MANUEL L.

QUEZON UNIVERSITY
School of Law

Course Title : Taxation Law I

Course Credit : Three (3) Units
Faculty : Atty. Marvin P. Cañero, CPA

Course Description: This course is an introduction of the concepts and principles in taxation law relating to
general principles of taxation, concepts and imposition of income tax, and organization and functions of the Bureau
of Internal Revenue, including pertinent revenue issuances.

Course Objectives:

1. Understand the nature and characteristics of taxation.

2. Identify and understand the concepts, policies, and imposition of income tax, including its application to
actual business transactions.
3. Understand the organization and function of the Bureau of Internal Revenue.
4. Encourage the observance of honesty and fair dealing on matters relating to the payment and collection
of taxes.

Method of Teaching: Live discussion/lecture via canvas and/or zoom with recitations using socratic method.

COURSE OUTLINE

A. GENERAL PRINCIPLES OF TAXATION

a. Definition, Concept and Purpose of Taxation

i. Lutz vs Araneta, G.R. No. L-7859, 22 December 1955
ii. PAL vs. Edu, G.R. No. L-41383, 15 August 1988
iii. Caltex Philippines, Inc. vs. COA, GR No. 92585, 8 May 1992
iv. Commissioner of Customs v. Philippine Phosphate Fertilizer Corp., GR No.
144440, September 1, 2004
v. Southern Luzon Drug Corporation vs. DSWD, GR No. 199669, 25 April 2017
vi. Drugstores Association Of The Philippines, Inc., et al vs. National Council On
Disability Affairs, G.R. No. 194561, September 14, 2016

b. Nature and Characteristics of Taxation

i. CIR vs. Eastern Telecommunications Phils., Inc., GR No. 163835, 7 July 2010
ii. CIR vs. Santos, G.R. No. 119252, 18 August 1997
iii. CREBA vs. Romulo, G.R. No. 160756, 9 March 2010

c. Power of Taxation vs. Police Power and Power of Eminent Domain

d. Theory and Basis of Taxation

i. CIR v. Algue, Inc. et al., 158 SCRA 9
ii. CIR vs.CA, G.R. No. 106611 July 21, 1994
iii. Davao Gulf Lumber Corporation vs. CIR, G.R. No. 117359, 23 July 1998
iv. Phil. Guaranty Co. vs. Commissioner, 13 SCRA 775

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 e. Principles of a Sound Tax System
i. Diaz vs. Secretary of Finance, G.R. No. 193007, 19 July 2011

f. Scope and Limitations of Taxation

i. Inherent Limitations
1. Planters Products, Inc. vs. Fertiphil Corporation, G.R. No. 66006, 14
March 2008
2. Gomez vs. Palomar, G.R. No. L-23645, 29 October 1968
3. Lutz vs. Araneta, G.R. No. L-7859, 22 December 1955
4. Tio vs. Videogram Regulatory Board, GR No. L-75697, 18 June 1997
5. Citizen’s Alliance for Consumer Protection vs. ERB, G.R. Nos. 78888-
90, 23 June 1988
6. ABAKADA Guro Party List vs. Ermita, GR No. 168056, 1 September
2005
7. Gerochi vs. Department of Energy, G.R. No. 159796, 17 July 2007
8. CIR vs. San Miguel Corporation, G.R. No. 184428, 23 November 2011

ii. Constitutional Limitations

1. American Bible Society vs. City of Manila, GR No. L-9637, 30 April 1997
2. Tolentino vs. Sec. of Finance, GR No. 115455, 25 Aug 1994
3. CREBA vs. Sec. Romulo, GR No. 160756, 9 March 2010;
4. PAGCOR vs. BIR, GR No. 172087, 15 March 2011
5. CIR vs. Fortune Tobacco Corporation, G.R. No. 180006, 28 September 2011
6. CIR vs. CA,YMCA Gr NO. 123043
7. CIR VS. DLSU, GR NO,196596, 9 Nov 2016; La Sallian Educational
Innovators Foundation vs. CIR,GR No. 202792, 27 Feb 2019
8. Abra Valley College Inc. vs. Aquino, GR No. L-39086, June 15, 1988;
Herrera vs. QC BOAA; Lung Center of the Philippines vs. QC, G.R. No.
144104. June 29, 2004
9. Mandanas, et al. v. Executive Secretary, et al., GR Nos. 199802 and
208488, 3 July 2018; MR: 10 April 2019

g. Stages or Aspects of Taxation

h. Definition, Nature and Characteristics of Taxes

i. Requisites of a Valid Tax

j. Tax vs. Other Forms of Exactions

i. Progressive Dev’t Corp. vs. Quezon City, G.R. No. L-36081, 24 April 1989
ii. Gerochi vs. Department of Energy, GR No. 159796, 17 July 2007
iii. Chevron Philippines, Inc. vs. BCDA, G.R. No. 173863, 15 September 2010
iv. Angeles University Foundation vs. Angeles City, G.R. No. 189999, 27 June 2012

k. Kinds of Taxes

l. Situs of Taxation

m. Construction and Interpretation

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 i. CIR vs. Puregold Duty Free, Inc. G.R. No. 202789, June 22, 2015

n. Sources of Tax Laws

o. Doctrines in Taxation
i. CIR vs. Solidbank Corporation, GR No. 148191, 25 Nov. 2003;
ii. City of Manila vs. Coca-Cola Bottlers Phils., Inc. GR No. 181845, 4 August 2009
iii. Swedish Match Philippines, Inc. vs. City of Manila, GR NO. 181277, 3 July 2013
iv. Nursery Care Corporation et al vs. Acevedo, G.R. No. 180651, July 30, 2014
v. CIR v. S.C. Johnson and Son, Inc., GR No. 127105, 25 June 2009
vi. Deutsche Bank AG Manila Branch vs. CIR, GR No. 188550, 19 Aug 2013
vii. CBK Power Company Limited vs. CIR, G.R. Nos. 193383-84, January 14, 2015;
CIR vs. CBK Power Company Limited, G.R. Nos. 193407-08
viii. CIR vs. Estate of Toda, GR No. 147188, 14 Sept 2004
ix. Domingo vs. Carlitos 8 SCRA 443
x. Caltex vs. COA, GR No. 925855, 8 May 1992
xi. South African Airways vs. CIR, GR No. 180356, 16 February 2010
xii. CIR v. Court of Tax Appeals, G.R. No. 106611, July 21, 1994
xiii. Air Canada vs. CIR, January 11, 2016, G.R. No. 169507
xiv. CIR v. Toledo Power Company, G.R. No. 196451, 2 December 2015
xv. CS Garment, Inc., vs. CIR, G.R. No. 182399. March 12, 2014

p. Taxpayer’s Suit
i. Remulla vs Maliksi, G.R. No. 171633, Sept. 18, 2013
ii. SOF, et al v. Lazatin And Ecozone Plastic Enterprises Corporation, G.R. No.
210588, November 29, 2016

B. ORGANIZATION AND FUNCTIONS OF THE BUREAU OF INTERNAL REVENUE

a. Rule-making authority of the Secretary of Finance

i. Authority to promulgate rules and regulations
ii. Specific provisions to be contained in rules and regulations

b. Jurisdiction, Power and Functions of the CIR

i. Powers and duties of the CIR
ii. Power of the CIR to interpret tax laws and decide tax cases

c. Cases:
i. Philamlife vs. DOF, G.R. No. 210987, November 24, 2014
ii. Clark Investors And Locators Association, Inc. vs SOF, G.R. No. 200670, July
06, 2015
iii. Banco De Oro vs. RP, 2015