SCHOOL OF EDUCATION, ARTS and SCIENCES

Second Semester
A.Y. 2021-2022

CORRESPONDENCE LEARNING MODULE

TAXN 1013 - Taxation

Prepared by:

CYREANE FAITH N. CARAG, MAEd

Course Instructor

Reviewed by:

RENZ MARION C. GAVINO, MP

General Education Coordinator

Recommended by:

VENUS I. GUYOS, Ph.D.

Academic Dean

Approved by:

EMMANUEL JAMES P. PATTAGUAN, Ph.D.

Vice President for Academics

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University. Unauthorized use of the materials, other than personal learning use, will be penalized.

TAXN 1013 – Taxation (Module 4)| 1

 UNIVERSITY PRAYER

O God, wellspring of goodness and blessings, we give you thanks and praise as one Louisian
community. The graces You incessantly grant upon us and Your divine providence have sustained
our beloved University throughout the years of mission and excellence.

Having been founded by the Congregation of the Immaculate Heart of Mary, we pray that You keep
us committed and dedicated to our mission and identity to serve the Church and the society as we
become living witnesses to the Gospel values proclaimed by Jesus. For if we are steadfast in our
good and beautiful mission, our works will bring success not only to ourselves but also to those
whom we are bound to love and serve.

Inspired by St. Louis our Patron Saint, who was filled with a noble spirit that stirred him to love You
above all things, may we also live believing that we are born for a greater purpose and mission as
we dwell in Your presence all the days of our life.

Grant all these supplications through the intercession of

Mother Mary and through Christ our Lord. Amen.

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University. Unauthorized use of the materials, other than personal learning use, will be penalized.

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Academic Intellectual Property Rights: This module and the materials posted over NEO-LMS
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CORRESPONDENCE LEARNING MODULE
TAXN 1013 - Taxation
AY 2021-2022

Lesson 1: General Principles of Taxation

Topics:  Double Taxation

 Forms of Escape from Taxation

Learning Outcomes: At the end of this module, you are expected to:

At the end of this learning module, the student is expected to:

a. Define Double Taxation;
b. enumerate kinds of Double Taxation;
c. distinguish which is prohibited or not in Double Taxation;
d. differentiate the two forms of escape from taxation; and
e. explain the Willful Blindess Doctrine.

Weekly Timetable
Date Topic Activities or Tasks

Peruse on the readings/modules assigned

• Double Taxation
February 14 – • Forms of Escape from
18, 2022 Discussion
Taxation
Completion of learning tasks

Recitation on the provisions and case digests

Double Taxation

 There are two kinds of double taxation:

o Direct double taxation, and
o Indirect double taxation.
 It is direct double taxation which is prohibited. To constitute direct double
taxation, the following requisites must be present.
o The same property must be taxed twice;
o Both taxes must be imposed:
 On the same property or subject matter,
 For the same purpose,
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University. Unauthorized use of the materials, other than personal learning use, will be penalized.

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 By the same State, Government, or taxing authority,
Within the same jurisdiction,
During the same taxing period, and
The two taxes are of the same king or character. (Villanueva v. City
of Iloilo, G.R.No. L-26251, December 28,1968)
 Imposition of a penalty and a tax on one taxpayer does not amount to double
taxation. (Republic Bank v. Court of Tax Appeals, G.R.No.62554, September
2,1992)
 Indirect double taxation simply means that there are two or more pecuniary
impositions on a subject matter. It is not prohibited by the Constitution.

Forms of Escape from Taxation

 Tax avoidance and tax evasion are the common devices wherein the taxpayer
can escape from the effects of taxation.
 Tax avoidance is legal. It involves saving on taxes using legal means.
o Estate planning is legal manner to minimize taxes. (Delpher Trades
Corporation v. Intermediate Appellate Court, G.R.No. L-69259,
January 26,1988)
 Tax evasion is illegal and can land you in jail. It involves the use of forbidden
and illegal devices to lessen and minimize tax.
o It connotes the integration of three factors:
 The end to be achieved, i.e., payment of less than that known
by the taxpayer to be legally due, or the non-payment of tax
when it is shown that a tax is due,
 State of mind which is “evil”, in “bad faith”, “willful”, or
“deliberate and not accidental,” and
 Course of action or failure of action that is unlawful. (CIR v.
Estate of BenignoToda, G.R.No.147188, September 14,2004)
 Willful blindness doctrine: a taxpayer can no longer raise the defense that
the error on their tax returns is not their responsibility or that it is the fault of
the accountants they hired.
o Intent to defraud need not to show for a conviction of tax evasion.
o The only thing that needs to be proven is that the taxpayer was aware
of this obligation to file the tax return but he nevertheless voluntarily,
knowingly, and intentionally failed to file the required returns.
(People v. Kintanar, C.T.A. E.B. No.006, December 3,2010, affirmed by
the Supreme Court in G.R. No.196340)

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University. Unauthorized use of the materials, other than personal learning use, will be penalized.

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REFERENCES:

Books:

Ingles, M.D. (2018), Tax Made Less Taxing: A Reviewer with Codals and Cases, Rex Book
Store, Manila PH

Dimaampao, J. (2011), Tax Principles and Remedies, Rex Book Store, Manila PH

Online References (on Jurisprudence):

https://www.chanrobles.com/

https://central.com.ph/escra/

No part of this E-module/LMS Content can be reproduced, transported or shared with others without permission from the
University. Unauthorized use of the materials, other than personal learning use, will be penalized.

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