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7/27/2019 Syllabus - Law on Taxation
1/26
COVERAGE
LAW ON TAXATION2013 BAR EXAMINATIONS
9. General Principles of Taxation
1. Definition and concept of taxation
2. Nature of taxation3. Characteristics of taxation4. Power of taxation compared with other powers
1. Police power
2. Power of eminent domain5. Purpose of taxation
1. Revenue-raising
2. Non-revenue/special or regulatory
6. Principles of sound tax system
1. Fiscal adequacy
2. Administrative feasibility
3.Theoretical justice
7. Theory and basis of taxation
1. Lifeblood theory
2. Necessity theory
3. Benefits-protection theory (Symbioticrelationship)
4.Jurisdiction over subject and objects
8. Doctrines in taxation
1. Prospectivity of tax laws
2. Imprescriptibility
3. Double taxation
1) Strict sense
2) Broad sense
3) Constitutionality of double taxation
4) Modes of eliminating double taxation
4. Escape from taxation
1) Shifting of tax burden(1)Ways of shifting the tax burden
(2)Taxes that can be shifted
(3) Meaning of impact and incidence oftaxation
2)Tax avoidance
3)Tax evasion
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5. Exemption from taxation
1) Meaning of exemption from taxation
2) Nature of tax exemption
3) Kinds of tax exemption
(1) Express
(2) Implied
(3) Contractual
4) Rationale/grounds for exemption
5) Revocation of tax exemption
6. Compensation and set-off
7. Compromise
8.Tax amnesty
1) Definition
2) Distinguished from tax exemption
9. Construction and interpretation of:1)Tax laws
(1)General rule
(2) Exception
2)Tax exemption and exclusion
(1)General rule
(2) Exception
3)Tax rules and regulations
(1)General rule only
4) Penal provisions of tax laws
5) Non-retroactive application to taxpayers
(1)Exceptions
9.Scope and limitation oftaxation
1. Inherent limitations
1) Public purpose
2) Inherently legislative
(1)General rule(2) Exceptions
(1) Delegation tolocalgovernments
(2) Delegation tothe President
(3) Delegation toadministrative agencies
3)Territorial
(1)Situs of taxation
(1) Meaning
(2) Situs of income tax
(1) Fromsourceswithin thePhilippines
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(2) From sourceswithout thePhilippines
(3) Income partly withinand partly withoutthe Philippines
(3) Situs of property taxes
(1)Taxes on realproperty
(2)Taxes on personalproperty
(4) Situs of excise tax
(1) Estate tax
(2) Donors tax
(5) Situs of business tax
(1) Sale of realproperty
(2) Sale of personalproperty
(3) Value-Added Tax(VAT)
4) International comity
5) Exemption of governmententities, agencies, andinstrumentalities
2. Constitutional limitations
1) Provisions directly affectingtaxation
(1) Prohibition againstimprisonment for non-payment of poll tax
(2) Uniformity and equality oftaxation
(3) Grant by Congress ofauthority to the presidentto impose tariff rates
(4) Prohibition against
taxation of religious,
charitable
entities, and
educational
entities
(5) Prohibition againsttaxation of non-stock,non-profit institutions
(6) Majority vote of Congressfor grant of taxexemption
(7) Prohibition on use of taxlevied for specialpurpose
(8) Presidents veto poweron appropriation,revenue, tariff bills
(9) Non-impairment of jurisdiction of the
Supreme Court(10)Grant of power to the
local government units
to create its own sources
of revenue
(11) Flexible tariff clause
(12) Exemption from realproperty taxes
(13) No appropriation or useof public money for
religious purposes2) Provisions indirectly affectingtaxation
(1) Due process
(2) Equal protection
(3) Religious freedom
(4) Non-impairment of obligations of contracts
10. Stages of taxation
1. Levy
2. Assessment and collection
3. Payment
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4. Refund
11. Definition, nature, and characteristics of taxes
12. Requisites of a valid tax
13.Tax as distinguished from other forms of exactions
1.Tariff
2.Toll
3. License fee
4. Special assessment
5. Debt
14. Kinds of taxes
1. As to object
1) Personal, capitation, or poll tax
2) Property tax
3) Privilege tax
2. As to burden or incidence1) Direct
2) Indirect
3. As to tax rates
1) Specific
2) Ad valorem
3)Mixed
4. As to purposes
1) General or fiscal
2) Special, regulatory, or sumptuary
5. As to scope or authority to impose1) National internal revenue taxes
2) Local real property tax, municipal tax
6. As to graduation
1) Progressive
2) Regressive
3) Proportionate
II. National Internal Revenue Code (NIRC) of 1997, as amended
1. Income taxation1. Income tax systems
1) Global tax system
2) Schedular tax system
3) Semi-schedular or semi-global tax system
2. Features of the Philippine income tax law
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1) Direct tax
2) Progressive
3)Comprehensive
4) Semi-schedular or semi-global tax system
3. Criteria in imposing Philippine income tax
1) Citizenship principle
2) Residence principle
3) Source principle
4.Types of Philippine income tax
5.Taxable period
1) Calendar period
2) Fiscal period
3) Short period
6. Kinds of taxpayers
1) Individual taxpayers(9)Citizens
(1) Resident citizens
(2) Non-resident citizens
(35) Aliens
(1) Resident aliens
(2) Non-resident aliens
(1) Engaged in trade or business
(2) Not engaged in trade or business
(61) Special class ofindividualemployees
(1) Minimum wageearner
2) Corporations
(9)Domestic
corporations(35) Foreign
corporations
(1) Residentforeigncorporations
(2) Non-residentforeigncorporations
(61) Joint venture andconsortium
3) Partnerships
4) General professionalpartnerships
5) Estates and trusts
6)Co-ownerships
7. Income taxation
1) Definition
2) Nature
3) General principles
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8. Income
1) Definition
2) Nature
3) When income is taxable
(1)Existence of income
(2) Realization of income
(1)Tests of realization
(2) Actual vis--vis constructivereceipt
(3) Recognition of income
(4) Methods of accounting
(1) Cash method vis--visaccrual method
(2) Installment payment vis--vis
deferred payment vis--vis
percentage completion (inlong-term contracts)
4)Tests in determining whether incomeis earned for tax purposes
(1) Realization test
(2) Claim of right doctrine ordoctrine of ownership,command, or control
(3) Economic benefit test, doctrineof proprietary interest
(4) Severance test(5) All events test
9. Gross income
1) Definition
2) Concept of income fromwhatever source derived
3) Gross income vis--vis netincome vis--vis taxable income
4) Classification of income as tosource
(1)Gross income and taxable
income from sources withinthe Philippines
(2)Gross income and taxableincome from sources withoutthe Philippines
(3) Income partly within orpartly without thePhilippines
5) Sources of income subject to tax
(1)Compensation income
(2) Fringe benefits
(1) Special treatment offringe benefits
(2) Definition
(3)Taxable and non-taxablefringe benefits
(3) Professional income
(4) Income from business
(5) Income from dealings inproperty
(1)Types of properties
(1) Ordinary assets
(2) Capital assets
(2)Types of gains fromdealings in property
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(1) Ordinary income vis--vis capitalgain
(2) Actual gain vis--vis presumed gain
(3) Long term capital gain vis--visshort-term capital gain
(4) Net capital gain, net capital loss(5) Computation of the amount of gain
or loss
(6) Income tax treatment of capitalloss
(1) Capital loss limitation rule
(applicable to both
corporations and individuals)
(2) Net loss carry-over rule(applicable only to individuals)
(7) Dealings in real property situated inthe Philippines
(8) Dealings in shares of stock ofPhilippine corporations
(1) Shares listed and traded in thestock exchange
(2) Shares not listed and traded inthe stock exchange
(9) Sale of principal residence
(6) Passive investment income
(1) Interest income
(2) Dividend income(1) Cash dividend
(2) Stock dividend
(3) Property dividend
(4) Liquidating dividend
(3) Royalty income
(4) Rental income
(1) Lease of personal property
(2) Lease of real property
(3)Tax treatment of
(1) Leasehold
improvements bylessee
(2) VAT added torental/paid by thelessee
(3) Advance rental/longterm lease
(7) Annuities, proceeds from lifeinsurance or other types ofinsurance
(8) Prizes and awards
(9) Pensions, retirement benefit, orseparation pay
(10) Income from any sourcewhatever
(1) Forgiveness of indebtedness
(2) Recovery of accounts
previously written off when
taxable/when not taxable
(3) Receipt of tax refunds orcredit
(4) Income from any sourcewhatever
(5) Source rules in determiningincome from within andwithout
(1) Interests
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(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
(6)Situs of income taxation (see page 2
under inherent limitations, territorial)
(7) Exclusions from gross income
(1) Rationale for the exclusions
(2)Taxpayers who may avail of theexclusions
(3) Exclusions distinguished fromdeductions and tax credit
(4) Under the Constitution
(1) Income derived by the government
or its political subdivisions from the
exercise of any essential
governmental function
(5) Under the Tax Code
(1) Proceeds of life insurance policies
(2) Return of premium paid
(3) Amounts received under life
insurance, endowment or
annuity contracts(4) Value of property acquired by
gift, bequest, devise or
descent
(5) Amount received throughaccident or healthinsurance
(6) Income exempt under taxtreaty
(7) Retirement benefits,
pensions, gratuities, etc.(8) Winnings, prizes,
and awards,
including those in
sports competition
(6) Under special laws
(1) Personal Equity andRetirement Account
(8) Deductions from gross income
(1) General rules
(1) Deductions must be paidor incurred in connectionwith
the taxpayers trade,business or profession
(2) Deductions must
be supported by
adequate receipts
or invoices (except
standard
deduction)
(3) Additional requirementrelating to withholding
(2) Return of capital (cost ofsales or services)
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(1) Sale of inventory of goods by
manufacturers and dealers of
properties
(2) Sale of stock in trade by a real
estate dealer and dealer in
securities(3) Sale of services
(3) Itemized deductions
(1) Expenses
(1) Requisites for deductibility
(1) Nature: ordinary and necessary
(2) Paid and incurred during taxableyear
(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/Representationexpenses
(10) Political campaign expenses
(11) Training expenses
(2) Interest
(1) Requisites fordeductibility
(2) Non-deductible interestexpense
(3) Interest subject tospecial rules
(1) Interest paid inadvance
(2) Interest periodicallyamortized
(3) Interest expense
incurred to
acquire property
for use in
trade/business/p
rofession(4) Reduction of
interest expense/interest arbitrage
(3)Taxes
(1) Requisites fordeductibility
(2) Non-deductible taxes
(3)Treatments ofsurcharges/interests/fines for delinquency
(4)Treatment of specialassessment
(5)Tax credit vis--visdeduction
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(4) Losses
(1) Requisites for deductibility
(2) Other types of losses
(1) Capital losses
(2) Securities becoming worthless
(3) Losses on wash sales of stocks orsecurities
(4) Wagering losses
(5) Net Operating Loss Carry-Over(NOLCO)
(5) Bad debts
(1) Requisites for deductibility
(2) Effect of recovery of bad debts
(6)Depreciation
(1) Requisites for deductibility
(2) Methods of computing depreciationallowance
(1) Straight-line method
(2) Declining-balance method
(3) Sum-of-the-years-digit method
(7) Charitable and other contributions
(1) Requisites for deductibility
(2) Amount that may be deducted
(8) Contributions to pension trusts
(1) Requisites for deductibility
(9)Deductions under special laws
(4) Optional standard deduction
(1) Individuals, except non-resident aliens
(2) Corporations, except non-resident foreigncorporations
(3) Partnerships
(5) Personal and additional
exemption (R.A. No. 9504,
Minimum Wage Earner Law)
(1) Basic personalexemptions
(2) Additional exemptions fortaxpayer with dependents
(3) Status-at-the-end-of-the-year rule
(4) Exemptions claimed bynon-resident aliens
(6) Items not deductible(1) General rules
(2) Personal, living or familyexpenses
(3) Amount paid for new
buildings or for
permanent
improvements
(capital
expenditures)
(4) Amount expended inrestoring property (majorrepairs)
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(5) Premiums paid on life
insurance policy
covering life or any
other officer or
employee financially
interested(6)Interest expense,
bad debts, and
losses from sales
of property
between related
parties
(7) Losses from sales orexchange or property
(8) Non-deductible interest
(9) Nondeductible taxes(10) Non-deductible
losses
(11) Losses from washsales of stock orsecurities
(7) Exempt corporations
(1) Propriety educationalinstitutions andhospitals
(2) Government owned or
controlled corporations(3) Others
10.Taxation of resident citizens, non-residentcitizens, and resident aliens
1) General rule that resident citizens
are taxable on income from all
sources within and without the
Philippines
(9)Non-resident citizens
2) Taxation on compensation income
(9)Inclusions(1) Monetary compensation
(1) Regular salary/wage
(2) Separation pay/retirementbenefit not otherwiseexempt
(3) Bonuses, 13th month pay,
and other benefitsnot exempt
(4) Directors fees
(2) Non-monetarycompensation
(1) Fringe benefit notsubject to tax
(35) Exclusions(1) Fringe benefit subject
to tax
(2) De minimis benefits
(3) 13th
month payand other benefitsand paymentsspecificallyexcluded fromtaxablecompensation
income(61) Deductions
(1) Personal exemptionsand additionalexemptions
(2) Health andhospitalizationinsurance
(3)Taxation ofcompensation incomeof a minimum wage
earner(1) Definition of
statutory minimumwage
(2) Definition of minimum wageearner
(3) Income also
subject to tax
exemption: holiday
pay, overtime pay,
night shiftdifferential, and
hazard pay
3) Taxation of businessincome/income from practiceof profession
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4) Taxation of passive income
(9)Passive income subject to finaltax
(1) Interest income
(9) Treatment of income
from long-term deposits(2) Royalties
(3) Dividends from domesticcorporations
(4) Prizes and other winnings
(2) Passive income not subject tofinal tax
5) Taxation of capital gains
(1) Income from sale of shares ofstock of a Philippine corporation
(1) Shares traded and listed inthe stock exchange
(2) Shares not listed and tradedin the stock exchange
(2) Income from the sale of realproperty situated in thePhilippines
(3) Income from the sale,
exchange, or other
disposition of other capital
assets
11.Taxation of non-resident aliens engagedin trade or business
1) General rules
2) Cash and/or property dividends
3) Capital gains
Exclude: non-resident aliens not
engaged in trade or business
12. Individual taxpayers exempt fromincome tax
1) Senior citizens
2) Minimum wage earners
3) Exemptions granted underinternational agreements
13. Taxation of domestic corporations
1) Tax payable
(1) Regular tax
(2) Minimum Corporate IncomeTax (MCIT)
(1) Imposition of MCIT
(2) Carry forward of excessminimum tax
(3) Relief from the MCITunder certain conditions
(4) Corporations exemptfrom the MCIT
(5) Applicability of the MCIT
where a corporation is
governed both under
the regular tax system
and a special income
tax system
2) Allowable deductions
(1) Itemized deductions
(2) Optional standarddeduction
3) Taxation of passive income
(1) Passive income subject totax
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(1) Interest from deposits and
yield or any other
monetary benefit from
deposit substitutes and
from trust funds and
similar arrangements androyalties
(2) Capital gains from the sale
of shares of stock not
traded in the stock
exchange
(3) Income derived under theexpanded foreign currencydeposit system
(4) Inter-corporate dividends
(5)Capital gains realized from
the sale, exchange, or
disposition of lands and/or
buildings
(2) Passive income not subject totax
4) Taxation of capital gains
(1) Income from sale of shares ofstock
(2) Income from the sale of realproperty situated in the
Philippines(3) Income from the sale,
exchange, or other
disposition of other capital
assets
5) Tax on proprietary educationalinstitutions and hospitals
6) Tax on government-
owned or controlled
corporations,
agencies orinstrumentalities
14.Taxation of resident foreign corporations
1) General rule
2) With respect to their income fromsources within the Philippines
3) Minimum Corporate Income Tax
4)Tax on certain income
(1) Interest from deposits
and yield or any othermonetary benefit from
deposit substitutes, trust
funds and similar
arrangements and
royalties
(2) Income derived under theexpanded foreign currencydeposit system
(3) Capital gain from sale ofshares of stock not traded in
the stock exchange(4) Inter-corporate dividends
Exclude:
(1) International carrier
(2) Offshore banking units
(3) Branch profitsremittances
(4) Regional or
area
headquarters
and regionaloperating
headquarters
of
multinational
companies
15.Taxation of non-resident foreigncorporations
1) General rule
2)Tax on certain income
(1)Interest on foreign loans(2) Intercorporate dividends
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(3) Capital gains from
sale of shares of
stock not traded in
the stock exchange
Exclude:
(1) Non-residentcinematographic filmowner, lessor ordistributor
(2) Non-resident owner or
lessor of vessels
chartered by Philippine
nationals
(3) Non-resident owner or
lessor of aircraft
machineries and other
equipment
16. Improperly accumulated earnings ofcorporations
17. Exemption from tax on corporations
18.Taxation of partnerships
19.Taxation of general professionalpartnerships
20. Withholding tax
1) Concept
2) Kinds
(1) Withholding of final tax oncertain incomes
(2) Withholding of creditabletax at source
3) Withholding of VAT
4) Filing of return and paymentof taxes withheld
(1) Return and payment incase of governmentemployees
(2) Statements and returns
5) Final withholding tax atsource
6) Creditable withholding tax
(1) Expanded withholdingtax
(2) Withholding tax oncompensation
7) Timing of withholding
B. Estate tax
1. Basic principles2. Definition
3. Nature
4. Purpose or object
5. Time and transfer of properties
6. Classification of decedent
7. Gross estate vis--vis net estate
8. Determination of gross estateand net estate
9. Composition of gross estate
10. Items to be included in grossestate
11. Deductions from estate
12. Exclusions from estate
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13. Tax credit for estate taxes paid in aforeign country
14. Exemption of certain acquisitionsand transmissions
15. Filing of notice of death
16. Estate tax return
3. Donors tax
1. Basic principles
2. Definition
3. Nature
4. Purpose or object
5. Requisites of valid donation
6. Transfers which may be constitutedas donation
1) Sale/exchange/transfer ofproperty for insufficientconsideration
2) Condonation/remission of debt
7. Transfer for less than adequate andfull 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 ina foreign country
13. Exemptions of gifts from donors
tax
14. Person liable
15. Tax basis
4. Value-Added Tax (VAT)
1. Concept
2. Characteristics/Elements of aVAT-Taxable transaction
3. Impact of tax
4. Incidence of tax
5. Tax credit method
6. Destination principle
7. Persons liable
8. VAT on sale of goods orproperties
1) Requisites of taxability ofsale of goods or properties
9. Zero-rated sales of goods or
properties, and effectively zero-
rated sales of goods or
properties
10. Transactions deemed sale
1) Transfer, use or consumption
not in the course of business
of goods/properties originally
intended for sale or use in
the course of business
2) Distribution or transfer toshareholders, investors orcreditors
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3) Consignment of goods if actual
sale not made within 60 days
from date of consignment
4) Retirement from or cessation ofbusiness with respect to inventories
on hand11. Change or cessation of status as VAT-
registered person
1) Subject to VAT
(1) Change of business activity
from VAT taxable status to
VAT-exempt status
(2) Approval of request for
cancellation of a registration
due to reversion to exempt
status
(3) Approval of request for
cancellation of registration due
to desire to revert to exempt
status after lapse of 3
consecutive years
2) Not subject to VAT
(1) Change of control of acorporation
(2) Change in the trade or corporatename
(3) Merger or consolidation ofcorporations
12. VAT on importation of goods
1) Transfer of goods by tax exemptpersons
13. VAT on sale of service and use or leaseof properties
1) Requisites for taxability
14. Zero-rated sale of services
15. VAT exempt transactions
1) VAT exempt transactions, ingeneral
2) Exempt transaction,enumerated
16. Input tax and output tax, defined17. Sources of input tax
1) Purchase or importation ofgoods
2) Purchase of real properties forwhich a VAT has actually beenpaid
3) Purchase of services in whichVAT has actually been paid
4) Transactions deemed sale
5) Presumptive input
6) Transitional input
18. Persons who can avail of input taxcredit
19. Determination of output/input tax;VAT payable; excess input taxcredits
1) Determination of output tax
2) Determination of input taxcreditable
3) Allocation of input tax on mixedtransactions
4) Determination of the output
tax and VAT payable and
computation of VAT payable
or excess tax credits
20. Substantiation of input tax credits
21. Refund or tax credit of excess inputtax
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1) Who may claim for refund/apply forissuance of tax credit certificate
2) Period to file claim/apply forissuance of tax credit certificate
3) Manner of giving refund
4) Destination principle or cross-borderdoctrine
22. Invoicing requirements
1) Invoicing requirements in general
2) Invoicing and recording deemed saletransactions
3) Consequences of issuing erroneousVAT invoice or VAT official receipt
23. Filing of return and payment
24. Withholdin
g of final VAT on
sales to
government E. Tax
remedies under
the NIRC
1.Taxpayers remedies
1) Assessment
(9)Concept of assessment
(1) Requisites for validassessment
(2) Constructive methods ofincome determination
(3) Inventory method for incomedetermination
(4)Jeopardy assessment
(5)Tax delinquency and taxdeficiency
(2) Power of the Commissioner to
make assessments andprescribe additional
requirements for tax
administration and
enforcement
(1) Power of the
Commission
er to obtain
information,
and to
summon/exa
mine, and
take
testimony of
persons
(61) When assessment is made
(1) Prescriptive period forassessment
(1) False, fraudulent,
and non-filing ofreturns
(2) Suspension of running ofstatute of limitations
(4) General provisions onadditions to the tax
(1) Civil penalties
(2) Interest
(3) Compromise penalties
(5) Assessment process
(1) Tax audit(2) Notice of informal
conference
(3) Issuance of preliminaryassessment notice
(4) Notice of informalconference
(5) Issuance of preliminaryassessment notice
(6) Exceptions to issuanceof preliminary
assessment notice(7) Reply to preliminary
assessment notice
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(8) Issuance of formal letter of
demand and assessment
notice/final assessment
notice
(9) Disputed assessment
(10)Administrative decision on adisputed assessment
6) Protesting assessment
(1) Protest of assessment bytaxpayer
(1) Protested assessment
(2) When to file a protest
(3) Forms of protest
(4) Content and validity ofprotest
(2) Submission of documents within60 days from filing of protest
(3) Effect of failure to protest
(4) Period provided for the protest tobe acted upon
(7) Rendition of decision byCommissioner
(1) Denial of protest
(1) Commissioners actionsequivalent to denial of protest
(1) Filing of criminal actionagainst taxpayer
(2) Issuing a warrant of distraint and levy
(2) Inaction by Commissioner
(8) Remedies of taxpayer to action byCommissioner
(1) In case of denial of protest
(2) In case of inaction by
Commissioner within 180
days from submission of
documents
(3) Effect of failure to appeal
2) Collection
(1)Requisites(2) Prescriptive periods
(3) Distraint of personal propertyincluding garnishment
(1) Summary remedy of distraint of personalproperty
(1) Purchase by thegovernment at saleupon distraint
(2) Report of sale to the
Bureau of InternalRevenue (BIR)
(3) Constructive distraint toprotect the interest ofthe government
(4) Summary remedy of levy onreal property
(1) Advertisement and sale
(2) Redemption of propertysold
(3) Final deed of purchaser
(5) Forfeiture to government forwant of bidder
(1) Remedy of enforcement offorfeitures
(1) Action to contestforfeiture of chattel
(2) Resale of real estate takenfor taxes
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(3) When property to be sold ordestroyed
(4) Disposition of funds
recovered in legal
proceedings or obtained
from forfeiture(6) Further distraint or levy
(7) Tax lien
(8) Compromise
(1) Authority of theCommissioner tocompromise and abate taxes
(9) Civil and criminal actions
(1) Suit to recover tax based onfalse or fraudulent returns
3)Refund(1)Grounds and requisites for refund
(2) Requirements for refund as laiddown by cases
(1) Necessity of written claimfor refund
(2) Claim containing acategorical demand forreimbursement
(3) Filing of administrative
claim for refund and the
suit/proceeding before theCTA within 2 years from
date of payment
regardless of any
supervening cause
(3) Legal basis of tax refunds
(4) Statutory basis for tax refundunder the tax code
(1) Scope of claims for refund
(2) Necessity of proof forclaim or refund
(3) Burden of proof forclaim of refund
(4) Nature of erroneouslypaid tax/illegallyassessed collected
(5) Tax refund vis--vis taxcredit
(6) Essential requisites forclaim of refund
(5) Who may claim/apply for taxrefund/tax credit
(1)Taxpayer/withholdingagents of non-residentforeign corporation
(6) Prescriptive period forrecovery of tax erroneously
or illegally collected(7) Other consideration
affecting tax refunds
2. Government remedies
1) Administrative remedies
(1) Tax lien
(2) Levy and sale of realproperty
(3) Forfeiture of real propertyto the government for want
of bidder(4) Further distraint and levy
(5) Suspension of businessoperation
(6) Non-availability of injunction to restraincollection of tax
2)Judicial remedies
3. Statutory offenses and penalties
1) Civil penalties
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(1)Surcharge
(2) Interest
(1) In general
(2) Deficiency interest
(3) Delinquency interest
(4) Interest on extended payment
4. Compromise and abatement of taxes
1) Compromise
2) Abatement
7. Organization and Function of the Bureau of Internal Revenue
1. Rule-making authority of the Secretary of Finance
1) Authority of Secretary of Finance to promulgate rules and regulations
2) Specific provisions to be contained in rules and regulations
3) Non-retroactivity of rulings2. Power of the Commissioner to suspend the business operation of ataxpayer
III. Local Government Code of 1991, as amended
1. Local government taxation
1. Fundamental principles
2. Nature and source of taxing power
1) Grant of local taxing power under the local government code
2) Authority to prescribe penalties for tax violations3) Authority to grant local tax exemptions
4) Withdrawal of exemptions
5) Authority to adjust local tax rates
6) Residual taxing power of local governments
7) Authority to issue local tax ordinances
3. Local taxing authority
1) Power to create revenues exercised through Local Government Units
2) Procedure for approval and effectivity of tax ordinances
4. Scope of taxing power
5. Specific taxing power of Local Government Units1)Taxing powers of provinces
(1) Tax on transfer of real property ownership
(2) Tax on business of printing and publication
(3) Franchise tax
(4) Tax on sand, gravel and other quarry services
(5) Professional tax
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(6) Amusement tax
(7) Tax on delivery truck/van
2)Taxing powers of cities
3)Taxing powers of municipalities
(1) Tax on various types of
businesses(2) Ceiling on business tax
impossible on municipalitieswithin Metro Manila
(3) Tax on retirement onbusiness
(4) Rules on payment of business tax
(5) Fees and charges forregulation & licensing
(6) Situs of tax collected
4)Taxing powers of barangays
5) Common revenue raising powers
(1) Service fees and charges
(2) Public utility charges
(3) Toll fess or charges
6) Community tax
6. Common limitations on the taxingpowers of LGUs
7. Collection of business tax
1) Tax period and manner ofpayment
2) Accrual of tax
3) Time of payment
4) Penalties on unpaid taxes,fees or charges
5) Authority of treasurer incollection and inspection ofbooks
8.Taxpayers remedies
1) Periods of assessment andcollection of local taxes, feesor charges
2) Protest of assessment
3) Claim for refund of tax credit
for erroneously or illegally
collected tax, fee or charge
9. Civil remedies by the LGU forcollection of revenues
1) Local governments lien fordelinquent taxes, fees or
charges2) Civil remedies, in general
(1)Administrative action
(2)Judicial action
2. Real property taxation
1. Fundamental principles
2. Nature of real property tax
3. Imposition of real property tax
1) Power to levy real property
tax2) Exemption from real property
tax
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4. Appraisal and assessment of real propertytax
1) Rule on appraisal of real property at fairmarket value
2) Declaration of real property
3) Listing of real property in assessmentrolls
4) Preparation of schedules of fair marketvalue
(1)Authority of assessor to takeevidence
(2) Amendment of schedule of fairmarket value
5) Classes of real property
6)Actual use of property as basis ofassessment
7) Assessment of real property
(1)Assessment levels
(2) General revisions of assessmentsand property classification
(3) Date of effectivity of assessment orreassessment
(4) Assessment of property subject toback taxes
(5) Notification of new or revisedassessment
8) Appraisal and assessment of machinery5. Collection of real property tax
1) Date of accrual of real property tax andspecial levies
2) Collection of tax
(1)Collecting authority
(2) Duty of assessor to furnish localtreasurer with assessment rolls
(3) Notice of time forcollection of tax
3) Periods within which to collectreal property tax
4) Special rules on payment
(1)Payment of real propertytax in installments
(2) Interests on unpaid realproperty tax
(3) Condonation of realproperty tax
5) Remedies of LGUs forcollection of real property tax
(1)Issuance of notice ofdelinquency for realproperty tax payment
(2) Local governments lien
(3) Remedies in general(4) Resale of real estate
taken for taxes, fees orcharges
(5) Further levy until fullpayment of amount due
6. Refund or credit of real propertytax
1) Payment under protest
2) Repayment of excessivecollections
7.Taxpayers remedies
1) Contesting an assessment ofvalue of real property
(1)Appeal to the Local Boardof Assessment Appeals
(2) Appeal to the CentralBoard of AssessmentAppeals
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(3) Effect of payment of tax
b. Payment of real property under protest
(1)File protest with local treasurer
(2) Appeal to the Local Board of Assessment Appeals
(3) Appeal to the Central Board of Assessment Appeals
(4) Appeal to the CTA
(5) Appeal to the Supreme Court
IV. Tariff and Customs Code of 1978, as amended
1.Tariff and duties, defined
2. General rule: all imported articles are subject to duty.
1. Importation by the government taxable
3. Purpose for imposition
4. Flexible tariff clause
5. Requirements of importation
1. Beginning and ending of importation
2. Obligations of importer
1) Cargo manifest
2) Import entry
3) Declaration of correct weight or value4) Liability for payment of duties
5) Liquidation of duties
6) Keeping of records
6. Importation in violation of tax credit certificate
1. Smuggling
2. Other fraudulent practices
7. Classification of goods
1.Taxable importation2. Prohibited importation
3. Conditionally-free importation
8. Classification of duties
1. Ordinary/regular duties
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1) Ad valorem; methods of valuation
(1) Transaction value
(2) Transaction value of identical goods
(3) Transaction value of similar goods
(4) Deductive value
(5) Computed value
(6) Fallback value
2) Specific
2. Special duties
1) Dumping duties
2) Countervailing duties
3) Marking duties
4) Retaliatory/discriminatory duties
5) Safeguard
9.Remedies
1. Government
1) Administrative/extrajudicial
(1)Search, seizure, forfeiture, arrest
2)Judicial
(1)Rules on appeal including jurisdiction
2.Taxpayer
1) Protest
2) Abandonment
3) Abatement and refund
V. Judicial Remedies (R.A. No. 1125, as amended, and the Revised
Rules of the Court of Tax Appeals)
1.Jurisdiction of the Court of Tax Appeals
1. Exclusive appellate jurisdiction over civil tax cases
1) Cases within the jurisdiction of the court en banc
2) Cases within the jurisdiction of the court in divisions
2. Criminal cases
1) Exclusive original jurisdiction2) Exclusive appellate jurisdiction in criminal cases
2.Judicial procedures
1.Judicial action for collection of taxes
1) Internal revenue taxes
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2) Local taxes
(1)Prescriptive period
2. Civil cases
1) Who may appeal, mode of appeal, effect of appeal
(1)Suspension of collection of tax
a) Injunction not available to restrain collection
(2)Taking of evidence
(3) Motion for reconsideration or new trial
2) Appeal to the CTA, en banc
3) Petition for review on certiorari to the Supreme Court
3. Criminal cases
1) Institution and prosecution of criminal actions
(1)Institution of civil action in criminal action
2) Appeal and period to appeal
(1)Solicitor General as counsel for the people and
government officials sued in their official capacity
3) Petition for review on certiorari to the Supreme Court
C. Taxpayers suit impugning the validity of tax measures or acts of taxingauthorities
1.Taxpayers suit, defined
2. Distinguished from citizens suit
3. Requisites for challenging the constitutionality of a tax measure or
act of taxing authority
1) Concept oflocus standi as applied in taxation
2) Doctrine of transcendental importance
3) Ripeness for judicial determination
IMPORTANT NOTES:
1. This listing of covered topics is not intended and should not be used by the lawschools as a course outline. This was drawn up for the limited purpose of ensuringthat Bar candidates are guided on the coverage of the 2013 Bar Examinations.Listings whose subject matters run across several Bar Subjects shall be deemed toinclude only the subject matters specific to the given Bar Subject. For example,
Impeachment is generally a topic under Political Law but is listed also under Legaland Judicial Ethics for the ethical components of this Bar Subject. Note that theremay be specific identification of the covering Bar Subject where a topic may becommon to several Bar Subjects. For example, Independent Civil Actionsmentioned in the Civil Code shall be included as a topic in Remedial Law rather thanin Civil Law. Note also that many special laws, rules or specific topics, otherwisecovered by the different examinable Bar Subjects, have been omitted or areexpressly excluded from the coverage of the 2013 Bar Examinations.
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2. The appreciation of the fact situations in, and the answers to, some questions inevery Bar Subject may require the consideration of underlying ethical rules andvalues.
3. All Supreme Court decisions - pertinent to a given Bar subject and its listedtopics, and promulgated up toJanuary 31, 2013 - are examinable materials withinthe coverage of the 2013 Bar Examinations.