MANUEL L.

QUEZON UNIVERSITY
School of Law

TAXATION LAW 1
Course Outline

ATTY.MARVIN P. CAÑERO, CPA

A. GENERAL PRINCIPLES OF TAXATION

a. Definition, Concept and Purpose of Taxation

i. Lutz vs Araneta, G.R. No. L-7859, 22 December 1955
ii. PAL vs. Edu, G.R. No. L-41383, 15 August 1988
iii. Caltex Philippines, Inc. vs. COA, GR No. 92585, 8 May 1992
iv. Tio vs. Videogram Regulatory Board, GR No. L-75697, 18 June 1997
v. Commissioner of Customs v. Philippine Phosphate Fertilizer Corp., GR No.
144440, September 1, 2004)
vi. CIR vs. Central Luzon Drug Corporation, G. R. No. 159647
vii. Manila Memorial Park, Inc., et al vs. SSWD and SOF, GR No. 175356, 3 Dec
2013

b. Nature and Characteristics of Taxation

i. CIR vs. Eastern Telecommunications Philippines, Inc., GR No. 163835, 7 July
2010
ii. CIR vs. Santos, G.R. No. 119252, 18 August 1997
iii. CREBA vs. Romulo, G.R. No. 160756, 9 March 2010

c. Power of Taxation VS. Police Power and Power of Eminent Domain

d. Theory and Basis of Taxation

i. Commissioner of Internal Revenue v. Algue, Inc. et al., 158 SCRA 9, 16- 17)
ii. CIR vs.CA, G.R. No. 106611 July 21, 1994
iii. Davao Gulf Lumber Corporation vs. CIR, G.R. No. 117359, 23 July 1998)
iv. Phil. Guaranty Co. vs. Commissioner, 13 SCRA 775

e. Principles of a Sound Tax System

i. Diaz vs. Secretary of Finance, G.R. No. 193007, 19 July 2011

f. Scope and Limitations of Taxation

i. Planters Products, Inc. vs. Fertiphil Corporation, G.R. No. 66006, 14
March 2008)
ii. Gomez vs. Palomar, G.R. No. L-23645, 29 October 1968
iii. Lutz vs. Araneta, G.R. No. L-7859, 22 December 1955
iv. Consumer Protection vs. Energy Regulatory Board, G.R. Nos. 78888-90, 23
June 1988
v. ABAKADA Guro Party List vs. Ermita, GR No. 168056, 1 September 2005
vi. Gerochi vs. Department of Energy, G.R. No. 159796, 17 July 2007

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 vii. CIR vs. San Miguel Corporation, G.R. No. 184428, 23 November 2011

viii. Deutsche Bank AG Manila vs. CIR, G.R. No. 188550, 19 August 2013
ix. American Bible Society vs. City of Manila, GR No. L-9637, 30 April 1997)
x. Tolentino vs. Sec. of Finance, GR No. 115455, 25 Aug 1994)
xi. Chamber of Real Estate and Builders’ Association, Inc. vs. Sec. Romulo,
GR No. 160756, 9 March 2010;
xii. Tiu vs. CA, GR No. 127410, 20 Jan 1999
xiii. Tolentino vs. Sec. of Finance, GR No. 115455, 25 Aug 1994
xiv. Cagayan Electric and Light Co., Inc. vs. Commissioner, G.R. No. 60216,
September 25, 1985
xv. PAGCOR vs. BIR, GR No. 172087, 15 March 2011
xvi. Tan vs. Del Rosario, Jr., et al, GR No. 109289
xvii. American Tobacco vs. Camacho, G.R. No. 163583, 15 April 2009.
xviii. CIR vs. Fortune Tobacco Corporation, G.R. No. 180006, 28 September
2011
xix. CIR vs. CA,YMCA Gr NO. 123043
xx. CIR VS. DLSU, GR NO,196596, 9 Nov 2016
xxi. Lladoc vs. Commissioner, GR No. L-19201, June 16, 19 Province of Abra
vs. Hernando, GR No. L-49336, August 31, 1981; Abra Valley College Inc.
vs. Aquino, GR No. L-39086, June 15, 1988; Herrera vs. QC BOAA; Lung
Center of the Philippines vs. QC, G.R. No. 144104. June 29, 2004

g. Stages or Aspects of Taxation

h. Definition, Nature and Characteristics of Taxes

i. Requisites of a Valid Tax

j. Tax vs. Other Forms of Exactions

i. Progressive Development Corporation vs. Quezon City, G.R. No. L-36081,

24 April 1989).
ii. Compania General de Tabacos de Filipinas, vs. City of Manila, , G.R. No. L-
16619, 29 June 1963
iii. Gerochi vs. Department of Energy, GR No. 159796, 17 July 2007)
iv. Chevron Philippines, Inc. vs. BCDA, G.R. No. 173863, 15 September 2010
v. Angeles University Foundation vs. Angeles City, G.R. No. 189999, 27 June
2012

k. Kinds of Taxes

l. Situs of Taxation

m. Construction and Interpretation

i. CIR vs. Puregold Duty Free, Inc. G.R. No. 202789, June 22, 2015)

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 n. Sources of Tax Laws

o. Doctrines in Taxation
i. CIR vs. Bank of Commerce, GR No. 149636, 8 June2005
ii. Pepsi Cola Bottling Co. v. City of Butuan, GR L-22814, 28 August 1968;
iii. CIR vs. Solidbank Corporation, GR No. 148191, 25 Nov. 2003;
iv. City of Manila vs. Coca-cola Bottlers Philippines, Inc. GR No. 181845, 4
August 2009
v. Swedish Match Philippines, Inc. vs. City of Manila, GR NO. 181277, 3 July
2013
vi. CIR v. S.C. Johnson and Son, Inc., GR No. 127105, 25 June 2009
vii. Deutsche Bank AG Manila Branch vs. CIR, GR No. 188550, 19 Aug 2013
viii. CBK Power Company Limited vs. CIR, G.R. Nos. 193383-84, January 14,
2015; CIR vs. CBK Power Company Limited, G.R. Nos. 193407-08
ix. CIR vs. Estate of Toda, GR No. 147188, 14 Sept 2004)
x. Republic vs. Mambulao, 6 SCRA 622)
xi. Domingo vs. Carlitos (8 SCRA 443)
xii. Caltex vs. COA, GR No. 925855, 8 May 1992
xiii. South African Airways vs. CIR, GR No. 180356, 16 February 2010).
xiv. Commissioner of Internal Revenue v. Court of Tax Appeals, G.R. No.
106611, July 21, 1994
xv. Air Canada vs. CIR, January 11, 2016, G.R. No. 169507
xvi. CIR v. Toledo Power Company, G.R. No. 196451, 2 December 2015
xvii. CS Garment, Inc., vs. CIR, G.R. No. 182399. March 12, 2014
xviii. Bibiano V. Bañas, Jr. vs. Court of Appeals, et al., G.R. No. 102967, February
10, 2000)

p. Taxpayer’s Suit
i. Remulla vs Maliksi, G.R. No. 171633, Sept. 18, 2013

B. ORGANIZATION AND FUNCTIONS OF THE BUREAU OF INTERNAL REVENUE

a. Rule-making authority of the Secretary of Finance
i. Authority to promulgate rules and regulations
ii. Specific provisions to be contained in rules and regulations
1. DOF Order NO. 07-02
2. Philamlife vs. DOF, 2014
3. Banco De Oro vs. RP, 2015

b. Jurisdiction, Power and Functions of the CIR

i. Powers and duties of the CIR
ii. Power of the CIR to interpret tax laws and decide tax cases
iii. Non-retroactivity of rulings
1. Section 2, NIRCMeralco Securities Corporation vs. Savellano,
1982
2. Vera vs. Cuevas, 1979
3. Sec 4, NIRC
a. Asia International Auctioneers, Inc. vs. Parayno, 2007
b. CIR vs. Fortune Tobacco Corporation, 2013

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C. INCOME TAXATION

a. Definition, Nature and General Principles

i. Madrigal v. Rafferty 38 Phil 14
ii. Commissioner vs. Javier, 199 SCRA 824
iii. ING Bank vs CIR, GR No. 167679, July 22, 2015
iv. Air Canada vs. CIR, G.R. No. 169507, January 11, 2016
v. NDC vs. CIR, 151 SCRA 472

b. Gross income
i. Henderzon vs. Collector, 1 SCRA 649L-12954, February 28, 1961
ii. PLDT vs. CIR, GR No. 157264, 31 January 2008
iii. Jaime N. Soriano, et al vs. SOF and CIR, GR No. 184450, 24 January 2017
iv. Supreme Transliner, Inc. BPI Family Savings Bank, GR Nos. 165617 &
165837, 25 February 2011

c. Deductions from Gross Income

i. Mercury Drug vs. CIR, G.R. No. 164050, 20 July 2011
ii. CIR vs. General Foods (Phils.), Inc., G.R. No. 143672, April 24
iii. Atlas Consolidated Mining & Devt. Corp. vs. CIR, G.R. No. L-26911,
January 27, 1981
iv. C. M. Hoskins & Co., Inc. vs. CIR, G.R. No. L-24059, November 28, 1969
v. CIR Vs. Isabela Cultural Corporation, G.R. No. 172231. February 12, 2007
vi. Collector vs. Goodrich International, G.R. No. L-22265, Dec 22, 1967

d. Income Tax on Individuals

i. RA 10963
ii. RR 8-2018

e. Income Tax on Corporations

i. Air Canada vs. CIR, January 11, 2016, G.R. No. 169507
ii. St. Luke’s Case (G.R. No. 195909, September 26, 2012; CIR vs. St. Luke’s
Medical Center, Inc., G.R. No 203514, February 13, 2017
iii. PAGCOR v. BIR, et al. G.R. No. 215427, 10 December 2014
iv. Bloombery Resort vs. BIR, GR No, 212530, 10 Aug 2016
v. Cyanamid Philippines, Inc. vs. Court of Appeals, et al., G.R. No. 108067,
January 20, 2000
vi. Manila Wine Merchants, Inc. vs. Commissioner of Internal Revenue, G.R.
No. L-26145, February 20, 1984

f. Income Tax on Partnerships, Estates and Trusts

i. Afisco Insurance Corp., et al. vs. CA, et al., G.R. No. 112675, Jan 25, 1999
ii. Evangelista v. Collector of Internal Revenue (102 Phil 140)
iii. Pascual vs. Commissioner, GR No. L-78133, October 18, 1988
iv. Obillos vs. Commissioner, GR No. L-68118, October 29, 1985

g. Filing and Payment of Income Tax