Beruflich Dokumente
Kultur Dokumente
Tax I
INCOME TAX
1. Definitions
2. Income
In general
Madrigal vs. Rafferty (August 7, 1918)
Fisher vs. Trinidad (October 30, 1922)
Limpan Investment Corporation vs. Commissioner of Internal Revenue (July 26, 1966)
Conwi vs. Court of Tax Appeals ( August 31, 1992)
Commissioner v. Glenshaw Glass Co., 348 U.S. 426 (March 28, 1955)
Cesarini vs. United States 296 F. Supp. 3 (February 17, 1969)
Hornung vs. Comissioner of Internal 47 T.C. 428 (January 27, 1967)
Murphy vs. Internal Revenue Service 493 F3rd 170 – US Court of Appeals, District of Columbia
Circuit (July 3, 2007)
Officemetro Philippines, Inc. vs. Commissioner of Internal Revenue (CTA Case No. 8382, June 3,
2014)
Statutory “inclusions”
Section 32 (A), Tax Code as amended by Republic Act 10963
Old Colony Trust Co. vs. Commissioner of Internal Revenue, 279 US 716 (June 3, 1929)
Rents
Helvering vs. Bruun, 309 US 461 (March 25, 1940)
Dividends
Section 73 (A) to (C), Tax Code
Section 50, RR 2
RMC 88-2012 (December 27, 2012)
Inventories
Section 41, Tax Code
Exclusions
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Retirement benefits, etc.
Commissioner of Internal Revenue vs. Court of Appeals (March 23, 1992)
Commissioner of Internal Revenue vs. Court of Appeals (October 17, 1991)
Re: Request of Atty. Bernardo Zialcita (October 18, 1990)
Intercontinental Broadcasting Corporation vs. Amarilla (October 27, 2006)
De minimis/ PERA
Republic Act 9505
3. General Principles
Quill Corp. vs. North Dakota, 504 US 298 (May 26, 1992)
Vodafone International Holdings B.V. vs. Union of India & Anr. (Supreme Court of India, Civil Appeal No.
733 of 2012; January 20, 2012)
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RAMO 4-86 (April 5, 1986)
5. Deductions
Business expenses
Republic Act 10028 (Sections 3 & 14 only)
Republic Act 8502
Republic Act 8525 (Sections 1 to 5 only)
Republic Act 9999
Republic Act 7277 (Section 8 only)
Commissioner of Internal Revenue vs. Isabela Cultural Corporation (February 12, 2007)
ING Bank, N.V. vs. Commissioner of Internal Revenue (July 22, 2015)
Commissioner of Internal Revenue vs. General Foods (Phils.) Inc. (April 24,
2003)
Aguinaldo Industries Corporation vs. Commissioner of Internal Revenue (February 25, 1982)
Atlas Consolidated Mining & Development Corporation vs. Commissioner of Internal Revenue
(January 27, 1981)
Zamora vs. Collector of Internal Revenue (May 31, 1963)
C.M. Hoskins & Co., Inc. vs. Commissioner of Internal Revenue (November 28, 1969)
Calanoc vs. Collector of Internal Revenue (November 29, 1961)
Kuenzle & Streiff, Inc. vs. Collector of Internal Revenue (October 20, 1959)
Interest arbitrage
Taxes
Commissioner of Internal Revenue vs. Lednicky (July 31, 1964)
Losses
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Section 38, Tax Code
Tambunting Pawnshop, Inc. vs. Commissioner of Internal Revenue (July 29, 2013)
Forex losses
BIR Ruling 206-90 (October 30, 1990)
BIR Ruling No. 144-85 (August 26, 1985)
Bad Debts
Philex Mining Corporation vs. Commissioner of Internal Revenue (April 16, 2008)
Philippine Refining Company vs. Court of Appeals (May 8, 1996)
Fernandez Hermanos, Inc. vs. Commissioner of Internal Revenue (September 30, 1969)
Depreciation
Basilan Estates, Inc. vs. Commissioner of Internal Revenue (September 5, 1967)
Limpan Investment Corporation vs. Commissioner of Internal Revenue (July 26, 1966)
Depletion
Consolidated Mines, Inc. vs. Court of Tax Appeals (August 29, 1974)
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RR 16-2008 (November 26, 2008) (Sections 1 to 7 only)
NOLCO
Paper Industries Corporation of the Philippines vs. Court of Appeals (December 1, 1995)
Non-deductible expenses
Section 36, Tax Code
Esso Standard Eastern, Inc. vs. Commissioner of Internal Revenue (July 7, 1989)
Section 119-122, RR 2
6. Individuals
Sections 24 (as amended by Republic Act Nos. 9504 and 10963) & 25 (as amended by Republic Act 10963),
Tax Code
Ordinary Income
Passive Income
Section 22 (T) to (Y), Tax Code
SMI-Ed Philippines Technology, Inc. vs. Commissioner of Internal Revenue (November 12, 2014)
Supreme Transliner, Inc. vs. BPI Family Savings Bank, Inc. (February 23, 2011)
Department of Public Works and Highways vs. Soriano (February 25, 2015)
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BIR Ruling DA 287-07 (May 8, 2007)
7. Partnerships
8. Corporations
Sections 27 (A) & (D), and 28, Tax Code as amended by Republic Act Nos. 9294, 9337, and 10963)
Ordinary Income
Passive Income
China Banking Corporation vs. Commissioner of Internal Revenue (February 27, 2013)
Banco de Oro vs. Commissioner of Internal Revenue (January 13, 2015)
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RR 4-99 (March 9, 1999)
RR 06-2008 (April 22, 2008)
In general
International Carrier
Air New Zealand vs. Commissioner of Internal Revenue (CTA Case, January 30, 2008)
Commissioner of Internal Revenue vs. BOAC (April 30, 1987)
United Airlines, Inc. vs. Commissioner of Internal Revenue (September 29, 2010)
RR 15-2002 – Sections 1 to 5 only
OBUs/FCDUs
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Intercorporate dividends
Section 28 (B)(5)(b), Tax Code, as amended by Republic Act 9337
Commissioner of Internal Revenue vs. Procter & Gamble Philippines
Manufacturing Corp. (December 2, 1991)
BIR Ruling DA-145-07 (March 8, 2007)
Income covered by Tax Treaties
Mirant (Philippines) Operations Corporation vs. Commissioner of Internal
Revenue (CTA EB Case No. 40, June 7, 2005 as affirmed by SC Minute
Resolution dated February 18, 2008)
Deutsche Bank AG Manila Branch vs. Commissioner of Internal Revenue (August
19, 2013)
9. Withholding Tax
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Chamber of Real Estate Builders’ Association, Inc. vs. Executive Secretary (March 9, 2010)
Commissioner of Internal Revenue vs. Philippine Airlines , Inc. (July 7, 2009)
RR 9-98 (August 25, 1998) – except Sec. 2.28 (E)(7) “Accounting treatment” – as amended by RR 12-2007
(October 10, 2007)
The Manila Wine Merchants, Inc. vs. Commissioner of Internal Revenue (February 20, 1984)
Commissioner of Internal Revenue vs. Tuason (May 15, 1989)
Cyanamid Philippines, Inc. vs. Court of Appeals (January 20, 2000)
RR 2-01 (February 12, 2001)
RMC 35-2011 (March 14, 2011)
BIR Ruling 25-02 (June 25, 2002)
Commissioner of Internal Revenue vs. Filinvest Development Corporation (July 19, 2011)
Her Majesty the Queen vs. GlaxoSmithKline Inc., 2012 SCC 52 (Supreme Court of Canada, Court File
33874; October 18, 2012)
Commissioner of Internal Revenue vs. St. Luke’s Medical Center, Inc. (September 26, 2012)
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(2) GOCCs
Section 27 (C), Tax Code as amended by Republic Act Nos. 9337 and 10963
Dumaguete Cathedral Credit Cooperative vs. Commissioner of Internal Revenue (January 22,
2010)
Commissioner of Internal Revenue vs. G. Sinco Educational Corp. (October 23, 1956)
Capital assets/income
Calasanz vs. Commissioner of Internal Revenue (October 9, 1986)
Section 132, RR 2
BIR Ruling 27-02 (July 15, 2002)
Ordinary assets/income
Section 22 (Z), Tax Code
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Tuason vs. Lingad (July 31, 1974)
Net capital gain, net capital loss
Percentage taken into account
Limitation on capital loss
China Banking Corporation vs. Court of Appeals (July 19, 2000)
Section 136-143, RR 2
Computation of gain or loss
Cost or basis for determining gain or loss
Exchange of property (Tax-free exchange)
Definitions
Section 40 (C)(6), Tax Code
Merger or consolidation
Commissioner of Internal Revenue vs. Rufino (February 27, 1987
Transfer of "substantially all" the assets
Transfer of property for shares of stocks
Commissioner of Internal Revenue vs. Filinvest Development Corporation (July 19, 2011)
BIR Ruling No. 274-87 (September 9, 1987)
Administrative requirements in case of tax-free exchanges
RR 18-01 (November 13, 2001) – (only Sections 3 to 6 and 9 to 12)
RMR 1-02 (April 25, 2002)
Assumption of liability in tax-free exchanges
Cost or basis in tax-free exchanges
Business Purpose
Gregory vs. Helvering, 293 U.S. 465; 55 S.CT. 266 (January 7, 1935)
Rulings
RMC 40-2012 (August 3, 2012)
Losses from Wash Sales of Stocks or Securities
Section 38, Tax Code
Section 131, RR 2
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Percentage of completion method
Section 48, Tax Code
Section 44, RR 2
Change of accounting period
Installment basis
Bibiano V. Banas, Jr. vs. Court of Appeals (February 10, 2000)
Allocation of income and deductions
Individual Return
Section 51 & 56, Tax Code as amended by Republic Act 10963
Corporation Returns
Section 52, 53 & 56, Tax Code
Quarterly Income Tax
Section 75, Tax Code
Final Adjustment Return
Section 76, Tax Code
Systra Philippines, Inc. vs. Commissioner of Internal Revenue (September 21, 2007)
Philam Asset Management, Inc. vs. Commissioner of Internal Revenue (December 14, 2005)
Commissioner of Internal Revenue vs. Far East Bank & Trust Company (March 15, 2010)
Weinbrenner & Inigo Insurance Brokers, Inc. vs. Commissioner of Internal Revenue
(January 28, 2015)
Where to file
When to file
Section 77, Tax Code
When to pay
Capital gains on shares of stock
Return of corporations contemplating dissolution/reorganization
Section 52 (C), Tax Code
Sec. 244, RR 2
Bank of the Philippine Islands v. Commissioner of Internal Revenue - CA-GR Sp. No. 38304
(April 14, 2000)
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Philippine Deposit Insurance Corporation vs. Bureau of Internal Revenue (June 13, 2013)
Returns of GPPs
Section 55, Tax Code
Returns of Receivers, Trustees in Bankruptcy or Assignees
Section 54, Tax Code
Others not captured
Section 59, Tax Code
United Airlines, Inc. vs. Commissioner of Internal Revenue (September 29, 2010)
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