130602 Tax 2 Outline (Consolidated)

ATENEO COLLEGE OF LAW

Course Outline1 Atty. Terence Conrad H. Bello Tax II Baniqued & Baniqued Academic Year 2013 2014 633-9418 (Office); 633-1911 (Fax) [email protected] www.baniquedlaw.com

RIGHTS AND REMEDIES OF THE GOVERNMENT UNDER

THE NATIONAL INTERNAL REVENUE CODE

I. EXAMINATION AND AUDIT OF RETURNS A. Statutory Basis

Secs. 5 and 6, NIRC II. BIRS INVESTIGATIVE AUTHORITY

A. Statutory Basis 1. Administrative Summons to Taxpayer Sec. 5(C), (D), NIRC Sec. 6(C), NIRC 2. Third-Party Summons Sec. 5(B), (C), NIRC

B. Informers Reward Sec. 282, NIRC BIR Rul. No. 071-00, Dec. 18, 2000 Meralco Securities Corp. v. Savellano, 117 SCRA 804 (1982) Fitness by Design, Inc. v. CIR, G.R. No. 177982, Oct. 17, 2008

III. BIRS POWER TO MAKE ASSESSMENTS A. Upon Examination of Returns Filed

Sec. 6(A), NIRC B. In Case of Failure to Submit Required Reports

Sec. 6(B), NIRC C. After Inventory Taking or Surveillance

Sec. 6(C), NIRC D. Where CIR Terminates Taxpayers Taxable Period

Sec. 6(D), NIRC E. Prescribe Zonal Value

Sec. 6(E), NIRC CIR v. Aquafresh Seafoods, Inc., G.R. No. 170389, Oct. 20, 2010

F. Issuance of Pre-Assessment Notice Sec. 228, NIRC Sec. 3, Rev. Regs. No. 12-99, Sept. 6, 1999

G. Issuance of Final Assessment Notice Sec. 228, NIRC

1 Based on the course outline of Atty. Carlos G. Baniqued in Tax II, Ateneo de Manila University School of Law, as revised and updated by Atty. Terence Conrad H. Bello.

Tax II Course Outline Page 2 Atty. Terence Conrad H. Bello Rights & Remedies of Government

Sec. 3, Rev. Regs. No. 12-99, Sept. 6, 1999 1. What Constitutes an Assessment

CIR v. Pascor Realty and Dev. Corp., 309 SCRA 402 (1999) Fort Bonifacio Dev. Corp. v. CIR, CTA Case No. 5665, Aug. 11, 2000 Republic v. Court of Appeals, 149 SCRA 351 (1987)

2. Presumption of Correctness of Assessment Sy Po v. CTA, 164 SCRA 524 (1988)

3. Assessment Must be Based on Actual Facts CIR v. Benipayo, 4 SCRA 182 (1962) Chemical Industries of the Phil., Inc. v. CIR, CTA Case No. 5257, Oct. 29,

1998 4. Assessment Issued Outside Scope of Letter of Authority

Sony Philippines, Inc. v. CIR, CTA Case No. 6185, Oct. 26, 2004

IV. COLLECTION OF UNPAID TAXES A. Distraint, Garnishment, Levy and Seizure

Secs. 205-217, 224-225 NIRC Sec. 202, NIRC

B. Civil Action Sec. 205, NIRC Sec. 220, NIRC Sec. 7(b)(2)(c), Rep. Act. No. 1125, as amended by Rep. Act. No. 9282 Sec. 11, Rep. Act. No. 1125, as amended by Rep. Act. No. 9282 Republic v. Lim Tian Teng Sons & Co., 16 SCRA 584 (1966) San Juan v. Vasquez, 3 SCRA 92 (1961) Yabes v. Flojo, L-46954, July 20, 1982

C. Criminal Action Sec. 220, NIRC CIR v. Pascor Realty and Dev. Corp., supra Republic v. Patanao, 20 SCRA 712 (1967) Ungab v. Cusi, G.R. No. L-41919-24, May 30, 1980

D. Anti-Injunction Rule 1. General Rule

Sec. 218, NIRC Churchill v. Rafferty, 32 Phil. 580 (1915) CIR v. Cebu Portland Cement Co., 156 SCRA 535, 541 (1987)

2. Exception Sec. 11, Rep. Act. No. 1125, as amended by Rep. Act. No. 9282 Rule 10, Revised Rules of the CTA (S.C. A.M. No. 05-11-07-CTA, Nov. 22,

2005) E. Nature and Extent of Tax Lien

Sec. 219, NIRC F. Compromise and Abatement

Sec. 204(A) and (B), NIRC BIR Rul. No. 111-99, July 22, 1999 BIR Rul. No. 059-01, Dec. 20, 2001

V. IMPOSITION OF SURCHARGE, INTEREST, AND COMPROMISE PENALTY

Tax II Course Outline Page 3 Atty. Terence Conrad H. Bello Rights & Remedies of Government

A. Civil Penalties Sec. 248, NIRC Secs. 250-252, NIRC Secs. 4 & 5, Rev. Regs. No. 12-99, Sept. 6, 1999 CIR v. Javier, Jr., 199 SCRA 824, 831 (1991) CIR v. Japan Air Lines, 202 SCRA 450, 458 (1991) PICOP v. CIR, CTA Case No. 3215, Feb. 15, 1987 CIR v. Pilipinas Shell Petroleum Corporation, CTA E.B. No. 64 (CTA Case

No. 6003), April 28, 2006 BIR Rul. No. 002-95, Jan. 6, 1995 BIR Rul. No. 048-99, April 13, 1999 BIR Rul. No. 205-99, Dec. 28, 1999 BIR Rul. No. 078-98, May 28, 1998

B. Interest Sec. 249, NIRC Sec. 5, Rev. Regs. No. 12-99, Sept. 6, 1999 Cagayan Electric v. CIR, 138 SCRA 629 (1985) Republic v. Heras, 32 SCRA 507, 513-514 (1970)

C. Compromise Penalty Sec. 6, Rev. Regs. No. 12-99, Sept. 6, 1999 CIR v. Lianga Bay Logging Co., Inc., 193 SCRA 86, 92-93 (1991) Atlas Consolidated Mining & Dev. Corp. v. CIR, CTA Case No. 5671, Aug.

29, 2002

RIGHTS AND REMEDIES OF TAXPAYER UNDER THE NATIONAL INTERNAL REVENUE CODE

I. AMEND TAX RETURN

Sec. 6(A), NIRC, last paragraph Rev. Mem. Cir. No. 40-2003, July 3, 2003

Rohm Apollo Semiconductor Phil. v. CIR, CTA E.B. No. 59 (CTA Case No. 6534, June 22, 2005)

II. PROTEST ASSESSMENT

A. Procedure Rev. Regs. No. 12-85, Nov. 27, 1985 Sec. 3, Rev. Regs. No. 12-99, Sept. 6, 1999

B. Notice of Informal Conference Bank of the Phil. Islands v. CIR, CTA Case No. 6593, Aug. 31, 2004

C. Preliminary Assessment Notice (PAN) Sec. 228, NIRC Pier 8 Arrastre and Stevedoring Services v. CIR, CTA Case No. 3789, Aug. 1,

1991 1. Exceptions

Sec. 228(a) to (e), NIRC 2. Effect of Failure to Receive PAN

CIR v. Menguito, G.R. No. 167560, Sept. 17, 2008 CIR v. Metro Star Superama, G.R. No. 185371, Dec. 8, 2010

D. Final Assessment Notice Sec. 228, NIRC

E. Requirement to Inform Taxpayer of Factual and Legal Basis of Assessment Sec. 228, NIRC CIR v. Reyes, G.R. No. 159694, Jan. 27, 2006 CIR v. Enron Subic Power Corp., G.R. No. 166387, Jan. 19, 2009 Australasia Cylinder Corp. v. CIR, CTA Case No. 6014, Aug. 14, 2002 Abbot Laboratories v. CIR, CTA Case No. 5718, Feb. 16, 2001 PNZ Marketing v. CIR, CTA Case No. 5726, Dec. 14, 2001 Sevilla v. CIR, CTA Case No. 6211, Oct. 4, 2004 FMF Development Corp. v. CIR, CTA Case No. 6153, March 20, 2003 Subic Power Corp. v. CIR, CTA Case No. 6059, May 8, 2003 Phil. Mining Service Corp. v. CIR, CTA Case No. 5725, July 25, 2002 Oceanic Wireless Network v. CIR, CTA Case No. 6111, Nov. 3, 2004

F. Submission of Supporting Documents Sec. 228, NIRC 1. Effect of Non-Compliance

Sec. 228, NIRC, 4th par. 2. What Constitutes Relevant Supporting Documents

H. Tambunting Pawnshop, Inc. v. CIR, CTA Case No. 6238, Oct. 8, 2004 CIR v. First Express Pawnshop Co., Inc., G.R. No. 172045-46, June 16, 2009

G. Effect of Failure to File Protest Sec. 228, NIRC Dayrit v. Cruz, 165 SCRA 571 (1988)

Tax II Course Outline Page 2 Atty. Terence Conrad H. Bello Rights & Remedies of Taxpayer

III. IN CASE OF DENIAL OF PROTEST OR INACTION, APPEAL TO CTA

A. Scope of Jurisdiction of CTA/What is Appealable to CTA Sec. 4, 2nd par., NIRC Sec. 228, NIRC Sec. 7, Rep. Act No. 1125, as amended by Rep. Act No. 9282 CIR v. Villa, 22 SCRA 4 (1968)

B. Application of 180-day Rule Sec. 3(a)(2), Rule 4 and Sec. 3(a), Rule 8, Revised Rules of the CTA (S.C. A.M.

No. 05-11-07-CTA, Nov. 22, 2005) Lascona Land Co., Inc. v. CIR, CTA Case No. 5777, Jan. 4, 2000 Rizal Commercial Banking Corp. v. CIR, G.R. No. 168498, April 24, 2007

C. What Constitutes Denial of Protest/Decision on Disputed Assessment 1. General Rule 2. Issuance of Revised Assessment Upon Reinvestigation

Avon Products Mfg., Inc. v. CIR, CTA Case No. 5908, Jan. 20, 2005 3. Final Notice Before Seizure

CIR v. Isabela Cultural Corp., 361 SCRA 71 (2001) 4. Final Demand Letter

CIR v. Ayala Securities Corp., 70 SCRA 204 (1976) Surigao Electric Co. Inc. v. CTA, 57 SCRA 523 (1974)

5. Filing of Collection Suit CIR v. Union Shipping Corp., 185 SCRA 547 (1990)

6. Referral to Solictor General for Collection Republic v. Lim Tian Teng Sons & Co., supra

7. Issuance of Warrant of Distraint and Levy Central Cement Corporation v. CIR, CTA Case No. 4312, Sept. 1, 1993 CIR v. Algue, Inc., 158 SCRA 9 (1988) Advertising Associates, Inc. v. CA, 133 SCRA 765 (1984)

D. Period to Appeal/Effect of Failure to Appeal Sec. 228, last par., NIRC Sec. 11, Rep. Act. No. 1125, as amended by Rep. Act. No. 9282 St. Stephens Association v. Collector of Internal Revenue, 104 Phil. 314 (1958) Roman Catholic Archbishop of Cebu v. Collector, 4 SCRA 279 (1962) Pantranco v. Blaquera, 107 Phil. 975 (1960) Basa v. Republic, 138 SCRA 34 (1985) Mambulao Lumber Co. v. CIR, 132 SCRA 1 (1984)

E. Mode of Appeal and Effect of Appeal 1. Appeal to a Division of the CTA

Sec. 11, Rep. Act. No. 1125, as amended by Rep. Act. No. 9282 2. Appeal to CTA En Banc

Sec. 18, Rep. Act. No. 1125, as amended by Rep. Act. No. 9282

IV. APPEAL TO SUPREME COURT Sec. 19, Rep. Act. No. 1125, as amended by Rep. Act. No. 9282

V. REFUND AND/OR TAX CREDIT OF ERRONEOUSLY PAID TAX A. What Constitutes Erroneous Payment


CIR v. Central Azucarera Don Pedro, 49 SCRA 474 (1973) B. Requirement of Filing Administrative Claim Sec. 229, NIRC Sec. 204(C), NIRC Bermejo v. Collector, 87 Phil. 96 (1950) Andrea Vda. De Aguinaldo v. CIR, 13 SCRA 269 (1965)

Chemical Industries of the Phil., Inc. v. CIR, CTA Case No. 5887, Aug. 8, 2000 C. Exception to Requirement of Filing Administrative Claim Sec. 229, NIRC, proviso, last paragraph Sec. 204(C), NIRC D. Effect of Supervening Event Sec. 229, NIRC Manila Electric Co. v. CIR, CTA Case No. 7107, October 16, 2006 CIR v. Central Azucarera Don Pedro, supra E. Offsetting Against Deficiency Tax Assessments

CIR v. Cebu Portland Cement Co., 156 SCRA 535, 541 (1987) BPI Securities Corp. v. CIR, CTA Case No. 6089, Aug. 22, 2002 FNCB Finance v. CIR, CTA Case No. 3717, May 10, 1993

F. Whether Government is Liable for Interest, Attorneys Fees, Etc. Philex Mining Corp. v. CIR, et. al., 306 SCRA 126 (1999) G. Taxes Not Subject of Set-Off Francia v. IAC, 162 SCRA 753 (1988) BIR Ruling No. 415-93, Oct. 15, 1993

VI. APPEAL IN CASE OF DENIAL OF REFUND/TAX CREDIT CLAIM

A. CTA (Division and En Banc) Sec. 4, 2nd par., NIRC Sec. 7(a)(1), (2), Rep. Act. No. 1125, as amended by Rep. Act. No. 9282 Sec. 11, Rep. Act. No. 1125, as amended by Rep. Act. No. 9282 Sec. 18, Rep. Act. No. 1125, as amended by Rep. Act. No. 9282

B. Supreme Court Sec. 19, Rep. Act. No. 1125, as amended by Rep. Act. No. 9282

VII. STATUTE OF LIMITATIONS A. Period to Assess

Secs. 203, 222, 223 NIRC 1. When is an Assessment Deemed Made?

Basilan Estates, Inc. v. CIR, 21 SCRA 17 (1967) 2. Effect of Filing an Amended Return

CIR v. Phoenix Assurance Co., Ltd., L-19127, May 20, 1965 3. Effect of Filing a Wrong Return

Butuan Sawmill, Inc. v. CTA, L-20601, Feb. 28, 1966 4. How Prescriptive Period Counted

CIR v. Primetown Prop. Group, Inc., G.R. No. 162155, August 28, 2007 5. Ordinary Prescription

Sec. 203, NIRC 6. Extraordinary Prescription

a. False/Fraudulent Return or No Return


Sec. 222(a), NIRC

Taligaman Lumber Co., Inc. v. CIR, 4 SCRA 842, 847 (1962) Aznar v. CTA, 58 SCRA 519 (1974)

CIR v. BF Goodrich Phil., Inc., 303 SCRA 546 (1999) CIR v. Ayala Hotels, CA-G.R. SP No. 70025, April 19, 2004

b. Waiver of Prescriptive Period Sec. 222(b), NIRC Republic v. Acebedo, 22 SCRA 1356 (1968)

CIR v. CA, et. al., 303 SCRA 614 (1999) Philippine Journalists, Inc. v. CIR, 447 SCRA 214 (2004) Pfizer, Inc. v. CIR, CTA Case No. 6135, April 21, 2003

c. Suspension of Prescriptive Period Sec. 223, NIRC Continental Micronesia, Inc. - Phil. Branch v. CIR, CTA Case No. 6191,

March 22, 2006 B. Period to Collect Secs. 203, 222, 223, NIRC Republic v. Ablaza, 108 Phil. 1105 (1960)

Palanca v. CIR, 4 SCRA 263 (1962) Republic v. Ker & Co. Ltd., 18 SCRA 208 (1966) Republic v. Hizon, 320 SCRA 574 (1999) CIR v. Wyeth Suaco Laboratories, Inc. and CTA, 202 SCRA 125, 131 (1991) Bank of the Phil. Islands v. CIR, G.R. No. 139736, Oct. 17, 2005

CIR v. Hambrecht & Quist Phil., Inc., CTA E.B. No. 73 (CTA Case No. 6362), Aug. 12, 2005

C. Period to File Protest Sec. 228, NIRC D. Period to Appeal Decision on Disputed Assessment to CTA

See III(D) above E. Period to File Refund or Tax Credit Claim Sec. 204(C), NIRC Sec. 229, NIRC Collector v. Sweeney, 109 Phil. 59 (1959) Gibbs v. CIR, 107 Phil. 232 (1960) CIR v. CA, et. al., 301 SCRA 435 (1999) ACCRA Investments Corp. v. CA, G.R. No. 96322, Dec. 20, 1991 CIR v. TMX Sales, Inc., G.R. No. 83736, Jan. 15, 1992

1. How Two-Year Prescriptive Period Counted CIR v. Primetown Prop. Group, Inc., supra

F. Period to Prosecute Violations of any Provisions of NIRC Sec. 281, NIRC

Lim v. CA, 190 SCRA 616 (1990)

VIII. APPEAL OF RULINGS TO DOF, NON-RETROACTIVITY A. Power of Review of DOF over Rulings Sec. 4, 1st par., NIRC (distinguish from appeal of other matters to CTA

under the 2nd par. of Sec. 4) CIR v. Leal, 392 SCRA 9 (2002)


B. Non-Retroactivity of Revocation of Rulings or Regulations Sec. 246, NIRC CIR v. Burroughs Ltd., G.R. No. 66653, June 19, 1986

PBCom v. CIR, 302 SCRA 241 (1999) ABS-CBN v. CTA, 108 SCRA 142 (1981)

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 Rul. No. 81-98, May 28, 1998 BIR Rul. 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 Rul. No. 013-2005, Aug. 16, 2005 BIR Rul. No. DA-279-2006, April 25, 2006 a. Nature of Power

i. Power to alter or amend ii. Power to revoke iii. Power to terminate

b. Meaning of Power in Whatever Capacity c. Meaning of Power Exercisable in Conjunction with any Other

Person d. Meaning of Relinquishment of Power in Contemplation of Death

6. Power of Appointment Sec. 85(D), NIRC a. Meaning of Power of Appointment b. Applicability in the Philippines

7. Proceeds of Life Insurance Sec. 85(E), NIRC a. Estate as Beneficiary

Tax II Course Outline Page 2 Atty. Terence Conrad H. Bello Estate Tax

b. Third Person as Beneficiary II. VALUATION OF ESTATE AND AMOUNT TO BE INCLUDED IN CASES

COVERED BY SECS. 85(B), (C) AND (D) OF THE NIRC Secs. 85(G) and 88, NIRC

III. EXEMPT TRANSFERS

Sec. 87, NIRC IV. EXCLUSION OF CONJUGAL SHARE OF SURVIVING SPOUSE

Sec. 85(H), NIRC V. DEDUCTIONS FROM GROSS ESTATE

Sec. 86, NIRC A. Expenses, Losses, Indebtedness, Taxes, Etc. (ELITE)

1. Funeral Expenses 2. Expenses for Testamentary of Intestate Proceedings 3. Claims Against the Estate

Dizon v. Court of Tax Appeals, G.R. No. 140944, May 6, 2008 4. Claims Against Insolvent Persons 5. Unpaid Debts/Mortgages 6. Losses

B. Vanishing Deduction C. Transfers for Public Use D. Family Home E. Standard Deduction

BIR Ruling 009-99, Jan. 22, 1999 F. Medical Expenses G. Retirement Benefits and Separation Pay Under NIRC 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

Tax II Course Outline Page 3 Atty. Terence Conrad H. Bello Estate Tax

Sec. 89, NIRC C. Estate Tax Return

Sec. 90, NIRC D. Payment of Estate Tax

Sec. 91, NIRC E. Consequences of Non-Payment of Estate Tax

Secs. 248, 249, 94 to 97, NIRC

DONORS TAX

I. MEANING OF GIFT Sec. 104, NIRC CIR v. Duberstein, 363 U.S. 278 (1960) 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

Sec. 248, NIRC Sec. 249, NIRC Sec. 95, NIRC Sec. 97, NIRC

VALUE-ADDED TAX I. TAXABLE TRANSACTIONS

A. In General Sec. 105, NIRC BIR Rul. 98-97, Aug. 28, 1997 BIR Rul. No. 18-05, Sept. 16, 2005 VAT Rul. No. 444-88 VAT Rul. No. 207-90, Nov. 8, 1990 BIR Rul. No. 10-98, Feb. 5, 1998 CIR v. Commonwealth Mgt. & Services Corp., G.R. 125355, March 30, 2000 VAT Rul. No. 26-97, April 1, 1997 Tourist Trade and Travel Corp. v. CIR, CTA Case No. 4806, Jan. 19, 1996 BIR Rul. 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

B. Sale of Goods or Properties 1. Transactions Covered

a. Actual Sale Sec. 106(A)(1), NIRC, as amended by Rep. Act. No. 9337

b. Transactions Deemed Sale Sec. 106(B), NIRC, as amended by Rep. Act No. 9337 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 Rul. 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

Tax II Course Outline Page 2 Atty. Terence Conrad H. Bello VAT

Sec. 4.108-2, Rev. Regs. No. 16-2005, Sept. 1, 2005 Lhuillier v. CIR, CTA Case No. 6533, May 16, 2003

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 Rul. No. 195-89, Sept. 8, 1989 VAT Rul. No. 111-88, April 25, 1989 VAT Rul. 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 Rul. 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 Rul. No. 283-88, July 4, 1988 VAT Rul. No. 87-88, April 14, 1988 VAT Rul. No. 97-88, April 15, 1988

II. RELIEF FROM VAT: ZERO-RATING AND EXEMPTIONS

A. Difference Between Zero-Rating and Exemption Secs. 4.106-5, 1st par., and 4.108-5(a), Rev. Regs. No. 16-2005, Sept. 1, 2005 Cf. Sec. 4.109-1(A), Rev. Regs. No. 16-2005, Sept. 1, 2005 CIR v. Seagate Tech. (Phil.), G.R. 153866, Feb. 11, 2005 Contex Corp. v. CIR, G.R. No. 151135, July 2, 2004

B. Automatically Zero-Rated Transactions 1. Sale of Goods and Properties

Sec. 106(A)(2)(a)(1), (2), (4) and (b), NIRC, as amended by Rep. Act. No. 9337

2. Sale of Services Sec. 108(B)(1), (2), (6) and (7), NIRC, as amended by Rep. Act. No. 9337 CIR v. American Express Intl, Inc. (Phil.), G.R. 152609, June 29, 2005 CIR v. Burmeister & Wain Scandinavian Contractor Mindanao, Inc., G.R.

153205, Jan. 22, 2007 3. Meaning of Accounted for in Accordance with the Rules and

Regulations of the BSP BIR Rul. No. 176-94 VAT Rul. No. 47-00, Oct. 26, 2000

C. Effectively Zero-Rated Transactions 1. Sale of Goods and Properties

Sec. 106(A)(2)(3), (5), (6) and (c), NIRC, as amended by Rep. Act No. 9337 Sec. 4.106-6, Rev. Regs. No. 16-2005, Sept. 1, 2005

2. Sale of Services Sec. 106(B)(3), (4) and (5), NIRC, as amended by Rep. Act No. 9337 Sec. 4.108-6, Rev. Regs. No. 16-2005, Sept. 1, 2005


3. Requirement to Obtain Approved Application for Effective Zero-Rating:

Deleted by Rev. Regs. No. 4-2007, Feb. 7, 2007 Sec. 4.106-6, Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by Rev.

Regs. No. 4-2007, Feb. 7, 2007 (which deleted par. requiring approved application for effective zero-rating)

Sec. 4.108-6, Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by Rev. Regs. No. 4-2007, Feb. 7, 2007 (which deleted par. requiring approved application for effective zero-rating)

D. Exempt Transactions Sec. 109(1), NIRC, as amended by Rep. Act. No. 9337 1. Coverage of Exemption

a. General Rule Philippine Acetylene Co., Inc. v. CIR, 20 SCRA 1056 (1967) Phil. Natl Police Multi-Purpose Cooperative, Inc. v. CIR, CTA Case

No. 4845, March 10, 1994 BIR Rul. No. 155-98, Oct. 21, 1998 BIR Rul. No. 47-99, April 13, 1999

b. Exception CIR v. John Gotamco & Sons, Inc., 148 SCRA 36 (1987) Maceda v. Macaraig, Jr., 223 SCRA 217 (1993)

2. Waiver of VAT Exemption/Election to be Subject to VAT Sec. 109(2), NIRC, as amended by Rep. Act No. 9337

III. RATES OF VAT

A. For Output Tax 1. Standard Rate 12% 2. Zero-Rated Transactions 0%

B. For Input Tax 1. Standard Rate 12% 2. Zero-Rated Transactions 0% 3. Transitional Input Tax 2% or actual VAT paid, whichever is higher 4. Presumptive Input Tax 4% 5. Final Withholding VAT on Government or GOCCs 5%

IV. TAX CREDITS & REFUNDS

A. Input Tax Credit Sec. 110, NIRC, as amended by Rep. Act. No. 9337, as further amended by

Rep. Act. No. 9361 Sec. 4.110-1, Rev. Regs. No. 16-2005, Sept. 1, 2005 1. Persons Who Can Avail of the Input Tax Credit

Sec. 110(A)(1)(b) and (A)(2), NIRC, as amended by Rep. Act. No. 9337 Sec. 4.110-2, Rev. Regs. No. 16-2005, Sept. 1, 2005

2. Special Rules on Amortization of Input Tax on Depreciable Goods Sec. 110(A), proviso, NIRC, as amended by Rep. Act. No. 9337 Sec. 4.110-3, Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by Rev.

Regs. No. 4-2007, Feb. 7, 2007 3. Special Rules on Apportionment of Input Tax on Mixed Transactions

Sec. 110(A)(3), NIRC, as amended by Rep. Act. No. 9337


Sec. 4.110-4, Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by Rev.

Regs. No. 4-2007, Feb. 7, 2007 4. Substantiation of Input Tax Credits

Sec. 4.110-8, Rev. Regs. No. 16-2005, Sept. 1, 2005 BIR Rul. No. 61-00, Nov. 8, 2000

B. Transitional Input Tax Sec. 111(A), NIRC, as amended by Rep. Act. No. 9337 Sec. Sec. 4.111-1(a), Rev. Regs. No. 16-2005, Sept. 1, 2005

C. Presumptive Input Tax Sec. 111(B), NIRC, as amended by Rep. Act. No. 9337 Sec. Sec. 4.111-1(b), Rev. Regs. No. 16-2005, Sept. 1, 2005

D. Final Withholding VAT Sec. 114(C), NIRC, as amended by Rep. Act. No. 9337 Sec. Sec. 4.114-2(a), Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by Rev.

Regs. No. 4-2007, Feb. 7, 2007 See Illustration in Sec. Sec. 4.110-4, Rev. Regs. No. 16-2005, Sept. 1, 2005, as

amended by Rev. Regs. No. 4-2007, Feb. 7, 2007 E. Claims for Refund or Issuance of Tax Credit Certificates

Sec. 112, NIRC, as amended by Rep. Act. No. 9337 1. Zero-Rated or Effectively Zero-Rated Transactions

Sec. 112(A), NIRC, as amended by Rep. Act. No. 9337 2. Cancellation of VAT Registration

Sec. 112(B), NIRC, as amended by Rep. Act. No. 9337 3. Period within which Refund or Tax Credit of Input Tax shall be Made

Sec. 112(C), NIRC, as amended by Rep. Act. No. 9337 Correlate with Sec. 229, NIRC Atlas Consolidated Mining and Devt Corp. v. CIR, G.R. Nos. 141104 & 148763, June 8, 2007 Commissioner of Internal Revenue v. Aichi Forging Co. of Asia, Inc., G.R. No. 184823, Oct. 6, 2010

V. COMPLIANCE REQUIREMENTS

A. Registration with the BIR Sec. 236, NIRC, as amended by Rep. Act No. 9337 1. Mandatory VAT Registration

Sec. 236(G), NIRC, as amended by Rep. Act No. 9337 Sec. Sec. 9.236-1(b), Rev. Regs. No. 16-2005, Sept. 1, 2005

2. Optional VAT Registration Sec. 236(H), NIRC, as amended by Rep. Act No. 9337 Sec. Sec. 9.236-1(c), Rev. Regs. No. 16-2005, Sept. 1, 2005

3. Consequence of Failure to Register as a VAT Person Sec. 236(G)(2), NIRC, as amended by Rep. Act No. 9337

4. Cancellation of VAT Registration Sec. 236(F), NIRC, as amended by Rep. Act No. 9337 Sec. Sec. 9.236-6, Rev. Regs. No. 16-2005, Sept. 1, 2005

B. Record Keeping Requirements Sec. 113(C), NIRC, as amended by Rep. Act No. 9337 Sec. Sec. 4.113-3, Rev. Regs. No. 16-2005, Sept. 1, 2005


C. Invoices and Receipts

Sec. 113, NIRC, as amended by Rep. Act No. 9337 1. General Requirements

Sec. 113(A) and (B), NIRC, as amended by Rep. Act No. 9337 Sec. Sec. 4.113-1(A) and (B), Rev. Regs. No. 16-2005, Sept. 1, 2005

2. Invoicing and Recording of Deemed Sale Transactions Sec. 4.113-2, Rev. Regs. No. 16-2005, Sept. 1, 2005

3. Consequences of Erroneous Issuance of VAT Invoice or O/R Sec. 113(D), NIRC, as amended by Rep. Act No. 9337 Sec. 4.113-4, Rev. Regs. No. 16-2005, Sept. 1, 2005

D. Creditable Withholding Tax Sec. 4.114-2(b), Rev. Regs. No. 16-2005, Sept. 1, 2005

VI. FILING OF RETURN AND PAYMENT OF TAX

Sec. 114, NIRC, as amended by Rep. Act No. 9337 Sec. Sec. 4.114-1(A), Rev. Regs. No. 16-2005, Sept. 1, 2005

OTHER PERCENTAGE TAXES I. PERSONS/TRANSACTIONS SUBJECT TO PERCENTAGE TAXES

A. Persons Exempt from VAT Sec. 116, NIRC, as amended by Rep. Act No. 9337

B. Domestic Carriers and Keepers of Garages Sec. 117, NIRC, as amended by Rep. Act No. 9337

C. International Carriers Sec. 118, NIRC

D. Franchises Sec. 119, NIRC, as amended by Rep. Act No. 9337

E. Overseas Dispatch, Message or Conversation Sec. 120, NIRC

F. Banks and Non-Bank Financial Intermediaries Sec. 121, NIRC, as amended by Rep. Act No. 9337 CIR v. Solidbank Corp., G.R. No. 148191, Nov. 5, 2003

G. Finance Companies Sec. 122, NIRC

H. Life Insurance Premiums Sec. 123, NIRC

I. Agents of Foreign Insurance Companies Sec. 124, NIRC

J. Amusement Sec. 125, NIRC

K. Winnings Sec. 126, NIRC

L. Stock Transactions in Philippine Stock Exchange Sec. 127, NIRC

II. RETURNS AND PAYMENT OF PERCENTAGE TAX

Sec. 128, NIRC

EXCISE TAX

I. GOODS SUBJECT TO EXCISE TAX A. In General

Sec. 129, NIRC B. Alcohol Products

Secs. 141 143, NIRC, as amended by Rep. Act No. 9334 C. Tobacco Products

Secs. 144 145, NIRC, as amended by Rep. Act No. 9334 Secs. 146 147, NIRC

D. Petroleum Products Sec. 148, NIRC, as amended by Rep. Act No. 9337

E. Miscellaneous Articles 1. Automobiles

Sec. 149, as amended by Rep. Act No. 9224 2. Non-Essential Goods

Sec. 150, NIRC F. Mineral Products

Sec. 151, NIRC, as amended by Rep. Act No. 9337 II. PAYMENT OF EXCISE TAXES

Sec. 130, NIRC Sec. 131, NIRC, as amended by Rep. Act No. 9334 Secs. 132 140, NIRC

III. ADMINISTRATIVE REQUIREMENTS

Sec. 130(C), NIRC Secs. 152 172, NIRC

DOCUMENTARY STAMP TAX

I. IN GENERAL Sec. 173, NIRC CIR v. Heald Lumber, 10 SCRA 372 Michel J. Lhuillier Pawnshop, Inc. v. CIR, G.R. No. 166786, May 3, 2006

II. TRANSACTIONS/DOCUMENTS SUBJECT TO DST

A. Original Issuance of Shares Sec. 174, NIRC, as amended by Rep. Act No. 9243

B. Transfer of Shares Sec. 175, NIRC, as amended by Rep. Act No. 9243 Compagnie Financiere Sucres et Deneres v. CIR, G.R. No. 133834, Aug. 28, 2006

C. Foreign-Issued Bonds, Debentures, Shares or Certificates of Indebtedness, and Other Instruments Sec. 176, NIRC

D. Issue and Transfer of Certificate of Interest in Property or Accumulations Sec. 177, NIRC

E. Bank Checks, Drafts, Certificates of Deposit not Bearing Interest Sec. 178, NIRC

F. Debt Instruments Sec. 179, NIRC, as amended by Rep. Act No. 9243 Banco de Oro Universal Bank v. CIR, CTA Case No. 6568, Aug. 5, 2005 Belle Corp. v. CIR, CTA Case No. 6156, June 17, 2005

G. Bills of Exchange or Drafts Sec. 180, NIRC, as amended by Rep. Act No. 9243

H. Acceptance of Foreign-Drawn Bills of Exchange 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 Rul. No. DA-182-2005, April 20, 2005

K. Non-Life Insurance Policies Sec. 184, NIRC BIR Rul. 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.

Tax II Course Outline Page 2 Atty. Terence Conrad H. Bello DST

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 Rul. No. DA-076-2005 BIR Rul. No. DA-084-2005, March 14, 2005 BIR Rul. No. DA-065-2005, Feb. 23, 2005 BIR Rul. No. DA-640-2004, Dec. 17, 2004 BIR Rul. No. DA-648-2004, Dec. 21, 2004

X. Charter Party and Similar Instruments Sec. 197, NIRC

Y. Assignment, Transfer, and Renewal of Certain Instruments Sec. 198, NIRC

III. TRANSACTIONS/DOCUMENTS NOT SUBJECT TO DST

Sec. 199, NIRC, as amended by Rep. Act No. 9243 BIR Rul. No. DA-244-2005, June 7, 2005 Belle Corp. v. CIR, CTA Case No. 6156, June 17, 2005

IV. PAYMENT OF DST Sec. 200, NIRC

V. EFFECT OF NON-PAYMENT OF DST Sec. 201, NIRC

LOCAL TAXATION

I. GENERAL PRINCIPLES A. Local Autonomy

Sec. 129, Local Government Code of 1991 (LGC) Mactan Cebu Intl Airport Authority v. Marcos, G.R. No. 120082, Sept. 11,

1996 Manila Electric Co. v. Prov. of Laguna, G.R. No. 131359, May 5, 1999

B. Fundamental Principles Sec. 130, LGC Pepsi Cola Bottling Co. of the Phils., Inc. v. Mun. of Tanauan, L-31156, Feb.

27, 1976 Ormoc Sugar Co., Inc. v. Mun. Board of Ormoc City, L-24322, July 21, 1967 Asiatic Integrated Corporation v. Alikpala, 72 SCRA 285 Matalin Coconut Co. v. Mun. Council of Malabang, 143 SCRA 404

C. Common Limitations on Taxing Powers of LGUs Sec. 133, LGC Prov. of Bulacan v. CA, G.R. No. 126232, Nov. 27, 1998 Phil. Petroleum Corp. v. Mun. of Pililla, G.R. No. 90776 June 3, 1991 San Miguel Corp. v. Mun. Council of Mandaue, L-30761, July 11, 1973

II. SCOPE OF TAXING POWERS OF LGUS A. Province

Secs. 135-141, LGC B. Municipality

Secs 142-143, LGC C. City

Sec. 151, LGC Art. 237, IRR

D. Barangay Sec. 152, LGC

III. COMMUNITY TAX CERTIFICATE (CTC) A. Who are liable

Secs. 157-159, LGC Art. 246, IRR

B. Exemptions Sec. 159, LGC

C. Place and time of payment of tax Secs. 160-161, LGC

IV. TIME, MANNER AND PLACE OF PAYMENT OF LOCAL BUSINESS TAX A. Time of payment

1. General rule Secs. 165-167, LGC

2. In case of new ordinance levying new tax or increasing rates Sec. 166, LGC

3. In case of retirement of business

Tax II Course Outline Page 2 Atty. Terence Conrad H. Bello Local Taxation


B. Manner of payment Sec. 146, LGC Art. 242, IRR Standard Vacuum Oil Co. v. Antigua, 96 Phil. 909 Ali Nam v. City of Manila, 109 Phil. 808

C. Place of payment 1. Location of branch or sales outlet Sec. 150(a), LGC Art. 243, IRR 2. Allocation to 2 or more LGUs Sec. 150(b) to (e), LGC

Art. 243, IRR 3. Sales by route trucks or vans Art. 243(d), IRR

V. ENACTMENT OF TAX ORDINANCES AND OTHER REVENUE MEASURES

A. Public hearing Sec. 186, last proviso, LGC Sec. 187, LGC Art. 275, IRR Figueras v. CA, G.R. No. 119172, March 25, 1999 Tuzon v. CA, 212 SCRA 739, 745 (1992)

B. Publication Sec. 188, LGC Art. 276, IRR Figueras v. CA, et. al., supra

C. Appeal to Secretary of Justice Sec. 187, LGC Reyes, et. al. v. CA, G.R. No. 118233, Dec. 10, 1999 Drilon v. Lim, G.R. No. 112497, Aug. 4, 1994 Hagonoy Market Vendor Assoc. v. Mun. of Hagonoy, Bulacan, 376 SCRA 376

D. Appeal to court of competent jurisdiction Id.

E. Effect of appeal Id.

VI. REMEDIES OF LOCAL GOVERNMENT AND TAXPAYER

A. Remedies of local government 1. Examination of taxpayers books of accounts

Sec. 171, LGC 2. Issuance of deficiency assessment

Sec. 195, LGC Sec. 194, LGC

3. Imposition of surcharge and interest Secs. 168-169, LGC

4. Summary remedies

Tax II Course Outline Page 3 Atty. Terence Conrad H. Bello Local Taxation

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


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

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 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

V. 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)

Tax II Course Outline Page 2 Atty. Terence Conrad H. Bello Real Property Taxation

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 Sec. 270, LGC

E. Unpaid tax constitutes a lien Sec. 257, LGC

VII. REMEDIES OF TAXPAYER

A. Dispute assessment 1. Appeal to local Board of Assessment Appeals

Sec. 226, LGC Callanta, et. al. v. Office of the Ombudsman, supra

2. If denied, appeal to Central Board of Assessment Appeals Sec. 229(c), LGC

3. If denied, appeal to Court of Tax Appeals Sec. 7, Rep. Act No. 1125, as amended by Rep. Act No. 9282

4. Effect of appeal Sec. 231, LGC

B. Payment under protest Sec. 252, LGC Art. 343, IRR Camp John Hay Devt Corp. v. CBAA, CTA E.B. No. 48 (CBAA Case No. L-

37; Tax Appeal Case No. 2002-2003 Board of Tax Assessment Appeals, Baguio City), July 27, 2005

Tax II Course Outline Page 3 Atty. Terence Conrad H. Bello Real Property Taxation

National Power Corp. v. Prov. of Quezon and Mun. of Pagbilao, CTA E.B.

No. 46 (CBAA Case No. L-29) C. Claim for refund or credit

Sec. 253, LGC China Banking Corp. v. City Treasurer of Kalookan, CTA Case AC No. 12,

Aug. 31, 2005

TARIFF AND CUSTOMS CODE

I. Introduction A. General rules for the interpretation of the Asean Harmonized Tariff

Nomenclature (AHTN) Sec. 103, TCCP

B. Rates of import duty Sec. 104, TCCP Sec. 204, TCCP

C. Rate of exchange Sec. 203, TCCP

D. Imported articles subject to duty Sec. 100, TCCP

E. Conditionally-free importations Sec. 105, TCCP

F. Prohibited Importations Sec. 101, TCCP

G. Articles entitled to duty drawback Sec. 106, TCCP

II. Basis of Assessment of Duty

A. Basis of dutiable value Sec. 201, TCCP

B. Basis of dutiable weight Sec. 202, TCCP

III. Special Duties

A. Anti-Dumping Duty Sec. 301, TCCP

B. Countervailing Duty Sec. 302, TCCP

C. Marking Duty Sec. 303, TCCP

D. Discriminating Duty Sec. 304, TCCP

IV. Ascertainment and Collectionof Import Duty A. When importation begins and deemed terminated

Sec. 1202, TCCP B. Who is deemed owner of imported articles

Sec. 1203, TCCP C. Liability of importer for duties

Sec. 1204 ,TCCP

V. Remedies of Government A. Search, seizure and arrest

Secs. 2202-2212, TCCP Secs. 2301-2306, TCCP

Tax II Course Outline Page 2 Atty. Terence Conrad H. Bello Tariff and Customs Code

B. Impose surcharges, fines and forfeitures

Sec. 2307, TCCP Secs. 2501-2536, TCCP

C. File civil or criminal action Sec. 2401, TCCP

D. Impose fine and imprisonment Secs. 3601-3612, TCCP

E. Compulsory Acquisition Sec. 2317, TCCP

F. Automatic review by Secretary of Finance of adverse ruling Sec. 2313, TCCP

VI. Remedies of Importer A. Payment under protest

Secs. 2308-2312, TCCP B. Appeal to Commissioner of Customs

Sec. 2313, TCCP C. Compromise

Sec. 2316, TCCP

Week 1: I to III, Rights & Remedies of Government Week 2: IV to V, Rights and Remedies of Government Week 3: I to II, Rights & Remedies of Taxpayer Week 4: III to IV, Rights & Remedies of Taxpayer Week 5: V to VI, Rights & Remedies of Taxpayer Week 6: VII to VIII, Rights & Remedies of Taxpayer Week 7: Midterms Week 8: I to IV, Estate Tax Week 9: V to VIII, Estate Tax; Donors Tax Week 10: I to III, VAT Week 11: IV to VI, VAT Week 12: Other Percentage Taxes, Excise Tax, DST Week 13: Local Taxation and Real Property Taxation Week 14: Finals

130602 Tax 2 Outline (Consolidated)

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Transcript of 130602 Tax 2 Outline (Consolidated)