2017 BAR TAX LAW SYLLABUS

PART I. GENERAL PRINCIPLES OF TAXATION

A. Definition, concept and purposes of taxation

B. Nature and characteristics of taxation
C. Power of taxation as distinguished from Police Power and Power of Eminent
Domain
D. Theory and basis of taxation
1. Lifeblood theory
2. Necessity theory
3. Benefits-protection theory (Symbiotic relationship)
4. Jurisdiction over subject and objects
E. Principles of sound tax system
1. Fiscal adequacy
2. Administrative feasibility
3. Theoretical justice

F. Scope and Limitations of Taxation

1. Inherent
limitations
a) Public
purpose
b) Inherently legislative
(i) General rule
(ii) Exceptions
(a) Delegation to local governments
(b) Delegation to the President
(c) Delegation to administrative
agencies
c) Territorial
(i) Situs of taxation
(a)
Meaning
(b) Situs of income tax
(1) From sources within the Philippines
(2) From sources without the Philippines
(3) Income partly within and partly without the Philippines
(c) Situs of property taxes
(1) Taxes on real property
(2) Taxes on personal property
(d) Situs of excise tax
(1) Estate tax
(2) Donors tax
(e) Situs of business
tax
(1) Sale of real property
(2) Sale of personal property
(3) Value-Added Tax (VAT)
d) International comity
e) Exemption of government entities, agencies, and instrumentalities
2. Constitutional limitations
a) Provisions directly affecting taxation
(i) Prohibition against imprisonment for non-payment of poll tax
 (ii) Uniformity and equality of taxation
(iii) Flexible tariff clause: Grant by Congress of authority to the
President to impose tariff rates
(iv) Prohibition against taxation of religious, charitable
entities, and educational entities
(v) Prohibition against taxation of non-stock, non-profit educational
institutions
(vi) Exemption from real property taxes
(vii) Majority vote of Congress for grant of tax exemption
(viii) Prohibition on use of tax levied for special purpose
(ix) Presidents veto power on appropriation, revenue, tariff bills
(x) Non-impairment of jurisdiction of the Supreme Court
(xi) Grant of power to the local government units to create its own
sources of revenue
(xii) No appropriation or use of public money for religious
purposes
b) Provisions indirectly affecting taxation
(i) Due process
(ii) Equal protection
(iii) Religious freedom
(iv) Non-impairment of obligations of contracts

G. Stages or
Aspects of
taxation
1. Levy
2. Assessment and collection
3. Payment
H. Definition, nature, and characteristics of taxes
I. Requisites of a valid tax
J. Tax as distinguished from other forms of exactions
1. Tariff
2. Toll
3. License fee
4. Special assessment
5. Debt
K. Kinds of
taxes
1. As to object
a) Personal, capitation, or poll
tax
b) Property tax
c) Privilege tax
2. As to burden or
incidence a) Direct
b) Indirect
3. As to tax
rates
a) Specific
b) Ad valorem
c) Mixed
4. As to purposes
a) General or fiscal
b) Special, regulatory, or sumptuary
5. As to scope or authority to impose
a) National internal revenue taxes
 b) Local real property tax, municipal tax
6. As to
graduation
a)
Progressive
b)
Regressive
c) Proportionate
L. Situs of taxation
(a) Meaning
(b) Situs of income tax
(1) From sources within the Philippines
(2) From sources without the Philippines
(3) Income partly within and partly without the Philippines
(c) Situs of property taxes
(1) Taxes on real property
(2) Taxes on personal property
(d) Situs of transfer tax
(1) Estate tax
(2) Donors tax
(e) Situs of business tax
(1) Sale of real property
(2) Sale of personal property
(3) Value-Added Tax (VAT)

M. Construction and interpretation

of:
a) Tax laws
(i) General rule
(ii) Exception
b) Tax exemption and exclusion
(i) General rule
(ii) Exception
c) Tax rules and regulations
(i) General rule only
d) Penal provisions of tax laws
e) Non-retroactive application to taxpayers
(i) Exceptions

N. Sources of Tax Laws

O. Doctrines in taxation
1. Prospectivity of tax laws
2. Imprescriptibility of taxes
3. Double taxation
a) Strict sense
b) Broad sense
c) Constitutionality of double taxation
d) Modes of eliminating double taxation
4. Power to tax involves power to destroy
5. Escape from taxation
a) Shifting of tax burden
(i) Ways of shifting the tax burden
(ii) Taxes that can be shifted
(iii) Meaning of impact and incidence of
taxation
b) Tax avoidance
c) Tax evasion
 6. Exemption from taxation
a) Meaning of exemption from
taxation
b) Nature of tax exemption
c) Kinds of tax exemption
(i) Express
(ii) Implied
(iii) Contractual
d) Rationale/grounds for
exemption
e) Revocation of tax exemption
7. Compensation and set-off
8. Doctrine of Equitable Recoupment
9. Compromise
10. Tax
amnesty
a)
Definition
b) Distinguished from tax exemption
11. Taxpayers suit (impugning the validity of tax measures or acts of
taxing authorities)
1. Taxpayers suit, defined
2. Nature and concept
3. Distinguished from a citizens suit
4. Requisites of a taxpayers suit challenging the constitutionality of a tax
measure or act of taxing authority
a) Concept of locus standi as applied in taxation
b) Doctrine of transcendental
importance c) Ripeness for judicial
determination

PART II. NATIONAL TAXATION (National Internal Revenue Code (NIRC) of

1997, as amended)

A. Organization and Function of the Bureau of Internal Revenue

1. Rule-making authority of the Secretary of Finance
a) Authority of Secretary of Finance to promulgate rules and
regulations
b) Specific provisions to be contained in rules and regulations
2. Jurisdiction, Power and Functions of the Commissioner of Internal Revenue
a) Powers and duties of the Bureau of Internal Revenue
b) Power of the Commissioner to interpret tax laws and to decide tax
cases
c) Power to suspend the business operation of a taxpayer
d) Non-retroactivity of rulings

B. National Taxes

1. Income taxation
a. Definition, nature and General Principles
a1. Income tax systems
a) Global tax system
b) Schedular tax system
 c) Semi-schedular or semi-global tax system
a2. Features of the Philippine income tax law
a) Direct tax
b) Progressive
c) Comprehensive
d) Semi-schedular or semi-global tax system
a3. Criteria in imposing Philippine
income tax
a) Citizenship principle
b) Residence principle
c) Source principle
a4. Types of Philippine income tax
a5. Taxable period
a) Calendar period
b) Fiscal period
c) Short period
a6. Kinds of taxpayers
a) Individual taxpayers
(i) Citizens
(a) Resident citizens
(b) Non-resident citizens
(ii) Aliens
(a) Resident aliens
(b) Non-resident aliens
(1) Engaged in trade or business
(2) Not engaged in trade or business
(iii) Special class of individual employees
(a) Minimum wage earner
(b) Estates and trusts

b) Corporations
(i) Domestic corporations
(a) Joint venture and consortium
(b) Partnerships
(c) General professional partnerships
(d) Co-ownerships

(ii) Foreign corporations

(a) Resident foreign corporations
(b) Non-resident foreign corporations

b. Income tax
b1) Definition, Nature, and General Principles
b2) Income
b21) Definition and Nature
b22) When income is taxable
(i) Existence of income
(ii) Realization of income
(a) Tests of realization
(b) Actual vis--vis constructive receipt
(iii) Recognition of income
(iv) Cash method of accounting vis-a-vis accrual method
of accounting
b23) Tests in determining whether income is earned for tax purposes
(i) Realization test
(ii) Claim of right doctrine or doctrine of ownership, command,
 or control
(iii) Economic benefit test, doctrine of proprietary interest
(iv) Severance test
(v) All events test
B24) Classification of income
B25) Situs of income taxation

B3) Gross income

B31) Definition
B32) Concept of income from whatever source derived
B33) Gross income vis--vis net income vis--vis taxable income
B34) Sources of income subject to tax
(i) Gross income and taxable income from sources within the
Philippines
(ii) Gross income and taxable income from sources without the
Philippines
(iii) Income partly within or partly without the Philippines
(iv) Source rules in determining income from within and without
(1) Interests
(2)
Dividends
(3) Services
(4) Rentals
(5)
Royalties
(6) Sale of real property
(7) Sale of personal property
(8) Shares of stock of domestic corporation

B35) Classification of income subject to tax

(i) Compensation income
(ii) Fringe benefits
(a) Special treatment of fringe benefits
(b) Definition
(c) Taxable and non-taxable fringe benefits
(iii) Professional income
(iv) Income from business
(v) Income from dealings in property
(a) Types of properties
(1) Ordinary assets
(2) Capital assets
(b) Types of gains from dealings in property
(1) Ordinary income vis--vis capital gain
(2) Actual gain vis--vis presumed gain
(3) Long term capital gain vis--vis short-term capital gain
(4) Net capital gain, net capital loss
[Exclude: Computation of the amount of gain or
loss]
(5) Income tax treatment of capital loss
(a) Capital loss limitation rule (applicable to both
corporations and individuals)
(b) Net loss carry-over rule (applicable only to
individuals)
(6) Dealings in real property situated in the
Philippines
(7) Dealings in shares of stock of Philippine corporations
 (a) Shares listed and traded in the stock exchange
(b) Shares not listed and traded in the stock
exchange
(8) Sale of principal residence
(vi) Interest income
(vii) Dividend income
(1) Cash dividend
(2) Stock dividend
(3) Property dividend
(4) Liquidating dividend
(viii) Royalty income
(ix) Rental income
(1) Lease of personal property
(2) Lease of real property
(3) Tax treatment of
(a) Leasehold improvements by lessee
(b) VAT added to rental/paid by the lessee
(c) Advance rental/long term lease
(x) Annuities, proceeds from life insurance or other types of
insurance
(xi) Prizes and awards
(xii) Pensions, retirement benefit, or separation pay
(xiii) Income from any source whatever
(a) Forgiveness of indebtedness
(b) Recovery of accounts previously written-off when
taxable/when not taxable
(c) Receipt of tax refunds or credit
(d) Income from any source whatever

B4 Exclusions from gross income

(1) Rationale for the exclusions
(2) Taxpayers who may avail of the exclusions
(3) Exclusions distinguished from deductions and tax credit
(4) Exclusions under the Constitution
(a) Income derived by the government or its political
subdivisions from the exercise of any essential
governmental function
(5) Exclusions Under the Tax Code
(a) Proceeds of life insurance policies
(b) Return of premium paid
(c) Amounts received under life insurance,
endowment or annuity contracts
(d) Value of property acquired by gift, bequest,
devise or descent
(e) Amount received through accident or health insurance
(f) Income exempt under tax treaty
(g) Retirement benefits, pensions, gratuities, etc.
(h) Winnings, prizes, and awards, including those in
sports competition
(6) Exclusions Under special laws
(a) Personal Equity and Retirement Account

B5 Deductions from gross

income
(1) General rules
(a) Deductions must be paid or incurred in
 connection with the taxpayers trade, business
or profession
(b) Deductions must be supported by adequate
receipts or invoices (except standard
deduction)
(c) Additional requirement relating to withholding
(2) Return of capital (cost of sales or services)
(a) Sale of inventory of goods by
manufacturers and dealers of properties
(b) Sale of stock in trade by a real estate dealer and
dealer in securities
(c) Sale of services
(3) Itemized deductions
(a) Expenses
(1) Requisites for deductibility
(a) Nature: ordinary and necessary
(b) Paid and incurred during taxable year
(2) Salaries, wages and other forms of
compensation for personal services actually
rendered, including the grossed-up monetary
value of the fringe benefit subjected to fringe
benefit tax which tax should have been paid
(3) Travelling/transportation expenses
(4) Cost of
materials
(5) Rentals and/or other payments for use or
possession of property
(6) Repairs and
maintenance
(7) Expenses under lease agreements
(8) Expenses for professionals
(9) Entertainment/Representation expenses
(10) Political campaign expenses
(11) Training
expenses
(b) Interest
(1) Requisites for deductibility
(2) Non-deductible interest
expense
(3) Interest subject to special
rules
(a) Interest paid in advance
(b) Interest periodically amortized
(c) Interest expense incurred to acquire
property for use in
trade/business/profession
(d) Reduction of interest expense/interest
arbitrage
(c) Taxes
(1) Requisites for deductibility
(2) Non-deductible
taxes
(3) Treatments of surcharges/interests/fines for
delinquency
(4) Treatment of special assessment
(5) Tax credit vis--vis deduction
 (d) Losses
(1) Requisites for
deductibility
(2) Other types of
losses
(a) Capital
losses
(b) Securities becoming worthless
(c) Losses on wash sales of stocks or securities
(d) Wagering
losses
(e) Net Operating Loss Carry-Over
(NOLCO)
(e) Bad debts
(1) Requisites for
deductibility
(2) Effect of recovery of bad debts
(f) Depreciation
(1) Requisites for
deductibility
(2) Methods of computing depreciation allowance
(a) Straight-line
method
(b) Declining-balance method
(c) Sum-of-the-years-digit method
[Exclude: Computation of depreciation
allowance]
(g) Charitable and other contributions
(1) Requisites for
deductibility
(2) Amount that may be deducted
(h) Contributions to pension trusts
(1) Requisites for
deductibility
(i) Deductions under special laws
(4) Optional standard deduction
(a) Individuals, except non-resident aliens
(b) Corporations, except non-resident foreign corporations
(c) Partnerships
(5) Personal and additional exemption (R.A. No. 9504,
Minimum
Wage Earner Law)
(a) Basic personal exemptions
(b) Additional exemptions for taxpayer with dependents
(c) Status-at-the-end-of-the-year rule
(d) Exemptions claimed by non-resident aliens
(6) Items not
deductible
(a) General rules
(b) Personal, living or family expenses
(c) Amount paid for new buildings or for
permanent improvements (capital
expenditures)
(d) Amount expended in restoring property (major repairs)
(e) Premiums paid on life insurance policy covering life
or any other officer or employee financially
 interested
(f) Interest expense, bad debts, and losses from
sales of property between related parties
(g) Losses from sales or exchange or property
(h) Non-deductible
interest
(i) Nondeductible
taxes
(j) Non-deductible
losses
(k) Losses from wash sales of stock or securities

B6 Income Tax on Individuals

a. Income Tax on resident citizens, non-resident citizens, and resident aliens
a1) Coverage - Income from all sources within and without the
Philippines; General Rule; Exception: Non-resident citizens
b) Taxation on compensation income
(i) Inclusions
(a) Monetary compensation
(1) Regular
salary/wage
(2) Separation pay/retirement benefit not otherwise
exempt
(3) Bonuses, 13th month pay, and other benefits not
exempt
(4) Directors fees
(b) Non-monetary compensation
(1) Fringe benefit not subject to
tax
(ii) Exclusions
(a) Fringe benefit subject to FBT
(b) De minimis benefits
(c) 13th month pay and other benefits, and payments
specifically excluded from taxable compensation
income
(iii) Deductions
(a) Personal exemptions and additional exemptions
(b) Health and hospitalization insurance
(c) Taxation of compensation income of a minimum wage earner
(1) Definition of statutory minimum
wage
(2) Definition of minimum wage
earner
(3) Income also subject to tax exemption: holiday pay,
overtime pay, night-shift differential, and hazard pay
c) Taxation of business income/income from practice of
profession
d) Taxation of passive income
(i) Passive income subject to final tax
(a) Interest income
(i) Treatment of income from long-term
deposits
(b) Royalties
(c) Dividends from domestic corporations
(d) Prizes and other winnings
(ii) Passive income not subject to
 final tax
e) Taxation of capital gains
(i) Income from sale of shares of stock of a Philippine corporation
(a) Shares traded and listed in the stock exchange
(b) Shares not listed and traded in the stock exchange
(ii) Income from the sale of real property situated in the Philippines
(iii) Income from the sale, exchange, or other disposition of
other capital assets
f) Taxation of non-resident aliens engaged in trade or business
a) General rules
b) Cash and/or property dividends
c) Capital gains

g) Taxation of non-resident aliens not engaged in trade or

business

h) Individual taxpayers exempt from income tax

a) Senior citizens
b) Minimum wage earners
c) Exemptions granted under international agreements

B7. INCOME TAX ON CORPORATIONS

1. Taxation of domestic corporations

a) Tax payable
(i) Regular tax
(ii) Minimum Corporate Income Tax
(MCIT)
(a) Imposition of MCIT
(b) Carry forward of excess minimum tax
(c) Relief from the MCIT under certain conditions
(d) Corporations exempt from the MCIT
(e) Applicability of the MCIT where a corporation is governed
both under the regular tax system and a special income tax
system
b) Allowable deductions
(i) Itemized deductions
(ii) Optional standard
deduction
c) Taxation of passive income
(i) Passive income subject to tax
(a) Interest from deposits and yield, or any other monetary
benefit from deposit substitutes and from trust funds and
similar arrangements and royalties
(b) Capital gains from the sale of shares of stock not traded in
the stock
exchang
e
(c) Income derived under the expanded foreign currency deposit
system
(d) Inter-corporate dividends
(e) Capital gains realized from the sale, exchange, or disposition
of lands and/or buildings
(ii) Passive income not subject to tax
d) Taxation of capital gains
(i) Income from sale of shares of stock
 (ii) Income from the sale of real property situated in the Philippines
(iii) Income from the sale, exchange, or other disposition of
other capital assets
e) Income Tax on Special Domestic Corporations
1) Tax on proprietary educational institutions and non profit hospitals
2) Tax on government-owned or controlled corporations, agencies or
instrumentalities
3) Depository banks (foreign currency deposit units)

2. Taxation of resident foreign corporations

a) General rule
b) With respect to their income from sources within the
Philippines
c) Minimum Corporate Income Tax
d) Tax of passive income
(i) Interest from deposits and yield, or any other monetary
benefit from deposit substitutes, trust funds and similar
arrangements and royalties
(ii) Income derived under the expanded foreign currency deposit
system
(iii) Capital gains from sale of shares of stock not traded in
the stock exchange
(iv) Inter-corporate dividends
e) Branch profits remittance tax
f) International carriers doing business in the Phils.
g) Offshore banking units
h) Resident depository banks (foreign currency deposit units)
i) Regional or Area Headquarters and ROHQ of Multinational
companies

3. Taxation of non-resident foreign corporations

a) General rule
b) Tax on certain income
(i) Interest on foreign loans
(ii) Inter-corporate dividends
(iii) Capital gains from sale of shares of stock not traded in the stock
exchange
(iv) Non-resident cinematographic film-owner, lessor or
distributor
(v) Non-resident owner or lessor of vessels chartered by
Philippine nationals
(vii) Non-resident owner or lessor of aircraft machineries
and other equipment]

4. Improperly accumulated earnings of corporations

5. Corporations exempt from income tax
6. Taxation of partnerships
a. General professional partnerships
b. Joint-ventures and consortiums
c. General Partnerships
d. Co-ownerships

B8. Withholding tax

a) Concept of Withholding Tax
b) Kinds of Withholding tax
 (i) Withholding of final tax on certain incomes
(ii) Withholding of creditable tax at
source

B9. Filing of Returns and Payment of Income Tax

D1) Definition of a Tax Return and Information Return
D2) Period to File Income tax return of individuals and
corporations
D3) Persons liable to the income tax returns
D31) Individual taxpayers
a. General rule and ex ceptions
b. Substituted filing
D32) Corporate taxpayers
a. Where to file income tax returns
b. Penalties for nonfiling of returns

2. TRANSFER TAXES

A. Estate tax
1. Basic principles, CONCEPT and definition
2. Nature, Purpose or object
3. Time and transfer of properties
4. Classification of decedent
5. Gross estate vis--vis net estate
6. Determination of gross estate and net estate
7. Composition of gross estate
8. Items to be included in gross estate
9. Deductions from estate and exclusions from estate
10. Tax credit for estate taxes paid in a foreign country
11. Exemption of certain acquisitions and transmissions
12. Filing of notice of death
13. Estate tax return

B. Donors tax
1. Basic principles, concept and definition
2. Nature, Purpose or object
3. Time and transfer of properties
5. Requisites of valid donation
6. Transfers which may be constituted as donation
a) Sale/exchange/transfer of property for insufficient
consideration
b) Condonation/remission of debt
7. Transfer for less than adequate and full consideration
8. Classification of donor
9. Determination of gross gift
10. Composition of gross gift
11. Valuation of gifts made in property
12. Tax credit for donors taxes paid in a foreign country
13. Exemptions of gifts from donors tax
14. Person liable
15. Tax basis

3. VALUE-ADDED TAX (VAT)

1. Concept, Characteristics/Elements of a VAT-Taxable transaction
2. Impact and incidence of tax
3. Tax credit method
4. Destination principle/Cross border doctrine
5. Persons liable
6. Imposition of VAT
a. On sale of goods or properties
b. On sale of service
c. On importation of goods
c.1 Transfer of goods by tax exempt persons
7. Transactions deemed sale
a) Transfer, use or consumption not in the course of business of
goods/properties originally intended for sale or use in the course of
business
b) Distribution or transfer to shareholders, investors or creditors
c) Consignment of goods if actual sale not made within 60 days
from date of consignment
d) Retirement from or cessation of business with respect to inventories
on hand
8. Change and cessation of status as a VAT-registered person
a) Subject to VAT
i) Change of business activity from VAT taxable status to VAT
exempt status
ii) Approval of request for cancellation of a registration due to
reversion to exempt status
iii( Approval of request for cancellation of registration due to
desire to revert to exempt status after lapse of 3 consecutive
years
b. Not subject to VAT
i) Change of control of a corporation
ii( Change in the trade or corporation name
iii) Merger or consolidation of corporations
9. Zero-rated or effectively zero-rated sale of goods or properties
10. VAT exempt transactions
a) VAT exempt transactions, in general
b) Exempt transactions, enumerated
11. Input and output tax
a. Definition
b. Sources of input tax
i) Purchase or importation of goods
ii( Purchase of real properties for which VAT has actually
been paid
iii) Purchase of services for which VAT has actually been
paid
iv) Transactions deemed sale
v) Presumptive input tax
vi) Transitional input tax
12. Persons who can avail input tax credit
13. Determination of output tax/input tax/VAT payuable/excess
input tax credits
a. Determination of output tax
b. Determination of inmput tax creditable
c. Allocation of input tax on mixed transactions
d. Determination of output tax and VAT payuable and
computation of VAT payable or excess tax credits
e. Substantiation of input tax credits
 14. Refund or tax credit of excess input tax
a) Who may claim for refund/apply for issuance of tax credit
certificate
b) Period to file claim/apply for issuance of tax credit
certificate
c) Manner of giving refund
d) Destination principle or cross-border doctrine
15. Invoicing requirements
a. In general
b. In deemed sale transactions
c. Consequences of issuing erroneous VAT invoice or VAT O.R.
16. Filing of return and payment
17. Withholding of final VAT on sales to government

4. OTHER PERCENTAGE TAXES

a. Concept and nature

5. EXCISE TAX
a. Concept and nature

6. DOCUMENTARY STAMP TAX

a. Concept and nature

C. TAX REMEDIES UNDER THE NIRC

A. Assessment and Collection

A1) ASSESSMENT
(i) Definition and requisites of a valid assessment
(ii) Tax delinquency as distinguished from tax deficiency
(iii) Jeopardy assessment
(iv)Prescriptive period for assessment
a. General rule
b. False or fraudulent returns and nonfiling of returns
c. Suspension of running of Statute of Limitations
(v) Civil Penalties, additions to the tax
a. Delinqueny interest vis--vis deficiency interest
b Civil Penalties
(i) Surcharge
(ii) Interest
(a) In general
(b) Deficiency interest
(c) Delinquency interest
(d) Interest on extended payment
(iii) Compromise penalties

(vi) Assessment process and reglemantary periods

(a) Letter of Authority and Tax audit
(b) Notice of informal conference
(c) Issuance of preliminary assessment notice; General Rule
(d) Exceptions to issuance of preliminary assessment notice
(e) Reply to preliminary assessment notice
(f) Issuance of formal letter of demand and final assessment
notice
(i) Disputed assessment
 (vii) Taxpayers remedies
(a) Protesting an assessment
(i) Protested/disputed assessment
(ii) Period to file a protest
(iii) Form, content, validity of protest
(iv) Period to Submit supporting documents
(v) Effect of failure to file protest
(b) Period provided for the protest to be acted upon by the CIR
(viii) Final Decision on Disputed Assessment
(a) Denial of protest
(1) Commissioners denial of protest
(a) Filing of criminal action against taxpayer
(b) Issuing a warrant of distraint and levy
(2) Inaction by
Commissioner
(ix) Remedies of taxpayer to action by Commissioner
(a) In case of denial of protest
(b) In case of inaction by Commissioner within 180 days from
submission of documents
(x) Effect of failure to appeal

A2) COLLECTION
(i) Requisites
(ii) Prescriptive periods
(iii) Suspension and running of the Statute of Limitations

B. COMPROMISE AND ABATEMENT OF TAXES

(a) Authority of the Commissioner to compromise and abate taxes

C. REFUND/RECOVERY OF TAX ERRONEOUSLY OR ILLEGALLY COLLECTED

a) Tax refund as distinguished from tax credit
b) Grounds, requisites and period for filing a claim for refund or issuance of tax
credit certificate
(i) Requirements for refund as laid down by cases
(a) Necessity of written claim for refund
(b) Claim containing a categorical demand for reimbursement
(c) Filing of administrative claim for refund and the suit/proceeding
before the CTA within 2 years from date of payment regardless of any
supervening cause
(ii) Statutory basis and proof for claim of refund or tax credit
(a) Scope of claims for refund
(b) Necessity of proof for claim or refund
(c) Burden of proof for claim of refund
(d) Nature of erroneously-paid tax/illegally assessed or collected
(iii) Proper party to file claim for refund or tax credit
(a) Taxpayer/withholding agents of non-resident foreign corporation
(iv) Prescriptive period for recovery of tax erroneously or illegally collected

D. GOVERNMENT REMEDIES
a. Administrative remedies
(i) Tax lien
(ii) Distraint of personal property including garnishment
(a) Summary remedy of distraint of personal property
(1) Purchase by the government at sale upon
distraint
(2) Report of sale to the Bureau of Internal Revenue
 (BIR)
(3) Constructive distraint to protect the interest of the
government
(iii) Summary remedy of levy on real property
(a) Advertisement and sale
(b) Redemption of property sold
(c) Final deed of purchaser
(iv) Forfeiture of real property to government for want of bidder
(a) Remedy of enforcement of forfeitures
(1) Action to contest forfeiture of
chattel
(b) Resale of real estate taken for taxes
(c) When property to be sold or destroyed
(d) Disposition of funds recovered in legal proceedings or
obtained from forfeiture
(v) Further distraint or levy
(vi) Suspension of business operation
(vii)Nonavailability of injunction to restrain collection of tax

(b) Judicial Remedies - Civil and criminal actions

(a) Suit to recover tax based on false or fraudulent returns

PART III. LOCAL TAXES (Local Government Code of 1991, as amended)

A. Local government taxation

1. Fundamental principles
2. Nature and source of taxing power
a) Grant of local taxing power under the local
government code
b) Authority to prescribe penalties for tax violations
c) Authority to grant local tax
exemptions
d) Withdrawal of exemptions
e) Authority to adjust local tax rates
f) Residual taxing power of local
governments
g) Authority to issue local tax ordinances
3. Local taxing authority
a) Power to create revenues exercised through Local
Government Units
b) Procedure for approval and effectivity of tax ordinances
4. Scope of taxing power
5. Specific taxing power of Local
Government Units
a) Taxing powers of provinces(exclude
RATES)
(i) Tax on transfer of real property
ownership
(ii) Tax on business of printing and
publication
(iii) Franchise tax
(iv) Tax on sand, gravel and other quarry
services
(v) Professional
 tax
(vi) Amusement tax
(vii) Tax on delivery
truck/van
b) Taxing powers of cities (exclude RATES)
c) Taxing powers of municipalities(exclude RATES)
(i) Tax on various types of businesses
(ii) Ceiling on business tax impossable on municipalities within Metro
Manila
(iii) Tax on retirement on business
(iv) Rules on payment of business tax
(v) Fees and charges for regulation & licensing
(vi) Situs of tax
collected
d) Taxing powers of barangays(exclude RATES)
e) Common revenue raising powers
(i) Service fees and charges
(ii) Public utility charges
(iii) Toll fees or
charges f) Community
tax
6. Common limitations on the taxing powers of LGUs
7. Collection of business tax
a) Tax period and manner of
payment
b) Accrual of tax
c) Time of payment
d) Penalties on unpaid taxes, fees or charges
e) Authority of treasurer in collection and inspection of books
8. Taxpayers remedies
a) Periods of assessment and collection of local taxes, fees or
charges
b) Protest of assessment
c) Claim for refund or tax credit for erroneously or illegally collected
tax, fee or charge
9. Civil remedies by the LGU for collection of revenues
a) Local governments lien for delinquent taxes, fees or
charges
b) Civil remedies, in general
(i) Administrative action
(ii) Judicial action

B. Real property taxation

1. Fundamental principles
2. Nature of real property tax
3. Imposition of real property tax
a) Power to levy real property tax
b) Exemption from real property tax
4. Appraisal and assessment of real property tax
a) Rule on appraisal of real property tax at fair market value
b) Declaration of real property
c) Listing of real property in assessment rolls
d) Preparation of schedules of fair market value
i) Authority of assessor to take evidence
ii) Amendment of schedule of fair market value
 e) Classes of real property
f) Actual use of property as basis of assessment
g) Assessment of property
(i) General revisions of assessments and property
classification
(ii) Date of effectivity of assessment or reassessment
(iii) Assessment of property subject to back taxes
(ib) Notification of new or revised assessment
5. Collection of real property tax
a) Date of accrual of real property tax and
special levies
b) Collection of tax
(i) Collecting authority
(ii) Duty of assessor to furnish local treasurer with assessment rolls
(iii) Notice of time for collection of tax
c) Periods within which to collect real
property tax
d) Special rules on payment
(i) Payment of real property tax in installments
(ii) Interests on unpaid real property tax
(iii) Condonation of real property tax
e) Remedies of LGUs for collection of real property tax
(i) Issuance of notice of delinquency for real property tax payment
(ii) Local governments lien
(iii) Remedies in general
(iv) Resale of real estate taken for taxes, fees or charges
(v) Further levy until full payment of amount due
6. Refund or credit of real
property tax
a) Payment under protest
b) Repayment of excessive collections
7. Taxpayers remedies
a) Contesting an assessment of value of real property
(i) Appeal to the Local Board of Assessment Appeals
(ii) Appeal to the Central Board of Assessment Appeals
(iii) Effect of payment of tax
b. Payment of real property tax under protest
(i) File protest with local treasurer
(ii) Appeal to the Local Board of Assessment
Appeals
(iii) Appeal to the Central Board of Assessment
Appeals
(iv) Appeal to the CTA
(v) Appeal to the Supreme Court

PART IV. TARIFF AND CUSTOMS DUTIES (Customs Modernization and Tariff
Act (CMTA)

A. Tariff and customs duties

1. Definition
2. Purpose for imposition
3. Kinds or Classification of duties
a. Ordinary/Regular duties (Valuation Methods)
(i) Transaction value system (Sec. 701)
 (ii) Transaction value of identical goods (Sec.
702)
(iii) Transaction value of similar goods (Sec.
703)
(iv) Deductive value (Sec. 704)
(v) Computed value (Sec. 705)
(vi) Fallback value(Sec. 706)

b. Special duties
a) Marking duties ( Sec. 710)
b) Dumping duties ( Sec. 711)
c) Safeguard duty (Sec. 712)
d) Countervailing duty ( Sec.
713)
e) Discriminatory/Retaliatory duty ( Sec. 714)

4. Flexible tariff clause (Sec. 1608)

B. Requirements of importation
1. Beginning and ending of importation
2. Obligations of importer
a) Cargo manifest (Sec. 1204)
b) Import entry (now Goods Declaration Sec. 407)
c) Declaration of correct weight or value (Examination of Goods (Title IV
Chapter 2)
d) Liability for payment of duties (Secs. 107, 405)
e) Liquidation of duties (Assessment and Release (Title IV Chapter 3)
f) Keeping of records (Sec. 1003)

C. Accrual and Payment of Tax and Duties

1. General Rule: Except as otherwise provided, all goods imported into the
Philippines shall be subject to duty upon importation, including goods previously
exported from the Philippines. (Sec. 104)

Types of Importation
a. Taxable importation (Sec. 104)
b. Regulated Importation (Sec. 117)
c. Prohibited importation (Sec. 118)/ Restricted Importation (Sec 119)
d. De Minimis importations (small value importations) (Sec. 423)
e. Conditionally-free and duty-exempt importations (Sec. 800/116)
(i) Returning residents( Sec. 800(f)
(ii) Conditions for exemption from tax and duties (Sec. 800)
(iii)Balikbayan box (Sec. 800(g)

2. Goods Declaration

a. Formal entry distinguished from informal entry (Sec. 402)

b. Filing of goods declaration (Sec. 407)
c. Assessment and payment of duties and taxes, interest and surcharge
(Title IV Chapter 3)
d. Provisional goods declaration (Sec. 426)
e. Relief consignment (Sec. 120)
f. Misdeclaration, misclassification and undervaluation in goods declaration
(i) Definition and distinction (Sec. 1400)
(ii) Imposition of surcharge(Sec. 1400)
D. Unlawful importation or exportation (Exclude penalties)

1. Technical Smuggling and outright smuggling (Sec. 1401)

2. Other fraudulent practices (Sec. 1403)

E. Remedies
1. Government
a) Administrative/extrajudicial
(i) Search, seizure, forfeiture, arrest (Secs. 1113
1125)
(ii) Authority of Commissioner to make compromise (Sec. 1131)
b) Judicial
(i) Rules on appeal including jurisdiction (Secs. 1135 1138)
2. Taxpayer
a) Protest (Secs. 1106 1110)
b) Appeal in protest and forfeiture cases (Secs. 1126 1128)
b) Abandonment (Secs. 1129 1130)
c) Abatement and refund (Secs. 903 913)

PART V. Judicial Remedies (R.A. No. 1125, as amended, and the Revised
Rules of the
Court of Tax Appeals)

A. Jurisdiction of the Court of Tax Appeals

1. Exclusive appellate jurisdiction over civil tax cases
a) Cases within the jurisdiction of the court en banc
b) Cases within the jurisdiction of the court in divisions
2. Criminal cases
a) Exclusive original jurisdiction
b) Exclusive appellate jurisdiction in criminal cases

B. Judicial procedures
1. Judicial action for collection of
taxes a) Internal revenue
taxes
b) Local taxes
(i) Prescriptive period
2. Civil cases
a) Who may appeal, mode of appeal, effect of appeal
(i) Suspension of collection of tax
a) Injunction not available to restrain collection
(ii) Taking of evidence
(iii) Motion for reconsideration or new
trial
b) Appeal to the CTA, en banc
c) Petition for review on certiorari to the Supreme Court
3. Criminal cases
a) Institution and prosecution of criminal actions
(i) Institution of civil action in criminal
action
b) Appeal and period to appeal
(i) Solicitor General as counsel for the people and government
officials sued in their official capacity
c) Petition for review on certiorari to the Supreme Court
NOTA BENE:

All laws, rules, issuances and jurisprudence pertinent to every subject and its listed
topics as of June 30, 2016 are examinable materials within the coverage of the 2017
Bar Examinations

Principles of law are not covered by the cut-off period stated herein.