Professional Documents
Culture Documents
Tax 1 Outline TRAIN
Tax 1 Outline TRAIN
In Re: Atty. Bernardo Zialcita, A.M. No. 90-6-015-SC (Oct. 18, 1990)
BIR Rul. 1-95 (Jan. 6, 1995)
Rep. Act No. 4917 (June 17, 1967)
Rep. Act No. 7833 (Dec. 8, 1994)
Rev. Regs. 2-95 (Jan. 3, 1995)
RMC 36-94 (Dec. 14, 1994)
4. Income Derived by Foreign Government
Sec. 32(B)(7)(a)
CIR v. Mitsubishi Metal Corp. (Jan. 22, 1990)
5. Gains from the Sale of Bonds, Debentures or Other Certificates of
Indebtedness
Sec. 32(B)(7)(g)
Nippon Life Ins. Co., Inc. v. CIR, CTA Case No. 6142 (Feb. 4, 2002)
IV. DEDUCTIONS
Sec. 34
Sec. 36(A)
Secs. 119 to 120, Rev. Regs. 2
A. Expenses
Sec. 34(A)
1. Non-Deductible Personal Expenses v. Deductible Business Expenses
Smith v. CIR, 40 B.T.A. 1038 (1939)
Pevsner v. CIR, 628 F.2d 467 (5th Cir. 1980)
Hynes v. Commissioner of Internal Revenue, 74 T.C. 1266 (1980)
Sparkman v. Commissioner of Internal Revenue, 112 F.2d 774 (Ct. App.
9th Cir. 1940)
Hess v. Commissioner of Internal Revenue, 1994 U.S. Tax Ct. LEXIS 88
Schultz v. CIR, 16 T.C. 401 (1951)
2. Travel Expenses While Away from Home
CIR v. Flowers, 326 U.S. 465 (1946)
Hantzis v. CIR, 638 F.2d 248 (1st Cir. 1981)
3. Deductible Current Expenses v. Non-Deductible Capital Expenditures
Mt. Morris Drive-In Theatre Co. v. CIR, 25 T.C. 272 (1955)
Midland Empire Packing Co. v. CIR, 14 T.C. 635 (1950)
INDOPCO, Inc. v. CIR, 503 U.S. 79 (1992)
CIR v. General Foods (Phil.), Inc. (April 24, 2003)
4. Ordinary and Necessary
Welch v. Helvering, 290 U.S. 111 (1933)
Atlas Consolidated Mining & Dev’t Corp. v. CIR (Jan. 27, 1981)
5. Reasonable Compensation
C.M. Hoskins & Co., Inc. v. CIR (Nov. 28, 1969)
Kuenzle & Streiff, Inc. v. Collector (Oct. 20, 1959)
6. Period for Which Deductions and Credits Taken
Sec. 45
CIR v. Isabela Cultural Corp. (Feb. 12, 2007)
Tax I Course Outline Page 5
Atty. Terence Conrad H. Bello
B. Interest
Sec. 34(B)
Paper Ind. Corp. of the Phil. v. CA (Dec. 1, 1995)
CIR v. Vda. de Prieto (Sept. 30, 1960)
Rev. Regs. 13-2000 (Nov. 20, 2000)
1. Interest arbitrage
BIR Rul. No. 006-00 (Jan. 5, 2000)
C. Taxes
Section 34(C)
CIR v. Lednicky (July 31, 1964)
D. Losses
1. Casualty losses
Sec. 34(D)(1), (2)
2. NOLCO
Sec. 34(D)(3)
Paper Ind. Corp. of the Phil. v. CA, supra
Rev. Regs. 14-01 (Aug. 27, 2001)
BIR Rul. 30-00 (Aug. 10, 2000)
3. Realized vs. unrealized losses
BIR Rul. No. 206-90 (Oct. 30, 1990)
BIR Rul. No. 144-85 (Aug. 26, 1985)
4. Losses from sales or exchanges (to be taken-up in XV below)
E. Bad Debts
Section 34(E)
Rev. Regs. 5-99 (March 10, 1999)
Phil. Refining Co. v. CA (May 8, 1996)
Fernandez Hermanos, Inc. v. CIR (Sept. 30, 1969)
F. Depreciation
Sec. 34(F)
Basilan Estates, Inc. v. CIR (Sept. 5, 1967)
Limpan Investment Corp. v. CIR (July 26, 1966)
G. Depletion
Sec. 34(G)
Consolidated Mines, Inc. v. CTA (Aug. 29, 1974)
H. Charitable and Other Contributions
Sec. 34(H)
BIR Rul. 19-01 (May 10, 2001)
I. Research and Development
Sec. 34(I)
3M Phil., Inc. v. CIR (Sept. 26, 1988)
J. Pension Trusts
Sec. 34(J)
K. Additional Requirements for Deductibility
Section 34(K)
L. Optional Standard Deduction
Tax I Course Outline Page 6
Atty. Terence Conrad H. Bello
V. TAXABLE INCOME
Sec. 31
Sec. 24(B)(1)
Sec. 22(Y)
Sec. 22(FF)
Rev. Regs. 10-98 (Aug. 25, 1998)
b. Final Income Tax on Cash and/or Property Dividends
Sec. 24(B)(2)
Sec. 73
c. Capital Gains Tax on Sale of Shares
Sec. 24(C)
Sec. 127(A)
Sec. 22(L)
Sec. 22(U)
Benguet Corp. v. CIR, CTA Case No. 5324, July 2, 1998
d. Capital Gains Tax on Sale of Realty
Sec. 24(D)
Rev. Regs. 8-98 (Aug. 25, 1998)
Rev. Regs. 13-99 (July 26, 1999)
Rev. Regs. 14-2000 (Nov. 20, 2000)
Rev. Regs. 4-99 (March 9, 1999)
6. Optional Standard Deduction
Sec. 34(L)
C. Income Tax on Nonresident Aliens Engaged in Trade or Business in the
Philippines
1. Meaning of “Engaged in Trade or Business”
Sec. 8, Rev. Regs. 2
Sec. 25(A)(1)
Higgins v. CIR, 312 U.S. 212 (1941)
Weliner v. CIR, CTA Case No. 3170 (May 23, 1986)
2. Income Tax Rate and Tax Base, In General
Sec. 25(A)(1)
Sec. 31
3. Income Tax Rate and Base on Certain Types of Income
a. Cash and/or Property Dividends from a Domestic Corporation or
Joint Stock Company, or Insurance or Mutual Fund Co., or ROHQ, or
Share in the Distributable Net Income of a Taxable Partnership,
Interests, Royalties, Prizes, and Other Winnings
Sec. 25(A)(2)
b. Capital Gains on the Sale of Shares and Realty
Sec. 25(A)(3)
4. Personal Exemption Allowable to Nonresident Alien Individuals
Engaged in Trade or Business in the Philippines
Sec. 35(D)
D. Nonresident Aliens not Engaged in Trade or Business in the Philippines
Sec. 25(B)
CIR v. Wodehouse, 337 U.S. 369 (1949)
Tax I Course Outline Page 8
Atty. Terence Conrad H. Bello
E. Special Aliens
Sec. 25(C), (D), (E)
N.V. Reederij “Amsterdam” and Royal Interocean Lines v. CIR (June 23,
1988)
B. Special Non-Resident Foreign Corporations
1. Non-Resident Cinematographic Film Owner, Lessor or Distributor
Sec. 28(B)(2)
2. Non-Resident Owner or Lessor of Vessels Chartered by Philippine
Nationals
Sec. 28(B)(3)
3. Non-Resident Owner or Lessor of Aircraft, Machinery and Other
Equipment
Sec. 28(B)(4)
C. Tax on Certain Incomes of Non-resident Foreign Corporations
Sec. 28(B)(5)
1. Interest on Foreign Loans
2. Intercorporate Dividends
BIR Rul. 8-00 (Jan. 5, 2000)
3. Capital Gain from Sale of Shares
4. Income Covered by Tax Treaties
ITAD Ruling 102-02 (May 28, 2002)
3. Where to File
4. When to File
Sec. 77
5. When to Pay
6. Capital Gains on Shares of Stock
7. Return of Corporations Contemplating Dissolution/Reorganization
Sec. 52(C)
Sec. 244, Rev. Regs. 2
Bank of the Philippine Islands v. CIR, CA-GR SP No. 38304 (April 14, 2000)
8. Returns of GPPs
Sec. 55
WEEK 1 – I
WEEK 2 – II to III
WEEK 3 – IV
WEEK 4 – IV
WEEK 5 – V to VII
WEEK 6 – VIII to IX
WEEK 7 – Midterms
WEEK 8 – X to XIII
WEEK 9 – XIV
WEEK 10 – XV
WEEK 11 – XVI to XVII
WEEK 12 – XVIII
WEEK 13 – XIX
WEEK 14 – Finals