Republic of the Philippines KALINGA-APAYAO STATE COLLEGE College of Law Tabuk City

SYLLABUS IN TAXATION 1 Atty. Carlo Oscar P. Boacon

I.

GENERAL PRINCIPLES A. Definition & Concept of Taxation 1. Commissioner of Internal Revenue vs. Allegre, Inc., et al., L-28896, Feb. 17, 1988 B. Nature of Taxation C. Characteristics of Taxation Power of Taxation as Attribute of Sovereignty 1. Churchill and Tait v. Concepcion, 34 Phil 969 2. CIR v. BPI, 521 SCRA 373 3. Art. VI, Sec, 28 (2); Art. X, Sec. 5; Art. VI, Sec. 28. par. 2. Local Government 1. Art. X, Sec. 5 D. Power of Taxation Compared with other Inherent Powers E. Purpose of Taxation Revenue Raising Non-Revenue/Special or Regulatory/Sumptuary 1. Lutz vs. Araneta, 98 Phil 148 and Osmea vs. Orbos, G.R. No. 99886, Mar. 31, 1993 2. In the case of Caltex Phils. Inc. vs. COA (G.R. No. 92585, May 8, 1992) F. Principles of Sound Tax System G. Theory and Basis of Taxation Lifeblood Theory 1. Collector of Internal Revenue vs. Goodrich International Rubber Co., Sept. 6, 1965 2. CIR v. Pineda, 21 SCRA 105 Necessity Theory 1. Phil. Guaranty Co., Inc. vs Commissioner of Internal Revenue, 13 SCRA 775) H. Doctrines in Taxation Prospectivity of Tax Laws Imprescriptibility 1. CIR vs CA. G.R. No. 104171, Feb. 24, 1999 Double Taxation 1. City of Baguio v. De Leon, 25 SCRA 938 Escape from Taxation a. Shifting

b. Tax Avoidance c. Tax Evasion 1. Republic vs. Gonzales, 13 SCRA 638 Exemption 1. Mactan Cebu International Airport Authority vs., Marcos, 261 SCRA 667 (Revocation) Compensation & Set-Off 2. Domingo v. Garlitos, L-18904, June 29, 1963 3. Philex Mining Corp. vs. CIR, 294 SCRA 687; Republic vs. Mambulao Lumber Co., 6 SCRA 622 Compromise Tax Amnesty I. Scope & Limitations of Taxation Inherent Limitations i. Public Purpose 1. Planters Products, inc., v. Fertiphil Corporation, 548 SCRA 485 [2008] ii. Inherently Legislative Exceptions: 1. Art. X. Sec. 5 2. Basco v. PAGCOR 3. MCIAA v. Marcos, 261 SCRA 667 4. Art.VI, Sec. 28(2) 5. Garcia vs. Executive Secretary, et. al., G.R. No. 101273, July 3, 1992 iii. Territorial 1. Commissioner vs. Marubeni, G.R. No. 137377, Dec.18, 2001 iv. International Comity v. Exemption of Government Entities, Agencies, and Instrumentalities Constitutional Limitations J. Stages of Taxation K. Definition, Nature, and Characteristics of Taxes L. Requisites of a Valid Tax M. Tax as distinguished from other Forms of Exactions N. Kinds of Taxes II. NATIONAL INTERNAL REVENUE CODE of 1997 as amended (NIRC) A. Income Taxation 1. Income Tax Systems 2. B. III.