Ateneo Law Taxation Law Reviewer

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TAXATION LAW

BAR REVIEWER

FACULTY ADVISERS

ATTY. MICHAEL DANA MONTERO

ATTY. FRANCISCO GONZALES

ACADEMICS HEAD

PIERRE MARTIN REYES

SUBJECT HEADS

SHERYL CHRISTINE LAGROSAS

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ATENEO CENTRAL BAR OPERATIONS 2012

ACADEMICS COMMITTEE

Academics Head: Pierre Martin Reyes;

Understudy: Clariesse Jami Mari Chan

REVIEW COMMITTEE

Head: Yla Gloria Marie Paras;

Understudy: Ken Koga;

Members: Catherine Dela Rosa, Eric Lavadia, Le Iris Lucido,

Pearl Charisse Baustista; Mina Reyes

TAXATION LAW COMMITTEE

Heads: Sheryl Christine Lagrosas; Ellie Chris Navarra

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TAXATION LAW REVIEWER

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TAXATION LAW

TAXATION LAW REVIEWER

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19. CLAIMS FOR REFUND/TAX CREDIT

CERTIFICATE OF INPUT TAX ... 90

20. INVOICING REQUIREMENTS ... 90

21. FILING OF RETURN AND PAYMENT ... 91

22. WITHHOLDING OF VAT ... 91

E. Percentage Tax ...95

F. Compliance Requirements ...98

G. Tax remedies under the NIRC ...108

III. LOCAL GOVERNMENT CODE OF 1991, as amended ... 121

1. Fundamental Principles ... 121

2. Nature and Source of Taxing Power (CITE LAW) 121 3. Local Taxing Authority ... 122

4. Residual Taxing Powers of the LGU (Sec. 186 LGC) ... 122

5. Specific Taxing Power of Local Government Unit (LGU) ... 123

6. Common Limitations on the Taxing Powers of LGUs and common revenue ... 128

7. Collection of Business Taxes ... 128

8. Taxpayer’s Remedies ... 129

a) Periods of assessment and collection of local taxes, fees or charges ... 129

b) Protest of assessment (Sec. 195, LGC) ... 129

c) Claim for refund of tax credit for erroneously or illegally collected tax, free or charge ... 129

9. Civil Remedies by the LGU for the Collection of Revenues ... 129

1. Fundamental Principles in Assessment of Real Property Taxes (Sec. 198) [CUANE] .... 131

2. Nature of Real Property Tax ... 131

3. Imposition of Real Property Tax ... 132

4. Appraisal and Assessment of Real Property Tax ...133

Actual Use of Property as Basis for Assessment (LGC Sec. 217) ... 133

Types of Real Property Tax ... 133

5. Collection of Real Property Tax ...133

Steps in the Assessment and Collection of RPT ... 133

Remedies of LGUs for the Collection of Real Property Tax ... 134

6. Claim for Tax Refund or Credit (LGC Sec 253) ...135

7. Taxpayer’s Remedies ...135

IV. TARIFF AND CUSTOMS CODE OF 1978, as amended ... 137

A. Definitions ...137

B. General Rule ...137

C. Purpose for Imposition ...137

LIABILITY FOR CUSTOMS DUTIES ...137

D. Flexible Tariff ...138

E. Requirements for Importation ...138

F. Importation in Violation of TCC...139

G. Goods Conditionally-free from Tariff and Customs Duties ...139

H. Classification of Duties ...143

1. Ordinary/ Regular Duties ... 143

2. Special Duties ... 144

I. Drawback ...145

J. Tax Remedies under the TCC ...145

1. Government ... 145

2. Taxpayer ... 145

V. Judicial Remedies; Republic Act 1125 The Act that Created the Court of Tax Appeals (CTA), as amended, and the Revised Rules of the Court of Tax Appeals .. 150

A. Jurisdiction of the Court of Tax Appeals ...150

B. Judicial Procedures ...150

1. Judicial action for collection of taxes ...150

C. Taxpayer’s Suit Impugning the Validity of Tax Measures ...152

1. TAX PAYER’S SUIT ... 152

2. DISTINGUISHED FROM CITIZEN’S SUIT ... 153 ...

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TAXATION LAW

I. GENERAL PRINCIPLES OF TAXATION

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TOPICS UNDER THE SYLLABUS:

I. GENERAL PRINCIPLES

A. Definition and concept of Taxation

B. Nature and Characteristics of Taxation

C. Power of Taxation Compared with Other Powers

D. Purpose of Taxation

E. Principles of Sound Tax System (FAT)

F. Theory and Basis of Taxation (JBL)

G. Doctrines in Taxation

H. Scope and Limitation of Taxation

I. Stages of Taxation (LAPR)

J. Definition, Nature, and Characteristics of Taxes

K. Requisites of a valid tax

L. Tax as distinguished from other forms of

exactions

M. Kinds of Taxes

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TOPIC UNDER THE SYLLABUS:

I. GENERAL PRINCIPLES

A. Definition and concept of Taxation

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Power inherent in every sovereign State to impose a charge or burden upon persons, properties, or rights to raise revenues for the use and support of the government to enable it to discharge its appropriate functions.

Power by which an Independent State, through its lawmaking body, raises and accumulates revenue from its inhabitants to pay the necessary expenses of the government. [51 AM JUR 341]

Process or act of imposing a charge by governmental authority on property, individuals or transactions to raise money for public purposes. *Black’s Law

Dictionary]

Taxation is merely a way of apportioning the cost of government among those who in some measure are privileged to enjoy its benefits and must bear its burdens. [71 AM JUR 2ND 342]

Taxation is described as a destructive power which interferes with the personal and property rights of the people and takes from them a portion of their property for the support of the government. Paseo Realty &

Development Corporation v.CA, [2004]

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TOPIC UNDER THE SYLLABUS:

I. GENERAL PRINCIPLES

B. Nature and Characteristics of Taxation

======================================

The power of taxation is inherent in sovereignty as an incident or attribute thereof, being essential to the existence of independent government.

The right to tax exists apart from Constitutions and without being expressly conferred by the people. It is legislative in character.

It is generally not delegated to executive or judicial department. Exceptions:

i. To LGUs in respect to matters of local concern to be exercised by the LG bodies thereof [Sec. 5, Art.

X, 1987 Constitution];

ii. When allowed by the Constitution [Sec. 28[2], Art.

VI, 1987 Constitution];

iii. When the delegation relates merely to admin implementation that may call for some degree of discretionary powers under a set of sufficient standards expressed by law Cervantes v. Auditor

General, [91 Phil. 359], or implied from the policy

and purpose of the Act Maceda v. Macaraig, [197

SCRA 771].

It is subject to constitutional and inherent limitations. It must be used for public purposes – It has been held that tax has been utilized for public purpose if the welfare of the nation or the greater portion of its population has benefited for use Gomez v. Palomar,

[25 SCRA 827]; Phil Guaranty Co., Inc. v. Commissioner, [13 SCRA 775].

It is the strongest of all the inherent powers of the government Sison v. Ancheta, [130 SCRA 654].

It is territorial in operation – The power to tax can only be exercised within the territorial jurisdiction of a taxing authority [51 Am Jur 88], except when there exists privity of relationship between the taxing State and the object of tax.

It is an enforced charge and contribution. Generally pecuniary in nature (payable in money).

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TOPIC UNDER THE SYLLABUS:

I. GENERAL PRINCIPLES

C. Power of Taxation Compared with Other Powers

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TAX

POLICE POWER (in the form of a

FEE) EMINENT DOMAIN Concept Power to enforce contribution to raise government funds Power to make and implement laws for the general welfare

Power to take private property for public use with just compensation Scope Plenary, comprehensive and supreme Broader in application General power to make and implement laws Merely a power to take private property for public use Exercising Authority Government or political subdivisions Government or political subdivisions Maybe granted to public service companies or public utilities Purpose

Raise revenue Exercise to

promote public welfare through regulation The taking of property for public use Amount of Imposition

No limit Limited to the

cost of regulation, issuance of license, or surveillance No limit imposed, but the amount should be based on the market value of the property Effect Becomes part of public funds Restraint on the injurious use of property Transfer of right to the property Persons Affected Applies to all persons, property and excises that may be subject thereto

Applies to all persons, property and excises that may be subject thereto Only particular property is comprehended Superiority of Contracts Contracts may be impaired unless (a) government is party to contract Contracts may be impaired TAX POLICE POWER (in the form of a

FEE) EMINENT DOMAIN granting exemption; or (b) involves franchise Benefits Received Protection and general benefits from the government No direct or immediate benefit but only such as may arise from the maintenance of a healthy economic standard of society Market Value of the property Relationship to Constitution Subject to certain constitutional limitations Relatively free from constitutional limitations Subject to certain constitutional limitations ======================================

TOPIC UNDER THE SYLLABUS:

I. GENERAL PRINCIPLES

D. Purpose of Taxation

========================================

1. Revenue-raising

Taxation is the power by which the sovereign raises revenue to defray the necessary expenses of government.

It is to provide funds or property with which to promote the general welfare and protection of the whole citizenry.

It is raised to serve as a means to provide public improvements designed for the enjoyment of the citizenry within the State’s territory.

2. Non-revenue/special or regulatory

Taxation is also used for regulatory purposes; it is used to attain non-revenue objectives and pursue policy decisions.

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TOPIC UNDER THE SYLLABUS:

I. GENERAL PRINCIPLES

E. Principles of Sound Tax System (FAT)

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1. Fiscal Adequacy - the sources of tax revenue should

coincide with and approximate the needs of the government expenditures

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2. Administrative Feasibility - the tax system should be

capable of being properly and efficiently administered

by the government and enforced with the least inconvenience to the taxpayer

3. Theoretical Justice - the tax system should be fair to

the average taxpayer and based upon the ability to pay

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TOPIC UNDER THE SYLLABUS:

I. GENERAL PRINCIPLES

F. Theory and Basis of Taxation (JBL)

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1. Jurisdiction over subject & objects

2. Benefits-Protection Theory (Symbiotic relationship) –

The basis of taxation is found in the reciprocal duties of protection and support between the state and its inhabitants. In return for this contribution, the taxpayer receives the general advantages and protection which the government affords the taxpayer and his property. 3. Lifeblood/Necessity Theory - The power of taxation

proceeds upon the theory that the existence of government is a necessity; that it cannot continue without means to pay its expenses; and that for those means it has the right to compel all citizens and property within its limits to contribute.

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TOPIC UNDER THE SYLLABUS:

I. GENERAL PRINCIPLES

G. Doctrines in Taxation

====================================== 1. Prospectivity of tax laws

This principle provides that a tax bill must only be applicable and operative after becoming a law.

As a general rule, taxing authorities must be applied prospectively, except by express provision of the law. Ex post facto is not applicable for tax purposes. However when it comes to civil penalties like fines and forfeiture (except interest), tax laws may be applied retroactively unless it produces harsh and oppressive consequences w/c violate the taxpayer’s constitutional rights regarding equity and due process Fernandez v.

Fernandez, [99 Phil. 934]; Commissioner v. Filipinas Cia de Seguros, [107 Phil. 1055].

2. Imprescriptibility

Unless otherwise provided by the tax law itself, taxes in general are not cancelable Commissioner v. Ayala

Securities Corporation, [101 SCRA 231].

Although the NIRC provides for the limitation in the assessment and collection of taxes imposed, such prescriptive period will only be applicable to those taxes that were returnable. The prescriptive period shall start from the time the taxpayer files the tax return and declares his liability Collector v. Bisaya Land

Transportation Co., [1958]

As to IAET, the court held that there is no time limit on the right of the BIR Commissioner to assess this type of tax [Sec. 25, NIRC].

The law on prescription being a remedial measure should be interpreted liberally in order to protect the taxpayer. Republic vs. Ablaza, [108 Phil 1105]

3. Double Taxation (DT)

a. Direct Duplicate Taxation (Strict sense) – To constitute

double taxation in the objectionable or prohibited sense:

The same property must be taxed twice when it should be taxed once;

Both taxes must be imposed:

i. On the same property or subject matter; ii. For the same purpose;

iii. By the same State Government or taxing authority; iv. Within the same jurisdiction or taxing district;

v. during the same period; and

vi. they must be the same kind or character of tax

Villanueva v. City of Iloilo, [26 SCRA 578]

b. Indirect Duplicate Taxation (Broad sense) – It means

indirect duplicate taxation. It extends to all cases in w/c there are two or more pecuniary impositions. The Constitution does not prohibit the imposition of double taxation in the broad sense

c. Constitutionality of DT – The SC held that there is no

constitutional prohibition against double taxation in the Phils. Villanueva v. City of Iloilo, [26 SCRA 578], therefore it is not a valid defense against the validity of a tax measure Pepsi Cola v. Tanauan, [69 SCRA 460]. i. There is no double taxation in the following cases: i. By taxing corporate income and stockholders’

dividends from the same corporation

ii. Tax imposed by the State and the local government upon the same occupation, calling or activity

iii. Real estate tax and income tax collected on the same real estate property leased for earning purposes. Villanueva vs. City of Iloilo, [26 SCRA

578]

iv. Taxes are imposed on taxpayer’s final product and the storage of raw materials used in the

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production of the final product. Procter and

Gamble Philippines vs. Municipality of Jana, [94 SCRA 894]

d. Modes of eliminating DT

(1) Provide for exemptions or allowance of deduction or tax credit for foreign taxes

(2) Enter into treaties with other states [like the former Phil-Am Military Bases Agreements as to income tax]

(3) Application of the Principle of Reciprocity

4. Escape from Taxation

a. Shifting of tax burden – The imposition of tax is

transferred from the statutory taxpayer to another without violating the law.

(1) Ways of shifting the tax burden (FBO)

i. Forward shifting – the transfer of burden from the producer to distributor until it finally reaches the ultimate purchasers or consumers

ii. Backward shifting – the reverse of forward shifting, e.g. the manufacturer has agreed to buy the supplier’s product only if the price is reduced by the amount of tax.

iii. Onward shifting – the tax burden is shifted twice or more either forward or backward

(2) Taxes that can be shifted i. VAT

ii. Percentage tax

iii. Excise tax on excisable articles

iv. Ad valorem taxes that oil companies pay to BIR upon removal of petroleum products from its refinery

(3) Meaning of impact and incidence of taxation i. Impact of Taxation – point on which the tax is

originally imposed or the one on whom the tax is formally assessed.

ii. Incidence of Taxation – point on which the tax burden finally rests or settles down.

Example: VAT is originally assessed against the seller who is required to pay the said tax, but the burden is actually shifted or passed on to the buyer.

b. Tax avoidance – also called Tax Minimization; tax

saving device that is legally permissible

c. Tax evasion – connotes fraud through the use of

pretenses and forbidden devices to lessen or defeat taxes; must be willful and intentional

It connotes the integration of three factors:

End to be achieved, i.e., the payment of less than that known by the taxpayer to be legally due, or the non-payment of tax when it is shown that a tax is due;

Accompanying state of mind which is described as being "evil," in "bad faith," "willful," or "deliberate and not accidental"; and

Course of action or failure of action which is unlawful. Benigno vs. Toda, [G.R. Nos. 78583-4

March 26, 1990]

TAX EVASION TAX AVOIDANCE

Other Name

Tax Dodging Tax Minimization

Means Use illegal means Use legal means

Penalty Punishable by law Not punishable by law

Object To entirely escape

payment of taxes

To merely minimize payment of taxes

5. Exemption from taxation

a. Meaning – The grant of immunity to particular persons

or corporations or to persons or corporations of a particular class from a tax which persons and corporations generally within the same state or taxing district are obliged to pay.

i. It is an immunity or privilege; it is freedom from a

financial charge or burden to which others are subjected. Greenfield v. Meer, [77 Phil 394]

b. Nature

Exemption from taxes is personal in nature and covers only taxes for which the taxpayer-grantee is directly liable. In any case, it cannot be transferred or assigned by the person to whom it is given without the consent of the State.

Tax exemptions are strictly construed against the

taxpayer because such provisions are highly

disfavored and may almost be said to be odious to the law Manila Electric Company v. Vera, [67 SCRA

351].

Exemptions are not presumed, but when public property is involved, exemption is the rule, and taxation, the exception.

There can be no simultaneous exemptions under 2

laws, one partial and the other total. c. Kinds (ICE)

(1) Express (or affirmative) – when certain persons, property or transactions are, by express provision, exempted from all or certain taxes, either entirely or in part.

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Examples of Statutory Tax Exemptions:

i. Inter-corporate dividends by a domestic

corporation from another domestic

corporation [Sec. 27 D [4], NIRC]

ii. Section 105 of the Tariff and Customs Code iii. Section 234 of the Local Government Code iv. Other special laws such as Omnibus

Investment Code of 1987, Philippine Overseas Shipping Act

(2) Implied (or by omission) – when a tax is levied on

certain classes of person, properties or

transactions without mentioning the other classes. Every tax statute makes exemptions since all those not mentioned are deemed exempted. The omission may either be accidental or intentional. (3) Contractual – those lawfully entered into by the

government in contracts under existing laws. These exemptions must not be confused with the tax exemptions granted under franchises, which are not contracts within the context of non-impairment clause of the Constitution. Cagayan

Electronic Co. v. Commissioner, [138 SCRA 629] d. Rationale/grounds for exemption

A presumption that the public interest will be subserved by the exemption allowed. Grant of exemption rests upon that such will benefit the body of the people and not upon any idea of lessening the burden of the individual owners of property.

Purpose is some public benefit or interest, which the law-making body considers sufficient to offset the monetary loss entailed in the grant of exemptions. Created in a treaty on grounds of reciprocity or to

lessen the rigors of the international double or multiple taxation.

Equity is not a ground for tax exemption

e. Revocation

Tax exemption is generally revocable.

The congressional power to grant an exemption necessarily carries with it the consequent power to revoke the same.

In order to be irrevocable, the tax exemption must be founded on a contract or granted by the Constitution.

Revocations are constitutional even though the corporate do not have to perform a reciprocal duty for them to avail of tax exemptions.

6. Compensation and Set-off

This doctrine states that taxes are not subject to set-off

or legal compensation because the government and

the taxpayer are not mutual creditor and debtor of

each other Republic v. Mambulao Lumber Co., [6 SCRA

622]; Caltex Phils. V. COA, [208 SCRA 726].

Not subject to set-off or compensation for the following reasons:

i. Taxes are of distinct kind, essence and nature, and these impositions cannot be classed in merely the same category as ordinary obligations;

ii. The applicable laws and principles governing each are peculiar, not necessarily common, to each; and iii. Public policy is better subserved if the integrity and

independence of taxes are maintained Republic v.

Mambulao Lumber Co., [6 SCRA 622].

A person cannot refuse to pay tax on the basis that the government owes him an amount equal to or greater than the tax being collected. The collection of a tax cannot await the results of a lawsuit against the government. Philex Mining Corp. v. Commissioner,

[1998]; Francia v. Intermediate Court, [162 SCRA 753]

An exception to the rule is where both the claims of the government and the taxpayer against each other have already become due, demandable and fully liquidated. In this case, compensation takes place by operation of law and both obligations are extinguished to their concurrent amounts. Domingo v. Garlitos, [8 SCRA

443]

7. Compromise

Compromises are generally allowed and enforceable when the subject matter thereof is not prohibited from being compromised and the person entering such compromise is duly authorized to do so.

The law allows the ff: persons to do compromise in behalf of the government:

i. BIR Commissioner as expressly authorized by the NIRC subject to certain conditions [Sec. 204, NIRC]; ii. Collector of Customs with respect to customs duties

limited to cases where the legitimate authority is specifically granted such as in the remission of duties [Sec. 709, TCC]; and

iii. Customs Commissioner subject to the approval of the Secretary of Finance, in cases involving the imposition of fines, surcharges, and forfeitures [Sec.

2316, TCC]. 8. Tax Amnesty

a. Meaning – It is the general or intentional overlooking

by the State of its authority to impose penalties on persons otherwise guilty of evasion or violation of a revenue or tax law.

It partakes of an absolute forgiveness or waiver of the Government of its right to collect.

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It is a way to give tax evaders, who wish to relent & are willing to reform a chance to do so.

b. Distinguished from tax exemption:

AMNESTY EXEMPTION

Scope of immunity

Immunity from all criminal, civil and administrative liabilities from non-payment of taxes

Immunity from civil liability only

To whom granted

General pardon given to all taxpayers

A freedom from a charge or burden to which others are subjected Application Applies only to past

tax periods hence retroactive application Generally, prospective in application Presence of Actual Revenue Loss

Yes, there is revenue loss since there was actually taxes due but collection was waived by the government

None, because there was no actual taxes due as the person or transaction is protected by tax exemption

9. Construction and Interpretation of: a. Tax Laws

(1) General rule:

No person or property is subject to taxation unless within the terms or plain import of a taxing statute.

In case of doubt, tax statutes are construed strictly against the government and liberally in favor of the taxpayer.

Taxes being burdens, they are not to be presumed beyond what the statute expressly and clearly declares.

Tax statutes offering rewards are liberally construed in favor of informers.

(2) Exception:

The rule of strict construction as against the government is not applicable where the language of the tax statute is plain and there is no doubt as to the legislative intent. In such case, the words employed are to be given their ordinary meaning. Tax statutes are to receive a reasonable

construction with a view to carrying out their purpose and intent. They should not be construed as to permit the taxpayer to easily evade the payment of tax. Thus, good faith of the taxpayer is

not a sufficient justification for exemption from the payment of surcharges imposed by the law for failing to pay tax within the period required. A tax statute should be construed to avoid the

possibilities of tax evasion.

b. Tax Exemption and Exclusion

(1) General rule:

Exemptions are not favored and are construed

strictissimi juris [by the most strict right or law]

against the taxpayer.

An exemption from the common burden cannot be permitted to exist upon vague implication or inference

The fundamental theory is that all taxable property should bear its share of the cost and expense of government.

Applying the rule of strict construction to statutory provisions granting tax exemptions [or deductions] would minimize differential treatment and foster fairness and equality of treatment among taxpayers.

Taxation is the rule and exemption, the exception. Therefore, whoever claims exemption must be

able to justify his claim or right thereto, by a grant expressed in terms “too plain to be mistaken and too categorical to be misinterpreted.”

If not expressly mentioned by law, it must at least be within its purview by clear legislative intent. Claims for refund partake of the nature of tax

exemptions and will not be allowed unless granted in the most explicit and categorical language. (2) Exception:

When the law itself expressly provides for a liberal construction, that is, in case of doubt, it shall be resolved in favor of exemption

When the exemption is in favor of the government itself or its agencies because the gen. rule is that they are exempt from tax.

When the exemption refers to religious, charitable and educational institutions.

If there is an express mention or if the taxpayer falls within the purview of the exemption by clear legislative intent, the rule on strict construction does not apply.

c. Tax Rules and Regulations

(1) General rule only – The construction placed by the office charged with implementing and enforcing the provisions of a Code should be given controlling weight unless such interpretation is clearly erroneous.

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d. Penal provisions of tax laws

Strict construction so as not to extend the plain terms thereof that might create offenses by mere implication not so intended by the legislative body

RP v. Martin, [G.R. No. L-38019, May 16, 1980]. e. Non-retroactive application to taxpayers

The (tax) law cannot be given retroactive effect. It is established that tax laws are prospective in application, unless it is expressly provided to apply retroactively. Carmelino F. Pansacola v. CIR, [G.R.

No. 159991, November 16, 2006]

A tax law should not be given retroactive application when it would be harsh and oppressive, for in such case, the constitutional limitation of due process would be violated.

Sec. 246 of the NIRC provides that any revocation,

modification or reversal of any of the rules and regulations promulgated in accordance with Secs.

244 and 255 or any of the rulings or circulars

promulgated by the Commissioner shall not be given retroactive application if the revocation, modification or reversal will be prejudicial to the taxpayers.

(1) Exceptions:

While it is not favored, a statute may nevertheless operate retroactively provided it is expressly declared or is clearly the legislative intent. For instance: the universal practice of increasing taxes on income already earned.

The rules and regulations promulgated by the CIR shall be retroactive in the following cases:

i. Where the taxpayer deliberately misstates or omits material facts from his return or any document required of him by the Bureau of Internal Revenue;

ii. Where the facts subsequently gathered by the Bureau of Internal Revenue are materially different from the facts on which the ruling is based; or

iii. Where the taxpayer acted in bad faith.

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TOPIC UNDER THE SYLLABUS:

I. GENERAL PRINCIPLES

H. Scope and Limitation of Taxation

====================================== 1. Inherent Limitations

a. Public Purpose

Test: whether the proceeds will be used for something

which is the duty of the State to provide.

The public purpose of the tax law must exist at the

time of its enactment. Pascual v. Secretary of

Public Works, [G.R. No. L-10405, December 29, 1960]

Legislature is not required to adopt a policy of “all or none” for the Congress has the power to select the object of taxation. Lutz v. Araneta, [G.R. No.

L-7859, December 22, 1955]

A special benefit to specific individual does not diminish the nature of tax being for public purpose as long as it is incidental.

b. Inherently Legislative

(1) General rule – power of taxation cannot be delegated.

Contemplates the power to determine kind, object, extent, amount, coverage, and situs of tax; Distinguish from power to assess and collect (2) Exceptions:

(a) Delegation to local governments – It is in line with the principle that the power to create municipal corporations for purposes of local self-government carries with it the power to confer the power to tax on such local governments. (b) Delegation to the President – Certain aspects of

the taxing process that are not legislative in character may be vested to him.

(c) Delegation to administrative agencies – They are authorized to fix within specified limits, Tariff rates, import or export quotas, tonnage and wharfage dues and other duties or imposts.

c. Territorial

(1) Situs of Taxation

(a) Meaning – place of taxation; power to tax is limited to the territorial jurisdiction of the taxing state.

EXCEPT where privity of relationship exists, the State can exercise its taxing powers over its citizen outside its territory.

(b) Situs of Income Tax

(1) From sources within the Philippines

Interests derived from sources within the Philippines

Dividends from domestic and foreign corporations

Compensation for services performed within the Philippines

Rentals and royalties from properties located in the Philippines or any interest in such property including rentals or royalties for the use of or for the privilege of using within the Philippines, patents, copyrights and other like

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properties.

Sale of Real property located in the Philippines Sale of Personal property – Gains, profit, and income derived from the purchase within and its sale without the Phil, or from the purchase without and its sale within shall be treated as derived entirely from sources within the country in which the personal property is sold. Except: the gain from the sale of shares of stock in a domestic corporation shall be treated as derived entirely from sources within the Phils. regardless where the said shares are sold.

(2) From sources without the Philippines

Interest other than those derived from sources within the Philippines

Dividends other than those derived from sources within the Philippines

Compensation for services performed without the Philippines

Rentals and royalties from property located without the Philippines or from any interest in such property including rentals or royalties for the use of or for the privilege of using without the Philippines, patents, copyrights and other like properties.

(3) Income partly within and partly without the Philippines

Items other than those specified above in i. and ii. shall be allocated or apportioned to sources within or without the Philippines (c) Situs of Property Taxes

(1) Taxes on Real Property – Location of the property

(2) Taxes on Personal Property

i. Tangible – Location of the property ii. Intangible – Domicile of the owner

(d) Situs of Excise Tax

(1) Estate Tax – Domicile of the decedent at the time of his death

(2) Donor’s Tax – Domicile of the donor at the time of the transfer

(e) Situs of Business Tax – Place where the taxpayer is registered or required to register

(1) Sale of Real Property (2) Sale of Personal Property (3) VAT

SUMMARY:

OBJECT SITUS RULE

Person Residence,

Domicile, Citizenship

Real Property Location of the property

Tangible Personal Property

Physical location although the owner resides in another jurisdiction Intangible

Personal Property

Domicile of the owner (mobilia

sequntur personam) Income Citizenship Residence Source of Income Transfer of property Citizenship Residence Location of Property Business or Occupation

Where the act/business/occupation is performed/exercised

d. International Comity

Property of a foreign State of government may not be taxed by another.

e. Exemption of Government Entities, Agencies, and Instrumentalities

Taking money from one pocket to the other. Applies only to entities exercising sovereign functions (acta jure imperii).

However, it can tax itself if there is a statutory authority to do so and no express provision against such act.

2. Constitutional Limitations

a. Provisions Directly Affecting Taxation

(1) Prohibition against imprisonment of non-payment of poll tax [Sec. 20, Art. III]

Can still be made to pay fines and penalties for non-payment.

Taxpayer may be imprisoned for non-payment of other kinds of taxes where the law so expressly provides.

(2) Uniformity and equality of taxation [Sec. 28 (1),

Art VI]

Uniform: all articles or properties of the same class taxed at the same rate

Equity: apportionment must be more or less just in the light of taxpayer’s ability to shoulder tax burden

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treatment in like circumstances

The uniformity and equity clause refers to the proper relative treatment for tax purposes of persons in unlike circumstances

(3) Grant by Congress of authority to the President to impose tariff rates/Flexible tariff clause [Sec. 28

(2), Art. VI]

Includes import and export quotas, tonnage and wharfage dues aside from tariff rates

Delegated by Congress

Through a law; the Tariff and Customs Code has provided for what has been termed as “the flexible tariff clause” authorizing the President to modify import duties [Sec. 401, TCC]

Subject to Congressional limits and restrictions Within the framework of national development

program

(4) Prohibition against taxation of religious, charitable and educational entities/Exemption from real property taxes [Sec. 28 (3), Art. VI of the

Constitution]

Covers charitable institutions, churches, and parsonages or convents appurtenant thereto, mosques and non-profit cemeteries and all lands, buildings and improvements ACTUALLY, DIRECTLY and EXCLUSIVELY USED for charitable, religious and educational purposes

Pertains only to real estate tax

Test of exemption: actual use of the property, not ownership

(5) Prohibition against taxation of stock, non-profit [educational] institutions [Sec. 4(3&4), Art.

XIV]

Exempts from taxes all revenues and assets of non-stock, non-profit educational institutions used ACTUALLY, DIRECTLY AND EXCLUSIVELY for educational purposes

Exemption covers income, real estate, donor’s tax, and customs duties (distinguish from the previous which pertains only to real estate tax)

Income exempt provided it is used for maintenance or improvement of institution (indispensable or essential).

The exemption is strictly personal. (non-transferable)

Distinguish from tax treatment of

i. Proprietary educational institutions

(Preferential Tax of 10%);

ii. Government educational institutions (exempt, ex. UP)

(6) Majority vote of Congress for grant of tax exemption [Sec. 28 (4), Art. VI]

Includes amnesties, condonations and refunds Involves majority of all members voting separately Relative majority (majority of quorum) is sufficient

to withdraw exemption.

(7) Prohibition on use of tax levied for special purpose

[Sec. 29 (3), Art. VI]

Revenues derived for a special fund shall be administered for the purpose intended only. Once the purpose is achieved, the balance, if any,

is to be transferred to the general funds of the government.

(8) President’s veto power on appropriation, revenue, and tariff bills [Sec. 27 (2), Art. VI]

(9) Non impairment of jurisdiction of the SC [Sec.

5(2)(b), Art. VIII]

(10) Grant of power to the local government units to create its own sources of revenue [Sec. 5, Art. X] (11) No appropriation or use of public money for

religious purposes [Sec. 29 (2), Art. VI]

b. Provisions Indirectly Affecting Taxation

(1) Due process [Sec. 1, Art. III]

SUBSTANTIVE PROCEDURAL

Should not be harsh, oppressive, or confiscatory (reasonableness)

No arbitrariness in assessment and collection

By authority of valid law Right to notice and hearing

Must be for a public purpose Imposed within territorial jurisdiction

It can also be invoked by the government. Province

of Abra v. Hernando, [G.R. No. L-49336 August 31, 1981]

(2) Equal protection [Sec. 1, Art. III]

All persons subject to legislation shall be treated alike, under like circumstances and conditions both in privileges conferred and liabilities imposed.

Sison, Jr. v. Ancheta, [G.R. No. L-59431, 25 July 1984]

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No violation of equal protection when there is proper classification made; classification to be valid must:

i. Rest on substantial distinctions ii. Be germane to the purpose of the law iii. Not be limited to existing conditions only; and iv. Apply equally to all members of the same class (3) Religious freedom [Sec. 5, Art III]

The constitutional guaranty of the free exercise and enjoyment of religious profession and worship carries with it the right to disseminate religious information. American Bible Society v. City of

Manila, [G.R. No. L-9637, April 30, 1957].

Activities simply and purely for propagation of faith are exempt.

Tax is unconstitutional if it operates as a prior restraint on exercise of religion or favors a certain religion (non-establishment of religion)

Income of religious organizations from any activity conducted for profit or from any of their property, real or personal, regardless of disposition of such income, is taxable

(4) Non-impairment of obligations [Sec. 10, Art. III] Applies only when government is party to the

contract granting exemption

EXCEPT if Franchise tax-exemption The

Constitution provides that franchise is subject to amendment, alteration, or repeal by Congress.

======================================

TOPIC UNDER THE SYLLABUS:

I. GENERAL PRINCIPLES

I. Stages of Taxation (LAPR)

======================================

1. Levy – Refers to the enactment of a law by Congress,

imposing a tax.

2. Assessment – The act of administration and

implementation of the tax law by the executive department through the administrative agencies

3. Payment – Act of compliance by the taxpayer, including

such options, schemes or remedies as may be legally available to him.

4. Refund – Recovery of any tax alleged to have been

erroneously or illegally assessed or collected, or of any penalty claimed to have been collected without authority, or of any sum alleged to have been excessively, or in any manner wrongfully, collected.

======================================

TOPIC UNDER THE SYLLABUS:

I. GENERAL PRINCIPLES

J. Definition, Nature, and Characteristics of Taxes

======================================

A burden, charge, exaction, imposition or contribution assessed in accordance with some reasonable rule of apportionment by authority of the sovereign state upon the persons or property within its jurisdiction, to provide public revenue for the support of the government, the administration of the law, or the payment of public expenses. [71 AM JUR 2ND 343-346]

Any payment exacted by the State or its municipal subdivisions as a contribution toward the cost of maintaining governmental functions, where the special benefits derived from the performance is merged in the general benefit.

Taxes operate in INVITUM and are in no way dependent upon the will or contractual assent, express or implied, of the person taxed.

(1) Enforced (2) proportional and (3) pecuniary contributions (4) from persons and property (5) levied by law-making body of (6) the state having jurisdiction over the subject of the burden (7) for the support of the government and all public needs.

======================================

TOPIC UNDER THE SYLLABUS:

I. GENERAL PRINCIPLES

K. Requisites of a valid tax

======================================

a. Must be for a public purpose b. It should be uniform and equitable

c. That either the person or property taxed is within the jurisdiction of the taxing authority

d. That it complies with the requirements of due process e. That it does not infringe any constitutional limitations

======================================

TOPIC UNDER THE SYLLABUS:

I. GENERAL PRINCIPLES

L. Tax as distinguished from other forms of

exactions

====================================== 1. Customs Duty/Tariff

TAX CUSTOMS DUTY

Coverage More comprehensive than customs duty

Kind of tax

Object Persons, prop, etc Goods imported

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2. Toll TAX TOLL Kind of demand Demand of sovereignty Demand of ownership Purpose support of government

Collection for the use of property

Amount No limit – depends

on need of the government

Fair return of the cost of the property or improvement

3. License Fee

TAX LICENSE FEE

Source Exercise of

Taxing power

Emanate from the police power of the State

Purpose Raise revenue Regulation

Object Persons,

property and privilege

Right to exercise a privilege

Amount no limit only necessary to carry out

regulation

Distinction lies in the primary purpose:

License fee primary purpose is to regulate and the excess of the amount collected from the cost to carry out the regulation is minimal and incidental.

Tax’s primary purpose, or at least one of the real and substantial purposes is to raise revenue.

If amount is too high for regulation, it would be a tax; unless imposed on non-useful occupations or businesses.

Purpose of distinction: limitations and exemptions apply only to one and not to the other (ex. Exemption from taxation does not include exemption from fee)

4. Special Assessment

TAX SPECIAL ASSESSMENT

Imposed on Persons, properties, etc. Only on land Why imposed Regardless of public improvement Public improvement that benefits the land

Purpose Support of government Contribution to cost of public improvement When imposed

Regular exaction Exceptional as to time

and locality

Basis Necessity Benefits obtained

5. Debt

TAX DEBT

Source Law; legal obligation Based on contract

Nature Personal Assignable

Right to set-off

Generally not subject to compensation/

set-May be the subject of compensation/ set-off

off

Effect Imprisonment is

sanction for non-payment

No imprisonment for non-payment

======================================

TOPIC UNDER THE SYLLABUS:

I. GENERAL PRINCIPLES

M. Kinds of Taxes

====================================== 1. As to subject matter or object

a. Personal, poll, capitation tax –

Fixed amount

Individuals residing within specified territory Without regard to their property, occupation or business

Ex. Community Tax (Cedula)

b. Property tax –

Imposed on property, real or personal

In proportion to its value or other reasonable method of apportionment

Ex. Real estate tax

c. Excise/Privilege tax - (different from the excise tax

of Title VI of the NIRC)

Imposed upon performance of an act, the enjoyment of a privilege or the engaging in an occupation, profession or business

Ex. Income tax, VAT, estate tax, donor’s tax

2. As to who bears the burden or incidence

a. Direct – the tax is imposed on the person who also

bears the burden thereof

Ex. Income tax, community tax, estate tax

b. Indirect – imposed on the taxpayer who shifts the

burden of the tax to another

Ex. VAT, specific tax, percentage tax, customs duties

3. As to tax rates or determination of amount

a. Specific – tax imposed and based on a physical unit

of measurement, as by head, number, weight, length or volume

Ex. Tax on distilled spirits, fermented liquors, cigars

b. Ad Valorem - tax of a fixed proportion of the value

of property with respect to which the tax is assessed; requires intervention of assessor.

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Ex. Real estate tax, excise tax on cars, non-essential goods

c. Mixed

4. As to purposes

a. General, fiscal or revenue - imposed for the

general purpose of supporting the government Ex. Income tax, percentage tax

b. Special or regulatory - imposed for a special

purpose, to achieve some social or economic objectives

Ex. Protective tariffs or customs duties

5. As to scope or authority to impose

a. National - imposed by the national government

Ex. National internal revenue taxes, custom duties

b. Municipal or local - imposed by the municipal

corporations or local governments Ex. Real estate tax, occupation tax

6. As to graduation of rate (Three systems of taxation) a. Proportionate - based on a fixed percentage of the

amount of the property, income or other basis to be taxed

Ex. Real estate tax, VAT, percentage tax

b. Progressive or graduated - tax rate increases as

the tax base or bracket increases Ex. Income tax, estate tax, donor’s tax

c. Regressive - tax rate decreases as the tax base

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II.NATIONAL INTERNAL REVENUE CODE

======================================

TOPICS UNDER THE SYLLABUS:

A. Income Taxation

B. Estate Tax

C. Donor’s Tax

D. Value-Added Tax (VAT)

E. Compliance Requirements (Internal Revenue

Taxes)

F. Tax Remedies under the NIRC

G. Organization and Function of the Bureau of

Internal Revenue

========================================

======================================

TOPIC UNDER THE SYLLABUS:

A. Income Taxation

========================================

1. Income Tax Systems

a. Global (unitary) Tax System – the total allowable

deductions, as well as personal and additional exemptions, in the case of qualified individuals, or the total allowable deductions only, in the case of corporations, are deducted from the gross income (i.e. sum of all items of taxable income, profit and gain) to arrive at the net taxable income subject to the graduated income tax rates, in the case of individuals, or to the corporate income tax rate, in the case of corporations.

All items of gross income, deductions, personal and additional exemptions are reported in one income tax return and a single tax is imposed on all income received or earned by a person irrespective of the

activities which produced the income (i.e.

compensation income, net income from business, trade or profession).

b. Schedular Tax System – different types of incomes are

subjected to different sets of graduated or flat income tax rates. The applicable tax rates will depend on the classification of the taxable income and the basis could be gross income or net income (i.e. capital gains tax)

c. Semi-Schedular or Semi-Global Tax System – the

compensation income, business or professional income, capital gain and passive income not subject to final tax, and other income are added together to arrive at the gross income and after deducting the sum of allowable deductions, the taxable income is subjected to one set

of graduated tax rates for an individual or normal corporate income tax rate for corporations.

With respect to the income, the computation of income is global while the scheduler tax system applied to the capital gains and passive income subject to final tax at preferential tax rates.

NOTE: Philippine income taxation is a combination of both

system but is more schedular for individual while more global for corporation.

GLOBAL SYSTEM SCHEDULAR SYSTEM

A system which imposes a personal tax upon the total income of the taxpayer

A system which imposes various types of tax on income producing activities Emphasizes the burden

allocation aspects

Emphasizes on revenue and administrative aspects Most equitable in

distributing tax burden, as burden of an individual is closely related to his resources and his ability to pay

Because of its multiple rates, the tax burden of a person does not respond to his income but rather fall fortuitously on the type of his income

It serves as a means for redistributing income and wealth

This function is alien to schedular system where in times of plenty or in times of need, people pay the same fixed tax on their income It serves as a supplementary

devise to accomplish non-fiscal goals of the government

Schedular system cannot perform these functions

Administration is not quite as easy as schedular because one has to consider all income from whatever sources

Administration is simple being confined to each transaction or activity

2. Features of the Philippine Income Tax Law

a. Direct tax – tax burden us borne by the income tax

recipient upon whom the tax is imposed.

b. Progressive tax – tax rate increases as the tax base

increases; direct taxes are to be preferred and as much as possible, indirect taxes should be minimized.

Tolentino v. Secretary of Finance, [G.R. No. 115455, October 30, 1995]

c. Comprehensive system – adopts the citizenship

principle, residence principle and the source principle

d. Semi-schedular or semi-global tax system – certain

passive incomes and capital gains are subject to final taxes at preferential rates while all other income are

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added together to arrive at the gross income and after deducting the sum of allowable deductions, the taxable income is subjected to one set of graduated tax rates for an individual or normal corporate income tax rate for corporations.

3. Criteria in Imposing Philippine Tax Law

a. Citizenship principle – a citizen taxpayer is subject to

income tax: (a) on his worldwide income if he resides in the Philippines; or (b) only on his income from sources within the Philippines, if he qualifies as non-resident citizen.

b. Residence principle – a resident alien is liable to pay

income tax on his income from sources within the Philippines but exempt from tax on his income from sources outside the Philippines.

c. Source principle – a non-resident alien is subject to

Philippine income tax because he derives income from sources within the Philippines such as dividend, interest, rent or royalty.

4. Types of Philippine Income Tax

a. Net Income Tax/Taxable Income (GI – Deductions –

Exemptions)

b. Gross Income Tax

c. Final Income Tax (On passive income and capital gains) d. Fringe Benefits Tax (amount of benefits to Managerial

and Supervisory Employee paid by Employer; employee is taxed but burden is on employer)

e. Capital Gains Tax (Real property and stocks not traded

in stock market)

f. Optional Corporate Income Tax

g. Minimum Corporate Income Tax (2% of gross income) h. Improperly Accumulated Earnings Tax

i. Preferential Rates (for special corporations) j. Branch Profit Remittance Tax

5. Taxable Period

GENERAL RULE: The accounting period of a taxpayer is a period of twelve (12) months.

a. Calendar Year – accounting period from January 1 to

December 31 which is allowed if the: Taxpayer is an individual Taxpayer is a partnership

Accounting period is other than a fiscal year Taxpayer has no accounting period

Taxpayer does not keep books.

b. Fiscal Year – accounting period of twelve (12) months

ending on the last day of any month other than December which is allowed ONLY to corporations.

c. Short Period – a taxpayer may have a taxable period of

less than twelve (12) months when: Taxpayer dies

Corporation is newly organized

Corporation changes its accounting period Corporation is dissolved.

6. Kinds of Taxpayers

TAXPAYER TAX BASE TAXABLE ON INCOME

Resident Citizen Taxable

Income

Within and without the Philippines

Nonresident Citizen

Taxable

Income Within the Philippines

Resident Alien Taxable

Nonresident Alien engaged in trade or business (more than 180 days)

Taxable

Nonresident Alien not engaged in trade or business (180 days or less)

Gross

General Professional Partnership

Taxable Income

GPP itself not taxable, however, individual partners will be taxed depending on classification

Estate and Trust Taxable

Income Same basis as an individual (depending on classification of decedent, if estate, trustor, if trust) Domestic Corporation Taxable Income

Within and Without the Philippines Resident Foreign

Corporation

Taxable

Non-resident Foreign corporation

Gross

a. Individual Taxpayers (1) Citizens

(a) Resident Citizen – citizen of the Philippines residing therein is taxable on all income derived from sources within and without the Philippines. (b) Nonresident Citizen – citizen of the Philippines who are taxable only on his income from sources within the Philippines if he:

i. Establishes the fact of his physical presence abroad with a definite intention to reside therein.

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ii. Leaves the Philippines during the taxable year to reside abroad, as immigrant or for employment on a permanent basis.

iii. Works & derives income from abroad & whose employment requires him to be physically present abroad most of the time (i.e. not less than 183 days) during the taxable year.

iv. Was previously considered as nonresident

citizen & arrives in the Philippines at any time during the taxable year to reside permanently in the Philippines.

v. Examples of non-resident citizens:

a. Immigrant – one who leaves the Philippines to reside abroad as an immigrant for which a foreign visa has been secured

b. Permanent employee – one who leaves the Philippines on a more or less permanent basis

c. Contract Worker – one who leaves the Philippines on account of a contract of employment which is renewed from time to time under such circumstance as to require him to be physically present abroad most of the time (not less than 183 days)

NOTE: The taxpayer shall submit proof to the CIR to

show his intention of leaving the Philippines to reside permanently abroad or to return to and reside in the Philippines as the case may be.

Non-resident citizens who are exempt from tax with respect to income derived from sources outside the Philippines shall no longer be required to file information returns from sources outside the Philippines beginning 2001 [RR No. 5-2001]

For Overseas Contract Worker, the time spent abroad is not material for tax exemption purposes. All that is required is for the worker’s employment contract to pass through and be registered with the POEA [BIR

Ruling 33-2000] (2) Aliens

(a) Resident Alien – an individual whose residence is within the Philippines and who is not a citizen thereof is taxable only on income derived from sources within the Philippines.

One who comes to the Philippines for a definite purposes which in its nature would require an extended stay, and makes his home temporarily in the country becomes a resident alien

Length of stay is indicative of intention An alien actually present in the Philippines who is not a mere transient or sojourner is a resident of the Philippines for purposes of the income tax. Whether he is a transient or not is determined by his intentions with regard to the length and nature of his stay.

A mere floating intention indefinite as to time, to return to another country is not sufficient to constitute him a transient.

If he lives in the Philippines and has no definite intention as to his stay, he is a resident. One who comes to the Philippines for a definite purpose which in its nature may be promptly accomplished is a transient. But if his purpose is of such a nature that an extended stay may be necessary for its accomplishment, and to that end the alien makes his home temporarily in the Philippines, he becomes a resident, though it may be his intention at all times to return to his domicile abroad when the purpose for which he came has been consummated or abandoned. [RR No. 2]

Loss of Residence by alien

An alien who has acquired residence in the Philippines retains his status until he abandons the same and actually departs from the Philippines

A mere intention to change his residence does not change hid status. An alien who has acquired a residence is taxable as a resident for the remainder of his stay in the Philippines. [Sec. 6, RR. No. 2]

(b) Nonresident Alien – an individual whose residence is not within the Philippines and who is not a citizen thereof but dong business therein is taxable only on income from sources within. (1) Engaged in trade or business – an alien who

comes and stays in the Philippines for an aggregate period of more than 180 days during any calendar year.

(2) Not engaged in trade or business – an alien whose stay in the Philippines is 180 days or less.

(3) Special Class of Individual Employees

(a) Aliens employed by regional or area

headquarters and regional operating

headquarters of multinational companies in the Philippines.

(b) Aliens employed by offshore banking units. (c) Aliens employed by petroleum contractors and

Ateneo Law Taxation Law Reviewer

TAXATION LAW

BAR REVIEWER

FACULTY ADVISERS

ATTY. MICHAEL DANA MONTERO

ATTY. FRANCISCO GONZALES

ACADEMICS HEAD

PIERRE MARTIN REYES

SUBJECT HEADS

SHERYL CHRISTINE LAGROSAS

ATENEO CENTRAL BAR OPERATIONS 2012

ACADEMICS COMMITTEE

Academics Head: Pierre Martin Reyes;

Understudy: Clariesse Jami Mari Chan

REVIEW COMMITTEE

Head: Yla Gloria Marie Paras;

Understudy: Ken Koga;

Members: Catherine Dela Rosa, Eric Lavadia, Le Iris Lucido,

Pearl Charisse Baustista; Mina Reyes

TAXATION LAW COMMITTEE

Heads: Sheryl Christine Lagrosas; Ellie Chris Navarra

TAXATION LAW REVIEWER

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TAXATION LAW

Table of Contents

TAXATION LAW REVIEWER

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TAXATION LAW

I. GENERAL PRINCIPLES OF TAXATION

TOPICS UNDER THE SYLLABUS:

I. GENERAL PRINCIPLES

A. Definition and concept of Taxation

B. Nature and Characteristics of Taxation

C. Power of Taxation Compared with Other Powers

D. Purpose of Taxation

E. Principles of Sound Tax System (FAT)

F. Theory and Basis of Taxation (JBL)

G. Doctrines in Taxation

H. Scope and Limitation of Taxation

I. Stages of Taxation (LAPR)

J. Definition, Nature, and Characteristics of Taxes

K. Requisites of a valid tax

L. Tax as distinguished from other forms of

exactions

M. Kinds of Taxes

TOPIC UNDER THE SYLLABUS:

I. GENERAL PRINCIPLES

A. Definition and concept of Taxation

TOPIC UNDER THE SYLLABUS:

I. GENERAL PRINCIPLES

B. Nature and Characteristics of Taxation

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TOPIC UNDER THE SYLLABUS:

I. GENERAL PRINCIPLES

C. Power of Taxation Compared with Other Powers

TOPIC UNDER THE SYLLABUS:

I. GENERAL PRINCIPLES

D. Purpose of Taxation

TOPIC UNDER THE SYLLABUS:

I. GENERAL PRINCIPLES

E. Principles of Sound Tax System (FAT)

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TOPIC UNDER THE SYLLABUS:

I. GENERAL PRINCIPLES

F. Theory and Basis of Taxation (JBL)

TOPIC UNDER THE SYLLABUS:

I. GENERAL PRINCIPLES

G. Doctrines in Taxation

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