1
TAXATI ON 1 s t
SY 2015-2016( 1 Sem me es t er ) Co ur s eOut l i ne Pr of e s s or: JUDGE GI LG.BOLLOZOS,CPA
I.
A. Course Description A study of the general principles of taxation as well as the provisions provisions relating to the organization organization and function of the Bureau Bureau of Internal Revenue, Revenue, and the income taxation taxation under the National Internal, Revenue Code NIRC! and its related laws, including cases pertinent thereto" #ode of Instructi Instruction on $ Recitati Recitations ons on the su%stan su%stantive tive law&provisio law&provisions ns and cases cases assigned assigned"" 'tud 'tuden ents ts are are expe expect cted ed to memo memori rize ze the the defi defini nitio tions ns and and enum enumer erat atio ions ns and and sali salien entt (urisprudence" (urisprudence" #ultiple Choice, essay )uestions, )uestions, definitions definitions and enumerations enumerations will %e the written exam"
COVERAGE : Part I - Fundamentals Fundament als of Taxation Book Book : Fund undamen amenta tals ls of Taxati xation on B !e"tor #. de $eon Pa%es &-'( A. Con"e)ts Con"e)ts** +ature* +ature* C,ara"te C,ara"teris risti"s ti"s of Tax Taxatio ation n and Tax Taxes es *" #ean #eanin ing g of of taxa taxati tion on +" urpo urpose se and and sco scope pe of of taxa taxatio tion n -" #ean #eanin ing g of of taxe taxes s ." /sse /ssenti ntial al chara characte cteris ristic tics s of tax 0" 1heory 1heory and and %asis %asis of tax taxat ation ion 2" Natu Nature re of of the the powe powerr of tax taxati ation on 3" Aspe Aspect cts s of of tax taxat atio ion n 4" /xtent /xtent of of the of of the legislat legislative ive power power to to tax 5" Non6rev Non6revenue enue o%(ecti o%(ectives ves of taxatio taxation n *7" Basic principles principles of a sound sound tax system B.
Classifi"ations Classifi"ation s and istin"tions *" Classi Classific ficati ation on of taxe taxes s +" Regressi Regressive ve & progress progressive ive syste system m of taxation taxation -" 1ax distin distingui guishe shed d from from toll toll ." 1ax distingu distinguishe ished d from from penalty penalty 0" 1ax distingu distinguishe ished d from spec special ial assessm assessment ent 2" 1ax distingu distinguishe ished d from licens license e or permit permit fee fee 3" Impor Importan tance ce of the the disti distinc nctio tions ns 4" 1ax distin distingui guishe shed d from from de%t de%t 5" 1axes not not genera generally lly su%(ec su%(ectt to set6of set6off f *7" 1ax 1ax distinguished distinguished from other terms **" **" Concept of of power of eminent eminent domain *+" Concept of police power *-" 'imilarities among taxation, taxation, eminent eminent domain, and police power *." Distinctions Distinctions among the three three powers *0" 1axation 1axation and pu%lic pu%lic finance
C. $imita $imitatio tions ns on on t,e Poe Poerr of Ta Taxatio xation n *" 8imit 8imitat ation ions s classi classifie fied d +" /nume /numerat ration ion of of the limit limitati ation ons s
2
-" Re)uirement of due process of law ." Re)uirement of e)ual protection of the laws 0" Re)uirement of uniformity and e)uity in taxation 2" rohi%ition against imprisonment for non6payment of poll tax 3" rohi%ition against impairment of o%ligation of contracts 4" rohi%ition against infringement of religious freedom 5" rohi%ition against appropriation for religious purposes *7" rohi%ition against taxation of religious charita%le, and educational entities, etc" **" rohi%ition against taxation of non6stoc9, non6profit educational institutions *+" :ther constitutional limitations *-" Re)uirement of pu%lic purpose *." rohi%ition against delegation of taxing power *0" /xemption of government agencies or instrumentalities *2" 8imitation of international comity *3" 8imitation of territorial (urisdiction . #itus of Taxation and ou/le Taxation *" +" -" ." 0" 2" E.
#eaning of situs of taxation 'itus of su%(ects of taxation #ultiplicity of situs #eaning of dou%les taxation Instances of dou%le taxation in its %road sense Constitutionality of dou%le taxation
Forms of Es"a)e from Taxation *" In general +" #eaning of shifting -" #eaning of impact of taxation ." #eaning of incidence of taxation 0" Relations among impact, shifting, and incidence of a tax 2" Direct tax cannot %e shifted 3" ;inds of shifting 4" #eaning of capitalization 5" #eaning of transformation *7" #eaning of tax evasion **"
F.
Exem)tion from Taxation *" #eaning of exemption from taxation +" Nature of power to grant tax exemption -" Rationale of tax exemption ." =rounds for tax exemption 0" /)uity not a ground for tax exemption 2" Nature of tax exemption 3" ;inds of tax exemption 4" /xemptions provided for in the Constitution 5" /xemptions provided for in the 1ax Code *7" /xemptions provided for under special law **" Construction of tax exemption statutes *+" 1ax amnesty
G. +ature* Constru"tion* A))li"ation* and #our"es of Tax $as *" Nature of internal revenue law +" Construction of tax laws
3
-" Application of tax laws ." #andatory and directory provisions of tax laws 0" 'ources of tax laws 2" /xisting tax laws 3" Authority of 'ecretary of alidity and effectivity of regulations **"
A" #eaning and Nature of 1axes! *" @1axation@ and @1ax@ defined Commisioner of Internal Revenue v" Algue, Inc", ="R" No" 86+4452,
4
=omez v" alomar, ="R" No" 86+-2.0, :cto%er +5, *524 8orenzo v" osadas, ="R" No" .-74+, une *4, *5-3 D" Aspects of taxation *" 8evy&Imposition %y the legislative %ody +" Collection&Administration&ways&methods of collection @pay as you earn@ @pay as you go@ withholding system @pay as you are assessed@ @pay as you file@ CA#E#: CIR vs" A8=/, *04 'CRA 5 CIR vs" 1o9yo 'hipping, =RE 24+0+, #ay +2, *550 ++. 'CRA --+ BI vs" CA, =RE *++.47, April *+, +777 CIR vs" ineda, +* 'CRA *70 De Bor(a vs" =ella, 86*4--7 uly -*, *52>era vs" s" C:A, =RE 5+040, #ay 4, *55+ 8utz vs" Araneta, 54 hil *.4 :smena vs" :r%os, =RE 55442, #arch -*, *55Churchill vs" Concepcion, -. hil 525 Roxas vs" C1A, 86+07.- April +2, *524 CIR vs" 8ingayen =ulf /lectric, 86+-33* August ., *524 unzalan vs" #un" Board of #anila, 50 hil .2 Com" :f Customs vs" #la 'tarferry Inc, 86-*332634, :ct +*, *55CIR vs" 'antos, =RE**50+ August *4, *553 Davao =ulf vs" CIR, +5- 'CRA 33 #arcos II vs" CA, +3- 'CRA .3 =omez vs" alomar, +0 'CRA 4+3 Chavez vs" :ngpin, =RE 32334 une 2, *557 ?ells illegas vs" Hiu Chiong ao, .+ hil 4*4 Apostolic refect vs" City of Baguio, 3* hil 0.3 A8 vs" /du, 86.*-4- August *0, *544 hysical 1herapy vs" #un" Board, *7* hil **.+ /sso 'tandard vs" CIR, 86+4074675 uly 3, *545 >illanueva vs" Iloilo, 86+20+* Decem%er +4, *524 Repu%lic vs" #am%ulao, 86*33+0 ideogram, =RE 30253 une *4, *543 / vs" De :campo, =RE **05-*, :ct -7, *550 hil" Acetylene vs" CIR, 86*5373 'CRA *702 CIR vs" American Ru%%er, *4 'CRA 0.+ #aceda vs" #acaraig, =RE 44+5* #ay -*, *55*
5
CIR vs" =otamco, 86-*75+ alencia vs" imenez, ** hil .5+ 'ison vs" Ancheta, *-7 'CRA 20. City of Baguio vs" De 8eon, +0 'CRA 5-4 uan 8una 'u%d" >s" 'armiento, 5* hil -3* Hodges vs" #un" Board of Ilo6ilo, *5 'CRA +4 Bishop of Nueva > vs" rov" Board, 0* 'CRA -0+ Herrera vs" C Board, - 'CRA *42 RCI vs" CIR, 86270.3, uly *, *540 1olentino vs" 'ec" of
Part II - In"ome Taxation Book : +ational Internal Re0enue Code of &112 B Att. Eufro"ina 3. #a"dalan-Casasola Att. Rosario #. #antia%o-Bernaldo #e". &-'4 Title I - Or%ani5ation and Fun"tion of t,e Bureau of Internal Re0enue 'ection *" 1itle of the Code 'ec" +" owers and Duties of the Bureau of Internal Revenue 'ec" -" Chief :fficials of the Bureau of Internal Revenue 'ec" ." ower of the Commissioner to Interpret 1ax 8aws and to Decide 1ax Cases 'ec" 0" ower of the Commissioner to :%tain Information and to 'ummon, /xamine, and 1a9e 1estimony of ersons 'ec" 2" ower of the Commissioner to #a9e Assessments and rescri%e Additional Re)uirements for 1ax Administration and /nforcement 'ec" 3" Authority of the Commissioner to Delegate ower 'ec" 4" Duty of the Commissioner to /nsure the rovision and distri%ution of iolation of 8aws 'ec" *5" Contents of CommissionerGs Annual Report 'ec" +7" 'u%mission of Report and ertinent Information %y the Commissioner 'ec" +*" 'ources of Revenue
6
Title II - Tax on In"ome 'ec" ++" Definitions 'ec" +-" =eneral rinciples of Income 1axation in the hilippines 'ec" +." Income 1ax Rates 'ec" +0" 1ax on Nonresident Alien Individual 'ec" +2" 1ax 8ia%ility of #em%ers of =eneral rofessional artnerships 'ec" +3" Rates of Income 1ax on Domestic Corporations 'ec" +4" Rates of Income 1ax on
7
'ec" 4*" da" de y vs" y, 07 := 0+2* Collector vs" Benipayo, . 'CRA *4+ Behn #eyer vs" CIR, +3 hil 2.3 erez vs" C1A, =RE 86*7073 #ay -7, *5.4 Collector vs" Bohol 81:, =RE 86*-755 and 86*-.2+, April +5, *527 'antos vs" Na%le, + 'CRA +* Repu%lic vs" Al%ert, =RE *+552, Decem%er +4, *52*" Repu%lic vs" #la" ort 'vc, =RE 86*4+74, Nov" +3, 52. Repu%lic vs" 8opez, + 'CRA 022 Commissioner vs" Avelino, =RE 86*.4.3, 'eptem%er *5, *52* :lsen vs" Rafferty, -+ hil" 0-7 ' vs" #olina, +5 hil **5 Anderson vs" Collector, 22 hil +70 8im Hoa 1ing vs" Central Ban9, *7. hil 03Castro vs" Hechanova, 86+-2-0, August *0, *522"
8
CIR vs" N8RC, =RE 3.520, Nov 5, *55. H'BC vs" Rafferty, -5 hil *.0 1orres vs" Collector, =RE .427+, Amsterdam vs, CIR, *2+ 'CRA .45 CIR vs" CA, +54 'CRA 4 A%ra vs" A)uino, *2+ 'CRA *72 #adrigal vs" Rafferty, -4 hil .*. Commissioner vs" 1ours 'pecialist, *4- 'CRA .7+
. Digest of cases shall %e written in your :?N HAND?RI1IN= on a note%oo9 with ta%le of contents following the listing of cases as chronologically assigned" Digest of cases covering art I =eneral rinciples of 1axation! shall %e su%mitted on the #idterm /xam schedule"
9
Digest of cases for art II Income 1axation, Remedies, 'tatutory :ffenses! shall %e su%mitted on the
