Beruflich Dokumente
Kultur Dokumente
- Motion forconsideration
HELD:
YES. The use of the term must clearly indicates that the requirement is mandatory and not merely directory. There is no exigent and persuasive reason (such as relieving a litigant of injustice) to relax the rules in this case.
FACTS:
Mercury Drug granted 20% sales discount to qualified senior citizens on their purchases of medicines. They subsequently filed a refund for taxable years 1993 and 1994 given that the then prevailing rule allowed that the sales discounts be claimed as tax credits.
ISSUE:
Is the claim for tax credit to be based on the full amount of the 20% senior citizen discount or the acquisition cost of the item sold?
HELD:
The tax credit should be equivalent to the actual 20% sales discount granted to the senior citizens. The previous ruling of the CTA that the tax credit is based only on the cost of the discount which was interpreted to cover only direct acquisition cost, excluding administrative and other incremental costs, was struck down by the Court. N.B. The March 3, 2008 case of M.E. Holdings Corporation vs. CIR & CTA clarified that the rule will be -- (i) prior to March 21, 2004 (effectivity of Expanded Senior Citizens Act) the discounts are treated as tax credit; (ii) after March 21, 2004 the same are treated as deductions.
ISSUE:
Is Republic Act 9337 constitutional insofar as it excluded PAGCOR from the enumeration of GOCCs exempt from the payment of corporate income tax?
HELD:
YES. The original exemption of PAGCOR from corporate income tax was not made pursuant to a valid classification based on substantial distinctions so that the law may operate only on some and not on all. Instead, the same was merely granted due to the acquiescence of the House Committee on Ways and Means to the request of PAGCOR.
The argument that the withdrawal of the exemption also violates the non-impairment clause will not hold since any franchise is subject to amendment, alteration or repeal by Congress. However, the Court made it clear that PAGCOR remains exempt from payment of indirect taxes and as such its purchases remain not subject to VAT, reiterating the rule laid down in the Acesite case.
>It shall handle all trainings, continuing education programs and other courses for all officials and personnel of the BIR, BOC, and BLGF. All existing officials and personnel of the said agencies shall be required to undergo the re-tooling and enhancement seminars and training programs.
>The Board of Trustees will be composed of representatives from the DOF (ex officio Chairman), BIR, BOC, BLGF, and 3 representatives from the academe with at least 5 years of teaching experience. The first 3 will be Presidential appointees.
5. ABAKADA GURO PARTYLIST vs. PURISIMAAttrition Act of 2005, R.A. No. 9335
ABAKADA GURO PARTYLIST vs. PURISIMA- Attrition Act of 2005, R.A. No. 9335
FACTS:
Petitioners question the Attrition Act of 2005 and contend that by establishing a system of rewards and incentives when they exceed their revenue targets, the law (1) transforms the officials and employees of the BIR and BOC into mercenaries and bounty hunters; (2) violates the constitutional guarantee of equal protection as it limits the scope of the law to the BIR and BOC; (3) unduly delegates to the President the power to fix revenue targets without sufficient standards; and (4) violates the doctrine of separation of powers by creating a Congressional Oversight Committee to approve the laws implementing rules.
ISSUE:
HELD:
YES. R.A. No. 9335 is constitutional, except for Section 12 of the law which creates a Joint Congressional Oversight Committee to review the laws IRR. That RA No. 9335 will turn BIR and BOC employees and officials into bounty hunters and mercenaries is purely speculative as the law establishes safeguards by imposing liabilities on officers and employees who are guilty of negligence, abuses, malfeasance, etc. Neither is the equal protection clause violated since the law recognizes a valid classification as only the BIR and BOC have the common distinct primary function of revenue generation. There are sufficient policy and standards to guide the President in fixing revenue targets as the revenue targets are based on the original estimated revenue collection expected of the BIR and the BOC.
However, the creation of a Joint Congressional Oversight Committee for the purpose of reviewing the IRR formulated by agencies of the executive branch (DOF, DBM, NEDA, etc.) is unconstitutional since it violates the doctrine of separation of powers since Congress arrogated judicial power upon itself.
An internal revenue agent who make arrests and seizures for violation of internal revenue laws or regulations assume the category of peace officers and are, therefore entitled to the privileges of such officers under the Revised Penal Code and Rules of Court. (U.S. vs. Viado, 39 Phil 10)
Revenue agents have no authority to search, without a warrant, a business establishment for supposedly fraudulent records. But they are empowered to seize said records, discovered in the course of their investigation, pursuant to Sec. 15. (People vs. Rubio, 57 Phil 886)
Pursuant to SEc. 15, only the commissioner, etc. are authorized to arrest and apprehend suspected tax evaders and therefore, the BIR is without authority to authorize any person to help in in apprehending susoected tax evaders. (BIR Ruling No. 10, Jam 1, 1992)
7. BIR Commissioner may revoke, repeal or abrogate the acts or previous rulings of his predecessor
Category: General Taxation An administrative officer such as the BIR Commissioner, may revoke, repeal or abrogate the acts or previous rulings of his predecessor in office-- the construction of a statute by those administering it is not binding on their successors if, thereafter, the latter becomes satisfied that a different construction should be given. (Philippine National Oil Company vs. Court of Appeals, 457 SCRA 5, July 14, 2005)
8. Retroactive Application of rulings and circulars, rules and regulations promulgated by the CIR
Category: General Taxation Rulings and circulars, rules and regulations promulgated by the Commissioner of Internal Revenue would have no retroactive effect application if to so apply them would be prejudicial to the taxpayers. Instances when retroactive application will still be allowed even if prejudicial to the taxpayer: 1. A taxpayer deliberately misstates or omits material facts from his return or any document required by the BIR 2. Where subsequent facts gathered by the BIR are materially different from which the ruling is based.
3. Where the taxpayer acted in bad faith. (Commissioner of Internal Revenue vs. Benguet Corporation, 495 SCRA 5, July 14 2006)
Category: General Taxation Sources of Revenues; the following taxes are national internal revenue taxes: 1. Income Tax 2. Estate and donor's taxes 3. Value-Added tax 4. Other percentage taxes 5. Excise taxes 6. Documentary Stamp taxes 7. Such other taxes as are or hereafter may be imposed and collected by the Bureau of Internal Revenue
officers and any other employee of the Bureau thereunto especially deputized by the Commissioner shall have the power to administer oaths and to take testimony in any official matter or investigation conducted by them regarding matters within the jurisdiction of the Bureau. (Sec. 14) In the absence of showing of materiality, and in the absence of any particularity in specifying what is wanted by a subpoena commanding him toproduce his commercial books will be sustained. (Sy Jong Chuy vs. Reyes, 59 Phil 244)
Category: General Taxation 1. Assessment and collection of all national revenue taxes, fese and charges; 2. Enforcement of all forfeitures, penalties, and fines on internal revenue taxes, fees and charges; 3. Execution of judgments in all cases decided in its favor by the Court of Tax Appeals and the ordinary courts; and 4. Give effect and administer the supervisory and police powers conferred to it by the Tax Code and other laws. (Sec. 2, NIRC)
1. To interpret tax laws and decide tax cases; 2. To obtain information, and to summon, examine and take testimony of persons; 3. To make assessments and prescribe additional requirements for tax administration and enforcement; 4. To conduct inventory - taking, surveillance and to prescribe presumptive gross sales and receipts; 5. To terminate taxable period; 6. To prescribe real property values; 7. To inquire into bank deposit accounts; 8. To accredit and register tax agents; 9. To prescribe additional procedural or documentary requirements; and 10. To delegate power to subordinates. (Sec. 4 to 8, NIRC)