ATENEO LAW SCHOOL

Course Outline Atty. Terence Conrad H. Bello

Tax II Baniqued Layug & Bello
Academic Year 2019 – 2020 633-9418 (Office); 633-1911 (Fax)
thbello@baniquedlaw.com
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 61

II. BIR’S INVESTIGATIVE AUTHORITY

A. Statutory Basis
Sec. 5
1. Examination of any Document Material to Tax Inquiry
2. Obtaining Third Party Information
3. Administrative Summons to Taxpayer
B. Informer’s Reward
Sec. 282
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. BIR’S POWER TO MAKE ASSESSMENTS

A. Upon Examination of Returns and Determination of Tax Due
Sec. 6(A)
B. “Best Evidence Obtainable” Rule
Sec. 6(B)
C. Inventory Taking or Surveillance
Sec. 6(C)
D. Termination of Taxpayer’s Taxable Period
Sec. 6(D)
E. Prescribing Zonal Value
Sec. 6(E)
CIR v. Aquafresh Seafoods, Inc., G.R. No. 170389, Oct. 20, 2010
F. Issuance of Notice for Informal Conference
Sec. 3, Rev. Regs. 12-99, Sept. 6, 1999, as amended by Rev. Regs. 7-2018, Jan. 22,
2018
G. Issuance of Pre-Assessment Notice
Sec. 228

1Unless otherwise indicated, code references pertain to the National Internal Revenue Code of
1997, as amended
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Atty. Terence Conrad H. Bello Rights & Remedies of Government

Sec. 3, Rev. Regs. No. 12-99, Sept. 6, 1999, as amended by Rev. Regs. 18-2013, Nov.
28, 2013
H. Issuance of Final Assessment Notice
Sec. 228, NIRC
Sec. 3, Rev. Regs. No. 12-99, Sept. 6, 1999, as amended by Rev. Regs. No. 18-2013,
Nov. 28, 2013
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)
a. Exception: “Naked Assessment”
CIR v. Hantex Trading Co., Inc., 454 SCRA 301 (2005)
Portillo v. CIR, 932 F.2d 1128 (1991)
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
CIR v. Sony Philippines, Inc., 635 SCRA 234 (2010)

IV. COLLECTION OF UNPAID TAXES

A. Distraint, Garnishment, Levy and Seizure
Secs. 205-217, 224-225
Sec. 202
B. Civil Action
Sec. 205
Sec. 220
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
Sec. 222(a)
Sec. 248(B)
Sec. 254
Sec. 255
RMO No. 27-2010
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
People v. Kintanar, CTA EB Crim. Case No. 006, Dec. 3, 2010, aff. in G.R. No.
196340
People v. Judy Anne Santos, CTA Crim Case No. O-012, Jan. 16, 2013
D. Anti-Injunction Rule
1. General Rule
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Atty. Terence Conrad H. Bello Rights & Remedies of Government

Sec. 218
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)
Sps. Pacquiao v. CTA, G.R. No. 213394, April 6, 2016
E. Nature and Extent of Tax Lien
Sec. 219
F. Compromise and Abatement
Sec. 204(A) and (B)
BIR Rul. No. 111-99, July 22, 1999
BIR Rul. No. 059-01, Dec. 20, 2001

V. IMPOSITION OF SURCHARGE, INTEREST, AND COMPROMISE PENALTY

A. Civil Penalties
Sec. 248
Secs. 250-252
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
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
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
RMC 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, as amended by Rev. Regs. No. 18-2013,
Nov. 28, 2013
B. Notice of Informal Conference
Sec. 3, Rev. Regs. 12-99, Sept. 6, 1999, as amended by Rev. Regs. No. 7-2018, Jan.
22, 2018
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)
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
E. Requirement to Inform Taxpayer of Factual and Legal Basis of Assessment
Sec. 228
CIR v. Reyes, G.R. No. 159694, Jan. 27, 2006
Australasia Cylinder Corp. v. CIR, CTA Case No. 6014, Aug. 14, 2002
PNZ Marketing v. CIR, CTA Case No. 5726, Dec. 14, 2001
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
CIR v. Enron Subic Power Corp., G.R. No. 166387, Jan. 19, 2009
Samar-I Electric Cooperative v. CIR, G.R. 193100, Dec. 10, 2014
F. Submission of Supporting Documents
Sec. 228
1. Effect of Non-Compliance
Sec. 228, 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
Dayrit v. Cruz, 165 SCRA 571 (1988)
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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.
Sec. 228
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: Final Decision on Disputed Assessment
Sec. 3, Rev. Regs. 12-99, Sept. 6, 1999, as amended by Rev. Regs. No. 18-2013,
Nov. 28, 2013
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. 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.
Sec. 11, Rep. Act. No. 1125, as amended by Rep. Act. No. 9282
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 CTA in Division
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
Sec. 204(C)
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Atty. Terence Conrad H. Bello Rights & Remedies of Taxpayer

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, proviso, last paragraph
Sec. 204(C)
D. Effect of Supervening Event
Sec. 229
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, Attorney’s 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.
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. APPEAL OF INTERPRETATIVE POWERS AND DECISIONS ON “OTHER

MATTERS”
A. Power of Review of DOF over Rulings
Sec. 4, 2nd par.
Revenue Administrative Order No. 3-2001, Oct. 22, 2001
B. What is Covered by “Other Matters”
1. In General
Sec. 4, 2nd par.
Sec. 7(a)(1), RA 1125
Rodriguez v. Blaquera, 109 SCRA 598 (1960)
PNOC v. CA, 457 SCRA 52 (1952)
Phil. Journalists, Inc. v. CIR, 447 SCRA 214 (2004)
2. BIR Issuances
CIR v. Leal, 392 SCRA 9 (2002)
Asia Int’l Auctioneers, Inc. v. Parayno, 540 SCRA 536 (2007)
British American Tobacco v. Camacho, 562 SCRA 571 (2008)
Sunlife of Canada v. CIR, CTA Case No. 7833, Jan. 12, 2009
Gorospe v. Vinzons-Chato, G.R. No. 132228, Jan. 21, 2003
Philamlife v. Sec. of Finance, G.R. No. 210987, Nov. 24, 2014
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Atty. Terence Conrad H. Bello Rights & Remedies of Taxpayer

Banco de Oro v. RP, G.R. No. 198756, Jan. 13, 2015; read also Resolution on
Motions for Reconsideration, Aug. 16, 2016
Clark Investors and Locators Ass’n, Inc. v. Secretary of Finance, G.R. No.
200670, July 6, 2015
Commissioner of Internal Revenue v. Petron Corporation, G.R. 207842, July 15,
2015

VIII. STATUTE OF LIMITATIONS

A. Period to Assess
Secs. 203, 222, 223
1. When 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
6. Extraordinary Prescription
a. False/Fraudulent Return or No Return
Sec. 222(a)
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)
Telesat, Inc. v. CIR, CTA Case No. 6812, Jan. 2, 2006
Estate of Reyes v. CIR, CTA Case No. 6747, Jan. 16, 2006
b. Waiver of Prescriptive Period
Sec. 222(b)
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)
CIR v. Kudos Metal, Inc., G.R. 178087, May 5, 2010
CIR v. Next Mobile , Inc., G.R. No. 212825, Dec. 7, 2015
CIR v. Phil. Daily Inquirer, G.R. No. 213943, March 22, 2017
Asian Transmission Corp. v. CIR, G.R. No. 230861, Sept. 19, 2018
RCBC v. CIR, G.R. No. 170257, Sept. 7, 2011
CIR v. Standard Chartered Bank, G.R. No. 192173, July 29, 2015
c. Suspension of Prescriptive Period
Sec. 223
Continental Micronesia, Inc. - Phil. Branch v. CIR, CTA Case No. 6191,
March 22, 2006
B. Period to Collect
Secs. 203, 222, 223
Republic v. Ablaza, 108 Phil. 1105 (1960)
Palanca v. CIR, 4 SCRA 263 (1962)
Republic v. Ker & Co. Ltd., 18 SCRA 208 (1966)
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Atty. Terence Conrad H. Bello Rights & Remedies of Taxpayer

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
D. Period to Appeal Final Decision on Disputed Assessment to CTA
See III(D) above
E. Period to File Refund or Tax Credit Claim
Sec. 204(C)
Sec. 229
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)

IX. NON-RETROACTIVITY OF REVOCATION OF RULINGS OR REGULATIONS

Sec. 246
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. 12-2018, Jan. 25, 2018
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
CIR v. Campos Rueda, 42 SCRA 23 (1971)
C. Constitution
1. Property in Which Decedent Had an Interest
Sec. 85(A)
2. Transfers in Contemplation of Death
Sec. 85(B)
3. Transfers Taking Effect at Death
Sec. 85(B)
BIR Rul. No. 81-98, May 28, 1998
BIR Rul. No. 10-03, Sept. 8, 2003
4. Transfers with Retained Interest
Sec. 85(B)
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)
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)
a. Meaning of “Power of Appointment”
b. Applicability in the Philippines
7. Proceeds of Life Insurance
Sec. 85(E)
a. Estate as Beneficiary
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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

III. EXEMPT TRANSFERS

Sec. 87

IV. EXCLUSION OF CONJUGAL SHARE OF SURVIVING SPOUSE

Sec. 85(H)

V. DEDUCTIONS FROM GROSS ESTATE: CITIZENS AND RESIDENTS

Sec. 86, NIRC
A. Standard Deduction
B. Claims Against the Estate
Dizon v. Court of Tax Appeals, G.R. No. 140944, May 6, 2008
C. Claims Against Insolvent Person
D. Unpaid Debts/Mortgages
E. Vanishing Deduction
F. Transfers for Public Use
G. Family Home
H. Retirement Benefits and Separation Pay Under NIRC § 32(B)(6)(a) and (b)

VI. FOREIGN TAX CREDITS

Sec. 86(E)
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
C. Deductions from Gross Estate
Sec. 86(B) and (D)
D. Foreign Tax Credits
Sec. 86(E)

VIII. ADMINISTRATIVE PROVISIONS

A. Tax Rate
Sec. 84
B. Estate Tax Return
Sec. 90
1. CPA Certification
Sec. 90(A)(2)
C. Payment of Estate Tax
Sec. 91
1. Extension
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Atty. Terence Conrad H. Bello Estate Tax

Sec. 91(B)
2. Payment by Installment
Sec. 91(C)
3. Withdrawal of Bank Account Subject to Final Withholding Tax
Sec. 97
D. Consequences of Non-Payment of Estate Tax
Secs. 248, 249, 94 to 97
 DONOR’S TAX

I. MEANING OF “GIFT”
Sec. 104
CIR v. Duberstein, 363 U.S. 278 (1960)
Pirovano v. CIR, 14 SCRA 832 (1965)

II. VALUATION OF GIFTS

Sec. 102

III. TRANSFER FOR LESS THAN ADEQUATE CONSIDERATION

Sec. 100

IV. EXEMPT GIFTS

Sec. 101

V. FOREIGN TAX CREDIT

Sec. 101(C)
A. Per Country Limitation
B. Global Limitation

VI. ON WHOM IMPOSED

Sec. 98(A)

VII. ADMINISTRATIVE
A. Tax Rate
Sec. 99
B. Donor’s Tax Return
Sec. 103(A)
C. Payment of Donor’s Tax
Sec. 103(B)
D. Consequences of Non-Payment of Donor’s Tax
Secs. 95, 97, 248, 249
 VALUE-ADDED TAX

I. TAXABLE TRANSACTIONS
A. In General
Sec. 105
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
Mindanao II Geothermal Partnership v. CIR, G.R. No. 193301, March 11, 2013
B. Sale of Goods or Properties
1. Transactions Covered
a. Actual Sale
Sec. 106(A)(1)
b. Transactions Deemed Sale
Sec. 106(B)
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)
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.,
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)
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
D. Sale of Services
1. Meaning of “Sale or Exchange of Service”
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Atty. Terence Conrad H. Bello VAT

Sec. 108(A)
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)
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. No. 66416, March 21, 1990
Medicard Phil., Inc. v. CIR, G.R. No. 222743, April 5, 2017
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)
2. Sale of Services
Sec. 108(B)(1), (2), (6) and (7)
CIR v. American Express Int’l, 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)
Sec. 4.106-6, Rev. Regs. No. 16-2005, Sept. 1, 2005
2. Sale of Services
Sec. 106(B)(3), (4) and (5)
Sec. 4.108-6, Rev. Regs. No. 16-2005, Sept. 1, 2005
Tax II Course Outline Page 3
Atty. Terence Conrad H. Bello VAT

D. Exempt Transactions
Sec. 109(1)
1. Coverage of Exemption
a. General Rule
Philippine Acetylene Co., Inc. v. CIR, 20 SCRA 1056 (1967)
Phil. Nat’l 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)

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/Creditable Withholding VAT on Government or GOCCs – 5%

IV. TAX CREDITS & REFUNDS

A. Input Tax Credit
Sec. 110
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)
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,
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)
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)
Sec. Sec. 4.111-1(a), Rev. Regs. No. 16-2005, Sept. 1, 2005
C. Presumptive Input Tax
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Atty. Terence Conrad H. Bello VAT

Sec. 111(B)
Sec. Sec. 4.111-1(b), Rev. Regs. No. 16-2005, Sept. 1, 2005
D. Final Withholding VAT
Sec. 114(C)
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
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
CIR v. Mirant Pagbilao Corp., G.R. No. 172129, Sept. 12, 2008
CIR v. San Roque Power Corp., G.R. No. 187485, Feb. 12, 2013

V. COMPLIANCE REQUIREMENTS
A. Registration with the BIR
Sec. 236
1. Mandatory VAT Registration
Sec. 236(G)
Sec. Sec. 9.236-1(b), Rev. Regs. No. 16-2005, Sept. 1, 2005
2. Optional VAT Registration
Sec. 236(H)
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)
4. Cancellation of VAT Registration
Sec. 236(F)
Sec. Sec. 9.236-6, Rev. Regs. No. 16-2005, Sept. 1, 2005
B. Record Keeping Requirements
Sec. 113(C)
Sec. Sec. 4.113-3, Rev. Regs. No. 16-2005, Sept. 1, 2005
C. Invoices and Receipts
Sec. 113
1. General Requirements
Sec. 113(A) and (B)
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)
Sec. 4.113-4, Rev. Regs. No. 16-2005, Sept. 1, 2005
D. Creditable Withholding Tax
Tax II Course Outline Page 5
Atty. Terence Conrad H. Bello VAT

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

VI. FILING OF RETURN AND PAYMENT OF TAX

Sec. 114
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
B. Domestic Carriers and Keepers of Garages
Sec. 117
C. International Carriers
Sec. 118
D. Franchises
Sec. 119
E. Overseas Dispatch, Message or Conversation
Sec. 120
F. Banks and Non-Bank Financial Intermediaries
Sec. 121
CIR v. Solidbank Corp., G.R. No. 148191, Nov. 5, 2003
G. Finance Companies
Sec. 122
H. Life Insurance Premiums
Sec. 123
I. Agents of Foreign Insurance Companies
Sec. 124
J. Amusement
Sec. 125
K. Winnings
Sec. 126
L. Stock Transactions in Philippine Stock Exchange
Sec. 127

II. RETURNS AND PAYMENT OF PERCENTAGE TAX

Sec. 128
 EXCISE TAX

I. GOODS SUBJECT TO EXCISE TAX

A. In General
Sec. 129
B. Alcohol Products
Secs. 141 – 143
C. Tobacco Products
Secs. 144 – 145
Secs. 146 – 147
D. Petroleum Products
Sec. 148
E. Miscellaneous Articles
1. Automobiles
Sec. 149
2. Non-Essential Goods
Sec. 150
F. Mineral Products
Sec. 151

II. PAYMENT OF EXCISE TAXES

Sec. 130
Sec. 131
Secs. 132 – 140

III. ADMINISTRATIVE REQUIREMENTS

Sec. 130(C)
Secs. 152 – 172
 DOCUMENTARY STAMP TAX

I. IN GENERAL
Sec. 173
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
B. Transfer of Shares
Sec. 175
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
D. Issue and Transfer of Certificate of Interest in Property or Accumulations
Sec. 177
E. Bank Checks, Drafts, Certificates of Deposit not Bearing Interest
Sec. 178
F. Debt Instruments
Sec. 179
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
H. Acceptance of Foreign-Drawn Bills of Exchange
Sec. 181
I. Foreign Bills of Exchange and LCs
Sec. 182
J. Life Insurance Policies
Sec. 183
BIR Rul. No. DA-182-2005, April 20, 2005
K. Non-Life Insurance Policies
Sec. 184
BIR Rul. No. DA-288-2005, June 27, 2005
L. Fidelity Bonds and Other Insurance Policies
Sec. 185
M. Annuities and Pre-Need Plans
Sec. 186
N. Indemnity Bonds
Sec. 187
O. Certificates
Sec. 188
P. Warehouse Receipts
Sec. 189
Q. Jai-Alai, Horse Race, Lotto, etc.
Sec. 190
Tax II Course Outline Page 2
Atty. Terence Conrad H. Bello DST

R. Bills of Lading or Receipts

Sec. 191
S. Proxies
Sec. 192
T. Powers of Attorney
Sec. 193
U. Leases of Real Property
Sec. 194
V. Mortgages, Pledges and Deeds of Trust
Sec. 195
W. Deed of Sale of Real Property
Sec. 196
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
Y. Assignment, Transfer, and Renewal of Certain Instruments
Sec. 198

III. TRANSACTIONS/DOCUMENTS NOT SUBJECT TO DST

Sec. 199
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

V. EFFECT OF NON-PAYMENT OF DST

Sec. 201
 LOCAL TAXATION

I. GENERAL PRINCIPLES
A. Local Autonomy
Sec. 129, Local Government Code of 1991 (“LGC”)
Mactan Cebu Int’l 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
Sec. 145, LGC
Tax II Course Outline Page 2
Atty. Terence Conrad H. Bello Local Taxation

Art. 241, IRR

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 taxpayer’s 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
a. Distraint of personal property
Tax II Course Outline Page 3
Atty. Terence Conrad H. Bello Local Taxation

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 Piñas, CTA AC No. 4, Sept. 28, 2005
2. Claim for refund or tax credit
Sec. 196, LGC
Art. 286, IRR

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 Gov’t, 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 Dev’t 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; Donor’s 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