1.

a. Dumping duty – This is a duty levied on imported goods where it appears

that a specific kind or class of foreign article is being imported into or sold or is likely
to be sold in the Philippines at a price less than its fair value;

b. Countervailing Duty – This is a duty equal to the ascertained or estimated

amount of the subsidy or bounty or financial support granted by the foreign country
on the production, manufacture, or exportation into the Philippines of any article
likely to injure an industry in the Philippines or retard or considerable retard the
establishment of such industry;

c. Marking Duty – This is a duty on an ad valorem basis imposed for

improperly marked articles. The law requires that foreign importations must be
marked in any official language of the Philippines the name of the country of origin of
the article;

d. Discriminatory or Retaliatory Duty – This is a duty imposed on imported

goods whenever it is found as a fact that the country of origin discriminates against
the commerce of the Philippines in such a manner as to place the commerce of the
Philippines at a disadvantage compared with the commerce of any country.

e. Tariff – A list or schedule of articles on which a duty is imposed upon the

importation into the country, with the rates at which they are severally taxed. And
derivatively, the system of imposing duties or taxes on the importation of foreign
merchandise.

f. Jeopardy assessment – A tax assessment made by an authorized Revenue

Officer (RO) without the benefit of complete or partial audit , in light of the RO’s belief
that the assessment and collection of the deficiency tax will be jeopardized by delay
caused by the taxpayer’s failure to: i.) comply with audit and investigation
requirements to present his books of accounts and/or pertinent records or ii.)
substantiate all or any of the deductions, exemptions or credits claimed in his return.
It is usually issued when statutory prescriptive periods for the assessment or
collection of taxes are about to lapse due principally to the taxpayer’s fault.

2.

No. Not all the items mentioned are subject to fringe benefit tax. Only the car
worth P1,000,000.00 is included in the enumeration of fringe benefit as “ (3) Vehicle of
any kind” provided under Sec. 33 (b) of the NIRC. The monthly salary of P100,
000.00; the RATA of P20,000.00 per month; 5% commission on sales and;
contributions for PHILHEALTH, PAG –IBIG and SSS are just part of compensation
package subject of income tax and not by fringe benefit tax.

3.

a. No, the LOA was not validly issued by the BIR to Jollyworks. A Letter of
Authority (LOA) issued by the BIR to be considered as an official document that
empowers a Revenue Officer to examine taxpayer’s books of account and determine
taxpayer’s correct internal revenue tax liabilities, must be issued in an original
typewritten copy and must be signed or issued by the BIR Commissioner or any
authorized representative. It cannot be done by a mere handwritten issued by a
revenue officer like Noel in the problem given. The handwritten LOA is a mere scrap of
paper and is of no probative value.

b. The defects of the LOA issued to jollyworks are:

1.) It was issued by a mere revenue officer and not by the BIR
Commissioner or any of its authorized representative;

2.) The LOA is a mere handwritten by Noel;

3.) Only a handwritten LOA was sent for the third time already.

4.

a. Yes, B’s complaint is valid. Percentage tax is imposed by law directly not on
thing or service but on the act of (sale, barter, exchange, lease, importation, or
performance of service). A by using his brand new Toyata avanza for transporting
passenger being affiliated with UBER and thereby deriving profit, for performance of
service, shall be liable for percentage tax.

b. A is only liable for percentage tax for performance of service by transporting

passenger and thereby earning profits. However, A is not liable for VAT because
transporting passenger is not his principal business or was done in the course of trade
or business. A’s performance is only intermittent being affiliated only with UBER.

5.

a. Non-imprisonment for non-payment of tax or debt C

 b. Non- delegation of the taxing power I
c. Taxes must be for public use I
d. Non-assignment of taxes N
e. imprescriptibility in taxation N
f. The government is not subject to estoppels N
g. Territoriality of taxation I
h. International courtesy N
i. Exemption of revenues and assets of non-profit C
Non- stock educational institution
j. Non-appropriation for religious purposes C

6.

a. Drugstore V
b. Hospitals V
c. Doctors V
d. Domestic Airline P
e. Operator of taxi P
f. Private university V
g. Estate of Decedent E
h. Dentists V
i. Manufacture of milk products V
j. Fish vendor V

7.

a. No need for A to file his ITR personally. In cases where a taxpayer earns
purely compensation income, it is the duty of the employer as the withholding agent to
remit tax withheld within the time prescribed by law and regulations. Every employer
required to deduct and withhold a tax shall furnish each employee in respect of his
employment a written statement confirming the wages paid by the employer to such
employee during the calendar year, and the amount of tax deducted and withheld and
such other information as the Commissioner may prescribed.

b. Substituted filing means, that the employee pays taxes through the
withholding agent instead of filing personally the return of income tax payment.

c. Substituted filing is done by the employer, who is at the same time

withholding agent of the employee who is responsible for statement confirming the
wages paid by the employer to such employee during the calendar year, and the
amount of tax deducted and withheld, whereas, non-filing is the deliberate intention
of tax payer in not filing any return of income tax payment.
 8.

a. No. In order to have valid deficiency tax assessment, a deficiency tax has to
go through the process of filing the protest against the assessment by the tax payer
and the denial of such protest by the BIR. In the problem, there is no showing that the
taxpayer protested against the assessment. A tax deficiency cannot be immediately
collected. It can be collected only after the process of protest.

b. The test in determining whether or not the income tax return filed is
fraudulent is when there is intentional and deceitful filing with the aim of evading the
correct tax due.

9.

a. Transactions deemed sales are:

1) Transfer, use or consumption not in the course of business of goods or

properties originally intended for sale or for use in the course of business;
2) Distribution or transfer to shareholders, investors or creditors;
a. shareholders or investors as share in the profits of the VAT-
registered persons
b. Creditors in payment of debt
3) Consignment of goods if actual sale is not made within 60 days
following the date such goods were consigned;
4) Retirement from or cessation of business, with respect to inventories
of taxable goods existing as of such retirement or cessation.

b. Yes, the BIR is correct in assessing VAT on the unsold items. The consigned
good to SM Robinson even unsold for 100 days is considered sold. Under Sec. 106 B
(3) of NIRC, “consignment of goods if actual sale is not made within 60 days following
the date such goods were consigned” is a transaction deemed sale, hence, subject to
VAT assessment.