Point of Taxation Police Eminent b) Serve to minimize cash flow problems to the

Differrence Power Domain

Exercising Government Goverment Public use
taxpayer and collection problems to the
Purpose Support of the Protect the Public use government.
government general
welfare of the Final Creditable
people Withholding Tax Withholding Tax
Person’s Community/ Community Owner of the Income tax Full Only a portion
affected Individual property withheld
Amount of Unlimited Limited No amount
imposistion imposed Coverage of Certain passive Certain passive
Importance Most Most Important withholding income and active
important superior income
Relationship Inferior Superior Superior Who remits the Income payor Income payor for
with the actual tax the CWT and the
constitution taxpayer for the
Limitation Consititutional Public Public balance
and inherent interest and purpose and Necessity of Not required Required
limitations due process just income tax
compension return for
taxpayer

POWERS OF THE BUREAU OF INTERNAL

SIMILARITIES OF THE THREE POWERS OF THE
STATE.
1. Necessary attributes of sovereignty.
2. Inherent to the state.
3. Legislative in nature.
4. Ways in which the State interferes with
private rights and properties.
5. Exist independently of the Constitution;
exercisable by the government even without
Constitutional grant; Constitution may
impose conditions or limits for their
exercise.
6. Presuppose an quivalent form of
compensation received by the persons
affected by the exercise of the power.
7. Local government units may be limited by
the national legislature.
TAX
POWER OF THE COMMISSIONER OF
- Is an enforeced proportional contribution
INTERNAL REVENUE
levied by the lawmaking body of the State to
raise revenue for public purpose.
ELEMENTS OF A VALID TAX
1. Tax must be levied by the taxing power
having jurisdiction over the object of
taxation.
2. Tax must not violate constitutional and
inherent limitations.
3. Taxt must be uniform and equitable.
4. Tax must be for public purpose.
5. Tax must be proportional in character.
6. Tax is generally payable in money.
SIMILARITIES OF FINAL TAX AND
CREDITABLE WITHHOLDING TAX
a) Income payor withholds a fraction of the
income and remits the same to the
government.
REVENUE
1. Assessment and collection of taxes.
2. Enforcement of all forfeitures, penalties
and fines, and judgments in all cases
decided in its favor by the courts.
3. Giving effect to, and administering the
supervisory and police powers conferred
to it by the NIRC and other laws.
4. Assignment of internal revenue officers
and other employees to other duties.
5. Provision and distribution of forms,
reciept, certificates, stamps, etc. to
proper officials.
6. Issuance of receipts and clearances.
7. Submission of annual report, pertinent
information to Congress and reports to
the Congressional Oversight Committee
in matters of taxation.
1. To interpret the provisions of the NIRC,
subject to review by the Secretary of
Finance.
2. To decide tax cases, exclusive appellate
jurisdiction of the court of Tax Appeals:
a) Disputed assessments.
b) Refunds of internal revenue taxes,
fees, or other charges.
c) Penalties imposed
d) Other NIRC and special law matters
administered by the BIR.
3. To obtain information and to summon,
examine, and take testimony of persons to
effect tax collection.
a) The correctnes of any tax return.
b) The tax liability of any person.
c) Tax compliance of the taxpayer.
 4. To make assessment and prescribe
additional requirement for tax administration
and enforcement.
5. To examines tax returns and determine tax
due thereon.
6. To conduct inventory taking or surveillance.
7. To prescribe presumptive gross sales and
receipts for a taxpayer when:
a) Taxpayer failed to issue receipts
b) CIR believes that the book or other
records of the taxpayer do not
correctly reflect the declaration in the
return.
8. To terminate tax period when the taxpayer
is:
a) Retiring from business.
b) Intending to leave the Philippines.
c) Intending to remove, hide, or
conceal his propert.
d) Intending to perform any act tending
to obstruct the proceedings for the
collection of the tax or render the
same ineffective.
NOTE: Taxes shall be due and payable
immediately.
9. To prescribe real propert values;
4. Assign and reassign internal officers to
establishments where articles subject to
excise tax are produced or kept.
RULES IN ASSIGNMENTS OF REVENUE
OFFICERS TO OTHER DUTIES
1. No case stay there for more than 2 years.
2. Not remain in the same assignment for
more than 3 years.
3. Special duties shall not exceed 1 year.
AGENTS AND DEPUTIES FOR COLLECTION OF
NATIONAL INTERNAL REVENUE TAXES
1. Respect to collection of national internal
revenue taxes on imported goods.
2. Collection of energy tax.
3. Banks duly; Receipts of payments of
internal revenue.
OTHER AGENCIES TASKED WITH TAX
COLLECTIONS OR TAX INCENTIVES RELATED
FUNCTIONS
1. Bureau of Customs
2. Board of Investments
3. Philippine Economic Zone Authority
4. Local Government Tax Collecting Unit

BUREAU OF CUSTOMS (BOC)

“Zonal Value”
- Purposes of internal revenue taxes, fair - Collection of tariffs on imported articles and
value of real property. collection of the Value Added Tax on
importation.
a) Zonal value precribed by the
Commissioner. BOARD OF INVESTMENRS (BOI)
b) Fair market value.
- Lead the promotion of investments in the
10. To compromise tax liabilities of taxpayers.
Philippines.
11. To inquire into bank deposits.
a) Determination of the gross estate of PHILIPPINE ECONOMIC ZONE AUTHORITY
a decedent. (PEZA)
b) To substatiate the taxpayers’s claim
of financial inacapacity to pay tax. - Promote investments in export-oriented
12. To accredit and register tax agents. manufaturing industries in the Philippines.
13. To refund or credit internal revenue taxes. - PEZA registered enterprises enjoy tax
14. To abate or cancel tax liabilities in certain holidays for certain years.
cases.
LOCAL GOVERNMENT TAX COLLECTING
15. To prescribe additional procedures or
UNITS
documentary requirements.
16. To delegate his powers to any subordinate - To rationalize their fiscal autonomy.
officer with a rank equivalent to a divison
chief of an office.

NON-DELEGATED POWER OF THE CIR

1. Recommend the promulgation of rules and

regulations to the Secretary of Finance.
2. Issue rulings of first impression or to
reverse, revoke or modify any existing
rulings of the Bureau.
3. Compromise or abate any tax liability