TAXATION LAW REVIEW

SY 2020-2021 2nd SEMESTER

I. GENERAL CONCEPTS & PRINCIPLES

A. DEFINITION

B. NATURE
(1) PEPSI-COLA v. MUNICIPALITY OF TANAUAN; G.R. No. L-31156; 27
February 1976

(2) TAN v. DEL ROSARIO; G.R. No. 109289; 3 October 1994

(3) CIR v. HON. SANTOS; G.R. No. 119252; 18 August 1997

(4) CREBA v. ROMULO; G.R. No. 160756; 09 March 2010

(5) GOMEZ v. PALOMAR; G.R. No. 160756

(6) CIR v. LINGAYEN GULF; G.R. No. L-23771; 04 August 1988

(7) LUTZ v. ARANETA; G.R. No. LUTZ v. ARANETA; G.R. No. L-7859; 22
December 1955

(8) JOHN HAY PEOPLE’S ALTERNATIVE COALITION v. LIM; G.R. No. 119775;
24 October 2003

(9) PHILIPPINE PETROLEUM CORPORATION v. MUNICIPALITY OF PILILLA;

G.R. No. 90776; 03 June 1991

C. THEORY AND BASIS OF TAXATION

a. Necessity Theory (Principle of Necessity)

(1) NPC v. CITY OF CABANATUAN; G.R. No. L-22074; 09 April 2003

(2) PHILIPPINE GUARANTY v. CIR; G.R. No. L-22074; 30 April 1965

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 i. Lifeblood Doctrine (Theory)

(1) CIR v. ALGUE; G.R. No. L-28896; 17 February 1988

(2) NPC v. CITY OF CABANATUAN; G.R. No. 149110

(3) CIR v. PINEDA; G.R. L-22734; 15 September 1957

(4) VERA v. FERNANDEZ; G.R. No. L-31364; 30 March 1979

(5) MCIAA v. MARCOS; G.R. No. 120082; 11 September 1996

(6) PBCOM v. CIR; G.R. No. 112024; 28 January 1999

(7) CIR v. CEBU PORTLAND CEMENT; G.R. L-29059; 15 December 1987

(8) FIRST LEPANTO v. CIR; G.R. No. 197117; 10 April 2010

(9) VALLEY TRADING v. CFI; G.R. No. L-49529; 31 March 1989

(10) CHURCHILL v. RAFFERTY; G.R. No. L-10572; 21 December 1915

b. Bene ts-Protection Theory (Principle of Bene ts

Received)

i. Symbiotic Relationship

(1) NPC v. CITY OF CABANATUAN; G.R. No. 149110

(2) CIR v. ALGUE; G.R. No. 28896

(3) GOMEZ v. PALOMAR; G.R. No. L-23645

(4) LORENZO v. POSADAS; G.R. L-43082; 18 Junne 1937

D. OBJECTIVES & PURPOSES

(1) LUTZ v. ARANETA; G.R. No. L-7859
(2) CALTEX v. COA; G.R. No. 92585; 08 May 1992
(3) PAL v. EDU; G.R. No. L-41383
(4) CIR v. CENTRAL LUZON DRUG; G.R. No. 159647

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 (5) CARLOS SUPERDRUG v. DSWD; G.R. No. 166494
(6) MANILA MEMORIAL v. SECRETARY; G.R. No. 175356

E. PRINCIPLES OF A SOUND TAX SYSTEM

a. Fiscal Adequacy

b. Theoretical Justice

c. Administrative Feasibility

F. LIMITATIONS ON THE POWER OF TAXATION

(1) SISON v. ANCHETA; G.R. No. L-59431
(2) CIR v. ALGUE; G.R. No. L-28896
(3) ROXAS v. CTA; G.R. No. L-25043

a. Inherent Limitations
(1) PEPSI-COLA v. MUNICIPALITY OF TANAUAN; G.R. No. L-31156; 27
February 1976

i. Public Purpose
(1) PLANTERS PRODUCTS v. FERTIPHIL; G.R. No. 166006; 14 March
2008
(2) PASCUAL v. SECRETARY; G.R. No. L-10405; 29 December 1960
(3) BAGATSING v. RAMIREZ; G.R. No. L-41631; 17 December 1976
(See: Sec. 130, RA 7160)
(4) LUTZ v. ARANETA; G.R. No. L-7859
(5) TIO v. VRB; G.R. No. L-75697
(6) CALTEX v. COA; G.R. No. 92585; 08 May 1992
(7) GOMEZ v. PALOMAR; G.R. No. L-23645

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 ii. Territoriality
(1) CIR v. MARUBENI; G.R. No. 137377; 18 December 2001
(2) MERALCO v. YATCO; G.R. No. 45697; 01 November 1939

iii. Non-Delegation

iv. International Comity

v. Exemption of Government
(1) BOARD OF ASSESSMENT APPEALS v. CTA; G.R. No. 18125; 31
May 1963
(2) MCIAA v. MARCOS; G.R. No. 120082
(3) BASCO v. PAGCOR; G.R. No. 91649; 14 May 1991
(4) MIAA v. CA; G.R. No. 155650; 20 July 2006
(5) MCIAA v. CITY OF LAPU-LAPU; G.R. No. 181756; 15 June 2015

b. Constitutional Limitations
i. Uniformity & Equality in Taxation
(1) EASTERN THEATRICAL v. ALFONSO; G.R. No. L-1104; 31 May 1949

(2) CHURCHILL v. CONCEPCION; G.R. No. 11572; 22 September 1916

(3) PHILIPPINE TRUST COMPANY v. YATCO; G.R. Nos. L-46255, 46256,

46259 and 46277; 23 January 1940

(4) SISON v. ANCHETA; G.R. No. L-59431; 25 July 1984

(5) CIR v. LINGAYEN GULF; G.R. No. L-23771; 04 August 1988

(a) Progressive System of Taxation

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 ii. Exemption of Properties Actually, Directly, and Exclusively

Used for Religious, Charitable, and Educational Purposes
(1) LLADOC v. CIR; G.R. No. L-19201; 16 June 1965

(2) CIR v. CA and YMCA; G.R. No. 124043; 14 October 1998

(3) BISHOP OF NUEVA SEGOVIA v. PROVINCIAL BOARD; G.R. No.

L-27588; 31 December 1927

(4) LUNG CENTER v. QUEZON CITY; G.R. No. 144104; 29 June 2004

(5) ABRA VALLEY COLLEGE v. AQUINO; G.R. No. L-39086; 15 June

1988

(6) CIR v. DLSU; G.R. No. 196596; 09 November 2016

iii. Exemption of Assets and Revenues of Non-Stock, Non-

Pro t Educational Institutions
(1) CIR v. CA and YMCA; G.R. No. 124043

(2) CIR v. DLSU; G.R. No. 196596

iv. Votes Required for Tax Exemption

(1) JOHN HAY PEOPLE’S ALTERNATIVE COALITION v. LIM; G.R. No.
119775

(2) COCONUT OIL REFINERS v. TORRES; G.R. No. 132527

(3) ORMOC SUGAR v. TREASURER; G.R. No. L-23794

v. Origination Clause
(1) TOLENTINO v. SECRETARY; G.R. No. 115455

(2) ABAKADA v. ERMITA; G.R. No. 168056

vi. Prohibition Against Imprisonment for Non-Payment of Poll

Tax

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vii. Prohibition Against Appropriation for the Bene t of Any
Religion
(1) AGLIPAY v. RUIZ; G.R. No. L-4549

viii. Limitation on the Utilization of Taxes Levied for Special

Purpose
(1) CCFOP v. AQUINO; G.R. No. 217965

ix. Power to Tax of Local Government Units

(1) MCIAA v. MARCOS; G.R. No. 120082

(2) NPC v. CITY OF CABANATUAN; G.R. No. 149110

(3) MIAA v. CA; G.R. No. 155650

(4) MERALCO v. PROVINCE OF LAGUNA; G.R. No. 131359

(5) FERRER v. MAYOR BAUTISTA; G.R. No. 210551

x. (Item) Veto Power of the President

xi. Due Process

(1) SISON v. ANCHETA; G.R. No. L-59431; 25 July 1984

(2) PEPSI-COLA v. MUNICIPALITY OF TANAUAN; G.R. No. L-31156;

(3) PROVINCE OF ABRA v. HERNANDO; G.R. No. L-49336; 31

August 1981

xii. Equal Protection

(1) ICHONG v. HERNANDEZ; G.R. No. L-7995; 31 May 1957

(2) SISON v. ANCHETA; G.R. No. L-59431

(3) LUTZ v. ARANETA; G.R. No. L-7859

(4) BRITISH AMERICAN TOBACCO v. CAMACHO; G.R. No. 163583;

20 August 2008

(5) GOMEZ v. PALOMAR; G.R. No. L-23645

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 (6) COMMISSIONER OF CUSTOMS v. HYPERMIX FEEDS; G.R. No.
179579; 01 February 2012

(7) TIU v. CA; G.R. No. 127410; 20 January 1999

(8) ORMOC SUGAR v. ORMOC CITY; G.R. No. L-23794; 17 February

1968

(9) JUAN LUNA SUBDIVISION v. SARMIENTO; G.R. No. L-3538; 28

May 1952

xiii. Religious Freedom & Non-Establishment of Religion

(1) AMERICAN BIBLE SOCIETY v. CITY OF MANILA; G.R. No.
L-9637; 30 April 1957

(2) TOLENTINO v. SECRETARY; G.R. No. 115455

(3) GERONA v. SECRETARY; G.R. No. L-13954; 12 August 1959

xiv. Freedom of Speech and of the Press

(1) TOLENTINO v. SECRETARY; G.R. No. 115455

xv. Non-Impairment of Obligation of Contracts

(1) TOLENTINO v. SECRETARY; G.R. No., 115455

(2) MERALCO v. PROVINCE OF LAGUNA; G.R. No. 131359

(3) CAGAYAN ELECTRIC POWER CO. v. PROVINCE OF LAGUNA;

G.R. No. L-60126; 25 September 1985

(4) REPUBLIC v. CAGUIOA; G.R. No. 168584; 15 October 2007

(5) MCIAA v. MARCOS; G.R. No. 120082

(6) CASANOVA v. HORD; G.R. No. 3473; 22 March 1907

(7) MANILA RAILROAD v. INSULAR COLLECTOR; G.R. No. L-10211

xvi. Judicial Review

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 G. STAGES OR ASPECTS OF TAXATION

H. TAXATION & OTHER INHERENT POWERS

(1) PROGRESSIVE DEVELOPMENT CORPORATION v. QUEZON CITY;
G.R. No. L-36081; 24 April 1989

(2) COMPAÑA GENERAL DE TABACOS v. CITY OF MANILA; G.R. No.

L-16619; 29 June 1963

(3) OSMEÑA v. ORBOS; G.R. No. 99886; 31 March 1993

(4) VICTORIAS MILLING CO. v. MUNICIPALITY OF VICTORIAS; G.R. No.

L-21183; 27 September 1968

(5) PAL v. EDU; G.R. No. L-41383; 15 August 1988

(6) ESSO STANDARD EASTERN v. CIR; G.R. Nos. L-28508-9; 07 July

1989

I. TAXES
a. Concept
b. Characteristics
c. Classi cation
d. Requisites for Validity
e. Related Impositions

J. TAX LAWS (Rules & Regulations)

a. Nature
(1) REPUBLIC v. VDA. DE FERNANDEZ; G.R. No. L-9141; 25 September
1956

(2) HILADO v. COLLECTOR; G.R. No. L-9408; 31 October 1956

(3) CIR v. REYES; G.R. Nos. 159694 & 163581; 27 January 2006

(4) LORENZO v. POSADAS; G.R. No. 43082; 18 June 1937

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 b. Interpretation & Construction
(1) MARINDUQUE IRON MINES v. MUNICIPAL COUNCIL; G.R. No.
L-18924; 30 June 1964

(2) MANILA RAILROAD v. INSULAR COLLECTOR; G.R. No. L-30264; 12

March 1929

(3) MIAA v. CA; G.R. No. 155650; 20 July 2006

(4) CIR v. ATENEO DE MANILA; G.R. No. 115349; 18 April 1997

K. MISCELLANEOUS CONCEPTS IN TAXATION

a. Prospectivity of Tax Laws

(1) HYDRO RESOURCES v. CTA; G.R. No. 80276; 21 September 1990

(2) CIR v. REYES; G.R. No. 159694

(3) UMALI v. ESTANISLAO; G.R. No. 104037; 29 May 1992

(4) PANSACOLA v. CIR; G.R. No. 159991; 16 November 2006

(5) SORIANO v. SECRETARY; G.R. Nos. 184450, 184508, 184538 &

185234; 24 January 2017

b. Imprescriptibility of Taxes

(1) CIR v. AYALA SECURITIES; G.R. No. L-29845; 21 November 1980

c. Situs of Taxation

(1) CIR v. MARUBENI CORPORATION; G.R. No. 137377; 18 December

2001

(2) WELLS FARGO v. COLLECTOR; G.R. No. L-46720; 28 June 1940

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d. Double Taxation

i. Kinds of Double Taxation as to Requisites

1. Direct (Strict Sense)

2. Indirect (Broad Sense)

ii. Kinds of Double Taxation as to Taxing Authorities

1. Domestic Double Taxation

2. International Juridical Double Taxation

iii. Reliefs from Double Taxation

iv. Sources (Basis) of Relief from Double Taxation

1. Tax Treaties as Relief from Double Taxation

(a) Most Favored Nation Clause

v. Cases:

(1) VILLANUEVA v. CITY OF ILOILO; G.R. No. L-26521; 28 December

1968

(2) PEPSI-COLA v. MUNICIPALITY OF TANAUAN; G.R. No. L-31156; 27

February 1976

(3) ERICSSON v. CITY OF PASIG; G.R. No. 176667; 22 November 2007

(4) CIR v. SOLIDBANK; G.R. No. 148191; 25 November 2003

(5) CIR vs. CITYTRUST INVESTMENT; G.R. No. 139786; 27 September

2006

(6) CITY OF MANILA v. COCA-COLA BOTTLERS; G.R. No. 181845; 04

August 2009

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 (7) CITY OF MANILA v. COSMOS BOTTLING CORPORATION; G.R. No.
196681; 27 June 2018

(8) REPUBLIC BANK v. CTA; G.R. Nos. 62554-55; 02 September 1992

(9) SERAFICA v. TREASURER OF ORMOC CITY; G.R. No. L-24813; 28

April 1969

(10)CIR v. HAWAIIAN-PHILIPPINE COMPANY; G.R. No. L-16315; 30 May

1964

(11) COMPAÑIA GENERAL v. CITY OF MANILA; G.R. No. L-16619; 29

June 1963

e. Escape from Taxation

i. Shifting of Tax Burden

ii. Tax Avoidance

iii. Tax Evasion

(1) CIR v. ESTATE OF TODA; G.R. No. 147188; 14 September 2004

1. Willful Blindness Doctrine

(1) PEOPLE v. KINTANAR; CTA E.B. Crim No. 006; G.R. No. 196340

(2) PEOPLE v. SANTOS; CTA Crim. Case No. 012; 16 January 2013

f. Tax Exemption

i. Concept & De nition

ii. Basis

iii. Source

iv. Attributes

v. Principles

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 vi. Classi cation

vii. Interpretation & Construction

viii. Cases:

(1) CATHOLIC CHURCH V. HASTINGS; G.R. NO. 1974; 15 March 1906

(2) ESSO STANDARD v. ACTING COMMISSIONNER OF CUSTOMS; G.R.

No. L-21841; 28 October 1966

(3) ASIATIC PETROLEUM v. LLANES; G.R. No. 25386; 20 October 1926

(4) MERALCO v. VERA; G.R. No. L-29987; 22 October 1975

(5) LUZON STEVEDORING v. CTA; G.R. No. L-30232; 29 July 1988

(6) MARLI PLYWOOD v. ARAÑAS; G.R. No. L-14930; 30 September 1960

(7) E. RODRIGUEZ v. COLLECTOR; G.R. No. L-23041; 31 July 1969

(8) SMART COMMUNICATIONS v. CITY OF DAVAO; G.R. No. 155491; 21

July 2009

(9) MIAA v. CA; G.R. No. 155650; 20 July 2006

ix. Related Items

1. Tax Amnesty, Condonation, or Remission

(1) REPUBLIC v. IAC; G.R. No. 69344; 26 April 1991

(2) CIR v. CA; G.R. No. 108576; 20 January 1999

(3) SURIGAO CONSOLIDATED MINING v. COLLECTOR; G.R. No.

L-14878; 26 December 1963

(4) JUAN LUNA SUBDIVISION v. SARMIENTO; G.R. No. L-3538; 28

May 1952

2. Tax Refund

(1) CIR v. SC JOHNSON; G.R. No. 127105; 25 June 1999

(2) FAR EAST BANK v. CA; G.R. No. 129130; 09 December 2005

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 (3) MCIAA v. MARCOS; G.R. No. 120082; 11 September 1996

(4) CIR v. FORTUNE TOBACCO; G.R. Nos. 167274-75; 21 July 2008

(5) CIR v. MIRANT PAGBILAO CORP.; G.R. No. 172129; 12

September 2008

(6) CIR v. AICHI FORGING COMPANY; G.R. No. 184823; 06 October

2010

3. Equitable Recoupment

(1) COLLECTOR v. UST; 10 Phil. 1062

4. Tax Assumption

(1) MITSUBISHI CORPORATION v. CIR; G.R. No. 175772; 05 June

2017

g. Prohibition on Compensation & Set-O

(1) REPUBLIC v. MAMBULAO LUMBER; G.R. No. L-17725; 28

February 1962

(2) FRANCIA v. IAC; G.R. No. L-67649; 28 June 1988

(3) CALTEX v. COA; G.R. No. 92585; 08 May 1992

(4) PHILEX MINING v. CIR; G.R. No. 125704; 28 August 1998

(5) DOMINGO v. GARLITOS; G.R. No. L-18994; 29 June 1963

(6) CIR v. CA; G.R. No. 106611; 21 July 1994

(7) SOUTH AFRICAN AIRWAYS v. CIR; G.R. No. 180356; 16 February

2010

(8) SMI-ED PHILIPPINES v. CIR; G.R. No. 175410; 12 November 2014

(9) CIR v. TOLEDO POWER COMPANY; G.R. No. 196415; 02

December 2015

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 h. ESTOPPEL

(1) CIR vs. CA AND CITYTRUST; G.R. No. 106611; 21 July 1994

i. Compromise

j. Marshall Dictum

k. Holmes Dictum

L. Taxpayer's Suit & Citizen's Suit

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