KALINGA STATE UNIVERSITY

SCHOOL OF LAW
TAXATION LAW II (3 units)
Second Semester School Year 2020-2021
Friday (5:30-8:30PM)

PROJECT (10%) SEMI FINAL GRADE/5% FINAL GRADE (BONUS)

• Work independently;
• Choose only the pertinent facts, issue and ruling base on the
topic where it is listed;
• Do NOT copy digests from the internet;
• Do NOT copy the work of your classmates;
• Use Yellow Paper and observe proper margin;
• Observe 1 inch indention;
• Either Soft bound or ring bound;
• Submission : On or Before APRIL 30, 2021, 12:00 noon;
• Late digests will not be accepted.

Your output will be graded as follows:

Uniqueness/Originality/Completeness 80%
Neatness and Craftmanship 20%
100%

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 LIST OF CASES TO BE DIGESTED

TAXATION LAW 1
❖ LIFEBLOOD THEORY
• Pilmico-Mauri Foods Corp. v. CIR, G.R No. 175651, September 14, 2016
• CIR v. Next Mobile, Inc., G.R No. 212825. December 07, 2015
• CIR v. Dash Engineering Philippines, Inc., G.R No. 184145, December
11, 2013
• Camp John Hay Development Corporation v. CBAA, G.R No. 169234,
October 2, 2013
• First Lepanto Taishu Insurance v. CIR, G.R No. 197117, April 10, 2013
• CIR v. San Roque Power Corporation, G.R No. 187485, February 12,
2013
• CIR v. BPI, G.R No. 134062, April 17, 2007
• CIR v. Pineda, G.R No. L-22734, September 15, 1967
• Vera v. Fernandez, G.R No. L-31364, March 30, 1979
• CIR v. CA, G.R No. 106611, July 21, 1994
• CIR v. Algue, Inc, G.R No. L-28896, February 17, 1988
• CIR v. CA, G.R No. 124043, October 14, 1998
• Davao Gulf Lumber Corp. v. CIR, G.R No. 117359, July 23, 1998
• Marcos II v. CA, G.R No. 120880, June 5, 1997
• PB Com v. CIR, G.R No. 112024, January 28, 1999
• Phil. Guaranty, Co., Inc. v. CIR, G.R No. L-22074, April 30, 1965
• Philex Mining Corp. v. CIR, G.R No. 125704, August 28, 1998
• North Camarines Lumber Co. v. CIR, G.R No. L-12353, September 30,
1960

❖ NECESSITY THEORY
• Phil. Guaranty Co. v. CIR, G.R No. L- 22074, April 30, 1965
• Gerochi v. DOE, G.R No. 159796, July 17, 2007

❖ BENEFITS-PROTECTION THEORY (SYMBIOTIC RELATIONSHIP):

• CIR v. Algue, Inc. v. CTA, G.R No. L-28896, February 17, 1988
• Abakada Guro Party List v. Exec. Sec. Eduardo Ermita, G.R No. 168056,
September 1, 2005

❖ JURISDICTION OVER SUBJECT AND OBJECTS:

• Kapatiran ng mga Naglilingkod sa Pamahalaan ng Pilipinas, Inc. v.
Bienvenido Tan, G.R No. 81311, June 30, 1988
• CREBA , Inc. v. Romulo, G.R No. 160756, March 9, 2010

❖ NATURE OF TAXATION
• CREBA , Inc. v. Romulo, G.R No. 160756, March 9, 2010
• Mactan Cebu International Airport Authority v. Marcos, G.R No.
120082, September 11, 1996
• Republic v. Caguioa, G.R No. 168584, October 15, 2007
• National Telecommunications v. CA, G.R No. 127937, July 28, 1999

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 • CIR v. Pascor Realty & Dev't. Corp., G.R No. 128315, June 29, 1999
• Pepsi Cola Bottling Co. (Phils.) v. Mun. Of Tanauan, Leyte, G.R No. L-
31156, February 27, 1976
• CIR v. Fortune Tobacco Corp., G.R No. 167274, July 21, 2008
• Phil Guarantee Company v. CIR, G.R No. L-22074, April 30, 1965
• NPC v. Province of Albay, G.R No. 87479, June 4, 1990

PURPOSES OF TAXATION
❖ REVENUE RAISING
• Lutz v. Araneta, G.R No. L-7859, December 22, 1955
• Gerochi v. DOE, G.R No.159796, July 17, 2007
• Gaston v. Republic Bank, G.R No. L-77194, March 15, 1988

❖ REGULATORY PURPOSE
• Chevron Phils., Inc. v. Bases Conversion Dev't. Authority, G.R No.
173863, September 15, 2010
• Terminal Facilities & Services Corp. v. Phil. Ports Authority, G.R No.
135639, February 27, 2002
• Manila Memorial Park, Inc. v. Secretary of DSWD, G.R No. 175356,
December 3, 2013

❖ CHARACTERISTICS OF TAXATION
• Planters Products, Inc. v. Fertiphil Phil. Corporation, G.R No. 166006,
March 14, 2008
• Tio v. Videogram Regulatory Board, et al., G.R No. L-75697, June 18,
1987

INHERENT
LIMITATIONS
❖ POWER OF TAXATION IS INHERENTLY LEGISLATIVE IN CHARACTER:
• NPC v. Province of Albay, G.R No. 87479, June 4, 1990
• Quezon City, et al. v. Bayan Telecommunications, Inc., G.R No.
152015, March 6, 2006
• Pepsi-Cola Bottling Co. v. Mun. Of Tanuan, Leyte, G.R No. L-31156,
February 27, 1976

❖ TAXATION IS FOR PUBLIC PURPOSE:

• Planters Products, Inc. v. Fertiphil Corp., G.R No. 166006, March 14,
2008

❖ TAXATION IS TERRITORIAL:
• ACMDC v. CIR, G.R No. 141104 & 148763, June 8, 2007

❖ TAXATION IS SUBJECT TO INTERNATIONAL COMITY:

• CIR v. Mitsubishi Metal Corp., G.R No. L-54908, January 22, 1990 and
G.R. No. 80041, January 22, 1990
• CBK Power Co., Ltd. v. CIR, GR No. 193383-84, January 14, 2015
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 ❖ NON-DELEGABILITY OF THE POWER OF TAXATION :
• Abakada Guro Party List v. Ermita, G.R No. 168056, September 1, 2005
• Southern Cross Cement Corp. v. Cement Manufacturers Asso. Of the
Phils., GR No. 158540, August 3, 2005
• Camarines North Elec. Cooperative v. Torres, GR No. 127249, February
27, 1998

❖ GOVERNMENT IS EXEMPT FROM TAXATION:

• Phil. Fisheries Dev't. Authority v. The Municipality of Navotas, G.R No.
150301, October 2, 2007
• City of Lapu Lapu v. PEZA, G.R No. 187583, November 26, 2014
• MIAA v. Parañaque City, G.R No. 155650, July 20, 2006
• Mactan-Cebu International Airport Authority (MCIAA) v. City of Lapu-
Lapu, G.R No. 181756, June 15, 2015

CONSTITUTIONAL LIMITATIONS
❖ UNIFORMITY AND EQUALITY CLAUSE:
• CIR v. SM Prime Holdings, Inc., G.R No. 183505, February 26, 2010
• PAGCOR v. CIR, G.R No. 215427, December 10, 2014
• Phil. Trust BL Company v. Yatco, G.R No. 46255, January 23, 1940
• Tan v. Del Rosario, G.R No. 109289, October 3, 1994
• CREBA, Inc. v. Exec. Sec. Romulo, G.R No. 160756, March 9, 2010
• Roxas v. CTA, G.R No.L-25043, April 26, 1968
• British Tobacco v. CIR, G.R No. 163583, August 20, 2008
• Punsalan v. City of Manila, G.R No. L-4817, May 26, 1954
• Juan Luna Subdivision, Inc. v. Sarmiento, G.R No. L-3538, May 28, 1952
• Pepsi Cola Bottling Co., Inc. v. City of Butuan, G.R No. L-22814, August
28, 1968

❖ NON-IMPAIRMENT OF CONTRACT CLAUSE:

• Casanovas v. Hord, G.R. No. 3473, March 22, 1907
• Mactan Cebu International Airport Authority v. Marcos, G.R No.
120082, September 11, 1996
• Tolentino v. Sec. of Finance, G.R No. 115455, October 30, 1995

❖ DUE PROCESS CLAUSE:

• PB Communications v. CIR, G.R No. 112024, January 28, 1999
• Taňada v. Tuvera, G.R No. L-63915, April 24, 1985
• CIR v. Metro Star Superama, Inc., G.R No. 185371, December 8, 2010

❖ TAX EXEMPTION: RELIGIOUS, EDUCATIONAL & CHARITABLE

INSTITUTIONS/ORGANIZATIONS FROM PROPERTY TAX
• CIR v. CA and YMCA, G.R No. 124043, October 14, 1998

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 • Lladoc v. CIR, G.R No. L-19201, June 16, 1965
• Hodges v. Mun. Board of Iloilo City, G.R No. L-18276, January 12, 1967
• Lung Cancer of the Philippines v. QC, G.R No. 144104, June 29, 2004
• St. Luke's Medical Center, Inc. v. CIR, G.R No. 195909, September 26,
2012
• Angeles University Foundation v. City of Angeles, G.R No. 189999,
June 27, 2012

❖ FREE EXERCISE OF RELIGOUS PROFESSION AND WORSHIP:

• American Bible Society v. City of Manila, G.R No. L-9637, April 30, 1957
• Tolentino v. Secretary of Finance, G.R No. 115455, October 30, 1995

STAGES OF TAXATION

❖ ASSESMENT AND COLLECTION:

• CIR v. United Salvage & Towage (Phils.) Inc., G.R No. 197515, July 2,
2014
• Alhambra Cigar & Cig. Mfg., Co. v. CIR, G.R No. L-12026
• CIR v. The Stanley Works Sales (Phils.), Inc. , G.R No. 187589, December
3, 2014
• Ungab v. Cusi, Jr., G.R No. L-41919, May 30, 1980
• CIR v. Pascor Realty Development Corp., G.R No. 128315, June 29,
1999
• CIR v. Hantex Trading, G.R No. 136975, March 31, 2005
• CIR v. BPI, G.R No. 134062, April 17, 2007

❖ PAYMENT:
• First Lepanto Taisho Ins. Corp. v. CIR, G.R No. 197117, April 10, 2013

PRINCIPLES OF A SOUND TAX SYSTEM

❖ FISCAL ADEQUACY:
• Chavez v. Ongpin, G.R No.97117, June 6, 1990

❖ ADMINISTRATIVE FEASIBILITY:
• Diaz & Timbol v. Sec. of Finance, G.R No. 193007, July 19, 2011

DOCTRINES IN TAXATION
❖ PROSPECTIVITY OF TAX LAWS
• CIR v. Acosta, G.R No. 154068, August 3, 2007
• CIR v. CA and Alhambra Industries, Inc., G.R No. 117982, February 6,
1997

❖ NON-RETROACTIVITY:
• CIR v. Filinvest Dev't. Corp., G.R No. 163653, July 19, 2011
• Supreme Transliner, Inc. v. BPI Family Savings Bank, Inc., G.R No.
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 165617, February 25, 2011
• CIR v. CA and Alhambra Industries, Inc., G.R No. 117982, February 6,
1997
• CIR v. Burroughs, Inc., G.R No. L-66653, June 19, 1986

❖ BIR RULINGS OR ADMINISTRATIVE RULINGS:

• British American Tobacco, Inc. v. Camacho, G.R No. 163583, August
20, 2008
• Phil Bank of Communications v. CIR, G.R No. 112024, January 28, 1999
• Team Energy Corp. v. CIR, G.R No. 197663 and 197770, March 14, 2018
• CIR v. Burroughs, Inc., G.R No. L-66653, June 19, 1986
• CIR v. Aichi Forging Co. Of Asia, Inc., G.R No. 184823, October 6, 2010

❖ PRINCIPLE OF EXHAUSTION OF ADMINISTRATIVE REMEDIES IN TAXATION

• Silicon Phils., Inc. v. CIR, G.R No. 182737, March 2, 2016
• City of Lapu-Lapu v. PEZA, G.R No. 184203, November 26, 2014
• Comm. Of Customs v. Oilink Int'l. Corp., G.R No. 161759, July 2, 2014

❖ DOUBLE TAXATION
• Manufacturers Life Insurance v. Meer, G.R No. L-2910, June 29, 1951
❖ PRINCIPLE OF RECIPROCITY
• CIR v. SC Johnson & Son, Inc., G.R No. 127105, June 25, 1999

❖ DIRECT DUPLICATE TAXATION:

• Ericsson Telecommunications, Inc. v. City of Pasig, G.R No. 176667,
November 22, 2007
• Nursery Care Corp. v. Acevedo, G.R No. 180651, July 30, 2014

❖ INDIRECT DUPLICATE TAXATION:

• CIR v. SC Johnson & Son, Inc., G.R No. 127105, June 25, 1999
• La Suerte Cigar & Cig. Factory v. CA, G.R No. 125346, November 11,
2014
• Villanueva v. City of Iloilo, G.R No. L-26521, December 28, 1968
• Compania General de Tabacos de Filipinos v. City of Manila, G.R No.
L-16619, June 29, 1963
• CIR v. Solidbank Corp., G.R No. 148191, November 25, 2003

❖ TAX PYRAMIDING:
• People v. Sandiganbayan, G.R No. 152532, August 16, 2005
• CIR v. American Rubber Co., G.R No. L-19667, November 29, 1966
ESCAPES FROM TAXATION
❖ SHIFTING OF TAX BURDEN:
• CIR v. Pilipinas Shell Petroleum Corp., G.R No. 188497, February 19,
2014
• Phil. Acetylene Co., Inc. v. CIR, G.R No. L-19707, August 17, 1967

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 ❖ TAX AVOIDANCE:
• Gala v. Ellice Agro Industrial Corp., G.R No. 156819, December 11,
2003
• Heng Tong Textiles Co., Inc. v. CIR, G.R No. L-19737, August 26, 1968
• Delpher Trades Corp. v. IAC, G.R No. L-69259, January 26, 1988

❖ TAX EVASION:
• CIR v. Estate of Benigno Toda, Jr., G.R No. 147188, September 14, 2004

❖ EXEMPTION FROM TAXATION:

• John Hay People’s Alternative Coalition et al. v. Lim, G.R No. 119775,
October 24, 2003
• CIR v. Phil. Associated Smelting & Refining Corp., G.R No. 186223,
October 01, 2014

❖ GROUNDS OF EXEMPTION:
• Batangas Power Corp. v. Batangas City & NPC, GR No. 152675, April
28, 2004
• Tolentino v. Sec. Of Finance, G.R No. 115455, August 25, 1994

KINDS OF TAX EXEMPTIONS:

❖ EXPRESS:
• CIR v. MERALCO, G.R No. 181459, June 9, 2014
• Western Minolco Corp. v. CIR, G.R No. L-61632, August 16, 1983

❖ IMPLIED OR BY INFERENCE:
• John Hay People’s Alternative Coalition et al. v. Lim, G.R No. 119775,
October 24, 2003

❖ CONTRACTUAL:
• MCIAA v. Marcos, G.R No. 120082, September 11, 1996

❖ NATURE OF TAX EXEMPTION

• FELS Energy, Inc. v. Province of Batangas, G.R No. 168557, February 16,
2007

❖ REVOCATION OF TAX EXEMPTION

• Tolentino v. Sec. of Finance, G.R No. 115455, October 30, 1995
• Provincial Treasurer of Province of Misamis Oriental v. Cagayan
Electric Power & Light Co., Inc., G.R No. L-45355, January 12, 1990
• Batangas Power Corp. v. Batangas City & NPC, G.R No. 152675, April
28, 2004
• Phil. Basketball Asso. v. CA, G.R No. 119122, August 8, 2000

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 ❖ CONSTRUED STRICTLY AGAINST THE TAXPAYER
• MCIAA v. Marcos, G.R No. 120082, September 11, 1996
• CIR v. Phil. American Accident Ins. Co., Inc., G.R No. 141658, March
18, 2005
• NPC v. City of Cabanatuan, G.R No. 149110, April 9, 2003

❖ COMPENSATION AND SET-OFF:

• CIR v. Toledo Power Company, G.R No. 195175 and 199645, August 10,
2015
• Republic v. Ericta, G.R No. L-35238, April 21, 1989
• CIR v. Esso Standard Eastern, Inc., G.R No. L-28502-03, April 18, 1989
• Republic v. Mambulao Lumber Company, G.R No. L-17725, February
28, 1962
• Domingo v. Garlitos, G.R No. L-18994, June 29, 1963
• Francia v. IAC, G.R No. L-67649, June 28, 1988
• Philex Mining Corp. v. CIR, G.R No. 125704, August 28, 1988
• CIR v. Citytrust Banking Corporation, G.R No. 150812, August 22, 2006

❖ COMPROMISE:
• Wonder Mechanical Engineering Corp. v. CA, G.R No. L-22805 and L-
27858, June 30, 1975

❖ TAX AMNESTY:
• People v. Castañeda, G.R No. L-46881, September 15, 1988
• Asia International Auctioneers, Inc. v. CIR, G.R No. 179115, September
26, 2012

❖ TAX V. LICENSE:
• Ermita-Malate Hotel & Motel Operators Asso., Inc. v. City of Manila,
G.R No. L-24693, July 31, 1967
• Cojuangco, Jr. v. Republic, G.R No. 180705, November 27, 2012
• Smart Telecommunications, Inc. v. Mun. Of Malvar, Batangas, G.R No.
204429, February 18, 2014
• Progressive Dev't. Corp. v. Quezon City, G.R No. L-36081, April 24, 1989
• Land Transportation v. City of Butuan, G.R No. 131512, January 20,
2000

❖ KINDS OF TAXES

❖ DIRECT TAX:
• Maceda v. Macaraig, Jr., G.R No. 88291, June 8, 1993
• CIR v. PLDT Company, G.R G.R. No. 140230, December 15, 2005

❖ INDIRECT TAXES:
• Diaz & Timbol v. Sec. Of Finance, G.R No. 193007, July 19, 2011
• Phil. Acetylene Co., Inc. v. CIR, G.R No. L-19707, August 17, 1967
• Silkair (Sing) Pte., Ltd. v. CIR, G.R No. 173594, February 6, 2008
• Asia Int'l. Auctioneers, Inc. v. CIR, G.R No. 179115, September 26, 2012
• CIR v. Acesite (Phils) Hotel Corp. v. CIR, G.R No. 147295, Feb.16, 2007
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 ❖ NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED BY RA
10963 (TAX REFORM FOR ACCELERATION AND INCLUSION LAW)

INCOME TAXATION
❖ INCOME TAX SYSTEMS
• Tan v. Del Rosario, G.R No. 109289 and 109446, October 3, 1994

❖ CRITERIA IN IMPOSING PHILIPPINE INCOME TAX:

• Tan v. Del Rosario, G.R No. 109289 and 109446, October 3, 1994
• CIR v. BOAC, G.R No. L-65773-74, April 30, 1987
• South African Airways v. CIR, G.R No. 180356, February 16, 2010
• Alexander Howden & Co., Ltd. v. Collector, G.R No. L-19392, April 14,
1965
• CIR v. Baier-Nickel, G.R No. 153793, August 29, 2006

INCOME

❖ NATURE AND BASIS:

• CIR v. Lednicky, G.R No.L-18169, L-18262 and L-21434, July 31, 1964
• CIR v. BOAC, G.R No. L-65773-74, April 30, 1987
• CREBA v. Romulo, G.R No. 160756, March 9, 2010

GROSS INCOME
❖ EXCLUSIONS FROM GROSS INCOME:
• El Oriente v. Posadas, G.R No. 34774, September 21, 1931
• Santos v. Servier Philippines, Inc., G.R No. 166377, November 28, 2008
• CIR v. Mitsubishi Metal Corp., G.R No. L-54908, January 22, 1990

❖ TAXATION OF DOMESTIC CORPORATIONS

• CIR v. St. Luke's Medical Center, Inc., G.R No. 195909, September 26,
2012

❖ TAXATION OF RESIDENT FOREIGN CORPORATIONS:

• Air Canada v. CIR, G.R No. 169507, January 11, 2016
• Far East International Import and Export Corp. v. Nankai Kogyo Co.,
Ltd., G.R No. L-13525, November 30, 1962
• South African Airways v. CIR, G.R No. 180356, February 16, 2010

❖ TAXATION OF NON-RESIDENT FOREIGN CORPORATIONS

• N.V. Reederij Amsterdam v. CIR, G.R No. L-46029, June 23, 1988

❖ TAXATION OF PARTNERSHIPS (BUSINESS AND GENERAL PROFESSIONAL):

• Evangelista v. Collector, G.R No. L-9996, October 15, 1957
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 • Oña v. CIR, G.R No. L-19342, May 25, 1972
• Pascual and Dragon v. CIR, G.R No. 78133, October 18, 1988
• Obillos, Sr. v. CIR, G.R No. L-68118, October 29, 1985
• Afisco Insurance Corp. v. CA, G.R No. 112675, January 25, 1999

OTHER CORPORATE TAX RULES

❖ BRANCH PROFIT REMITTANCE TAX:
• Deutsche Ban AG Manila Branch v. CIR, G.R No. 188550, August 19,
2013
• CIR v. Marubeni, G.R No. 198485, June 5, 2017
• Bank of America NT & SA v. CA, G.R No. 103092, July 21, 1994

❖ MINIMUM CORPORATE INCOME TAX (MCIT):

• CREBA v. Romulo, G.R No. 160756, March 9, 2010
• Manila Banking Corporation v. CIR, G.R No. 168118, August 28, 2006

❖ IMPROPERLY ACCUMULATED EARNINGS TAX (IAET):

• Cyanamid v. CA, G.R No.108067, January 20, 2000
• Helvering v. National Grocery Co., 304 U.S. 282, May 16, 1938

❖ TAX SPARING CREDIT (TSC):

• CIR v. Procter, G.R No. L-66838, December 2, 1991

❖ EXEMPT CORPORATIONS:
• CIR v. De La Salle University, G.R No. 196596, November 9, 2016
• CIR v. CA and YMCA , G.R No. 124043, October 14, 1998
• CIR v. St. Luke's Medical Center, Inc., G.R No. 195909, September 26,
2012
• PAGCOR v. CIR, G.R No. 215427, December 10, 2014

❖ ALLOWABLE DEDUCTIONS FROM GROSS INCOME:

• Pilmico-Mauri General Foods Corp. v. CIR, G.R No. 175651, September
14, 2016
• Atlas Consolidated Mining v. CIR, G.R No. L-26911, L-26924, January
27, 1981
• Hospital De San Juan De Dios v. CIR, G.R No. L-31305, May 10, 1990
• Esso Standard Eastern, Inc. v. CIR, G.R No. L-28508-9, July 7, 1989
• CIR v. Algue, Inc., G.R No. L-28896, February 17, 1988
• CIR v. Isabela Cultural Corp., G.R No. 172231, February 12, 2007
• CIR v. General Foods Phils., G.R No. 142672, April 24, 2003
• CIR v. Palanca, G.R No. L-16626, October 29, 1966
• CIR v. de Prieto, G.R No. L-13912, September 30, 1960
• PICOP v. CA, G.R No. 106949-50, 106984-85, December 1, 1995
• CIR v. Bicolandia Drug Corp., G.R No. 142299, June 22, 2006
• CIR v. Prescilla Estate Inc., G.R No. 18282, May 29, 1964
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 • PRC v. CIR, G.R No. 118794, May 8, 1996

❖ SPECIAL TOPICS IN INCOME TAXATION:

• NDC v. CIR, G.R No. L-53961, June 30, 1987
• Calasanz v. CIR, G.R No. L-26284, October 8, 1986
• Tuason, Jr. v. Lingad, G.R No. L-24248, July 31, 1974
• Smi-ed Phil Technology Inc. v. CIR, G.R No. 175410, November 12,
2014
• Supreme Transliner, Inc. v. BPI Family Savings Bank, Inc., G.R No.
165617/ 165837, February 25, 2011
• Delpher Trades, Corp. v. IAC, G.R No. L-69259, January 25, 1988

❖ WITHHOLDING TAX (CREDITABLE AND FINAL):

• BDO v. RP, A.C No. 198756, January 13, 2015
• RCBC v. CIR, G.R No. 170257, September 7, 2011
• Citibank v. CIR, G.R No. 107434, October 10, 1997

TAXATION LAW 2
ESTATE TAX (RA 10963- Tax Reform for Acceleration and Inclusion
Law)/ Revenue Regulation 2-2003

❖ COMPOSITION OF GROSS ESTATE

• Vitug v. Court of Appeals, G.R. No. 82027, March 29, 1990
• Roces v. Posadas, G.R. No. 34937, March 13, 1933
• Dison v. Posadas, G.R. No. 36770, November 04, 1932

DONOR’S TAX (RA 10963- Tax Reform for Acceleration and Inclusion
Law)/ Revenue Regulation 2-2003

TRANSFERS WHICH MAY BE CONSTITUTED AS DONATION

❖ SALE/EXCHANGE/TRANSFER OF PROPERTY FOR INSUFFICIENT
CONSIDERATION
• PhilAm Life v. Secretary of Finance, G.R. No. 210987, November 24,
2014

VALUE -ADDED TAX

❖ CONCEPT/DEFINITION
• CIR v. PLDT, G.R. No. 140230, December 15, 2005

❖ CHARACTERISTICS/ ELEMENTS OF A VATABLE TRANSACTION

• Mindoro II Geothermal Partnership v. CIR, G.R. No. 193301 and G.R.
No. 194637, March 11, 2013

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 ❖ DESTINATION PRINCIPLE/ CROSS BORDER DOCTRINE
• ACMDC v. CIR, G.R. No. 141104 and 148763, June 8, 2007

VAT ON SALE OF SERVICE AND USE OR LEASE OF PROPERTIES

❖ REQUISITES OF TAXABILITY
• CIR v. SM Prime Holdings, Inc. , G.R. No. 183505, February 26, 2010
• Diaz and Timbol v. Secretary of Finance, G.R. No.193007, July 19, 2011

❖ ZERO-RATED SALES OF SERVICES

• CIR v. Acesite Hotel, G.R. No.147295, February 16, 2007

❖ VAT EXEMPT TRANSACTIONS

• PAGCOR v. CIR, G.R. No. 172087, March 15, 2011

❖ TRANSITIONAL INPUT VAT

• FBDC v. CIR, G.R. No. 173425; September 4, 2012

❖ REFUND OR TAX CREDIT OF EXCESS INPUT TAX

❖ MANNER OF GIVING REFUND
• CIR v. AICHI Forging Company of Asia, G.R. No. 184823, October 6,
2010
• CIR v. San Roque Power Corp, G.R. No. 187485, February 12, 2013
• CIR v. Mindanao II Geothermal Partnership, G.R. No.191498, January
15, 2014
• CIR v. Team Sual Corp, G.R. No. 194105, February 5, 2014
• CIR v. Burmeister, G.R. No. 153205, January 22, 2007
• CIR v. Toledo Power Company, G.R. No.196415, December 2, 2015

LOCAL GOVERNMENT TAXATION

❖ FUNDAMENTAL PRINCIPLES
• Matalin Coconut Company v. Malabang, G.R. No. L-28138 August
13, 1986
• Villanueva v. Iloilo, G.R. No. L-26521, December 28, 1968
• Ormoc Sugar Company v. Ormoc, G.R. No. L-23794, February 17, 1968
❖ SPECIFIC TAXING POWER OF LOCAL GOVERNMENT UNITS
• NPC v. City of Cabanatuan, G.R. No. 149110, April 9, 2003
• San Pablo v. Reyes, G.R. No. 127708, March 25, 1999
• Manila Electric Company v. Laguna, G.R. No. 131359, May 5, 1999
• PLDT v. Davao, G.R. No. L-23080, September 20, 1965

❖ COMMON LIMITATIONS ON THE TAXING POWER OF LGUS

• Phil. Petroleum Corporation v. Municipality of Palilla, G.R. No. 90776,
June 3, 1991
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 • LTO v. City of Butuan, G.R. No. 131512, January 20, 2000
• MICC v. CA, G.R. No.155650, July 20, 2006

REAL PROPERTY TAXATION

❖ FUNDAMENTAL PRINCIPLES
• Army &Navy Club v. Trinidad, G.R. No. 19297, January 26, 1923
• Reyes v. Almanzor, G.R. No. L-49839-46, April 26, 199
• Allied Banking Corp. v. Quezon City, G.R. No. 154126, September 15,
2006

❖ IMPOSITION OF REAL PROPERTY TAX

• Meralco v. CBAA, G.R. No. L-46245, May 31, 1982
• Caltex v. CBAA, G.R. No. L-50466, May 31, 1982
• Mindanao Bus Company v. City Assessor, G.R. No. 17870, September
29, 1962

❖ EXEMPTION FROM REAL PROPERTY TAX

• MIAA v. Paranaque, G.R. No. 155650, July 20, 2006
• GSIS v. Iloilo City, G.R. No. 147192, June 27, 2006
• Republic v. Kidapawan, G.R. No. 166651, December 9, 2005
• Lung Center v. Quezon City, G.R. No. 144104, June 29, 2004

❖ REMEDIES OF LGUS FOR COLLECTION OF REAL PROPERTY TAX

❖ ISSUANCE OF NOTICE OF DELINQUENCY FOR REAL PROPERTY TAX
PAYMENT
• Serfino v. CA, G.R. No. L-40858, September 15, 1987
• Estate of the Late Jacob v. CA, G.R. No. 120435 & G.R. No. 120974,
December 22, 1997
• Talusan v. Tayag, G.R. No. 133693, April 4, 2001
• Tan v. Bantegui , G.R. No. 154027, October 24, 2005

TARIFF AND CUSTOMS CODE OF THE PHILIPPINES (P.D. No. 1464), as

amended by the Customs Modernization and Tariff Act (Republic Act
No. 10863)
❖ TAXABLE IMPORTATIONS
• COMMISSIONER of Customs v. Capistrano, G.R. No. L-11075, June 30,
1960

❖ PROHIBITED IMPORTATIONS
• Kurt Nilsen v. Commissioner of Customs, G.R. No. 27149, March 14,
1979
• Llamado v. Commissioner of Customs, G.R. No. L-28809, May 16,
1983

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 REMEDIES (GOVERNMENT) ADMINISTRATIVE/EXTRAJUDICIAL
❖ SEARCH, SEIZURE, FORFEITURE, ARREST
• Commissioner of Customs v. Pascual, G.R. No. L-31733, September
20, 1985

TAX REMEDIES UNDER THE NIRC

TAXPAYER’S REMEDIES
❖ ASSESSMENT
• Adamson v. CA, G.R. No. 120935 and G.R. No. 124557, May 21, 2009

❖ CONCEPT OF ASSESSMENT
• CIR v. ACMDC, G.R. No. 104151, March 10, 1995
• RP v. CA, G.R. No. L-38540, April 30, 1987

❖ REQUISITES FOR VALID ASSESSMENT

• CIR v. Pascor, G.R. No. 128315, June 29, 1999

❖ INVENTORY METHOD FOR INCOME DETERMINATION

• Perez v. CTA, G.R. No. L-9193, May 29, 1957

❖ WHEN ASSESSMENT IS MADE

• CIR v. Pascor, G.R. No. 128315, June 29, 1999
Prescriptive period for assessment
• CIR v. Phoenix Assurance Co., Ltd G.R. No. L-19727, May 20, 1965

❖ SUSPENSION OF RUNNING OF STATUTE OF LIMITATION

• CIR v. Kudos Metal Corporation, G.R. No. 178087, May 5, 2010
• Fernandez Hermanos,Inc. v. CIR, G.R. No. L-21551, L-21557, L-24972, L-
24978, September 30, 1969
Period provided for the protest to be acted upon
• Samar-I Electric Cooperative v. CIR , G.R. No. 193100, December 10,
2014
• Lascona Land Co.,Inc. v. CIR, G.R. No. 171251, March 5, 2012

❖ COMMISSIONER’S ACTIONS EQUIVALENT TO DENIAL OF PROTEST

• CIR v. Isabela Cultural Corp., G.R. No. 135210, July 11, 2001
• Republic v. Lim, G.R. No. L-21731, March 31, 1966

❖ REMEDIES OF TAXPAYER TO ACTION BY COMMISSIONER

• RCBC v. CIR, G.R. No. 168498, April 24, 2007
• Lascona Land Co.,Inc. v. CIR, G.R. No. 171251, March 5, 2012

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 EFFECT OF FAILURE TO APPEAL
❖ REFUND (GROUND AND REQUISITES FOR REFUND)
• Andrea Vda de Aguinaldo, G.R. No. L- 19927, February 26, 1965

❖ REQUIREMENTS FOR REFUND AS LAID DOWN BY CASES

• CIR v. TMX Sales G.R. No. 83736, January 15, 1992
• CIR v. CA, G.R. No. 108576, January 20, 1999
• BPI v. CIR, G.R. No. 144658, August 28, 2001
• CIR v. PhilAmlife, G.R. No. 105208, May 29, 1995
• CIR v, PNB, G.R. No. 161997, October 25, 2005
• CIR v. Primetown Property Group, G.R. No. 162155, August 28, 2007
• CIR v. Goodyear Philippines, Inc., G.R. No. 216130, August 3, 2016

❖ WHO MAY CLAIM/APPLY FOR TAX REFUND/TAX CREDIT

• CIR v. Procter and Gamble Phil,., G.R. No. L-66838, December 2, 1991
• Silkair Singapore, G.R. No. 173594, February 6, 2008

Irrevocability rule
• Rhombus Energy. Inc. v. CIR, G.R. No. 206362, August 01, 2018
• University Physician’s Services, Inc. , G.R. No. 205955, March 7, 2018
• Belle Corporation v. CIR, G.R. No. 181298, March 2, 2011
• CIR v. PERF Realty., G.R. No. 163345, July 4, 2008
• PhilAm Asset Management v. CIR, G.R. No. 156637/ G.R. No. 162004,
December 14, 2005

JUDICIAL REMEDIES
❖ JURISDICTION OF THE COURT OF TAX APPEALS

❖EXCLUSIVE APPELLATE JURISDICTION OVER CIVIL TAX CASES

• Yaokasin v. Commissioner of Customs, G.R. No. 84111, December 22,
1989
• CIR v. Ayala Securities, G.R. No. L-29485, November 21, 1980
• Surigao Electric Company v. CTA, G.R. No. L-25289, June 28, 1974
• Oceanic Wireless Network v. CIR, G.R. No. 14838, December 9, 2005
• Allied Banking Corporation v. CIR, G.R. No. 175097, February 5, 2010
• Fishwealth Canning Corporation v. CIR, G.R. No. 179343, January 21,
2010

❖ PETITION FOR CERTIORARI

• City of Manila v. Grecia-Cuerdo, G.R. No. 175723, February 4, 2014

❖ OTHER MATTERS/CASES
• Philamlife v. Secretary of Finance, G.R. No. 210987, Nov. 24, 2014
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 • Banco De Oro v. Secretary of Financce, G.R. No. 198756, August 16,
2016
• Pacquiao v. CTA , G.R. No. 213394, April 6, 2016
• PSALM v. CIR, G.R. No. 198146, August 8, 2017
• Ports Authority v. City of Davao, G.R. No. 190324, June 6, 2018
• CIR v. Kepeo Ilijan Corporation, G.R. No. 199422, June 21, 2016
• CIR v. Leal, G.R. No. 113459, November 18, 2002

❖ JUDICIAL PROCEDURES
❖ CIVIL CASES
• Commissioner of Customs v. Marina Sales, Inc. , G.R. No. 183868,
November 22, 2010
• Asia Trust Development Bank v. CIR, G.R. No. 201530 & 201680, April
19, 2017

❖ TAXPAYER’S SUIT, DEFINED

• Gonzales v. Marcos, G.R. No. L-31685, July 31, 1975
• Maceda v. Macaraig, Jr. , G.R. No. 88291, May 31, 1991
• Abaya v. Ebdane , G.R. No. 167919, February 14, 2007
• Dela Llana v. COA, G.R. No. 180989, February 7, 2012

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