New Era University College of Law Course Outline Taxation 2 I Estate Tax A) B) C) D) Chapter I, Title III, NIRC as amended

d by R.A. No. 9337 P.D. No. 1457 R.A. No. 8424 Concept 1) De Luna vs. Abrigo, 181 SCRA 150 2) Roman Catholic Archbishop of Manila vs. Court of Appeals, 198 SCRA 300 3) Toyota vs. Kusop, 184 SCRA 355 Types of Donation 1) Donation Mortis Causa a) Cuevas vs. Cuevas, 98 Phil. 63 b) Alejandro vs. Geraldez, 78 SCRA 245 2) Donation Inter Vivos a) Cuevas vs. Cuevas b) Ortiz vs. Court of Appeals, 97 Phil. 46 c) Bonsato vs. Court of Appeals, 95 Phil. 481 3) Donations Mortis Causa and Inter Vivos, Distinguished a) Reyes vs. Mosqueda, 187 SCRA 661 b) National Tresurer of the Philippines vs. Meimban, 131 SCRA 264 c) Alejandro vs. Geraldez Types of Donation Mortis Causa 1) Testate 2) Intestate Types of Gift Tax 1) Estate Tax 2) Donors Tax 3) P.D. 69 Estate Tax 1) Nature and Object of Estate Tax a) BIR Ruling No. 103-96, October 4, 1996 2) Incidence of Estate Tax a) Section 3, R.R. 17-93 3) Transfers Covered by Estate Tax a) Gratuitous Transfers Mortis Causa b) Inter Vivos Transfers treated as testamentary disposition Vidal De Roces vs. Posadas, 58 Phil. 108

E)

F) G)

H)

 Dizon vs. Posadas, 57 Phil. 465 R.A. 8424 amending Sec. 85 of NIRC 4) Transfers Not Covered by Estate Tax a) Inter Vivos Transfers Excluded b) Exemptions of certain acquisitions and transmissions from Estate Tax c) Exemption to NRA for intangible personal properties Collector vs. Campos Rueda, 42 SCRA 23 d) Other Exemptions from Estate Tax under Special Laws SSS, GSIS, U.S. Veterans, R.A.4917
I) Gross Estate 1) Composition of Gross Estate a) Citizen b) Resident Alien c) Non-Resident Alien d) Items excluded 2) Valuation of Gross Estate a) Lorenzo vs. Posadas, 64 Phil. 353 3) Gross Estate as to Location, Sec. 104 as amended J) Allowable Deductions 1) Expenses a) R.A. No. 7499 b) R.R. No. 02-03, December 16, 2002 c) Funeral d) Judicial Vera vs. Navarro, 79 SCRA 408 Lorenzo vs. Posadas Sison vs. Teodoro, 100 Phil. 1055 Johannes vs. Imperial, 43 Phil. 597 e) Claims against the estate Haygood vs. Collector, 65 Phil. 520 Lorenzo vs. Posadas Government of the Philippines vs. Pamintuan, 55 Phil. 13 f) Claims of deceased against insolvent persons g) Unpaid indebtedness h) Losses 2) Vanishing Deduction 3) Transfers for public use 4) Family Home a) Art. 151,153,154,156 and 161 of the Family Code 5) Standard Deduction 6) Medical Expenses a) De Guzman vs. De Guzman, 83 SCRA 256 7) Amount received by heirs under R.A. 4917 8) BIR Ruling No. 025-96, February23, 1996

9) Net Share of the surviving spouse in the community/conjugal properties 10) Computation of Estate Tax K) Administrative Matters 1) Notice of Death 2) Filing of Return a) Commissioner vs. Gonzales, 18 SCRA 757 3) Place of Filing Return 4) Payment of Estate Tax a) Lorenzo vs. Posadas b) Commissioner vs. Gonzales c) Collector vs. McGrath, 1 SCRA 638 d) Vera vs. Navarro, 79 SCRA 248 e) Pastor vs. Court of Tax Appeals, 123 SCRA 885 f) Marcos vs. CA, June 5, 1997 5) Surcharges, Interest and Penalties a) Commissioner vs. Gutierrez, 71 SCRA 283 b) Commissioner vs. Cu Unjieng, 66 SCRA 1 II Donors Tax A) Chapter II, Title III, NIRC B) Gifts, in general 1) Art. 725 of the Civil Code 2) Santos vs. Robledo, 28 Phil. 250 C) Taxable Gifts 1) R.R. 17 93 2) BIR Ruling No. 018 87, January 26, 1987 3) BIR Ruling No. 344, July 20, 1988 4) Abello vs. Commissioner of Internal Revenue, February23, 2005 D) Imposition of the Donors Tax 1) Art. 734 of the Civil Code 2) Classification of Taxpayer 3) Properties included in the Net Gift 4) Properties excluded in the Net Gift 5) Donation Between Husband and Wife a) Tang Ho vs. Board of Tax Appeals, 97 Phil. 889 6) Rates of Donors Tax 7) Computation E) Exemption of certain gifts 1) P.D. 507 2) Art. XIV, Sec. 4 (4) of the 1987 Constitution 3) Other Special Laws F) Returns and Payment of Donors Tax III Value-Added Tax

A) Chapter I, Title IV, NIRC as amended by R.A. No. 9337 B) VAT, in general 1) Revenue Memorandum Circular No. 29 2005, June 29, 2005 2) R.R. No. 16 - 2005, September 1, 2005 3) RMC No. 62 2005, October 18, 2005 4) RMC No. 61 2005, October 27, 2005 5) Alcantara vs. Ermita, G.R. No. 168056 September 1, 2005 6) Kapatiran, etc. vs. Tan, June 30, 1988 C) Coverage of the VAT System D) Input VAT vs. Output VAT E) Taxpayers under the VAT System 1) Zero-Rated VAT Taxpayers a) Atlas Consolidated Mining Co. vs. Commissioner of Internal Revenue, November 17, 1999 b) Philippine Tobacco, etc vs. Commissioner, 28 SCRA 509 c) Central Cooperative Exchange vs. Commissioner, 27 SCRA 63 d) Commissioner of Internal Revenue vs. American Express International Inc., June 29, 2005 2) 12% Rated VAT Taxpayers a) On January 1, 2006 GMA raised the VAT rate from 10% to 12% b) Transactions deemed sale c) Determination of VAT for Sale of Goods or Property d) VAT on Sale of Services and Use or Lease of Property, e) Changes under R.A. 9337 Alcantara vs. Ermita 3) VAT Exempt Taxpayers a) Commissioner of Internal Revenue vs. Cebu Toyo Corp., February 17, 2005 4) Tax Credit 5) Compliance Requirements on the VAT IV Percentage Tax, Excise Tax and Documentary Stamp Tax A) Title V, VI, and VII, NIRC as amended by R.A. No. 9337 1) R.A. No. 9334 2) R.A. No. 9243 3) R.A. No. 9224 4) R.A. No. 7660 as amended by R.A. 9238 V Administrative Remedies A) Title VIII, NIRC B) Remedies of the Government 1) Assessment a) R.R. No. 30 02, December 16, 2002 b) R.R. No. 1-88, January 4, 1988 c) CIR vs. Hantex Trading Co., Inc., March 31, 2005

d) Cir vs. CA, 232 SCRA 655 e) Atlas Consolidated Mining and Development Corp vs. CA, March 10, 1995 f) Benguet vs. CIR, June 10, 1998 2) Distraint 3) Levy a) Cabrera vs. Provincial Treasurer of Tayabas, 75 Phil. 780 b) Velayo vs. Ordoveza, 102 Phil. 385 4) Forfeiture a) Castro vs. Collector, 4 SCRA 1193 5) Judicial Action a) Civil action vs. Criminal action CIR vs. Pascor Realty, June 29, 1999 Ungab vs. CIR, May 30, 1980 b) Archer vs. Bellosillo, 20 SCRA 32 c) CIR vs. Salud Hizon, December 13, 1999 6) Compromises a) Art. 2037 and 2041 of the Civil Code b) R.R. No. 8-2004 c) R.R. No. 30 02, December 16, 2002 d) Pampanga Sugar Development Corp. vs. Court of Industrial Relations, 114 SCRA 725 7) Abatement 8) Tax Lien a) Republic vs. Enriquez, 166 SCRA 608 b) Republic vs. Hon. Peralta, et. al., 150 SCRA 37 9) Prescriptive Periods a) Mambulao Lumber Co. vs. Republic of the Philippines, 132 SCRA 1 b) Republic vs. Araneta, 2 SCRA 144 c) Basilan Estates, Inc. vs. Commissioner, 21 SCRA 17 d) Fernandez Hermanos, Inc. vs. Commissioner, 29 SCRA 562 e) Commissioner vs. Ayala Securities Corp., November 21. 1980 f) Bisaya Land Transportation Co., Inc. vs. Collector, 105 Phil. 1338 g) Collector vs. Reyes, 104 Phil. 1061 h) Aznar vs. Commissioner, 58 SCRA 519 i) Philippine Journalist, Inc. vs. CIR, December 16, 2004 j) Ungab vs. Cusi, 97 SCRA 877 10) R.A. No. 9335 C) Remedies of Taxpayer 1) Remedy available to a taxpayer before payment of the tax a) Protest assessment Tan Tiong Bio, et. al. vs. BIR, 100 Phil. 86 American Rubbe Co. vs. Collector, 25 SCRA 789 Medina vs. City of Baguio, 91 Phil. 854 Commissioner vs. Wander Philippines, Inc.

2) Remedy available to a taxpayer after payment of the tax a) Claim Tax Refund RMC No. 7 85, April 1, 1985 Commissioner vs. Concepcion, 22 SCRA 1058 Republic vs. Plan, 84 SCRA 688 Victorias Milling Co. vs. Central Bank, 13 SCRA 479 Dayrit vs. Cruz, September 26, 1988 Elegado vs. CA, 173 SCRA 285 Basa vs. Republic, 138 SCRRA 34 Atlas Consolidated Mining and Development Corp vs. CA CIR vs. Bank of the Philippine Islands, September 23, 2003 CIR vs. Isabela Cultural Corp., July 11, 2001 Commissioner vs. Union Shipping Corp., 185 SCRA 547 Citytrust Finance corp. vs. CTA, March 14, 1994 ACCRA Investment vs. CTA, December 20, 1991 CIR vs. Philam, May 29, 1995 D) Compliance Requirements, Offenses and Penalties, and Crimes and Forfeitures under the NIRC as amended 1) Title IX and X NIRC as amended by R.A. No. 9337 E) Court of Tax Appeals 1) R.A. 1125 as amended by R.A. 9282 2) Powers of the CTA 3) Jurisdiction of the CTA 4) Issues cognizable by the CTA a) Caltex vs. CIR, 14 SCRA 596 5) Rules of Procedure VI Local Taxation A) Section 5, Article X, 1987 Philippine Constitution B) R.A. No. 7160, Book II, Title I, II and III C) Power to Create Sources of Revenues 1) Manila Electric Co. vs. Province of Laguna, May 5, 1999 D) Fundamental Principles E) Local Taxing Authority 1) Villegas vs. Hiu Chiong Tsai, 86 SCRA 270 2) Napocor vs. City of Cabanatuan, April 9, 2003 3) Napocor vs. Rosario, April 28, 2004 4) Bagatsing vs. Ramirez, 74 SCRA 306 5) Principle of Preemption or Exclusionary Doctrine 6) Limitations on the Local Taxing Power 7) Other Impositions that the LGU may Levy a) Provinces b) Municipalities c) Cities

d) Barangays 8) Situs of Local Taxation 9) Community Tax F) Tax Remedies 1) Remedies for collection of tax a) Civil remedies b) Judicial Action c) Antonio Talusan et. al. vs. Hermenildo Tayag et. al., April 4, 2001 2) Remedy of the taxpayer a) Meralco vs. Barlis, May 18, 2001 3) Prescriptive Periods G) Real Property Taxation 1) Properties liable under Real Property Tax a) Manila Electric co. vs. Board of Assessment Appeals, 10 SCRA 68 b) Caltex, Philippines, Inc. vs. Central Board of Assessment Appeals, 114 SCRA 296 c) Province of Nueva Ecija vs. Imperial Mining, November 19, 1982 2) Properties Exempt from Real Estate Tax a) Light Rail Transit Authority vs. CBAA, October 12, 2000 3) Assessment of Real Property Tax 4) Remedies VII Tariff and Customs Code A) P.D. 1464 as amended by R.A. No. 9135 B) Tariff vs. Custom Duties 1) Garcia vs. Executive Secretary, July 3, 1992 C) Bureau of Customs 1) Duties, powers and jurisdiction 2) R.V. Marzan Freight, Inc. vs. CA, March 4, 2004 D) Tariff Commission 1) Functions E) Flexible Tariff Clause 1) Sec. 28, Art. VI of the 1987 Philippine constitution 2) Sec. 401, TCC F) Articles subject to Custom Duties 1) Viduya vs. Bediago, 73 SCRA 553 2) Filipino Metals Corp. et. al. vs. Secretary of DTI, et. al., July 15, 2005 3) Merchandise a) Bastilda vs. Acting Commissioner, 35 SCRA 448 4) Dutiable Goods 5) Prohibited Importations b) Auyong Hian vs. CTA, 59 SCRA 110 6) Conditionally-free Importations 7) Tax Exemption of Returning Diplomats, P.D. 922 and R.A.4103

G) F) H) I) J)

K)

8) R.R. No. 5 87, September 1, 1987 Classification of Custom Duties 1) Special Customs Duties Basis of Dutiable Value 1) Nestle Philippines, Inc. vs. CA, March 18, 2002 Drawback, concept and use Other Customs fees, dues or charges payable Requirements of Importation 1) Liability of Importer of Goods a) Mendoza vs. David 2) Government importations 3) Port of Entry a) Rigor vs. Rosales, 117 SCRA 780 4) Import Entry 5) Cargo Manifest 6) Abandonment 7) Smuggling 8) Other Fraudulent Practices 9) R.A. No. 8800 a) Southern Cross Cement Corp. vs. Philippine Cement Manufacturers Corp, July 8, 2004 Remedies under the TCC 1) Remedies of the Government a) Doctrine of Hot Pursuit b) Pacis vs. Pamaran, 56 SCRA 16 c) Auyong Hian vs. CTA d) Yaokasin vs. The Commissioner of Customs, December 22, 1989 e) Acting Commissioner of Customs vs. CTA, 129 SCRA 70 f) Viduya vs. Berdiago g) Acting Commisioner of Customs vs. Andrulis, April 27, 1984 h) Llamado vs. Commissioner of Customs, 122 SCRA 118 2) Remedies of the Taxpayer a) Transglobe International, Inc. vs. CA, January 25, 1999

Prepared by:

Atty. Leigh Vhon G. Santos

ADDITIONAL CASES:

REMEDIES 1) PAGCOR V. BIR (3.15.2011) 2) COMM CIR V. SM (2.26.2010) 3) KEPCO PHIL CORP V. CIR (12.14.2009) 4) CIR V. IRONCON BUILDERS (2.8.2010) 5) AT&T V. CIR (8.3.2010) 6) KEPCO PHIL CORP V. CIR GR#181858 7) AVON V. CIR (5.13.2003) 8) CIR V. SONY PHIL INC (11.17.2003) 9) CIR V. KUDOS (5.5.2010) 10) FISHWEALTH CANNING V. CIR (1.21.2010) REAL PROPERTY 1) GSIS V. CITY TREASURER/ MANILA (12.23.2009) 2) NPC V. MUNICIPALITY OF NAVOTAS (3.10.2010) NOTES: Grading System: Digest 20% (Notebook: Submit Deadline- Midterm and Finals) Recit 30% Exam 50% (MCQ and Problems-50:50) Estate (Death) Gross (Less) Deduction NET Donors (Lifetime) Gross Donation (Less) Deduction NET

RC NRC RA NRA