Professional Documents
Culture Documents
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
ESSENTIAL NOTATIONS IN TAXATION:
A PRE-BAR REVIEW GUIDE
I.
Q.
Q.
GENERAL PRINCIPLES
Define Taxation
Q.
It is legislative in character.
to
Q.
Exceptions:
i.
Q.
To LGUs in respect to
matters of local concern to
be exercised by the LG
bodies thereof [Sec. 5, Art.
X, 1987 Constitution];
ii.
iii.
Q.
Page 1 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
destructive power which interferes with the
personal and property rights of the people and
takes from them a portion of their property
for the support of the government.
Q.
are
the
lifeblood
of
the
government and should be
collected without unnecessary
hindrance.
However, such
Q.
Q.
Page 2 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
should not hold true to government officials
with respect to matters not of their own
personal concern.
Q.
Q.
Q.
Page 3 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
Q.
ii. Non-Revenue
a. RegulationTaxes may also be
imposed for a regulatory purpose
as,
for
instance,
in
the
rehabilitation of a threatened
industry which is affected with
public interest, like the oil industry.
(Caltex Phils. V. COA)
b. Promotion of General Welfare
Taxation may be used as an
implement of the police power in
order to promote the general
welfare of the people. Thus, in the
case of Lutz v. Araneta, the SC
upheld the validity of the Sugar
Adjustment Act, which imposed a
tax on milled sugar since the
purpose of the law was to
strengthen an industry that is so
undeniably vital to the economy
the sugar industry.
c.
d. Encouragement
of
Economic
GrowthTaxation does not only
raise public revenue, but in the
realm of tax exemptions and tax
reliefs, for instance, the purpose is
to grant incentives or exemptions
in order to encourage investments
and thereby promote the countrys
economic growth.
e. Protectionism
Q.
Q.
1.
The income tax liability of
Francia cannot be compensated with the
amount owed by the government as
compensation for his expropriated property. A
taxpayer may not set-off taxes due from claims
he may have against the government. Taxes
cannot be the subject of compensation because
the government and taxpayer are not mutually
creditors and debtors of each other and a
claim for taxes is not such debt, demand,
contract or judgment as is allowed to be setoff. The collection of a tax cannot await the
results of a lawsuit against the government
(Francia v. IAC, 162 SCRA 753).
2.
The claim of Philex for VAT
refund is still pending litigation, and still has to
be determined by the CTA. A fortiori, the
liquidated debt of Philex to the government
cannot, therefore, be set off against the
unliquidated claim which Philex conceived as
existing in its favor. Debts are due to the
government in its corporate capacity, while
taxes are due to the government in its
sovereign capacity (Philex v. CIR, 294 SCRA
687).
Q.
Page 4 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
they reach the consumer, and are paid by
those upon whom they ultimately fall, not as
taxes, but as part of the market price of the
commodity (Cooley, Tax. 61).
INHERENT LIMITATIONS ON THE POWER
TO TAX
Q.
Q.
Page 5 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
government, is exempt from real property tax
but the exemption does not extend to the
portions of the Navotas Fishing Port Complex
(NFPC) that were leased to taxable or private
persons and entities for their beneficial use.
Q.
Q.
Q.
regulations
Involves
an
exercise of police
power
Amount is generally Amount
is
not limited
usually limited to
the
necessary
expenses
of
regulation
Imposed on the right Imposed on the
to exercise a privilege right to exercise
as well as to persons a privilege
and property
Enforced contribution Legal
assessed by sovereign compensation or
authority to defray reward of an
public expenses
officer for public
services
Failure to pay does not Failure to pay
necessarily make the makes the act or
business illegal
business illegal
Involves exercise
taxing power
of
License Fee
Imposed for
Page 6 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
Q.
Q.
Q.
Q.
Q.
Page 7 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
Thus, the records of the Constitutional
Commission reveal that what is exempted is
not the institution itself; those exempted from
real estate taxes are lands, buildings and
improvements actually, directly and exclusively
used for religious, charitable or educational
purposes.
Citing the case of St. Louis Young
Mens Christian Association v. Gehner, 47
S.W.2d 776 which held that if real property is
used for one or more commercial purposes, it
is not exclusively used for the exempted
purposes but is subject to taxation, the
Supreme Court explained that What is meant
by actual, direct and exclusive use of the
property for charitable institutions is the direct
and immediate and actual application of the
property itself to the purposes for which the
charitable institution is organized. It is not the
use of the income from the real property that
is determinative of whether the property is
used for tax-exempt purposes.
In sum, the Court ruled that the
portions of the land leased to private entities
as well as those parts of the hospital leased to
private individuals are not exempt from taxes.
In the most recent case of CIR v. St.
Luke's Medical Center, Inc., 682 SCRA 66, the
Supreme Court held that St. Luke's is not
automatically exempt from real property tax
even if it meets the test of charity. To be
exempt, Section 28(3), Article VI of the
Constitution requires that a charitable
institutions use the property actually, directly
and exclusively for charitable purposes.
Q.
Q.
Q.
Page 8 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
Q:
Q:
Q.
Q.
TAX EVASION
Q.
supra).
25 T.Cl.78).
Page 9 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
payment of tax when it is shown that a tax is
due; (2) an accompanying state of mind which
is described as being evil, in bad faith,
willful, or deliberate and not accidental;
and (3) a course of action or failure of action
which is unlawful (Commissioner of Internal
Q.
Q.
Q.
Page 10 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
the happening of a certain specified
contingency, or upon the ascertainment of
certain facts or conditions by a person or
body other than the legislature itself.
properties.
These same sections also
provide for a 0% rate on certain sales and
transaction. Neither does the law make
any distinction as to the type of industry
or trade that will bear the 5-year
amortization of input tax paid on purchase
of capital goods or the 5% final
withholding tax by the government. It
must be stressed that the rule of uniform
taxation does not deprive Congress of the
power to classify subjects of taxation, and
only demands uniformity within the
particular class.
Page 11 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
will fend off foreign investments, saying
that foreign investors have other tax
incentives provided by law, and citing the
case of China, where despite a 17.5% noncreditable VAT, foreign investments were
not deterred. Again, for whatever is the
purpose of the 60-month amortization,
this involves executive economic policy
and legislative wisdom in which the Court
cannot intervene.
Q.
INCOME TAXATION
Page 12 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
The NIRC adopted a semi-global and
semi-schedular tax system.
Q.
Q.
Q.
1.
Q.
What is Income?
Q.
Page 13 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
1. There must be gain or profit;
2. That the gain or profit is realized
or
received,
actually
or
constructively;
3. It is not exempted by law or treaty
from income tax
Q.
Q.
Q.
Q.
Q.
Page 14 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
Taxation is the rule and exemption is the
exception. The burden of proof rests upon the
party claiming exemption to prove that it is in
fact covered by the exemption so claimed
(Commissioner v. Mitsubishi Metal Corp., 181
SCRA 215).
Q.
Q.
What
are
partnerships?
taxable
Q.
YES.
There was no iota of
documentary evidence (e.g. collection letters,
reports from investigating fieldsman, police
report/affidavit, etc.) to give support to the
allegation of worthlessness. For debts to be
considered worthless, and qualify as bad
debts making them deductible, the taxpayer
should show that:
a.
unregistered
Q.
Q.
b.
c.
d.
e.
f.
Q.
2002).
Is theoretical
deductible?
interest
on
capital
Page 15 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
Q.
Q.
Q.
Q.
Who are
taxpayers?
the
individual
income
Q.
final
tax
are
Page 16 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
return since it is to be made by the
payor;
(g) Creditable withholding tax is, in
certain cases, imposed on incomes
subject to ordinary tax; final
withholding tax is usually imposed
on incomes subject to final tax.
Q.
CWT
Taxes withheld
on
certain
income
payments
are
intended
to
equal or at least
approximate the
tax due of the
payee on said
income.
Q.
Payee of income
is required to
report
the
income and/or
pay
the
difference
between the tax
withheld
and
the tax due on
the income. The
payee also has
the right to ask
for a refund if
the tax withheld
is more than the
tax due.
The payee is The
income
not required to recipient is still
file an income required to file
tax return for an income tax
the
particular return,
as
income.
prescribed
in
Sec. 51 and Sec.
52 of the NIRC,
as amended.
Q.
ordinary
Q.
Q.
Page 17 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
DERIVED FROM SOURCES WITHIN shall be
subject to final tax and, correspondingly, final
withholding tax. The rate of tax is 20% for
Peso currency deposit account and 7.5% for
any foreign currency deposit account.
Q.
Q.
Q.
Q.
Q.
Q.
Page 18 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
rate is 5% for the first Php100,000.00 and
10% on any amount in excess thereof. (NOTE:
Q.
Q.
Explanation:
Q.
Q.
Q.
Page 19 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
rules are relevant only to dealings in capital
assets.
Q.
Q.
Q.
Q.
Q.
SSS
GSIS
PHIC
PCSO
Page 20 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
(e) Local water districts (R.A. No. 10026)
Q.
Q.
Q.
(c)
Q.
Page 21 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
not made to them, they would incur no tax in
respect to the undistributed earnings and
profits of the corporation. (see Sec. 29, NIRC
and Sec. 2, RR No. 2-2001)
Q.
Q.
Q.
Q.
Q.
Q.
DEDUCTIONS
Q.
income
Q.
Page 22 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
Yes, provided that the 5% expanded
withholding tax is paid by the corporation
during the audit.
Q.
Q.
Q.
Q.
Q.
Page 23 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
Q.
Q.
B. Corporate Taxpayers
Q.
Q.
Q.
Expenditures
incurred
for
the
individual benefit of the heirs, devisees or
Page 24 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
legatees are not deductible. (CIR vs. CA et al.,
G.R. No. 123206, March 22, 2000)
DE MINIMIS BENEFITS
Revenue Regulations No. 5-2011
further amended Revenue Regulation Nos. 52008, 5-2010, 10-2000 and 3-98, with respect
to De Minimis Benefits.
Rice subsidy of P1,500 or one sack of
50 kg. rice per month amounting to not more
than P1,500 and uniform and clothing
allowance not exceeding P5,000 per annum
(RR 8-2012) are considered as de minimis
benefits, which are not subject to the fringe
benefits tax (per Section 2.33(c) of Revenue
Regulations No. 3-98) and Income Tax as well
as withholding tax on corporation income of
both managerial and rank and file employees
(per Section 2.78.1 (A)(3)(c) and (d) of
Revenue Regulations No. 298).
Monetary value of fruits, flowers or
books given on special occasions are deleted.
Any other benefit not included in the
enumeration shall not be considered de
minimis benefits and are therefore subject to
income tax and withholding tax on
compensation income.
MINIMUM WAGE EARNERS ARE NOT
REQUIRED TO FILE AN INCOME TAX
RETURN
Minimum wage earner shall refer to a
worker in the private sector paid the statutory
minimum wage, or to an employee in the
public sector with compensation income of not
more than the statutory minimum wage in the
non-agricultural sector where he/she is
assigned. He is not required to file an income
tax return (Sec. 5, R.A. No. 9504).
Q.
Explain the
exemptions.
nature
of
personal
Personal
exemptions
are
the
theoretical personal, living and family expenses
of an individual allowed to be deducted from
the gross or net income of an individual
taxpayer. These are arbitrary amounts which
have been calculated by our lawmakers to be
roughly equivalent to the minimum of
subsistence, taking into account the personal
status and additional qualified dependents of
the taxpayer. They are fixed amounts in the
sense that the amounts have been
Q.
Page 25 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
form of goodwill for the taxpayer's trade or
business or for the industry or profession of
which the taxpayer is a member. If the
expenditures are for the advertising of the first
kind, then, except as to the question of the
reasonableness of amount, there is no doubt
such expenditures are deductible as business
expenses. If, however, the expenditures are for
advertising of the second kind, then normally
they should be spread out over a reasonable
period of time.
Q.
TAX REMEDIES
Administrative
Judicial)
2. Judicial
(Extra-
Page 26 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
A MOTION FOR RECONSIDERATION OF THE
DENIAL
OF THE ADMINISTRATIVE PROTEST DOES NOT
TOLL
THE 30-DAY PERIOD TO APPEAL TO THE
COURT OF TAX APPEALS
In the case at bar, petitioner's
administrative protest was denied by Final Decision
on Disputed Assessment dated August 2, 2005
issued by respondent and which petitioner received
on August 4, 2005. Under the above-quoted
Section 228 of the 1997 Tax Code, petitioner had
30 days to appeal respondent's denial of its protest
to the CTA. Since petitioner received the denial of
its administrative protest on August 4, 2005, it had
until September 3, 2005 to file a petition for
review before the CTA Division. It filed one,
however, on October 20, 2005, hence, it was filed
out of time. For a motion for reconsideration of
the denial of the administrative protest does not
toll the 30-day period to appeal to the
CTA.[Fishwealth
Canning Corporation v.
Q.
Page 27 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
scenario. Supposing, the [BIR's]
assessment came first but this
time no protest was made by the
taxpayer.
[H]ence,
the
assessment became final and
executory and so, the [BIR] filed
a collection case in the regular
trial court. During the pendency
of the collection suit, taxpayer
discovered that he made an
erroneous
payment
of
a
different kind of tax. To avoid
multiplicity of suits, will the
[BIR] allow the taxpayer to
ventilate his claim for refund in
the same collection case? Of
course, the [BIR] will object on
the ground of jurisdiction.
Page 28 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
domestic sale or consumption or for any other
disposition and to things imported into the
Philippines, is basically an indirect tax. While the
tax
is
directly
levied
upon
the
manufacturer/importer upon removal of the
taxable goods from its place of production or from
the customs custody, the tax, in reality, is actually
passed on to the end consumer as part of the
transfer value or selling price of the goods, sold,
bartered or exchanged. In early cases, we have
ruled that for indirect taxes (such as valued-added
tax or VAT), the proper party to question or seek a
refund of the tax is the statutory taxpayer, the
person on whom the tax is imposed by law and
who paid the same even when he shifts the burden
thereof to another. Thus, in Contex Corporation v.
Commissioner of Internal Revenue, we held that
while it is true that petitioner corporation should
not have been liable for the VAT inadvertently
passed on to it by its supplier since their transaction
is a zero-rated sale on the part of the supplier, the
petitioner is not the proper party to claim such
VAT refund. Rather, it is the petitioners suppliers
who are the proper parties to claim the tax credit
and accordingly refund the petitioner of the VAT
erroneously passed on to the latter.[Silkair
B.
Philam
Asset
Management,
Inc.
v.
Commissioner of Internal Revenue, 447 SCRA
772 (2005), the Court ruled that failure to
indicate a choice, however, will not bar a valid
request for a refund, should this option be
chosen by the taxpayer later on. The
Page 29 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
COMPLIANCE WITH THE 120-DAY WAITING
PERIOD IS MANDATORY AND
JURISDICTIONAL
Q.
Page 30 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
2.
3.
4.
5.
6.
7.
3.
4.
[Sec. 207(A)]
207(B), NIRC)
Tax Lien (Sec. 219, NIRC)
5.
205, NIRC)
6.
7.
2002).
2.
Page 31 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
PRESCRIPTION (Suspension of
Statutory Period for Collection).
Photocopies of records/documents
inadmissible in evidence
3. The best evidence obtainable under
Section 16 of the 1977 NIRC, as
amended, does not include mere
photocopies of records/documents.
The BIR, in making a preliminary and
final tax deficiency assessment against a
taxpayer, cannot anchor the said
assessment on mere machine copies of
records/documents. Mere photocopies
of the Consumption Entries have no
probative weight if offered as proof of
the contents thereof. The reason for
this is that such copies are mere scraps
of paper and are of no probative value
as basis for any deficiency income or
business taxes against a taxpayer.
the
Page 32 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
taxes, fees or other charges,
penalties in relation thereto, or
other matters arising under the
NIRC
or
other
laws
administered by the BIR [via a
(4)
OUTLINE OF JURISDICTION
[ Section 7, R.A. 9282 ]
I.
Page 33 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
(6)
(3.)
Q.
Page 34 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
Findings and conclusions of the CTA are
accorded highest respect
1.
Page 35 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
THE CTA HAS JURISDICTION OVER DISPUTE
BETWEEN PNB
AND BIR RELATIVE TO DEFICIENCY
WITHHOLDING TAX ASSESSMENT
PNB sought the suspension of the
proceedings in CTA Case No. 4249, after it
contested the deficiency withholding tax
assessment against it and the demand for
payment thereof before the DOJ, pursuant to
P.D. No. 242. The CTA, however, correctly
sustained its jurisdiction and continued the
proceedings in CTA Case No. 4249; and, in
effect, rejected DOJs claim of jurisdiction to
administratively settle or adjudicate BIRs
assessment against PNB.
Sustained herein is the contention of
private respondent Savellano that P.D. No.
242 is a general law that deals with
administrative settlement or adjudication of
disputes, claims and controversies between or
among government offices, agencies and
instrumentalities, including government-owned
or controlled corporations. Its coverage is
broad and sweeping, encompassing all
disputes, claims and controversies. It has been
incorporated as Chapter 14, Book IV of E.O.
No. 292, otherwise known as the Revised
Administrative Code of the Philippines. On the
other hand, R.A. No. 1125 is a special law
dealing with a specific subject matter the
creation of the CTA, which shall exercise
exclusive appellate jurisdiction over the tax
disputes and controversies enumerated therein.
Following the rule on statutory
construction involving a general and a special
law previously discussed, then P.D. No. 242
should not affect R.A. No. 1125, specifically
Section 7 thereof on the jurisdiction of the
CTA, constitutes an exception to P.D. No. 242.
Disputes, claims and controversies falling under
Section 7 of R.A. No. 1125, even though solely
among government offices, agencies, and
instrumentalities, including government-owned
and controlled corporations, remain in the
exclusive appellate jurisdiction of the CTA.
Such a construction resolves the alleged
inconsistency or conflict between the two
statutes, and the fact that P.D. No. 242 is the
more recent law is no longer significant
Page 36 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
V.
Q.
(b)
(c)
(d)
(e)
(f)
(g)
Q.
What
are
the
requisites
for
deductibility of claims against the
estate?
Q.
1.
2.
3.
Page 37 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
current fair market value of the
family home as declared or
included in the gross estate, or the
extent of the decedents interest
(whether conjugal/ community or
exclusive property), whichever is
lower,
but
not
exceeding
P1,000,000.
VI.
Page 38 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
defined as the money that a taxpayer overpaid
and is thus returned by the taxing authority.
Tax credit, on the other hand, is an amount
subtracted directly from one's total tax liability.
It is any amount given to a taxpayer as a
subsidy, a refund, or an incentive to encourage
investment.[Fort
Bonifacio
Development
VII.
LOCAL TAXATION
Q.
Q.
Page 39 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
is freedom from a charge or
burden to which others are
subjected. Exclusion, on the
other hand, is the removal
of otherwise taxable items
from the reach of taxation,
e.g., exclusions from gross
income
and
allowable
deductions.
Exclusion is
thus also an immunity or
privilege which frees a
taxpayer from a charge to
which others are subjected.
Consequently, the rule that
tax exemption should be
applied in strictissimi juris
against the taxpayer and
liberally in favor of the
government applies equally
to tax exclusions.
To
construe otherwise the in
lieu of all taxes provision
invoked is to be inconsistent
with the theory that R.A.
No. 7925, 23 grants tax
exemption because of a
similar grant to Globe and
Smart (PLDT v. City of
Bacolod, 463 SCRA 528,
540).
Q.
Page 40 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
the fair market value; and that the subject
assessment should take effect a year after or on
January 1, 2008. To our mind, the resolution
of these issues would have a direct bearing on
the assessment made by petitioner. Hence, it is
necessary that the issues must first be passed
upon before the properties of respondent are
sold in public auction.(Talento v. Escalada, Jr.,
Q.
Page 41 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
Only the parties to the agreement can
exact and demand the enforcement of the
rights and obligations it establishedonly
Mirant can demand compliance from the NPC
for the payment of the real property tax the
NPC assumed to pay. The local government
units cannot demand payment from the NPC.
The government-owned or controlled
corporation claiming exemption must be the
entity actually, directly, and exclusively using
the real properties, and the use must be
devoted to the generation and transmission of
electric
power.
Although
the
plant's
machineries are devoted to the generation of
electric power, by the NPC's own admission
and as previously pointed out, Miranta
private corporationuses and operates them.
That Mirant operates the machineries solely in
compliance with the will of the NPC only
underscores the fact that NPC does not
actually, directly, and exclusively use them.
revenue.
c.
d.
2.
Alternating
Duties
ad
Compound
Duty
Which
alternates
valorem and specific.
Consisting of ad valorem
and specific.
Page 42 of 45
a.
Anti-Dumping
Duty
Imposed
upon
foreign
products with value lower
than their fair market value
to the detriment of local
products; it is the difference
between the export price
and the normal value of
such product, commodity
or article.
Imposing authority
The Secretary of Trade
and Industry (nonagricultural products)
OR
Secretary
of
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
Agriculture (agricultural
products) after formal
investigation
and
affirmative finding of
the Tariff Commission.
b.
Countervailing
Duty
Imposed
upon
foreign
goods enjoying subsidy thus
allowing them to sell at
lower
prices
to
the
detriment of local products
similarly situated; it is
equivalent to the value of
the subsidy.
Imposing authority
Secretary of Trade and
Industry
(nonagricultural products);
Secretary of Agriculture
(agricultural products)
after
formal
investigation
and
affirmative finding of
the Tariff Commission.
Imposing authority
Commissioner
of
Customs.
e. Discriminatory Duty
Imposed
upon
goods
coming from countries that
discriminate
against
Philippine products.
Imposing authority
President
of
the
Philippines.
b.
c.
d.
b.
Page 43 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
period of 30 days from date of discharge of
the last package from the carrying vessel
constitutes implied abandonment of its
importations. After the lapse of this 30-day
period, the abandoned shipments become
government property.
Under the Tariff and Customs Code
(TCC), imported articles must be entered
within a non-extendible period of 30 days
from the date of discharge of the last package
from a vessel. Otherwise, the BOC will deem
the imported goods impliedly abandoned in
favor of the government. Chevron argued that
the import entry declarations (IED) it filed
within the 30-day period for some of its oil
shipments is the entry contemplated by the
TCC, and not the import entry and internal
revenue declaration (IEIRD), which it failed to
file within the same period. The SC disagreed,
holding that both the IED and IEIRD should be
filed within 30 days from the date of discharge
of the last package from the vessel or aircraft
Q.
UPDATES in TAXATION
Page 44 of 45
Taxation Law
From the notes of: Justice Japar B. Dimaampao and Atty. Noel M. Ortega
taxpayers office, (b) place of business,
or (c) in the office of the BIR.
God Bless
---
Page 45 of 45