I.
TAXATION
A. Definition
B. Nature of Internal Revenue Law
i. CASE:
1. Hilado v CIR, G.R. No. L-9408, October 31, 1956 100 Phil 288
C. Scope and Nature of Taxation (or the characteristics of Taxing Power)
i. Sec. 28, Art. VI, 1987 Constitution
ii. Sec. 5, Art. X, 1987 Constitution
iii. CASES:
1. Sison v Ancheta, G.R. No. L-59431, July 25, 1984, 130 SCRA 654
2. Phil. Guaranty v CIR, G.R. No. L-22074, April 30, 1965, 13 SCRA 775
D. Underlying Theory and Basis; Necessity Theory; Benefit-Received Principle
i. CASES:
1. Commissioner v. Algue, G.R. No. L-28896, February 17, 1988, 158 SCRA
9
2. Lorenzo v. Posadas, G.R. No. 43082, June 18, 1937, 64 Phil 353
3. Paseo Realty & Development Corporation v. CA, G.R. No. 119286 (2004)
E. Purpose of Taxation
i. General/Fiscal/Revenue
1. CASES:
a. Napocor v Province of Albay G.R. No. 87479, 4 June 1990
ii. Non-revenue/Special or Regulatory
1. CASES:
a. Southern Cross Cement Corporation v. Cement Manufacturers
Association of the Philippines, et al., G. R. No. 158540 (2005)
b. Osmena v. Orbos, G.R. No. 99886, March 31, 1993, 220 SCRA
703
c. PAL v Edu, G.R. No. L-41383, 164 SCRA 320
F. Principles of a Sound Tax System
i. 1987 Constitution, Art. VI, Section 28(1)
ii. CASES:
1. Chavez v Ongpin, G.R. No. 76778, June 6, 1990, 186 SCRA 33
2. Taganito Mining v CIR CTA Case 4702 April 28, 1995
G. Comparison with Police Power and Eminent Domain
i.
II.
CASES:
1. Roxas v. CTA, G.R. No. L-25043, April 26, 1968, 23 SCRA 276
2. LTO v. City of Butuan, G.R. No. 131512, Jan. 20, 2000
TAXES
A. Definition
B. Essential Characteristics of Taxes
i. CASES:
1. Tan v. Del Rosario, G.R. No. 109289, October 3, 1994, 237 SCRA 324
2. Gaston v. Republic Planters Bank, G.R. No. 77194 (1988)
C. Taxes distinguished from:
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i. Debts
1. CASES:
a. Caltex v COA, G.R. No. 92585, May 8, 1992, 208 SCRA 726
b. Domingo v Garlitos, G.R. No. L-18994, June 29, 1963, 8 SCRA
443
ii. License Fees
1. CASES:
a. Ferrer, Jr. V. Bautista, G.R.No. 210551, June 30, 2015
b. Gonzalo Sy Trading vs. Central Bank of the Phil., G.R. No. L41480 (1976)
iii. Special Assessments/Levies
1. Sec. 240, RA 7160
2. CASE:
a. Apostolic Prefect v Treasurer of Baguio, G.R. No. L-47252, April
18, 1941, 71 Phil. 547
iv. Tolls
1. CASE:
a. City of Ozamis v. Lumapas, GR No. L-30727, July 15, 1975
v. Penalties
1. CASE:
a. NDC v CIR 151, G.R. No. L-53961, June 30, 1987, SCRA 472
vi. Customs Duties
III.
SOURCES OF TAX LAW
A. Constitution
B. Statutes
i. RA 8424, as amended
ii. Customs Modernization and Tariff Act (CMTA)
iii. Book II, Local Government Code
iv. Special Laws
C. Administrative Issuances
i. Revenue Regulations
1. Secs. 244 – 245, NIRC
2. Art. 7, Civil Code
3. CASES:
a. Tan v. Del Rosario, G.R. No. 1019289, October 3, 1994, 237
SCRA 234
b. CIR v. Seagate Technology, G.R. No. 153866, February 11, 2005
ii. BIR Rulings
1. Secs. 4, 246, NIRC
2. BIR Revenue Administrative Order (RAO) No. 2-2001 as amended by
RAO No. 1-2003
3. CASES:
a. CIR v Mega Gen. Merchandising, G.R. No. L-69136, September
30, 1988, 166 SCRA 166
b. PBCOM vs. CIR, G.R. No. 112024, January 28, 1999, 302 SCRA
241
iii. Customs Regulations
1. CASE:
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D.
E.
F.
G.
H.
IV.
a. COC and the District Collector of the Port of Subic v. Hypermix
Feeds Corporation, G.R. No. 179579, Feb. 1, 2012
Tax/Revenue Ordinances
i. CASES:
1. Hagonoy Market Vendor v. Municipality of Hagonoy, G.R. No. 137621,
February 6, 2002
2. Jardine Davies v. Aliposa, G.R. No. 118900, February 27, 2003
Tax Treaties
i. CASES:
1. Tañada v. Angara, G.R. No. 118295, May 2, 1997
2. Deutsche Bank AG Manila Branch v. CIR, G.R. No. 188550, August 19,
2013
Case Laws (SC/CTA)
Legislative Materials
Opinions of the Secretary of Justice
LIMITATIONS UPON THE POWER OF TAXATION
A. INHERENT LIMITATIONS
i. Public Purposes
1. CASES:
a. Lutz v Araneta, G.R. No. L-7859, December 22, 1955, 98 Phil. 48
b. Pascual v Sec. of Public Works, G.R. No. L-10405, December 29,
1960, 110 Phil. 331
ii. Delegation of Taxation Power
1. Delegata potestas non potest delegari
2. Sec 5, Art. X, 1987 Constitution
3. Sec. 28(2), Art. VI, 1987 Constitution
4. Sec. 401, Tariff and Customs Code, as amended / Sec 1608 Customs
Modernization and Tariff Act (CMTA)
5. CASES:
a. Phil Comm. Satellite Corp. v Alcuaz, G.R. No. 84818, December
18, 1989, 180 SCRA 218
b. LTO v. City of Butuan, G.R. No. 131512, January 20, 2000
c. City Government of Quezon City v. Bayantel, G.R. No. 162015,
Mar. 6, 2006
d. Garcia v. Executive Secretary, G.R. No. 101273, July 30, 2012,
210 SCRA 219
e. Osmena v. Orbos, G.R. No. 99886, March 3, 1993, 220 SCRA
703
f. CIR v. CA, G.R. No. 119761, August 29, 1996
iii. Exemption of Government Agencies
1. Secs. 27(C) and 30(I), NIRC
2. Sec 32(B)(7)(b)
3. Executive Order 93
4. PD 1931
5. Sec. 133(O), Local Government Code
6. CASES:
a. Maceda v. Macaraig, G.R. No. 88291, June 8, 1993, supra
b. Mactan Cebu Airport v. Marcos, G.R. No. 120082, Sept. 11, 1996
c. Collector v. Bisaya Land Transportation, 105 Phil. 338 (1959)
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iv. Territoriality or Situs of Taxation
1. CASES:
a. Manila Gas v. Collector, G.R. No. L-42780, January 17, 1936, 62
Phil 895
b. Vegetable Oil Corp. v Trinidad, G.R. No. 21475, March 26, 1924,
45 Phil. 822
c. Wells Fargo Bank v Col, G.R. No. L-46720, June 28, 1940, 70
Phil. 325
d. CIR v. BOAC, G.R. Nos. L-65773-4, April 30, 1987, 149 SCRA
395
e. Collector v. Lara, G.R. No. L-9456 & L-9481, January 6, 1958,
102 Phil 813
v. International Comity
1. In par parem, non habet imperium
2. Sec. 2, Art. 11, 1987 Constitution
3. CASES:
a. Tanada v. Angara, G.R. No. 118295, May 2, 1997
b. Mitsubishi Corp. v. CIR, CTA Case 6139, Dec. 17, 2003
B. CONSTITUTIONAL LIMITATIONS
i. Due Process Clause
1. Sec. 1, Art. III, 1987 Constitution
2. CASES:
a. Com. of Customs v CTA & Campos Rueda Co., 152 SCRA 641
ii. Equal Protection Clause
1. Sec. 1, Art. III, 1987 Constitution
2. CASES:
a. Ormoc Sugar Co. v. Treasurer of Ormoc City, G.R. No. L-23794,
February 18, 1968, 22 SCRA 603
b. Villegas v. Hiu Chiong Tsai Pao, G.R. No. L-29646, November
10, 1978, 86 SCRA 270
iii. Rule of Taxation shall be Uniform and Equitable
1. Sec. 28(1), Art. VI, 1987 Constitution
2. CASES:
a. Sison v. Ancheta, G.R. No. L-59431, July 25, 1984, 130 SCRA
654
b. Tolentino v. Sec of Finance, G.R. No. 115455, October 30, 1995,
iv. Non- Impairment of Contracts
1. Sec. 10, Art. III & Sec. 11, Art. XII, 1987 Constitution
2. CASES:
a. Tolentino v. Sec of Finance (supra)
v. Non- Imprisonment for Non-payment of Poll Tax
1. Sec. 20, Art. III, 1987 Constitution
vi. Prohibition against Taxation of Religious and Charitable Institutions
1. Sec. 28(3), Art. VI, 198Constitution
2. CASES:
a. Lladoc v CIR, G.R. No. L-19201, Jun 16, 1965, 14 SCRA 292
b. Apostolic Prefect v. City Treasurer of Baguio, G.R. No. L-47252
(1941)
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vii. Prohibition against Taxation of Non-stock Non-profit Educational Institutions
1. Sec. 4(3), Art. XIV, 1987 Constitution
2. Sec. 28(3), Art. VI, 1987 Constitution
3. Secs. 27(B) and 30(H), NIRC
4. CASES:
a. CIR v. CA & YMCA, G.R. No. 124043, October 14, 1998, 298
SCRA 83
b. De La Salle University, Inc. v. CIR, C.T.A. EB Case No. 671, June
8, 2011 (C.T.A. Case No. 7303)
viii. Freedom of Religious Worship; non-establishment of religion
1. Sec 29, Art. VI, 1987 Constitution
2. Sec. 5, Art. III, 1987 supra
3. CASES:
a. American Bible Society v Manila, G.R. No. L-9637, April 30,
1957, 101 Phil. 386
b. Aglipay v Ruiz, G.R. No. L-45459, March 13, 1937
ix. Passage of Tax Bills/ Granting of Tax Exemption
1. Sec. 24, Art. VI, 1987 Constitution
2. Sec. 28(4), Art. VI, 1987 Constitution
3. CASE:
a. Tolentino v Secretary of Finance, G.R. No. 115455, Aug 8, 1994,
249 SCRA 628
x. Veto Power of the President
1. Sec. 27(2), Art. VI, 1987 Constitution
2. Veto Message for RA 10963 (TRAIN Law)
3. Veto Message for RA 11213 (Tax Amnesty Law)
xi. Non-impairment of SC Jurisdiction
1. Sec. 2 Art VIII, 1987 Constitution
2. Sec. 5(2)(b), Art. VIII, 1987 Constitution
V.
OTHER DOCTRINES IN TAXATION
A. Prospectivity of Tax Laws
Sec. 246, NIRC
CASES:
1. San Miguel Corporation v. CIR, CTA Case Nos. 7052 and 7053, Oct. 18,
2011
B. Imprescriptibility of Taxes
i. CASES:
1. CIR v. Ayala Securities Corp., G.R. No. L-29485, November 21, 1980,
189 Phil 159-168
2. Commissioner v. Standard Chartered Bank, G.R. No. 192173 (2015)
C. Double Taxation
i. CASES:
1. Procter & Gamble Co. v Mun of Jagna, G.R. No. L-24265, December 28,
1979, 94 SCRA 894
2. Punzalan v Mun Board of Manila, G.R. No. L-4817, May 26, 1954, 95
Phil. 46
D. Power to Tax Involves the Power to Destroy
i. CASES:
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1. Sison v. Ancheta, G.R. No. 59431, July 25, 1984, 130 SCRA 654
2. Roxas v. CTA, G.R. No. L-25043, April 26, 1968, 23 SCRA 276
E. Doctrine of Equitable Recoupment
CASE:
1. Collector v. Univ of Sto. Tomas, G.R. No. 11274, 104 Phil. 1062
F. Taxpayer’s Suit
i. CASE:
1. Bagatsing v. San Juan, GR No. 97787, Aug 1, 1996, 329 Phil. 8-15
G. Escape from Taxation; Tax Evasion; Tax Avoidance
Sec. 254, NIRC
H. CASES:
1. Republic v. Gonzales, G.R. No. L-17962, April 30, 1965, 13 SCRA 633
2. Delpher Traders v. IAC, G.R. No. L-69259, January 26, 1988, 157 SCRA
349
3. CIR v. Lincoln Philippine Life, G.R. No. 119176, Mar. 19, 2002
I. Shifting of Tax Burden
i. Tax shift or Tax swap
ii. Impact of Tax
iii. Tax Incidence
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