Course Outline

Tax I
INCOME TAX

1. Definitions

Section 22 (A) to (I), (Z), (GG), and (HH), Tax Code

Sections 25 (A)(1), 31, 35 (B), and 39 (A), Tax Code
Republic Act No. 10754 (March 23, 2016)

Resident citizens and resident aliens

Garrison v. Court of Appeals (July 19, 1990)

Non-resident citizens
RR 1-79 (January 8, 1979) (Section 2 only)
RR 5-01 (July 31, 2001)
BIR Ruling 33-00 (September 5, 2000)
BIR Ruling DA 095-05

Non-resident aliens engaged in trade or business in the Philippines

Sec. 5 & 6, RR 2

Corporations
AFISCO Insurance Corporation v. Court of Appeals (January 25, 1999)
Pascual v. Commissioner of Internal Revenue (October 18, 1988)
Obillos v. Commissioner of Internal Revenue (October 29, 1985)
Oña v. Commissioner of Internal Revenue (May 25, 1972)

2. Income

In general
Madrigal v. Rafferty (August 7, 1918)
Fisher v. Trinidad (October 30, 1922)
Limpan Investment Corporation v. Commissioner of Internal Revenue (July 26, 1966)
Conwi v. Court of Tax Appeals (August 31, 1992)
Commissioner v. Glenshaw Glass Co., 348 U.S. 426 (March 28, 1955)
Cesarini v. United States 296 F. Supp. 3 (February 17, 1969)
Hornung v. Commissioner of Internal Revenue 47 T.C. 428 (January 27, 1967)
Murphy v. Internal Revenue Service 493 F3rd 170 – US Court of Appeals,
District of Columbia Circuit (July 3, 2007)
Officemetro Philippines, Inc. v. Commissioner of Internal Revenue (CTA Case
No. 8382, June 3, 2014).
Statutory “inclusions”
Section 32(A), Tax Code

Compensation for services

Section 78(A), Tax Code

Old Colony Trust Co. v. Commissioner of Internal Revenue 279 US 716 (June 3, 1929)

Rents
Helvering v. Bruun, 309 US 461 (March 25, 1940)

Dividends
Section 73(A) to (C), Tax Code

Commissioner of Internal Revenue v. Court of Appeals (January 20, 1999)

Wise & Co., Inc. v. Meer (June 30, 1947)

Sections 250-254, and 256, RR 2

BIR Ruling 322-87 (October 19, 1987)

BIR Ruling 479-11 (December 5, 2011)
BIR Ruling 039-02 (November 11, 2002)

“From whatever source”

Section 34 (C)(1), Tax Code

James v. United States, 366 US 213 (May 15, 1961)

Commissioner of Internal Revenue v. Spouses Manly (November 24, 2014)

RMC 16-2013 (February 8, 2013)

Section 50, RR2

RMC 88-2012 (December 27, 2012)

Inventories
Section 41, Tax Code

BIR Ruling DA 128-08

Exclusions
Section 32 (B), Tax Code
Republic Act No. 10653, July 28, 2014