TAXATION LAW II

Jose Maria College – 5-year Program

Course Syllabus

Course requirement:

Coverage Percentage
Prelim Exam Transfer Tax to Business Taxes 25.00%

Midterm Exam Excise Tax to Real Property Tax 25.00%

Final Exam Tariff and Customs Law to 25.00%
Judicial Remedies
Recitations 25.00%
Total 100.00%

Recommended References:

National Internal Revenue Code of 1997 By Atty. Eufrocina M. Sacdalan-Casasola and Atty. Rosario S.
Santiago-Bernaldo
Tax Principles and Remedies By Dimampao
Tax Law and Jurisprudence by Vitug & Acosta
Tax Rights and Remedies By Mamalateo
Business and Transfer Taxation By Valencia, Roxas

Course Outline:

A. Transfer Taxes
a. Estate Tax
i. Section 84-97 NIRC as amended by TRAIN law
ii. Revenue Regulations 12-2018
1. Valuation of Gross Estate
2. Computation of the Net Estate of a Decedent Who is Either a Citizen or
Resident of the Philippines
3. Computation of the Net Estate of a Decedent Who is a Non-Resident
Alien of the Philippines
4. Allowable Deduction
a. Standard deduction
b. Claims against estate
c. Unpaid mortgages/indebtedness
d. Property previously taxed
e. Transfers for Public Use
f. Family Home
g. Amount Received under RA 4917
5. Time and Place of Filing Estate Tax Return and Payment of Estate Tax
Due.
iii. Cases/Rulings
1. Dizon v. Court of Tax Appeals, G.R. No. 140944, [April 30, 2008], 576
PHIL 110-138)
2. Estate of Ruiz v. Court of Appeals, G.R. No. 118671, [January 29, 1996],
322 PHIL 590-604) ex||| (Estate of Ruiz v. Court of Appeals, G.R. No.
118671, [January 29, 1996], 322 PHIL 590-604)
3. Computation of Proper Estate Tax Due, BIR Ruling No. 010-00, [January
5, 2000]
4. Request for Extension of Time to File Estate Tax Return and to Pay
Estate Tax (Dominga A. Villaluz), BIR Ruling No. 344-16, [June 29,
2016])
5. Estate of Concordia C. Paredes, BIR Ruling No. 475-17, [October 12,
2017])
b. Donor’s Tax
i. Section 98 to 104 as amended by TRAIN Law
ii. Revenue Regulations 12-2018
iii. Filing of Returns and Payment of Donor's Tax.
iv. Transfer for Less Than Adequate and Full Consideration
v. Exemption of Certain Gifts
1. Lladoc vs CIR, L-19201, June 16, 1965

1
 2. The Philippine American Life and General Insurance Co. v. The
Secretary of Finance, G.R. No. 210987, [November 24, 2014])\
B. Business Taxes
a. Value Added Tax (VAT)
i. Sec. 105-115, NIRC as amended by RA 8424 & RA 9238, February 5, 2004 and
RA 9337 effective July 1, 2005
ii. Revenue Regulation 16-2005 (November 1, 2005)
iii. Revenue Regulation No. 4-2007 (February 7, 2007)
iv. VAT Amendments by the TRAIN law
1. Persons Liable
2. Meaning of “In the Course of Trade or Business”
3. Vatable on Sale of Goods and Properties/ Services and Use or Lease of
Properties
4. Zero-Rated Sales of Goods/Services
5. Effectively Zero-rated Sale of Goods and Properties/Services
6. Transactions Deemed Sale
7. VAT on Importation of Goods
8. VAT- Exempt Transactions
9. Claim for Input Tax on Depreciable Goods
10. Transitional Input Tax Credits
11. Presumptive Input Tax Credits
12. Claims for Refund/Tax Credit
13. Invoicing Requirements
a. CIR v Court of Appeals, et al., G.R. No. 125355, March 30,2000
b. BIR Ruling April 22, 1996 – effectivity of VAT on other taxpayers
c. American Express v. Commissioner SC GR 152609, June 28,
2005
d. CIR v. Burmeister and Wain, GR No. 153205, January 22, 2007
e. CIR v. Magsaysay Lines, GR No. 146984, July 28, 2006
f. CIR v. Seagate Technology Phils., GR No. 153811, February 11,
2005
g. Microsoft Philippines, Inc. v. CIR, G.R. No. 180173, April 6, 2011
h. Commissioner of Internal Revenue v. Sony Philippines, Inc.,
G.R. No. 178697, November 17, 2010
i. KEPCO Philippines Corporation v. CIR, G.R. No. 181858,
November 24, 2010
j. AT & T Communications Services Philippines, Inc. v. CIR, G.R.
No. 182364, August 3, 2010
k. Silicon Philippines, Inc. v. CIR, G.R. No. 172378, January 12,
2011
l. Renato V. Diaz and Aurora Timbol v. Secretary of Finance, G.R.
No. 193007, July 19, 2011
m. PAGCOR v. BIR, G.R. No. 172087, March 15, 2011
n. Commissioner of Internal Revenue v. Aichi Forging Company of
Asia, G.R. No. 184823, October 6, 2010
o. Fort Bonifacio Devt. Corp. v. CIR, G.R. Nos. 158885 and
170680, April 2, 2009
p. Commissioner of Internal Revenue v. Benguet Corporation, G.R.
Nos. 134587 and 134588. July 8, 2005
q. Commissioner of Internal Revenue v. SM Prime Holdings, Inc. et
al, G.R. No.183505, February 26, 2010
r. Commissioner of Internal Revenue v. The Philippine American
Accident Insurance Company, et al., G.R. No. 141658, March
18, 2005
b. Other Percentage Taxes
i. Section 116 (Tax on persons exempt from VAT)
ii. Section 117-118 (Common Carrier’s Tax)
1. Revenue Regulations 11-2011
iii. Section 119 (Franchise Tax)
iv. Section 120 (Overseas Communications Tax)
v. Section 121 (Tax on banks and financial intermediaries)
1. RA 7716 and RA 9238
a. China Banking Corp. v. CTA, SC GR 146749, June 10, 2003
vi. Section 122 (Tax on finance companies)
vii. Section 123 (Tax on Insurance Premiums
viii. Section 124 (Tax on agents of foreign insurance companies
ix. Section 125 (Amusement Taxes)
x. Section 126 (Tax on Winnings

2
 xi. Section 127 (Tax on IPOs)
xii. Section 128 (Payment of Percentage Taxes)
1. Republic of the Philippines v. Sunlife Assurance Company of Canada,
G.R. No. 158085, October 14, 2005
2. CIR v. Lhuiller, SC GR 150947, July 15, 2003
3. First Planters Pawnshop, Inc. v CIR, G.R. No. 174134, July 30, 2008
C. Excise Tax Concept
D. Documentary Stamp Tax (DST)
a. Section 172 – 201, NIRC as amended by Train law
i. CIR v. Construction Resources of Asia, Inc. – 145 SCRA 673
ii. Phil. Consolidated Coconut Industries ( 70 SCRA 22)
iii. Banco de Oro v. CIR, CTA E.B. No. 165 (August 15, 2005)
iv. CIR v. First Express Pawnshop Company, Inc., G.R. Nos. 172045-46, June 16,
2009
v. CIR v. Filinvest Development Corporation, G.R. No. 163653, July 19, 2011
vi. CIR v. Manila Bankers’ Life Insurance Corporation, G.R. No. 169103, March 16,
2011
vii. Supreme Transliner, Inc. et al. v. BPI Family Savings Bank, Inc., G.R. No.
165617, February 25, 2011

E. Remedies under the Tax Code

a. Section 4 (NIRC); RMC 44-2201, October 11, 2001 and DOF Order 7-02, May 7,
2002
b. Section 202 – 231; Section 282 of the NIRC, TRAIN amendment on VAT Refund
c. Revenue Regulations (RR) 12-99 as amended by RR 18-13
i. RP v. CTA & Nielson & Co., GR L-38540, 149 SCRA 351
ii. Collector v. Bautista, L-12250, L-12259, May 27, 1959
iii. CIR v. Metro Star Superama, Inc., G.R. No. 185371, December 8, 2010
iv. Republic v. Ricarte, GR L-46893, November 12, 1985
v. Advertising Associates v. CTA, 133 SCRA 765
vi. CIR v. Union Shipping, GR 66160, May 21, 1990
vii. Surigao Electric v. CTA, 57 SCRA 523
viii. CIR v. Isabela Cultural Corporation, GR 135210, July 11, 2001.
ix. Oceanic Wireless Network v. CIR, GR 148380, December 9, 2005
x. Commissioner v. Philamlife Insurance Co., GR 105208, May 29, 1995
xi. United Airlines v. CIR, G.R. No. 178788, September 29, 2010
xii. CIR v. Wyeth, GR 762281, September 30, 1991
xiii. ABS-CBN Broadcasting Corp. v. CTA, 108 SCRA 143
xiv. Emilio S. Lim v. Court of Appeals, GR L-48134-37, October 18, 1990
xv. Commissioner v. Court of Appeals, Lucio Tan, et al., GR 119322, June 4, 1996
xvi. Commissioner v. Court of Tax Appeals and Fortune Tobacco, GR 119761,
August 29, 1996
xvii. CIR v. Pascor Realty & Development Corp., GR 128315, June 29, 1999
xviii. CIR v Lascona Land Co., Inc. CA-G.R. SP No. 58061. October 25, 2005
xix. San Agustin v. CIR, GR 138485, September 10, 2001
xx. Philippine Journalists, Inc. v. CIR, GR 162852, December 16, 2004
xxi. CIR v. Phil. Global Communications, GR No. 167146, October 31, 2006.
xxii. RCBC v. CIR, GR No. 168498, April 24, 2007.
xxiii. Petron Corporation v. CIR, G.R. No. 180385, July 28, 2010.
xxiv. CIR v. Gonzales, et al., G.R. No. 177279, October 13, 2010
xxv. Judy Anne L. Santos v. People of the Phils, G.R. No. 173176, August 26, 2008
xxvi. Fitness by Design, Inc. v. CIR, G.R. No. 177982, October 17, 2008
xxvii. Asia International v. Parayno, 540 SCRA 536 (2007)
xxviii. British American Tobacco v. Camacho, 562 SCRA 511 (2008)
xxix. Commissioner of Internal Revenue vs. San Roque Power Corp. (G.R. No.
187475, 196113, and 197156 dated 12 Feb. 12, 2013)
xxx. Mindanao II Geothermal Partnership vs. Commissioner of Internal Revenue
(G.R. No. 193301 and 194637 dated March 11, 2013)

F. Local Taxation (Sections 128-196; Section 48-59; Sections 197-288 Local Government Code)
a. Fundamental Principles
b. Local Government Taxation
c. Local Taxing Authority
d. Common Limitations on the Taxing Power of LGUs
e. Taxing Power of:
i. Provinces
ii. Municipalities

3
 iii. Cities
iv. Barangay
f. Collection of Taxes
g. Civil Remedies for Collection of Revenues
i. Coca-Cola Bottlers Phils., Inc. v. City of Manila, GR No. 156252, June 27, 2006
ii. International Container Terminal Services, Inc. v. City of Manila, CTA A.C. No.
11, May 22, 2006
iii. PLDT v. City of Davao, GR No. 143867, March 25, 2003.
iv. Palma Development Corp. v. Municipality of Malangas, GR 152492, October 16,
2003
v. PLDT v. Province of Laguna, GR 151899, August 16, 2005
vi. Yamane v. BA Lepanto Condo. Corp., SC GR 154993, October 25, 2005
vii. Ericsson Telecoms Inc. v. City of Pasig, GR No. 176667, November 22, 2007
viii. Lepanto Consolidated Mining Company v. Hon. Mauricio B. Ambaloc in his
capacity as the Provincial Treasurer of Benguet, G. R. No. 180639, June 29,
2010
ix. Angeles City v. Angeles City Electric Corporation and Regional Trial Court
Branch 57,Angeles City, G.R. No. 166134, June 29, 2010
G. Real Property Taxation (Sections 197-283 Local Government Code)
a. Fundamental Principles
b. Appraisal and Assessment of Real Property
c. Exemptions
d. Real Property Classifications
e. Assessment Appeals
i. Lung Center of the Philippines v. Quezon City, GR 144104, June 29, 2004
ii. Mactan Airport Authority v. Pres. Marcos, GR 120082, September 11, 1996
iii. Manila International Airport Authority v. Court of Appeals, GR No. 155650, July
20, 2006
iv. Quezon City Gov’t. v. BayanTelCorp., GR No. 162015, March 6, 2006
v. Sta. Lucia Realty and Development, Inc. v. City of Pasig, G.R. No. 166838, June
15, 2011

H. Judicial Remedies
a. Court of Tax Appeals
i. RA 1225, RA 9503 and the Revised Rules of the Court of Tax Appeals as
amended by AM No. 05-11-07 CTA
1. Jurisdiction
2. Judicial Procedures
a. CIR vs CA 242 SCRA 289
b. Banco de Oro vs Republic G.R. No. 198756
c. City of Manila vs Hon. Grecia-Cuerdo 726 Phil 0, 24 (2014)
d. National Water Resources Board vs A.L. Ang Network, Inc. 632
Phil 22, 28-29
e. CIR vs KEPCO ILIJAN Corporation G.R. No. 199422
f. BOC vs Honorable Devanadera G.R. No. 193253

-END-