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TAX 01 General Principles
TAX 01 General Principles
College of Law
TAXATION LAW
Atty. Raegan L. Capuno, CPA1
2. Nature of Taxation
3. Characteristics of Taxation
4. Power of Taxation compared with Police Power and Power of Eminent Domain
5. Purposes of Taxation
i. Revenue-Raising
vi. Protectionism
Southern Cross Cement Corp. vs. Secretary of Finance, G.R. No. 158540,
July 8, 2004
1Tax Lawyer in Siguion Reyna, Montecillo and Ongsiako Law Offices, Top 12 in the 2015 Philippine Bar Examination, Pre-Bar
Reviewer in Taxation Law, Professor of Taxation Law at San Sebastian College-Recoletos College of Law, CPA Reviewer and
Lecturer in Management Advisory Services, Taxation and Regulatory Framework for Business Transactions, Lecturer in
Criminal Procedure for Criminologists Licensure Examination, Subject Matter Expert in Forensic Accounting and Business
Security Management, Professor of Accountancy and Finance, Registrar and former Chair of the BS Accountancy Program of
First Asia Institute of Technology and Humanities (FAITH), Former auditor at Isla Lipana & Co.
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iii. Benefits-Protection Theory (Symbiotic Relationship)
8. Doctrines in Taxation
i. Prospectivity of tax laws
ii. Imprescriptibility
2. Tax avoidance
3. Tax evasion
Commissioner of Internal Revenue vs. Estate of Benigno P. Toda,
G.R. No. 147188, September 14, 2004
4. Tax treaty
Deutsche Bank AG Manila Branch vs. Commissioner of Internal
Revenue, G.R. No. 188550, August 19, 2013
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vii. Compensation and Set-off
Republic vs. Mambulao Lumber Co., 4 SCRA 622
Domingo vs. Garlitos, 8 SCRA 443
Francia vs. IAC, 162 SCRA 753
Caltex Phils. vs. COA, 208 SCRA 726
Philex Mining Corp. vs. CIR, 294 SCRA 687
ix. Compromise
Article 2028, New Civil Code
x. Tax Amnesty
1. Definition
2. Distinguished from tax exemption
2. Inherently legislative
a. General rule
b. Exceptions
i. Delegation to local governments
Humberto Basco vs. PAGCOR, G.R. No. 91649,
May 14, 1991
3. Territorial
a. Situs of taxation
Commissioner of Internal Revenue vs. Marubeni, G.R. No.
137377, Dec.18, 2001
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b. Situs of income tax
i. From sources within the Philippines
ii. From sources without the Philippines
iii. Income partly within and partly without the
Philippines
Section 42, NIRC
4. International comity
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8. Article VI, Sec. 28, 3rd par.
Herrera vs. Quezon City Board of Assessment Appeals, 3 SCRA
186
Lladoc vs Commissioner, 14 SCRA 292
Hospital de San Juan de Dios vs. Pasay City, 16 SCRA 226
Abra Valley College vs. Aquino, 52 SCRA 106
Province of Abra vs. Hernando, 107 SCRA 104
Commissioner vs. YMCA, 298 SCRA 83
Philippine Lung Center vs. Quezon City, 433 SCRA 119
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