Professional Documents
Culture Documents
Tax 2 Syllabus 2020 PDF
Tax 2 Syllabus 2020 PDF
Tax 2 Syllabus 2020 PDF
Grades:
Recitation/Quizzes 40%
Midterms 30%
Finals 30%
Textbook: The Law on Transfer and Business Taxation by de Leon. Note that this not an updated edition
for TRAIN Law so use this for concepts only. You can also check various bar review materials on
Taxation.
Provisions cited below pertain to the 1997 NIRC, as amended, unless otherwise stated.
A. Transfer Taxes
Page 1 of 9
1. Concept, characteristics/elements of VAT-taxable transactions
• Abakada Guro Party List v. Ermita, G.R. No. 168056, September 1, 2005.
• CIR v. Magsaysay Lines, G.R. No. 146984, 2006
• Mindanao II Geothermal v. CIR, 693 SCRA 49, March 11, 2013
2. Impact and incidence of tax
3. Tax credit method
4. Destination Principle / Cross Border Doctrine
• CIR v. Toshiba Information Equipment, G.R. 150154, 2005
• CIR v. Burmeister and Wain, G.R. No. 153205, 2007
5. Persons liable
6. Imposition of VAT
a) On sale of goods or properties
b) On importation of goods
(1) Transfer of goods by tax exempt persons
c) On services
• American Express v. CIR, G.R. No. 152609, 2005
• CIR v. CA, G.R. No. 125355, 2000
7. Transactions deemed sale
a) Transfer, use or consumption not in the course of business of goods/properties
originally intended for sale or use in the course of business
b) Distribution or transfer to shareholders, investors or creditors
c) Consignment of goods if actual sale is not made within 60 days from date of
consignment
d) Retirement from or cessation of business with respect to inventories on hand
•
8. Change or cessation of status as VAT-registered person
a) Subject to VAT
(1) Change of business activity from VAT taxable status to VAT-exempt status
(2) Approval of request for cancellation of a registration due to reversion to
exempt status
(3) Approval of request for cancellation of registration due to desire to revert to
exempt status after lapse of 3 consecutive years
b) Not subject to VAT
(1) Change of control of a corporation
(2) Change in the trade or corporate name
(3) Merger or consolidation of corporations
9. Zero-rated and effectively zero-rated sales of goods or properties
10.VAT-exempt transactions
a) VAT exempt transactions; in general; enumeration
• CIR v. Seagate Technology, G.R. No. 153866, 2005
• CIR v. Cebu Toyo Corporation, 451 SCRA 447
11. Input and Output tax
• Kapatiran ng Naglilingkod sa Pamahalaan, 163 SCRA 371
• Philippine Geothermal Inc. v. CIR, G.R. No. L-154028, 2005
• Fort Bonifacio Development Corp v. CIR, G.R. No. 173425, 2013
• Diaz v. Secretary of Finance, G.R. No. 193007, 2011
a) Definition
b) Sources of input tax
(1) Purchase or importation of goods
(2) Purchase of real properties for which VAT has actually been paid
(3) Purchase of services for which VAT has actually been paid
(4) Transactions deemed sale
(5) Presumptive input
(6) Transitional input
c) Persons who can avail of input tax credits
Page 2 of 9
d) Determination of output/input tax; VAT payable; excess input tax credits
(1) Determination of output tax
(2) Determination of creditable input tax
(3) Allocation of input tax on mixed transactions
(4) Determination of the output tax and VAT payable and computation of VAT
payable or excess tax credits
e) Substantiation of input tax credits
12. Refund or tax credit of excess input tax
a) Who may claim for refund/apply for issuance of tax credit certificates
b) Period to file claim/apply for the issuances of tax credit certificates
Revenue Memorandum Circular No. 54-2014
• Pilipinas Total Gas v. CIR, G.R. No. 2017112, 2015
• Philex Mining Corp v. CIR, G.R. No. 125704, 1998
• Atlas Consolidated Mining v. CIR, 524 SCRA 73 (2007)
• CIR v. Mirant Pagbilao, G.R. No. 172129, September 12, 2008
• CIR v. Aichi Forging Company, G.R. No. 184823, October 6, 2010
• CIR v. San Roque Power Corporation, G.R. Nos. 187485, 196113, and
197156, February 12, 2013
• Rohm Apollo Semiconductor v. CIR, G.R. No. 168950, 2015
• KEPCO Philippines v. CIR, G.R. No. 181858, November 24, 2010.
13. Invoicing Requirements
a) In general
b) In “deemed sale” transactions
c) Consequences of issuing erroneous VAT invoice or VAT official receipt
14.Filing of returns and payment
15.Withholding of final VAT on sales to government
• China Banking Corporation v. CTA, G.R. No. 146749, June 10, 2003
• Republic of the Philippines v. Sunlife Assurance Company of Canada, G.R. No. 158085,
October 14, 2005
• CIR v. Lhuiller Pawnshop, G.R. No. 150947, July 15, 2003
• First Planters Pawnshop v. CIR, G.R. No. 174134, July 30, 2008
Page 3 of 9
E. Documentary Stamp Taxes – Secs. 173 to 201
• Philippine Banking Corporation v. CIR, G.R. No. 170574, 2009
• Jaka Investments Corporation v. CIR, G.R. No. 147629, 2010
• CIR v. Filinvest Development Corporation, G.R. No. 163653, 2011
1. General Concepts
a) Assessment – Sec. 6
(1) Definition and requisites of a valid assessment – Sec. 203, 228
b) Tax delinquency as distinguished from Tax deficiency
c) Jeopardy assessment
d) Prescriptive period for assessment – Secs. 203 and 222
(1) General rule
(2) False or fraudulent returns and non-filing of returns
(3) Suspension of the running of statute of limitations
• CIR v. BF Goodrich, G.R. No. 104171, 1999
• Asianbank v. CIR, CTA Case No. 6095, 2001
• Revenue Memorandum Circular 48-1990
• Revenue Memorandum Order 14-2016
4. Collection
a) Requisites
b) Prescriptive periods; suspension of running of statute of limitations
Page 4 of 9
G. Taxpayer’s remedies
H. Government remedies
• CIR v. Suyoc Consolidated Mining, 104 Phil. 819
• Republic v. Patanao, G.R. No. L-22356, 1967, L14142, 1961
• CIR v. Philippine Global Communications, G.R. No. 167146, 2006
1. Administrative remedies
a) Tax lien
b) Distraint and levy
c) Forfeiture of real property
Page 5 of 9
• Phil Match Co. Ltd v. City of Cebu, 81 SCRA 99, January 18, 1999
• PLDT v. City of Davao, G.R. No. 143867, August 22, 2001
• Meralco v. Province of Laguna, 306 SCRA 353
• Figuerres v. CA, G.R. No. 119172, March 25, 1999
• Coca-Cola v. City of Manila, G.R. No. 156252, June 27, 2000
• Yamane v. BA Lepanto Condominium Corporation 474 SCRA 258
• Lopez v. City of Manila, 303 SCRA 448
• Iloilo Bottlers v. Iloilo City, G.R. No. 52019, 1988
• Arabay v. CFI, 66 SCRA 617, 1975
• Allied Thread v. City of Manila, G.R. No. 40296, 1984
• Mobil Philippines v. City Treasurer of Makati, G.R. No. 154092, 2005
• Hagonoy Market Vendor Association v. Municipality of Hagonoy Bulacan, G.R. No.
137621, 2002
• Mindanao Shopping Destination v. Duterte, G.R. No. 211093, 2017
2. Nature and source of taxing power – 1987 Const., Article X, Secs 5 and 6
a) Grant of local taxing power under the LGC
b) Authority to prescribe penalties for tax violations
c) Authority to grant local tax exemptions – Sec. 192, LGC
d) Withdrawal of exemptions
e) Authority to adjust local tax rates – Sec. 191, LGC
f) Residual taxing power of local governments – Sec. 186, LGC
g) Authority to issue local tax ordinances – Secs. 187 to 189, LGC
Page 6 of 9
10. Common revenue raising powers – Secs. 154-154, LGC
a) Service fees and charges
b) Public utility charges
c) Toll fees or charges
14.Taxpayer’s remedies
a) Periods of assessment and collection of local taxes, fees or charges – Sec. 194, LGC
b) Protest of assessment – Sec. 187, LGC
c) Claim for refund of tax credit for erroneously or illegally collected tax, fee or charge
Page 7 of 9
(1) Authority of assessor to take evidence
(2) Amendment of schedule of fair market values
e) Classes of real property
f) Actual use of property as basis of assessment – Sec. 218, LGC
g) Assessment of property
(1) General revisions of assessments and property classifications – Sec. 219
(2) Date of effectivity of assessment or reassessment
h) Assessment of property subject to back taxes – Sec. 222, LGC
i) Notification of new or revised assessments
E. Taxpayer’s remedies
1. Contesting an assessment of value of real property
a) Appeal to the Local Board of Assessment Appeals (LBAA)
b) Appeal to the Central Board of Assessment Appeals (CBAA)
c) Effect of payment of tax
IV. TARIFF AND CUSTOMS CODE OF THE PHILIPPINES (P.D. No. 1464), as amended by the
CUSTOMS MODERNIZATION AND TARIFF ACT (Republic Act No. 10863, which took effect on June 16,
2016)
• Nestle Philippines v. CA, G.R. No. 134114, 2001
• Commissioner of Customs v. Milwaukee Industrial Corporation, G.R. No. 135253,
2004
• Auyong Hian v. CTA, 59 SCRA 110, 1974
• Llamado v. Commissioner of Customs, G.R. No. 28809, 1983
• Transglobe International v. CA, G.R. No. 126634, 1999
• SBMA v. Rodriguez, G.R. No. 160270, 2010
Page 8 of 9
• Philippines Phosphate v. Commissioner, G.R. No. 141973, 2005
• RV Marzan Freight v. CA, G.R. No. 128064, 2004
V. JUDICIAL REMEDIES [R.A. No. 1125, as amended, and the Revised Rules of the Court of Tax
Appeals (CTA)]
• Blaquera v. Rodriguez, 103 Phil. 267, 1958
• Raymundo v. de Joya, 101 SCRA 495, 1980
• CIR v. CA and Atlas Consolidated, 271 SCRA 605, 1997
B. Judicial procedures
1. Judicial action for collection of taxes
a) Internal revenue taxes
b) Local taxes
(1) Prescriptive period
2. Civil cases
a) Who may appeal, mode of appeal, effect of appeal
(1) Suspension of collection of tax
(2) Injunction not available to restrain collection
(3) Taking of evidence
(4) Motion for reconsideration or new trial
b) Appeal to the CTA, en banc
c) Petition for review on certiorari to the SC
3. Criminal cases
a) Institution and prosecution of criminal actions
(1) Institution of civil action in criminal action
b) Appeal and period to appeal
(1) Solicitor General as counsel for the people and government officials sued in
their official capacity
c) Petition for review on certiorari to the SC
Page 9 of 9