Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Course Outline2
First Semester, S.Y. 2014-2015
Atty. Rosabel Socorro Teston-Balan
J.D., Ateneo Law School
M.B.A. De la Salle University
Week 1
ESTATE TAX
I. THE GROSS ESTATE
Rev. Regs. No. 02-2003, Dec. 16, 2002
A. Introduction
Lorenzo v. Posadas, 64 Phil. 353 (1937)
Beam v. Yatco, 82 Phil. 30 (1948)
B. General Definition of Gross Estate
Secs. 85 and 104, NIRC
CIR v. Campos Rueda, 42 SCRA 23 (1971)
C. Constitution
1. Property in Which Decedent Had an Interest
Sec. 85(A), NIRC
2. Transfers in Contemplation of Death
Sec. 85(B), NIRC
3. Transfers Taking Effect at Death
Sec. 85(B), NIRC
BIR Ruling No. 81-98, May 28, 1998
BIR Ruling No. 10-03, Sept. 8, 2003
4. Transfers with Retained Interest
Sec. 85(B), NIRC
a. Period for Which Interest is Retained
i. For life
ii. For any period which does not in fact end before death
b. Nature of Interest Retained
i. Possession or enjoyment
ii. Right to income
iii. Right to designate person who shall have possession or enjoyment
iv. Right to designate person who shall receive income
5. Revocable Transfers
Sec. 85(C), NIRC
BIR Ruling No. 013-2005, Aug. 16, 2005
BIR Ruling No. DA-279-2006, April 25, 2006
a. Nature of Power
i. Power to alter or amend
F. Medical Expenses
G. Retirement Benefits and Separation Pay under NIRC Sec. 32(B)(6)(a) and (b)
VI. FOREIGN TAX CREDITS
Sec. 86(E), NIRC
A. Per Country Limitation
B. Global Limitation
VII. SPECIAL RULES FOR NON-RESIDENT ALIENS
A. Meaning of Resident or Non-Resident
B. Inclusions in Gross Estate
Secs. 85 and 104, NIRC
C. Deductions from Gross Estate
Sec. 86(B) and (D), NIRC
D. Foreign Tax Credits
Sec. 86(E), NIRC
VIII. ADMINISTRATIVE PROVISIONS
A. Tax Rates
Sec. 84, NIRC
B. Notice of Death
Sec. 89, NIRC
C. Estate Tax Return
Sec. 90, NIRC
D. Payment of Estate Tax
Sec. 91, NIRC
3
E. Consequences of Non-Payment of Estate Tax
Secs. 248, 249, 94 to 97, NIRC
DONORS TAX
I. MEANING OF GIFT
Sec. 104, NIRC
Pirovano v. CIR, 14 SCRA 832 (1965)
II. VALUATION OF GIFTS
Sec. 102, NIRC
III. TRANSFER FOR LESS THAN ADEQUATE CONSIDERATION
Sec. 100, NIRC
IV. EXEMPT GIFTS
Sec. 101, NIRC
V. FOREIGN TAX CREDIT
Sec. 101(C), NIRC
A. Per Country Limitation
B. Global Limitation
VI.ON WHOM IMPOSED
Sec. 98(A), NIRC
VII.ADMINISTRATIVE
A. Tax Rates
Sec. 99, NIRC
B. Donors Tax Return
Sec. 103(A), NIRC
C. Payment of Donors Tax
Sec. 103(B), NIRC
D. Consequences of Non-Payment of Donors Tax
Secs. 248- Sec. 249, NIRC Sec. 95, NIRC Sec. 97, NIRC
Week 3
VALUE-ADDED TAX
I. TAXABLE TRANSACTIONS
A. In General
Sec. 105, NIRC
BIR Ruling 98-97, Aug. 28, 1997
BIR Ruling No. 18-05, Sept. 16, 2005
VAT Ruling No. 444-88
VAT Ruling No. 207-90, Nov. 8, 1990
BIR Ruling No. 10-98, Feb. 5, 1998
CIR v. Commonwealth Mgt. & Services Corp., G.R. 125355, March 30, 2000
VAT Ruling No. 26-97, April 1, 1997
Tourist Trade and Travel Corp. v. CIR, CTA Case No. 4806, Jan. 19, 1996
BIR Ruling No. 113-98, July 23, 1998
Magsaysay Lines, Inc. v. CIR, CTA Case No. 4353, April 27, 1992, aff. in G.R.
No. 146984, July 28, 2006
Lapanday Foods Corp. v. CIR, CTA Case No. 7097, Oct. 18, 2007
CS Garments, Inc. vs. Commissioner of Internal Revenue, CTA Case No. 6520 dated
January 4, 2007
Kepco Ilijan Corporation v CIR, CTA Case No. 8091, October 23, 2012
B. Sale of Goods or Properties
1. Transactions Covered
a. Actual Sale
Sec. 106(A)(1), NIRC, as amended by Rep. Act. No. 9337
BIR Ruling 424-2014
b. Transactions Deemed Sale
Sec. 106(B), NIRC, as amended by Rep. Act No. 9337
4
Sec. 4.106-7, Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by Rev.
Regs. No. 4-2007, Feb. 7, 2007
c. Changes in or Cessation of Status of a VAT-Registered Person
Sec. 106(C), NIRC, as amended by Rep. Act. No. 9337
Sec. 4.106-8, Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by Rev.
Regs. No. 4-2007, Feb. 7, 2007
BIR Ruling No. 24-2005, Dec. 23, 2005
2. Taxable Base
a. Gross Selling Price
Sec. 106(A)(1), 2nd par., NIRC, as amended by Rep. Act No. 9337
Sec. 4.106-4, Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by Rev.
Regs. No. 4-2007, Feb. 7, 2007
b. Sales Discounts, Returns and Allowances
Sec. 106(D), NIRC, as amended by Rep. Act No. 9337
Sec. 4.106-9, Rev. Regs. No. 16-2005, Sept. 1, 2005
VAT Ruling No. 204-90, Oct. 16, 1990
c. Taxable Base for Transactions Deemed Sale and Below Market Gross Selling Price
Sec. 4.106-7(b), Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by
Rev. Regs. No. 4-2007, Feb. 7, 2007
C. Importation of Goods
Sec. 107, NIRC, as amended by Rep. Act. No. 9337
D. Sale of Services
1. Meaning of Sale or Exchange of Service
Sec. 108(A), NIRC, as amended by Rep. Act. No. 9337
Sec. 4.108-2, Rev. Regs. No. 16-2005, Sept. 1, 2005
Lhuillier v. CIR, CTA Case No. 6533, May 16, 2003
Revenue Memorandum Circular 42-2003
BIR Ruling DA 320-07
2. Taxable Base: Gross Receipts Actually and Constructively Received
Sec. 108(A), NIRC, as amended by Rep. Act. No. 9337
Sec. 4.108-4, Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by Rev.
Regs. No. 4-2007, Feb. 7, 2007
BIR Ruling No. 195-89, Sept. 8, 1989
VAT Ruling No. 111-88, April 25, 1989
VAT Ruling No. 205-90, Oct. 16, 1990
a. Amounts Earmarked for Payment to Third Parties
Sec. 4.108-4, Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by Rev.
Regs. No. 4-2007, Feb. 7, 2007
CIR v. Tours Specialists, Inc., G.R. 66416, March 21, 1990
BIR Ruling No. DA-069-2006, March 1, 2006
b. Reimbursement of Expenses
Sec. 4.108-4, Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by Rev.
Regs. No. 4-2007, Feb. 7, 2007
VAT Ruling No. 283-88, July 4, 1988
VAT Ruling No. 87-88, April 14, 1988
VAT Ruling No. 97-88, April 15, 1988
Revenue Memorandum Circular 65-2012
Officemetro Philippines, Inc. (formerly Regus Centres, Inc.) vs. Commissioner of Internal
Revenue, CTA Case No. 8382, June 3, 2014, the Court of Tax Appeals Third Division (CTA)
II. RELIEF FROM VAT: ZERO-RATING AND EXEMPTIONS
Banco de Oro Universal Bank v. CIR, CTA Case No. 6588, Aug. 5, 2005
Belle Corp. v. CIR, CTA Case No. 6156, June 17, 2005
Filinvest Dev corp v CIR 16353 167687
G. Bills of Exchange or Drafts
Sec. 180, NIRC, as amended by Rep. Act No. 9243
H. Acceptance of Foreign-Drawn Bills of Exchange
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Sec. 181, NIRC
I. Foreign Bills of Exchange and LCs
Sec. 182, NIRC
J. Life Insurance Policies
Sec. 183, NIRC, as amended by Rep. Act No. 9243
BIR Ruling No. DA-182-2005, April 20, 2005
K. Non-Life Insurance Policies
Sec. 184, NIRC
BIR Ruling No. DA-288-2005, June 27, 2005
L. Fidelity Bonds and Other Insurance Policies
Sec. 185, NIRC
M. Annuities and Pre-Need Plans
Sec. 186, NIRC, as amended by Rep. Act No. 9243
N. Indemnity Bonds
Sec. 187, NIRC
O. Certificates
Sec. 188, NIRC
P. Warehouse Receipts
Sec. 189, NIRC
Q. Jai-Alai, Horse Race, Lotto, etc.
Sec. 190, NIRC
R. Bills of Lading or Receipts
Sec. 191, NIRC
S. Proxies
Sec. 192, NIRC
T. Powers of Attorney
Sec. 193, NIRC
U. Leases of Real Property
Sec. 194, NIRC
V. Mortgages, Pledges and Deeds of Trust
Sec. 195, NIRC
W. Deed of Sale of Real Property
Sec. 196, NIRC
BIR Ruling No. DA-076-2005
BIR Ruling No. DA-084-2005, March 14, 2005
BIR Ruling No. DA-065-2005, Feb. 23, 2005
4. Summary remedies
a. Distraint of personal property
Sec. 175, LGC
b. Levy on real property
Secs. 176, 178-182, LGC
c. Further distraint and levy
Sec. 184, LGC
5. Judicial remedy (Collection) Sec. 183, LGC
B. Remedies of taxpayer
1. Protest of assessment
Sec. 195, LGC Art. 285, IRR
California Mfg. Co., Inc. v. City of Las Pias, CTA AC No. 4, Sept. 28,2005
2. Claim for refund or tax credit
Sec. 196, LGC Art. 286, IRR
VII. AUTHORITY OF LGUS TO GRANT TAX EXEMPTION PRIVILEGES
Sec. 192, LGC and Art. 282, IRR
See also Sec. 193, LGC and Art. 283, IRR re. withdrawal of existing tax exemption privileges
Week 14
REAL PROPERTY TAXATION
I. GENERAL PRINCIPLES AND DEFINITIONS
Sec. 198, LGC
Sec. 199, LGC
Reyes v. Almanzor, 196 SCRA 322 (1991)
Meralco v. Central Board of Assessment Appeals (CBAA), 114 SCRA 260 (1982)
Caltex Phils. Inc. v. CBAA, 114 SCRA 296
Benguet Corp. v. CBAA, 218 SCRA 271 (1993)
Prov. of Nueva Ecija v. Imperial Mining Co., Inc., 118 SCRA 632 (1982)
Ty v. Trampe, 250 SCRA 500 (1995)
Lopez v. City of Manila, 303 SCRA 448 (1999)
II. REAL PROPERTY TAX AND ADDITIONAL OR SPECIAL LEVIES
A. Basic real property tax
Sec. 233, LGC
18
Lopez v. City of Manila, supra
B. Special Education Fund (SEF)
Sec. 235, LGC
C. Tax on idle lands
Secs. 236-237, LGC
D. Special levy due to improvements
Secs. 240-243, LGC
III. EXEMPTIONS FROM REAL PROPERTY TAX Sec. 234, LGC
Light Rail Transit Authority v. CBAA, 342 SCRA 692 (2000)
IV. PAYMENT OF REAL PROPERTY TAX AND SPECIAL LEVIES
A. Date of accrual
Sec. 246, LGC Sec. 245, LGC
B. Payment on installment
Sec. 250, LGC
C. Discount for Advance Payment
Sec. 251, LGC
VI. APPRAISAL AND ASSESSMENT OF REAL PROPERTY
A. Appraisal
Sec. 201, LGC (Real Property)
Secs. 224-225, LGC (Machineries)
1. Voluntary
Secs. 202-203, LGC
See also Sec. 208, LGC
2. Involuntary
Sec. 204, LGC
See also Sec. 213, LGC
Allied Banking Corp. v. QC Govt, 472 SCRA 303 (2005)
B. Assessment
1. Classifying real property
Sec. 217, LGC
Secs. 215-216, LGC
2. Assessment levels
Sec. 218, LGC
3. General revision
Sec. 219, LGC
Art. 310, IRR
Lopez v. City of Manila, supra
4. Reassessment
Sec. 220, LGC
Sec. 221, LGC
Callanta v. Office of the Ombudsman, 285 SCRA 648 (1998)
Meralco v. Barlis, 375 SCRA 570 (2002)
VI. REMEDIES OF LOCAL GOVERNMENT
A. Posting of notice of delinquency
Sec. 254, LGC
B. Imposition of interest
Sec. 255, LGC
C. Administrative remedies
Secs. 256-257, LGC
Secs. 258-265, LGC
D. Judicial action (collection)
Sec. 256, LGC
Sec. 266, LGC