regulations No. 18-2013 and further amended by Revenue
Regulations No. 7-2018
iii. Reply

h. In both issuance of PAN and FAN, modes of service:

i. Personal Service
ii. Substituted Service
iii. Registered Mail
iv. Cases:
a. Commissioner of Internal Revenue v. South
Entertainment Gallery, Inc., G.R. No. 223767, 24 April
2023
b. CIR v. Metro Star Suprema Inc., 185371, 8 December
2010
c. Mannasoft Technology Corporation v. Commissioner
of Internal Revenue, G.R. No. 244202, 10 July 2023
d. Commissioner of Internal Revenue v. Arturo E.
Villanueva, Jr., G.R. No. 249540, 28 February 2024

i. Issuance of Formal Assessment Notice (FAN) or Formal Letter of

Demand (FLD)
i. Requisites
ii. Instances when the FAN becomes final
a. CIR vs. Metro Star Superama, Inc., GR No. 185371, 8
December 2010
b. CIR vs. Enron, GR No. GR No. 166387, 19 January 2009

j. Protest

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 i. Requisites
ii. Types of protest:
1. Request for reconsideration
2. Request for reinvestigation

k. Denial of protest by Commissioner or his authorized

representative and Final Decision on Disputed Assessments

l. Actions of the BIR considered as a denial of a pending protest:

i. Issuance of a Warrant of Distraint of Levy
ii. Filing of Collection Case
iii. Issuance of a Final Notice before Seizure
iv. Issuance of a Final Demand Letter

m. Appeal

n. Cases:
a. Commissioner of Internal Revenue v. Maxicare Healthcare
Corporation, G.R. No. 261065, 10 July 2023
b. Commissioner of Internal Revenue v. Manila Medical
Services, Inc., G.R. No. 255473, 13 February 2023
c. Fishwealth Canning Corporation v. CIR, 179343, 21 January
2010
d. CIR vs. First Express Pawnshop, GR Nos. 172045-46, 16 June
2009
e. CIR vs. Liquigaz Phils. Corporation, GR No. 215534, 18 April
2016
f. RCBC v. CIR, G.R. No. 170257, 7 September 2011
g. PAGCOR vs. BIR, GR No. 208731, 27 January 2016
h. Lascona Land vs. CIR, GR No. 171251 dated March 5, 2012
i. Allied Banking Corporation vs. CIR, GR No. 175097, 5
February 2010
j. Commissioner of Internal Revenue v. V.Y. Domingo Jewellers,
Inc., G.R. No. 221780, 25 March 2019.
k. Misnet, Inc. v. Commissioner of Internal Revenue, G.R. No.
210604. 3 June 2019
l. Commissioner of Internal Revenue v. T Shuttle Services Inc.,
G.R. No. 240729, 24 August 2020
l. Commissioner of Internal Revenue v. Unioil Corporation, G.R.
No. 204405, 4 August 2021
m. Commissioner of Internal Revenue v. Court of Tax Appeals,
G.R. No. 239464, 10 May 2021
n. Commissioner of Internal Revenue v. Yumex Philippines
Corporation, G.R. No. 222476, 5 May 2021

IV. COMPROMISE AND ABATEMENT

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 A. Differentiate Compromise from Abatement (Section 204)

B. Compromise v. Compromise Penalty

C. Revenue Regulations No. 7-2001 as amended by Revenue

Regulations No. 30-2002

V. TAX CREDIT AND TAX REFUND

A. Section 204(C), 229, 230

B. Revenue Regulations No. 5-2024

C. Cases:
1. Commissioner of Internal Revenue v. Philippine Bank of
Communications, G.R. No. 211348, 23 February 2022
2. FEBTC v. CIR, G.R. No. 149589, 15 September 2006
3. CIR v. Fortune Tobacco Corporation 559 SCRA 160 (2008)
4. CIR v. PNB, G.R. No. 161997, 25 October 2005
5. Philippine Phosphate Fertilizer Corp. v. CIR, G.R. No. 141973, 28 June
2005
6. Lu Do & Ym Corp. v. Central Bank, 108 Phil. 566
7. Banco Filipino v. CA, CTA, and CIR, 155682, 27 March 2007
8. CIR vs. Far East Bank & Trust Company, GR No. 173854, 15 March
2010
9. Metropolitan Bank & Trust Company v. The Commissioner Of
Internal Revenue, G.R. No. 182582, 17 April 2017
10. Belle Corporation vs. CIR, GR No. 181298, 10 January 2011
13. Winebrenner & Inigo Insurance Brokers, Inc. vs. CIR, GR No. 206526,
28 January 2015
14. Systra Phils. Inc. vs. CIR, GR No. 176290, 21 September 2007
15. Commissioner of Internal Revenue v. Univation Motor Philippines,
Inc., G.R. No. 231581, 10 April 2019
16. Commissioner of Internal Revenue v. Philippine National Bank, G.R.
No. 212699, 13 March 2019
17. Manila Peninsula Hotel, Inc. v. Commissioner of Internal Revenue,
G.R. No. 229338, 17 April 2024

C. Final Adjusted Return (Section 76)

1. Revenue Regulations No. 5-2024;
2. Paseo Realty and Development Corporation v. Court of Appeals,
G.R. No. 119286, 13 October 2000
3. Commissioner of Internal Revenue v. Philamlife and General
Insurance Corporation, G.R. No. 175124, 29 September 2010
4. Philam Asset Management, Inc. v. Commissioner of Internal
Revenue, G.R. Nos. 156637, 162004, 14 December 2005

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 5. Commissioner of Internal Revenue v. Mirant, G.R. 171742, 15 June
2011
6. Commissioner of Internal Revenue v. Bank of the Philippine Islands,
G.R. No. 178490, 7 July 2009
7. Commissioner of Internal Revenue v. McGeorge Food Industries,
Inc., G.R. No. 174157, 20 October 2010
8. University Physicians Services, Inc. – Management, Inc., v.
Commissioner of Internal Revenue, G.R. No. 205955, 7 March 2018
9. Commissioner of Internal Revenue v. Philippine National Bank,
G.R. No. 212699, 13 March 2019

D. Person entitled to refund:

1. Statutory taxpayer
2. Withholding agent
a. CIR v. Smart Communication Inc., G.R. Nos. 179045-46, 25
August 2010
b. Silkair v. Commissioner of Internal Revenue, G.R. No. 184389, 25
February 2010

VI. VAT REFUND

A. Zero-rated sales of goods [Section 106 (A)(2)]

B. Zero-rated sales of services [Section 108 (B)]

C. Effectively zero-rated sales [Section 108(B)(3)]

D. Tax credit method

E. Revenue Regulations No. 5-2024

F. Quantum of evidence needed to prove claim

1. CIR v. Mirant Pagbilao Corp., G.R. 172129, 12 September 2008

G. Claimant
1. Contex Corporation v. CIR, G.R. No. 151135, 2 July 2004
2. Philippine Geothermal v. CIR, 154028, 29 July 2005

H. Prescriptive Period [Section 112(C)]

1. Administrative
2. Judicial

I. Cases:
1. Commissioner of Internal Revenue v. Cargill Philippines, Inc., G.R.
No. 255470-71, 30 January 2023

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 2. Commissioner of Internal Revenue v. Vestas Services Philippines,
Inc., G.R. No. 255085, 29 March 2023
3. Maibarara Geothermal, Inc. v. Commissioner of Internal
Revenue, G.R. No. 250479, 18 July 2022
4. Contex Corporation v. CIR, G.R. No. 151135, 2 July 2004
5. CIR v. Seagate Technology Phils., G.R. No. 153866, 11 February
2005
6. Philippine Geothermal v. CIR, 154028, 29 July 2005
7. Atlas Consolidated v. CIR, G.R. Nos. 141104 & 148763, June 8, 2007
8. CIR v. Mirant Pagbilao Corp., G.R. 172129, 12 September 2008
9. San Roque Power Corporation v. Commissioner of Internal
Revenue, G.R. No. 180345, 25 November 2009
10. Panasonic Communications Imaging Corporation of the
Philippines
v. CIR 612 SCRA 28, G.R. No. 178090, 8 February 2010
11. CIR v. Aichi Forging Co. of Asia, Inc., G.R. No. 184823, 6 October
2010
12. J.R.A. Philippines, Inc. vs. CIR, GR No. 177127, 11 October 2010
13. Silicon Philippines, Inc. vs. CIR, GR No. 172378 17 January 2011
14. Southern Philippines Power Corp. v. CIR, 179632, 19 October 2011
15. Commissioner of Internal Revenue v. San Roque Power
Corporation, G.R. No. 187485, 12 February 2013
16. Pilipinas Total Gas, Inc. vs. CIR, GR No. 207112, 8 December 2015
17. CE Luzon Geothemal Power Company, Inc. v. Commissioner
Internal Revenue, G.R. No. 197526, 26 July 2017
18. San Roque Power Corporation v. Commissioner of Internal
Revenue, G.R. No. 203249, 23 July 2018
19. Steag State Power, Inc. v. Commissioner of Internal Revenue, G.R.
No. 205282, 14 January 2019
20. Commissioner of Internal Revenue v. Team Energy Corporation,
G.R. No. 230412, 27 March 2019
21. Commissioner of Internal Revenue v. Chevron, G.R. No. 233301,
17 February 2020
22. Zuellig-Pharma Asia Pacific Ltd. Phils. ROHQ v. Commissioner of
Internal Revenue, G.R. No. 244154, 15 July 2020
23. Commissioner of Internal Revenue v. Philex Mining Corporation,
G.R. No. 218057, 18 January 2021
24. Commissioner of Internal Revenue v. Taganito Mining
Corporation, G.R. No. 219630-31, 07 December 2021

VII. CIVIL PENALTIES

A. Surcharge (Section 248)

1. Revenue Regulations No. 4-2024
2. Revenue Regulations No. 5-2024
3. Revenue Memorandum Circular No. 43-2022

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 B. Interest (Section 249)
1. Delinquency Tax v. Deficiency Tax

C. Compromise Penalty

VIII. COLLECTION

A. Administrative Remedies
1. Tax Lien (Section 219)
a. CIR v. NLRC, G.R. No. 74965, November 9, 1994
2. Distraint of personal property, or levy of real property, or
garnishment of bank deposits [Section 205(A)] b. Actual Distraint
[Section 207(A)]
c. Constructive Distraint (Section 206)
i. BPI v. Commissioner, G.R. No. 139736
3. Sale of property (Section 209, 213)
4. Forfeiture (Section 215)
5. Compromise and Abatement (Section 204)
6. Penalties and fines
7. Suspension of business operations

IX. JUDICIAL REMEDIES OF THE GOVERNMENT

A. Civil Actions
1. Form and Mode of Proceeding in Actions Arising under this Code
(Section 220)
2. Injunction not Available to Restrain Collection of Tax (Section 218)
3. Jurisdiction 4. Cases:
a. Republic v. Hizon, 320 SCRA 574

B. Criminal Actions
1. Chapter II, Title X, NIRC 2.
Cases:
a. Ungab v. Cusi, Jr., GR No. L-41919-24, 30 May 1980
b. Commissioner of Internal Revenue v. Spouses Remigio P.
Magaan and Leticia L. Magaan, G.R. No. 232663, 3 May
2021
c. CIR v. CA, GR No. 119322, 4 June 1996
d. CIR v. Pascor, G.R. No. 128315, 29 June 1999

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 COURT OF TAX APPEALS
REPUBLIC ACT NO. 1125, AS AMENDED

I. Revised Rules of the Court of Tax Appeals

II. Cases:
A. CIR v. Hambrecht & Quist Philippines, Inc., GR No. 169225, 17 November
2010
B. CIR v. CTA and Petron, GR No. 207843, 15 July 2015
C. BDO v. Republic, GR No. 198756, 16 August 2016
D. Oceanagold (Philippines), Inc. v. Commissioner of Internal Revenue,
G.R. No. 234614, 14 June 2023
E. CIR v. Lancaster Philippines, G.R. No. 183408, 12 July 2017
F. PSALM v. CIR, G.R. No. 198146, 8 August 2017
G. The Department of Energy v. Court of Appeals, G.R. No. 260912, 17
August 2022
H. Nippon v. Commissioner of Internal Revenue, G.R. No. 191495, 23 July
2018;
I. PAL v. Commissioner of Internal Revenue, G.R. No. 206079-80, 17
January 2018;
J. Association of Non-Profit Clubs, Inc. v. Bureau of Internal Revenue, G.R.
No. 228539, 26 June 2019;
K. Commissioner of Internal Revenue v. Lancaster Philippines, G.R. No.
183408, 12 July 2017;
L. CIR v. Standard Insurance, G.R. No. 219340, 28 April 2021
M. Light Rail Transit Authority v. Bureau of Internal Revenue, represented by
the Commissioner of Internal Revenue, G.R. No. 231238, 20 June 2022
N. People of the Philippines v. Court of Tax Appeals – Jacinto C. Ligot and
Erlinda Y. Ligot, G.R. No. 250736 and 250801-03, 5 December 2022
O. People of the Philippines v. Joel C. Mendez, G.R. Nos. 208310-11, 28
March 2023
P. Department of Finance and Department of Energy v. Philippine Airlines,
Inc., G.R. No. 198609-10, 26 April 2023
Q. Mannasoft Technology Corporation v. Commissioner of Internal
Revenue, G.R. No. 244202, 10 July 2023
R. Manila Peninsula Hotel, Inc. v. Commissioner of Internal Revenue, G.R.
No. 229338, 17 April 2024

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 THE LOCAL GOVERNMENT CODE
REPUBLIC ACT NO. 7160

LOCAL GOVERNMENT TAXATION

1. Authority of Local Government Units:
a. Power to Create Sources of Revenue – Section 129
b. Fundamental Principles – Section 130
c. Local Taxing Authority – Section 132
d. Limitations – Section 133
e. Common Revenue-Raising Powers – Sections 153 – 155
f. Power to Levy Other Taxes, Fees, or Charges – Section 186
g. Tax Ordinances – Section 187
h. Adjustment of Rates of Ordinances – Section 191
i. Grant of Tax Exemption Privileges – Section 192
j. Provinces:
i. Scope of Taxing Powers of Cities – Section 151
ii. Scope of Taxing Powers of Provinces – Section 135
iii. Professional Tax – Section 139 iv. Amusement Tax – Section 140
k. Municipalities:
i. Scope of Taxing Powers of Cities – Section 151
ii. Scope of Taxing Powers of Municipalities – Section 142
iii. Tax on Business – Section 143
iv. Fees and Charges – Section 147
v. Situs of Tax – Section 150
2. Collection
a. Sections 165 to 170
3. Prescription and Assessment
a. Section 171 – Assessment
b. Section 194 – Prescriptive Period
c. Section 195 – Protest
d. Section 196 – Refund
4. Civil Remedies
a. Section 173 to 185 5.
Cases:
a. Bases Conversion and Development Authority and John Hay
Management Corporation v. City Government of Baguio, G.R. No.
192694, 22 February 2023
b. Municipality of Cainta v. City of Pasig and Uniwide Sales Warehouse
Club, Inc., G.R. No. 176703, 28 June 2017
c. Capitol Wireless, Inc. v. The Provincial Treasurer of Batangas, G.R. No.
180110, 30 May 2016
d. Mindanao Shopping Destination Corporation v. Hon. Rodrigo R.
Duterte, G.R. No. 211093, 06 June 2017
e. City of Manila v. Cosmos Bottling Corporation, G.R. No. 196681, 27 June
2018
f. Pelizloy v. Province of Benguet, G.R. No. 183137, 10 April 2013
g. City Treasurer of Manila v. Philippine Beverage Partners, Inc., G.R. No.
233556, 11 September 2019

Page 21 of 23
 h. University of the Philippines v. City Treasurer of Quezon City, G.R. No.
214044, 19 June 2019
i. City of Iloilo v. Philippine Ports Authority and Development Bank of the
Philippines, G.R. No. 233861, 12 January 2021
j. City of Makati v. City of Bakun, et al., G.R. No. 225226, 05 July 2020
k. National Power Corporation v. Power Sector Assets and Liabilities
Management Corporation, G.R. No. 229706, 15 March 2023
l. National Power Corporation v. Philippine National Bank and
Municipality of Sual, G.R. No. 226716, 10 July 2023
m. Hon. Lourdes R. Jose v. Tigerway Facilities And Resources, Inc., G.R. No.
247331, 26 February 2024

REAL PROPERTY TAXATION

1. General Provisions
a. Section 198
b. Actual Use as Basis of Assessments – Section 217
c. Valuation of Property – Section 220
d. Effectivity of Assessment – Section 221
e. Assessment of Property Subject to Back Taxes – Section 222
f. Power to Levy Real Property Tax – Section 232
2. Imposition
a. Rate of Levy – Section 233
b. Exemptions from Real Property Tax – Section 234
3. Collection
a. Accrual of Tax – Section 246
b. Collection of Tax – Section 247
4. Remedies
a. Section 252 – Payment Under Protest
b. Section 253 – Refund
c. Sections 254 – 270
5. Appeals
a. Local Board of Assessment Appeals (LBAA) – Section 226
b. Powers of the LBAA – Section 227
c. Action by the LBAA – Section 229
d. Central Board of Assessment Appeals (CBAA) – Section 230
e. Effect of Appeal – Section 231
6. Cases:
a. Manila Electric Company v. City Assessor and City Treasurer of Lucena
City, G.R. No. 166102, 05 August 2015;
b. Metropolitan Waterworks and Sewerage System v. The Local
Government of Quezon City, G.R. No. 194388, 07 November 2018;
c. Capitol Wireless, Inc. v. The Provincial Treasurer of Batangas, G.R. No.
180110. 30 May 2016;
d. Caltex Phils. Inc. v. Central Board of Assessment Appeals, 114 SCRA 296;
e. National Power Corporation v. Province of Pangasinan, G.R. No. 210191,
4 March 2019;

Page 22 of 23
f. University of the Philippines v. City Treasurer of Quezon City, G.R. No.
214044, 19 June 2019
g. National Power Corporation v. the Province of Pangasinan and the
Provincial Assessor of Pangasinan, G.R. No. 210191, 4 March 2019
h. The City Government of Antipolo and The City Treasurer Of Antipolo v.
Transmix Builders & Construction, Inc., G.R. No. 235484, 09 August 2023

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