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TAXATION LAW II
Course Syllabus

I. INTRODUCTION

1. Nature of transfer taxes

II. ESTATE TAX

1. Definition and Nature

 Marcos II v. CA, G.R. No. 120880, June 5, 1997

2. Rate of Estate Tax

3. Gross Estate

a. Reciprocity Rule
b. Properties Not in the Estate
c. Non-Taxable Transfers
d. Valuation of Estate

 CIR vs. De Lara, G.R. No. L-9456, January 6, 1958

 CIR v. Rueda, G.R. No. L-13250, October 29, 1971

4. Deductions from Gross Estate

 Dizon v. CTA, G.R. No. 140944, April 30, 2008

5. Tax Credits

6. Non-taxable Transfers

7. Return and Payment

a. Nature Estate Tax Return

b. Time and Place of Filing
c. Payment of Estate Tax
d. Deficiency
e. Restitution of tax

 Vera v. Fernandez, G.R. No. L-31364, March 30, 1979

 CIR v. Pineda, G.R. No. L-22734, September 15, 1967

8. Duties of Certain Officers and Persons

Course Syllabus - Taxation Law II Atty. Eden C. Brion-Bakilan

August 2021
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III. DONOR’S TAX

1. Definition and Nature

2. Rate of Donor’s Tax

3. Gross Gifts

a. Condonation or Remission of Debt

b. Renunciation of Share in the Estate
c. Campaign Contributions
d. Transfers for Insufficient Consideration

 Abello v. CIR, G.R. No. 120721, February 23, 2005

4. Valuation of Gifts

5. Exemption of Certain Gifts

6. Computation of Donor’s Tax

7. Tax Credits

8. Donor’s Tax Return

IV. VALUE-ADDED TAX

1. Nature and Characteristics

 CIR v. Seagate Technology (Philippines), G.R. No. 153866, February

11, 2005

2. Elements of a VATable Transaction

 CIR v. COMASERCO, G.R. No. 125355, March 30, 2000

 CIR v. Sony Philippines, Inc., G.R. No. 178697, November 17, 2010
 PSALM vs. CIR, G.R. No. 226556, July 3, 2019
 Association of Non-Profit Clubs, Inc. vs. BIR, G.R. No. 228539, June
26, 2019
 In the Matter of Declaratory Relief on the Validity of BIR RMC No.
65-2012, G.R. No. 215801, January 15, 2020

3. Persons Subject to VAT

4. VAT on Sale of Goods or Properties

Course Syllabus - Taxation Law II Atty. Eden C. Brion-Bakilan

August 2021
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a. Gross Selling Price

b. Sale of Real Properties
c. Transactions Deemed Sale

5. VAT on Importation

6. VAT on Sale of Services and Lease of Properties

a. Gross Receipts

7. Zero-Rating

a. Enhanced VAT Refund System

 Contex Corporation v. CIR, G.R. No. 151135, July 2, 2004

 Sitel Philippines Corporation v. CIR, G.R. No. 201326, February 8,
2017
 CIR v. Cebu Toyo Corporation, G.R. No. 149073, February 16, 2005
 Coral Bay Nickel Corporation v. CIR, G.R. No. 190506, June 13,
2016
 CIR v. Team Energy Corporation, G.R. No. 230412, March 27, 2019

8. VAT-Exempt Transactions

 CIR v. Philippine Health Care Providers, Inc., G.R. No. 168129, April
24, 2007
 CIR v. Negros Consolidated Farmers Multi-Purpose Cooperative,
G.R. No. 212735, December 5, 2018

9. Output and Input Tax

a. Input Tax on Depreciable Goods

b. Input Tax on Mixed Transactions
c. Transitional Input Tax
d. Presumptive Input Tax

 Fort Bonifacio Development Corporation v. CIR, G.R. No. 173425,

September 4, 2012

10. VAT Payable

11. VAT Refund

 CIR v. Aichi Forging Company of Asia, G.R. No. 184823, October 6,

2010
 CIR v. San Roque Power Corporation, G.R. No. 187485, February
12, 2013
 Steag State Power Inc. vs. CIR, G.R. No. 205282, January 14, 2019

Course Syllabus - Taxation Law II Atty. Eden C. Brion-Bakilan

August 2021
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 CIR v. Team Energy Corporation, G.R. No. 230412, March 27, 2019

12. VAT Registration

13. Invoicing Requirements

 Kepco Philippines Corporation v. CIR, G.R. No. 179961, January 31,

2011

14. Filing and Payment

15. Withholding of VAT

16. Administrative and Penal Sanctions

V. PERCENTAGE TAX

1. Definition and Characteristics

2. Tax on Persons Exempt from VAT

3. Tax on Domestic Carriers

4. Tax on International Carriers

5. Tax on Franchise Grantees

6. Overseas Communications Tax

7. Tax on Banks and Non-Bank Financial Intermediaries

 CIR v. Citytrust Investment Phils., Inc., G.R. No. 139786,

September 27, 2006
 First Planters Pawnshop, Inc. v. CIR, G.R. No. 174134, July 30,
2008

8. Tax on Life Insurance Premiums

9. Tax on Agents of Foreign Insurance Companies

10. Amusement Taxes

11. Tax on Winnings

12. Stock Transaction Tax

13. Returns and Payment of Percentage Tax

Course Syllabus - Taxation Law II Atty. Eden C. Brion-Bakilan

August 2021
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VI. EXCISE TAX

1. Nature of Excise Tax

 Petron Corporation v. Tiangco, G.R. No. 158881, April 16, 2008

 Silkair (Singapore) Pte. Ltd. v. CIR, G.R. No. 171383 & 172379,
November 14, 2008

2. Goods and Services Subject to Excise Tax

3. Persons Liable to Pay Excise Tax

4. Filing and Payment

5. Credit for Excise tax on Goods Actually Exported

VII. DOCUMENTARY STAMP TAX

1. Nature of Documentary Stamp Tax

 Philippine Home Assurance Corporation, et al. v. CA, G.R. No.

119446, January 21, 1999
 Antam Pawnshop Corporation v. CIR, G.R. No. 167962, September
19, 2008

2. Transactions Subject to DST

3. Documents and Papers Not Subject to DST

4. Persons Liable to Pay DST

 Philacor Credit Corpration v. CIR, G.R. No. 169899, February 6,

2013

5. Filing and Payment

6. Effect of Failure to Stamp a Taxable Document

VIII. ADMINISTRATIVE REMEDIES IN THE NIRC

1. Powers and Duties of the BIR

a. Power of the Commissioner to Interpret Tax Laws and Decide Tax

Cases

Course Syllabus - Taxation Law II Atty. Eden C. Brion-Bakilan

August 2021
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b. Non-retroactivity of Rulings
c. Preservation of Books of Accounts and Accounting Records

2. Tax Assessment and Collection

a. Requisites of a Valid Assessment

b. Procedural Due Process in Tax Assessment
c. Modes of Service
d. Prescriptive Period in Tax Assessment
e. Prescriptive Period in Tax Collection
f. Compromise of Tax Liability
g. Abatement of Tax Liability

 CIR v. Hantex Trading Co., Inc., G.R. No. 136975, March 31, 2005
 CIR v. Pascor Realty and Development Corporation, G.R. No.
128315, June 29, 1999
 CIR v. Sony Philippines, Inc., G.R. No. 178697, November 17, 2010
 MEDICARD Philippines, Inc. v. CIR, G.R. No. 222743, April 5, 2017
 CIR v. Fitness by Design, Inc., G.R. No. 215957, November 9, 2016
 CIR v. Isabela Cultural Corporation, G.R. No. 135210, July 11, 2001
 CIR v. GJM Philippines Manufacturing, Inc., G.R. No. 202695,
February 29, 2016
 CIR v. Phoenix Assurance Co., Ltd., G.R. No. L-19727, May 20,
1965
 CIR v. Asalus Corporation, G.R. No. 221590, February 22, 2017
 CIR vs. Standard Chartered Bank, G.R. No. 192173, July 29, 2015
 CIR v. Transitions Optical Philippines, Inc., G.R. No. 227544,
November 22, 2017
 BPI v. CIR, G.R. No. 139736, October 17, 2005
 CIR v. Pilipinas Shell Petroleum Corporation, G.R. No. 197945, July
9, 2018
 Kepco Philippines Corporation v. CIR, G.R. No. 225750-51, July 28,
2020

3. Refund of Taxes Erroneously or Illegally Collected

a. Requisites for Tax Refund or Credit

b. Proper Party to File a Claim for Refund or Credit
c. Manner and Time for Filing a Claim for Tax Refund or Credit
d. Forfeiture of Cash Refund or Credit
e. Interest on Tax Refund

 CIR v. Smart Communication, Inc., G.R. No. 179045-46, August 25,

2010
 Silkair (Singapore) Pte. Ltd. v. CIR, G.R. No. 171383 & 172379,
November 14, 2008
 University Physicians Services Inc. – Management Inc. v. CIR, G.R.
No. 205955, March 7, 2018

Course Syllabus - Taxation Law II Atty. Eden C. Brion-Bakilan

August 2021
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 Metrobank v. CIR, G.R. No. 182582, April 17, 2017

4. Administrative Remedies of the Government

a. Tax lien
b. Distraint and levy
c. Forfeiture
d. Suspension of business operations

5. Civil Penalties

a. Interest
b. Surcharge
c. Compromise penalty

IX. LOCAL TAXATION

1. Fundamental Principles

2. Nature and Source of Taxing Power of LGUs

a. Grant of Local Taxing Power

b. Withdrawal of Exemptions
c. Residual Taxing Power of LGUs

3. Common Limitations on the Taxing Powers of LGUs

 Palma Development Corp. v. Municipality of Malangas, G.R. No.

152492 (2003)
 Petron Corporation v. Tiangco, G.R. No. 158881, April 16, 2008

4. Specific Taxing Powers

a. Provinces
b. Cities
c. Municipalities
d. Barangays

 Pelizloy Realty Corporation v. Province of Benguet, G.R. No.

183137, April 10, 2013
 Alta Vista Golf and Country Club v. City of Cebu, G.R. No. 180235,
January 20, 2016
 Ericcson Telecommunications, Inc. v. City of Pasig, G.R. No.
176667, November 22, 2007

5. Common Revenue-Raising Powers

Course Syllabus - Taxation Law II Atty. Eden C. Brion-Bakilan

August 2021
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6. Community Tax

7. Accrual and Payment of Local Government Taxes

8. Interest, Surcharges, and Penalties

9. Requisites of a Valid Tax Ordinance

 Ferrer v. Bautista, G.R. No. 210551, June 30, 2015

10. Remedies of LGUs

a. Examination of books of accounts and records of businessmen

b. Lien
c. Distraint of personal property
d. Levy on real property
e. Judicial action

11. Prescriptive Period for Assessment and Collection

12. Taxpayer’s Remedies

a. Protest of Assessment
b. Refund
c. Appeal before the Secretary of Justice

X. REAL PROPERTY TAXATION

1. Fundamental Principles

2. Power to Levy

a. Annual ad valorem tax on real property

b. Special levies

3. Exemption from Real Property Tax

4. Appraisal of Real Property

5. Duties of Certain Officers

6. Assessment of Real Property

a. Classes of Real Property

b. Valuation of Real Property
c. Effectivity of Assessment
d. Back Taxes

Course Syllabus - Taxation Law II Atty. Eden C. Brion-Bakilan

August 2021
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e. Accrual of Real Property Tax

7. Prescriptive Periods

8. Remedies

a. Lien
b. Notice of Delinquency
c. Levy on Real Property
d. Protest
e. Action Assailing Validity of Tax Sale
f. Refund of Real Property Tax Paid
g. Assessment Appeals

XI. JUDICIAL REMEDIES

1. Jurisdiction of the CTA in Civil Cases

2. Jurisdiction of the CTA in Criminal Cases

3. Action for Collection of Internal Revenue Taxes

4. Action for Collection of Local Taxes

5. Appeal to the CTA in Civil Cases

6. Appeal to the CTA in Criminal Cases

7. Petition for Review on Certiorari to the Supreme Court

Course Syllabus - Taxation Law II Atty. Eden C. Brion-Bakilan

August 2021