Taxation Law Summer

7/27/2019 Taxation Law Summer

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T a x a t i o n L a w S u m m e r R e v i e w e r

ATENEO

CENTRALBAROPERATIONS2007

P a g e 9 o f 1 4 5QuickTime and aTIFF (Uncompressed) decompressor are needed to see this picture.laws or portions thereof administered bythe BIR subject to the exclusive appellate jurisdiction ofthe CTA

B. Power to obtain information, summon,examine and take testimony of persons (Sec.5)1) For the Commissioner to ascertain:(a) correctness of any return or in making areturn wherenone has been made(b) liability of any person for any internalrevenue tax or in correcting suchliability(c) tax complianceThe Commissioner is authorized:2) toExamineany relevant Book, paper, recordor other data3) toObtainany Information (costs, volume of production, receipts, sales, gross income,etc), on a regularbasis from:(a) any person other than the person under investigationor (b) any office or officer of the national/localgovernment, government agenciesandinstrumentalities (

Bangko Sentral,GOCCs)4) ToSummon(a) the person liable for tax or required to filea return or (b) any officer or employee of suchpersonor (c) any person having in hispossession/custody/care1. the books of accounts2. accounting records of entries relatingto the business of theperson liablefor tax or any other person5) toProducesuch books, papers, records andother data and to give testimony6) to take theTestimonyof the personconcerned, under oath as may be relevant tothe inquiry7) Tocause revenue officers and employees tomake a

Canvassof any revenue district or regionnothing in Section 5 shall be construed asgranting the Commissioner the authority toinquire intobank deposits other than as providedfor under Sec. 6 (F) of the Code (authority toinquire intobank deposits).C


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. Power to make assessments, prescribe additional requirements fortax administration and enforcement (Sec. 6)1) Examination of returns and determination of tax due -(a) After a returnhas been filedtheCommissioner or his representative mayauthorizei. the Examination of anytaxpayer;andii. the Assessment of the correctamount of tax;(b) Failure to file a return shall notpreventthe Commissioner fromauthorizing the examination of anytaxpayer;

Any tax or deficiency tax so assessed shall be paid upon notice and demand fromthe Commissioner or his representative.Any return, statement or declaration filed inany authorized office shall not be withdrawn; but within THREE YEARS from date of filing, the samemay be modified, changed or amended; provided that no notice for audit or investigation of suchreturn, has in the meantime, been actually served upon the taxpayer.2) Failure to submit required returns and other documentsIf a person(a) fails to file a requiredreturn or report atthe time prescribed or (b) Willfully or otherwise files a false or fraudulentreturn,The Commissioner shall Make or Amend thereturn from(a) his own knowledge or (b) fromsuch information as he can obtainthrough testimony or otherwisewhich shall be

prima faciecorrect and sufficientfor all legal purposes3) Inventory-taking, Surveillance, PresumptiveGrossSales(a) Commissioner may, at any time duringthe taxable year 1. order the Inventory taking

of goodsof any taxpayer; or 2. may place the business operations of any person(natural/juridical) under Observation or Surveillanceif there is reason to believe that suchpersonis not declaring his correctincome, sales or receipts for taxpurposes.The findings may be usedas basis for assessing the taxes and shall be deemed

prima faciecorrect.


ATENEOCENTRALBAROPERATIONS2007

P a g e 1 0 o f 1 4 5QuickTime and aTIFF (Uncompressed) decompressor are needed to see this picture.

(b) Commissioner may prescribe a Minimumamount of gross receipts, sales andtaxable base(taking into account thesales and income of other personsengaged in similar business):1. When a person has failed to issuereceipts as required by Sec. 113(Invoice requirements forVAT-registered persons) and Sec. 237(Issuance of Receipts or CommercialInvoices); or 2.When the books of accounts or records do not correctly reflect thedeclarations made or requiredto bemade in a return,such minimum amount shallbe

prima facie


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everse, revoke, modify anyexisting rule of the BIR3) power toCompromise orAbate any taxliabilityEXCEPT, the regional evaluation boardmaycompromise:(a) assessments issued by regionaloffices involving deficiency taxes of P500,000

or less; and(b) minor criminal violations as may be


ATENEOCENTRALB

AROPERATIONS2007

P a g e 1 1 o f 1 4 5QuickTime and aTIFF (Uncompressed) decompressor are needed to see this picture.determined by the rulesRegional Evaluation Board iscomposed of: i. Regional Director as Chairman ii. Asst. Regional Director iii. Heads of the Legal,Assessment and Collection Div.iv. Revenue District Officer having jurisdiction over the

taxpayer

4) power toAssign or reassign internalrevenue officers to establishments wherearticles subject to excise taxare keptE.

Assignment of Internal Revenue Officers (Secs. 16 &17)The Commissioner may assign/ reassign internalrevenue officers:1) involved in excisetax functions as often as theexigencies of revenue service may require;provided that he shall inno case stay in hisassignment for more than 2 years (Sec. 16)2) without change in rankand salary, to other or special duties connected with the enforcementand administration ofinternal revenue laws asthe exigencies of the service may require;provided that officersassigned to performassessment or collection functions shall notremain in the same assignment

for more than 3years; assignment of officers and employees tospecial duties shall not exceed 1year (Sec. 17)F.

Internal Revenue Districts (Sec. 9)The Commissioner, with approval of the Sec. of Finance, shall divide the Philippines intosuchnumber of revenue districts for administrativepurposes. Each district shall be under thesupervisionof a Revenue District Officer.Duties of the Commissioner:


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(PASO)1) To

Prescribe, provide and distribute to the proper officials the requisite licenses, internalrevenuestamps, labels, all other forms, certificates,bonds, records, invoices, books,receipts,instruments and appliances used in administeringlaws falling within the jurisdiction of

BIR2) ToAcknowledge payment of any tax under thisCode expressinga) the amount paid andb) theparticular account for which paymentwas made (Sec. 8)3) ToSubmit reports to the appropriate committeeof Congress upon its request and in aid of legislation,which information or report shallinclude, but not be limitedto:(a) industry audits(b) collection performance data(c) status reports in criminal actionsinitiatedagainst persons(d) taxpayers returnsprovided, any return or information which canbeassociated with or identifies, directly or indirectly a particular taxpayer, shall befurnished to theappropriate committee of Congress only when sitting in ExecutiveSession, unless the taxpayerconsents inwriting to such disclosure4) Submit reports

to theOversight Committeethrough the Chairman of the Committee on Waysand Means of the Senateand House of Representatives, on the exercise of his powers of abatement and compromise oftaxes (Sec. 204)every 6 months of each calendar year. (Sec. 20)NATIONAL INTERNAL REVENUE TAXES: (Sec.21) (I VEE DOO)1)Income tax2)Estate and Donors tax3)

Value-Added tax4)Other percentage tax5)Excise tax6)Documentary stamp tax7) SuchOther taxes as are or hereafter may beimposed and collected by the BIR

TITLE II. TAX ON INCOMEDEFINITION OF TERMS

1)Person an individual, a trust, estate or corp.2)Corporation

include partnerships (distinguishbetween ordinary and general professionalpartnership)3)General professional partnership partnerships formed for the sole purpose of exercising their common profession, no partof itsincome being derived from engaging in any tradeor business4)Shares of stock


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includes shares of stock of acorp., warrants & options to purchase shares of stock, as well asunits of participation in apartnership (except gen. professionalpartnership), joint stockcompanies, jointaccounts, joint ventures taxable as corp.,associations & recreation oramusement clubs &mutual fund certificates

Taxation Law Summer

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