Chapter IV
TAX LAWS AND REGULATIONS
NATURE OF TAX LAWS.
Civil in nature.
> Not Political, hence, continually enforced even during
occupation > Deemed law of the occupied territory and not the
occupying power.
> Not penal. No retroactive effect, ex
post facto law cannot be invoked.
INTERPRETATION OF TAX LAWS.
Will not be construed as imposing a tax unless it does so clearly,
expressly and unambiguously.
It cannot be extended by implication.
DOUBTS construed strongly against the government and
liberally in favor of the citizen. (Burdens are not to be imposed
beyond what the statutes expressly and clearly import)
Tax laws operate prospectively (enact, amend or repeal) unless
the purpose of the legislature to give retrospective effect is
expressly declared or implied from the language used.
American origin, interpretations by American Courts on our
parallel tax laws.
SOURCES OF TAX LAWS.
Constitution
Tax Codes such as NIRC, Tariff and Customs Codes (TCC), Local
Government Code.
Statutes like RA 1125 (Creating Tax Appeals); RA 7716 (E-VAT)
and RA 8424 (Tax Reform Act 1997)
Presidential Decrees
Executive Orders
Court Decisions
Revenue Regulations promulgated by DOF
Administrative issuances of the BIR (Revenue Memorandum
Circulars) and BOC (Customs Memorandum Orders)
BIR Rulings
Local tax ordinances
Tax treaties and conventions
MANDATORY AND DIRECTORY PROVISIONS.
Mandatory requirements for purpose of the validity of certain
acts performed by those who are entrusted with the enforcement
of revenue laws. (MANDATORY PROVISIONS)
COURT OF TAX APPEALS
Not mere superior administrative agency or tribunal; it is a part
of judicial system. It is created by the Congress as a centralized
court specializing in tax cases. Vested with appellate jurisdiction
over cases arising under NIRC, TCC, and the Assessment Law.
PUBLICATION REQUIREMENT
Tanada vs Tuvera it was ruled that the following require
publication as a condition for their effectivity: statutes, including
those of local application and private laws, presidential decrees
and executive orders promulgated by the president, and
administrative rules and regulations if their purpose is to enforce
or implement an existing law, pursuant to valid delegation.
> Interpretative regulations and those which are
merely internal in nature, those which regulate only the
personnel not the public; revenue memorandum order, revenue
memorandum circulars, revenue administrative orders, and BIR
rulings; opinions expressed by way of circular or memorandum
where it merely interprets a preexisting law; Customs
memorandum order, do not require publication for purposes of
effectivity.
ARE
TAX LAWS SPECIAL LAWS?
Tax laws are special laws.
Civil code is general law.
Tax laws prevail over the civil code.
Provisions of special law are found to be deficient, the Civil Code
shall apply.
TAX REGULATIONS.
Promulgated by Sec. of Fin. In order to implement the provisions
of the Tax Code.
It must be not contrary to law; regulations promulgated on wrong
interpretations of the law cannot give rise to a vested right that
can be invoked by taxpayers or the Government.
It must be published in a the OC or newspaper of general
circulation
It must reasonable
It must be within the authority conferred since the power to
make regulations is not power to legislate.
Discrepancies between IRR and basic law, basic law prevails.
Regulations must no supplant nor modify the law.
Regulations could not be given weight if to do so would in effect
amend the statute.
TAX RULINGS
They are the best guess of the moment and incidentally often
contain such well-considered and sound law; but the courts have
held that they do not prevent an entire change of front at any
time and are merely advisory sort of an information service to
the taxpayers.
POWER OF THE COMMISSIONER TO INTERPRET TAX LAWS AND
TO DECIDE TAX CASES.
