Answers to the BAR: Taxation 1994-2006 (Arranged by Topics) sirdondee@gmail.

com

1 of 73

sirdondee@gmail.com
Answers to the BAR: Taxation 1994-2006 (Arranged by Topics) sirdondee@gmail.com

2 ofof73
3
4
5
6
7
8
9
10
11
12
73 of 73

may
now
be
untenable"
may of
lead
the 45
Effect;
Exemptions:
VAT:
Taxpayer:
Basis
Protest
of
Charitable
VAT
against
(1996)..........................................................................................................................................
of
Institutions
Assessment
in centralizing
Taxation
(2000)
(1998)
(1995)
...............................................................................................................
..........................................................................................................
........................................................................................................
18
32
62
subject
to
any
restrictions
whatever,
except
example
(a)
system
The
National
ofCondonation
this
taxation
tax
Internal
is Loan
income
by
tax
where
the
the
There
broadest
is
are
no
scope
substantial
double
of all
taxation.
the
differences
powers
DOUBLE
between
big
GENERAL
PRINCIPLES
examinee
to taxing
choose
a the
proposition
which
is
Collection
of
Taxes:
Authority;
Ordinary
Courts
(2001)
Fringe
Exemptions:
VAT:
Taxpayer:
Characteristics
Protest
against
of
VAT
Benefit
Assessment
Charitable
(1996)...........................................................................................................................
(1999)
..........................................................................................................
Tax:
Institutions;
Covered
Churches
Employees
(1996)
such
as
rest
in
the
discretion
of
the
authority
(b)
The
Tariff
and
Customs
person
Revenue
imposition
subject
Code;
and
to
collection
tax
cannot
of
shift
all
taxes
the
burden
in
the
TAXATION
investors
government
being
means
because
enticed
in
the
to
for
absence
the
"secured
same
of
tax
area"
Basic Features: Present Income Tax System (1996)
untenable
on
the or
basis
of the
new
law
which
exercises
it.Taxpayer:
(Tio
v.
Videogram
Regulatory
(c)
The
(2001).........................................................................................................
..............................................................................................
45
62
Local
Government
Code
VAT:
Protest
against
Exempted
32
Exemptions:
18is considered
Fringe
Assessment
Educational
Benefit
Tax:
Transactions
institution
Employer
(1999)
May
the
courts
enjoin
the
collection
of
Code;
and
of
national
the
tax
to
government.
another
person.
Accordingly,
it
is
period
and
limitations,
the
the
business
same
it
thing
operators
activity
outside
as
unlimited,
twice,
that
when
are
1
As
to
nature

Allowable
deductions
What
are ANSWERS:
the basic features of the present
despite
the
cut-off
date
adopted
by
the
SUGGESTED
Board,
G.R.
No.
L-75697,
June
18, 1987)
So
Answer:
required
(2004)...............................................................................................................
(1996).........................................................................................................................
..........................................................................................................
to Pay
(2003)
................................................................................................
62
Taxpayer:
32
Exemptions:
45Protest;
VAT:
19
Interest:
Liable
Gifts
Claim
&
for
of
Deficiency
Donations
Payment
Refund
revenue
taxes?
Explain
your
answer.
(2%)
thinking
of
passing
a
law
that
would
abolish
it
in
plenary,
should
accord
comprehensive
be
with
taxed
the
but
equal
once,
and
protection
by
supreme.
the
same
clause
The
constitute
business
expenses
while
income
tax system"?
BarANSWER:
Examination
Committee.
R.A.
No.
The
rules
that
have
been
adopted
on
SUGGESTED
GENERAL
PRINCIPLES...........................................................................................................................
8
potent
INDIRECT
ispersonal
the
TAXES,
power
on
to all
the
tax
that
other
it
hand,
was
once
are
Interest:
(1994)
(1996)
(1996)................................................................................................................
......................................................................................................................
................................................................................................................................
define
(1995
Bar)..........................................................................................................
63
Taxpayer;
32
Exemptions:
46 Appeal
VAT:
19
Transactions
to
Head
the
Interest:
of
Court
the
the
taxing
power
of
local
government
taxing
that
two limitations
does
authority
not require
on
for
the
the
territorial
power
same
of
purpose
taxation
uniformity
and
are
of
exemptions
pertain
to personal
SUGGESTED
ANSWER:
9282
was
passed
on
March
30,
2004.
As
a
general
rule,
the
courts
have
prescription
are
as
follows:
Basic
Features:
Present
Income
Tax
System
(1996)....................................................................................................
opined
that
"the
power
to
tax
involves
the
(C.J.
Marshall
in
McCulloch
v.
Maryland,
4
taxes
wherein
the
incidence
of
or
the
liability
Delinquency
Family:
"Deemed
of
Tax
Appeals
Sales
(1998)...................................................................................................................
Interest:
(2005)................................................................................................
(1997)
...............................................................................................................
define
(1995).............................................................................................................
63
Taxpayer;
33
Exemptions:
46
VAT;
Claim
Covered
for
NonTax
19
units.
Inexpenses.
yourincome
opinion,
such
law
be
with
laws.
the inherent
the
The
classification
and
kind
constitutional
or character
applies
limitations
of
tax. to
The
all8no
Our present
taxwould
system
canabe
said
Purpose
of same
Taxation;
Legislative
in Natureequally
(2004)
(a)
National
Internal
Revenue
Code
authority
to
enjoin
the
collection
of
revenue
SUGGESTED
ANSWER:
Basic
Stages
or
Aspects
of
Taxation
(2006)................................................................................................................
power
to
destroy."
Wheat,
316
4
L.
Ed.
579,
607)
for
the
payment
of
the
tax
falls
on
one
person
ITR:
Profit
Transactions
Credits
Educational
(2006)
(1998)
Personal
.....................................................................................................................
...........................................................................................................................
Institutions
Income;
(2000)
............................................................................................
Exempted
to
File
63
Taxpayer;
46
VAT;
ITR
338
valid
under
the present
Constitution?
REAL
the
which
resident
ESTATE
are intended
individuals
TAX is
toaprevent
tax
andon
businesses
property;
abuse on the
the
to have
the following
basic
features: Explain

Detailed Table of Contents

FOREWARD
ANSWERS
TO BAR

2 As
tocentralizing
purpose
Deductions
are
allowedTaxes
are
assessed
for theHowever,
purpose of
No.
The
lawof
imposition
The
statute
limitation
assessment
of and
tax
taxes.
(Sec.
218, NIRC).
theCourts
Court
Collection
of forthe
Taxes:(1997)
Authority;
Ordinary
BIR: Assessment:
Unregistered
Partnership
..................................................................................................
47

but
the
burden
thereof
can (2004)
be shifted
or
(1997)...................................................................................................
Exemptions:
Exemption:
Compromise
Constitutionality
after
Non-Profit
Criminal
Entity;
Action
.................................................................................................................
(1998)
Ancillary
ActivityESTATE
19
&
ITR;
Incidental
Domestic
Operations
Corporate
Taxation
(1994)
46
63
your
answer.
(5%)
within
exercise
the
of
"secured
the
DEALER'S
otherwise
area".
TAX
The
is
residents,
aand
tax
on
the
(a)
has
adopted
ataxpayer
COMPREHENSIVE
to
enable
the
to
recoup
his.................................................................................................
cost REAL
generating
revenue
to be plenary
used
for
public
Power
of It
Taxation;
Legislative
in
Nature
(1996)
collection
offiled
all
taxes
inExample
the
national
if
a
return
is
is
within
three
(3)
years
of
Tax
Appeals
is
empowered
to
enjoin
the
(2001)...............................................................................................
8
Collection
of
Taxes:
Prescription
(2001)
BIR:
Collection
of
Tax
Deficiency
(1999)
passed
on
to
another
person.
of
this
(1997)..................................................................................................................
......................................................
VAT;
Taxpayer;
Non-VAT
Protest
taxpayer;
against
33
Exemptions:
Assessment;
Claim
Non-Stock/
for
Donors
Non-Profit
19
ITR;
Refund
Domestic
Association
Tax
Corporate
(2006)
(2002)
(1995)
privilege
being
unlimited
in
like
to
power.
engage
circumstances
It
is
in
the
business;
Court's
to
contributing
while
role
to
the
see
TAX
SITUS
by nature
using
the
nationality,
of
doing
business
while
personal
needs.
Taxation
itself is
the power
by which
What
is
the
of
the
power
of
REMEDIES
IN
INTERNAL
REVENUE
TAXES
...................................................................................
government
would
contravene
the
from
the
last
day
prescribed
by
law
for
the
collection
of
taxes
through
administrative
.....................................................................................................................
847
Direct
Tax
vs.
Indirect
Tax
...................................................................................................................
BIR:
Compromise;
Conditions
tax
is.....................................................................................
the value-added
tax.
Taxation
............................................................................................
.....................................................................................................
64 Taxpayer;
34itState
Exemptions:
47
Withholding
Prize
Agent;
Peace
Claim
20
ITR;
Poster
of
Tax
Personal
Contest
Refund
INCOME
directly
to
thatto
the
TAX
the
exercise
is
achievement
a tax
on
of
the
the
of
power
privilege
the
end
does
to
not
earn
residence,
and(2001)..................................................................................................................
source
rules.
Thisto
makes
SUGGESTED
ANSWER:
exemptions
are
allowed
cover
personal,
the
raises
revenue
to
defray
the
taxation?
LOCAL
&
REAL
PROPERTY
TAXES..................................................................................................
64
ALTERNATIVE
ANSWER:
Constitution
which
mandates
that:
. .last
. "Each
filing
of and
the
return
or
if filed
after
the
Power
of of
Taxation:
Revocation
of
Exempting
Statutes
47 an
remedies
when
collection
could
jeopardize
(1994)................................................................................................................................
8 BIR:
Direct
Tax
vs. &
Indirect
Tax
(2000)........................................................................................................................
48
Compromise;
Extent
Income:
(2000)....................................................................................................
(2005)
.......................................................................................
Two
Employment
(2001)
........................................................................................................
64
34
Exemptions:
Prizes
20
Awards;
ITR;
purpose
transgress
income.
these
the
These
law,
limitations.
taxes
are
not
are
categorized
imposed
by
citizens
resident
aliens
taxable
on
their
The
POWER
TAX
is
an
attribute
family
and
living
expenses.
expenses
of
government.
A
jurist
said
thatTax
abe
This
work
is aTO
NOT
intended
FOR
SALE
orof
COMMERCE.
This
work
isDirect
a 48
freeware.
Ittaxpayer.
may
A direct
tax
is
tax
which
is
demanded
from
Local
Taxation:
Actual
Use
of
Property
(2002)
..........................................................................................................
64
local
government
unit
shall
have
the
power
to
(1997)
day,
within
three
years
from
date
of
actual
the
interest
of
the
government
or
(2000)................................................................................................................................
8
Tax
vs.
Indirect
of
Authority
(1996)
...........................................................................................................
BIR:
Compromise;
Personal
Athletes
(1996)
Income;
.........................................................................................................
GSIS
Pension
(2000)
.............................................................................................................
34
Exemptions:
Retirement
20
different
further.
Instead,
taxing
authorities
they
are
similarly
and aretreated,
income
derived
from
all
sources
while
nonsovereignty
and
is
inherent
in
the
State.
It
is
tax
is
what
we
pay
for
civilization.In
our
Collection
of
Taxes:
Prescription
(2001)
the
person
who
also
shoulders
the
burden
of
Local
Taxation:
Coverage
(2002)...............................................................................................................................
3Iftheir
As return
toown
claimants
ofthe
Allowable
deductions
create
sources
revenue
and to
filing.
no
is
filed (1998)............................................................................................................
or
return
filed
"X"
Corporation
was
recipient
in
(Section
11,ofRA
1125).
(2001)................................................................................................................................
8 the
Direct
Tax34
vs.
Indirect
Taxof
Withholding
48 1990
BIR:
ITR;
Benefits:
Work
Personal
Separation
(1999)
Income;
.......................................................................................
Married
Individual
Exemptions:
(2004)
essentially
both
in
privileges
different
granted
kind
and
and
obligations
character
resident
aliens
areAgent
taxed
only
on
their
income
a
power
emanating
from
necessity
because
it
jurisdiction,
which
of
the
following
Double
Taxation;
Indirect
Duplicate
Taxation
(1997)
May
the
collection
of
taxes
be
barred
by
the
tax.
Example:
corporate
and
individual
64
Local
Taxation:
Exemption;
Real
Property
Taxes
(2002)
can
be
claimed
by
all
taxpayers,
corporate
Power
of
Taxation:
Inherent
in
a
Sovereign
State
(2003)
levy
taxes,
fees,
and
charges
subject
to
such
is
false
or
fraudulent,
the
period
to
assess
is
two
tax
exemptions
both
from
Congress,
one
freely
(2006)................................................................................................................................
copied
and
distributed,
nevertheless,
PERMISSION
TO
COPY
9
from
Double
the
editors
Taxation
is
Corporation:
Distraint
&
Levy
(2002)
.................................................................................................................
.......................................................................................................
Separation
Pay the
(1994)
..........................................................................................................................
20 ITR;
Liabilities;
Falsified
Tax
35
(Villanueva
vs.Taxpayer;
City
ofv.Iloilo,
26
SCRA
578).
required.
(Tiu,
etbe
al,erroneous:
Court
of1)
4npeals,
et
al,
derived
from
within
Philippines.
Domestic
imposes
a
necessary
burden
to
preserve
the
statements
may
Taxes
are
prescription?
Explain
your
answer.
(3%)
...........................................................................................
When
65
Local
an
Taxation:
item
of
income
Imposition
is
taxed
of
Ad
in
Valorem
the
Tax
income
tax.
or
otherwise,
while
personal
exemptions
Why
is
the power
to tax
considered
inherent
guidelines
and
limitations
as Appeals:
Congress
may
within
TEN
YEARS
from
discovery
of
the
law
exempting
the
company's
bond
issues
(1997)...............................................................................................................................................
9
Double
Taxation:
48
BIR:
Court
of
Tax
Collection
of
Taxes;
Grounds
for
Compromise
(1996)
Return
Exemptions:
(2005)
..............................................................................................
Separation
20
Pay
Partnership:
Income
Tax
(1995)
G.R.
No. 127410,
January
20, are
1999)
corporations
are is
also
taxed
on universal
State's
sovereignty
(Phil
Guarantee
Co. vs.
SUGGESTED
ANSWER:
pecuniary
inand
nature.
2)
Taxes
enforced
An
indirect
tax
awith
tax
which
is 49
demanded
(2000)
...............................................................................................
Philippines
65
the
Local
same
income
Taxation:
is
Legality/
inthe
can
be
claimed
only
bybasic
individual
in
aterritorial
sovereign
State?
(4%)
provide
consistent
the
policy
of
omission,
fraud
or falsity.
from
taxes
and
the
other
exempting
What
Constitutes
DT?
(1996)...........................................................................................................
9taxed
Double
....................................................
BIR:
Criminal
Prosecution:
Tax
Evasion
................................................................................................................................
..........................................................................................................................
35
21
Exemptions:
Personal;
Income
Separation
Tax:
Pay
the
jurisdiction
of
a
State.
4)
Taxes
income
while
foreign
corporations
are
taxed
ADVISABLE
to
protect
the
interest
of
the
ORIGINAL
SOURCES/REFERENCES
ofNonthis
Yes.
The
collection
of
taxes
may
be
barred
by
Commissioner,
L-22074,
April
30,
1965)
.
It
is
The
period
to
collect
the
tax
is
within
charges
and
contributions.
3)
Taxes
are
from
one
person
in
the
expectation
and
SUGGESTED
ANSWER:
Constitutionality;
Tax
Ordinance
(2003)
.............................................................................
65
Local
Taxation:
another
country,
is
there
a
case
of
double
taxpayers.
local
autonomy."
It
is clear
that
Congress
company
from
taxes
in
the
operation
of 9its
Taxation;
Indirect
Duplicate
Taxation
(1997) can
...................................................................................................
(1998).........................................................................................................
49
BIR:
Extinction;
Criminal
Liability
Resident
(2005)
..........................................................................................................................
Alien
(2000)
....................................................................................................
21
36Personal;
Exemptions:
Income
Stock
Tax:
are
levied
by
the
executive
branch
of
the
only
on
income
from
within.
prescription.
The
prescriptive
periods
for
inherently
legislative
in
nature
and
character
SUGGESTED
ANSWER:
It
is
considered
inherent
in
a
sovereign
State
THREE
YEARS
from
date
of
assessment.
imposed
on persons
and
property
within
intention
that
heLicense
shall
indemnify
himself
at (2002)
Legality;
Imposition
of
Realvs.
Property
Tax
Rate
......................................................................
65
Local
taxation?
only
give
the
guidelines
and
limitations
on
the
public
utilities.
The49
two
laws
the
Fee
Local
Tax
(2004).....................................................................................................
(b)Double
The
individual
income
tax
system
is
of
theTaxation;
Taxpayer
(2002)..........................................................................................
BIR:
Fraudulent
Return;
Non-Resident
Dividends
(2003)
Citizen
........................................................................................................................
(1999)..................................................................................................
21
Personal;
36extending
Exemptions:
Income
government.
Taxes
are
assessed
according
to
Yes,
but it
is
only
a acase
of
indirect
duplicate
collection
of5)
taxes
are
governed
by
the 65
tax
in
that
the
power
of
taxation
can
only
be
because
it
is
a
necessary
attribute
of
In
the
case,
however,
of
omission
to
file
or
the
expense
of
another,
and
the
burden
Taxation:
Power
to
Impose
(2003)
...................................................................................................................
material.
It
is
primarily
intended
for
all
those
who
desire
to
have
deeper
understanding
of
exercise
by
the
local
governments
of
the
9
Double
Taxation;
Methods
tax
exemptions
of
Avoiding
were
revoked
DT
by
Congress
(1997)
mainly
Prima
PROGRESSIVE
Facie
Evidence
IN
(1998)...............................................................................................
NATURE
in that
50 BIR:22Justify
Fraudulent
Tax:
Strictly
Tax-Free
Construed
Exchange
(1996)
(1997).....................................................................................................
.....................................................................................................................
Personal;
36
ALTERNATIVE
ANSWER:
a
reasonable
rule
of
apportionment.
your
taxation
which
is not
legally
prohibited
Power
of
Taxation:
Limitations:
Passing
of
Revenue
law imposing
the
tax.this
However,
if the
tax
law
exercised
through
the
enactment
of
law.byBills
sovereignty.
Without
sovereign
ifnature
the
filed
is
false
or
fraudulent,
SUGGESTED
ANSWER:
finally
resting
on
the
ultimate
purchaser
or
Local
Taxation:
Remission/Condonation
ofdates.
Taxes
power
to return
tax
but
what
was
granted
the
.......................................................................................................
9 or
Imprescriptibility
ofpower
Tax no
Laws
(1997)
before
their
expiry
Were
the
Return;
Prima
Facie
Evidence
(2002)...............................................................................................
50 (1996)
BIR:
it provides
aof
graduated
rates
of
income
tax.
The
the
power
of
refers
to
Income
Exemptions:
Tax;
Contract
of taxation
Lease
Terminal
(1995)
.......................................................................................................
Leave
Pay
22
answer
choice
briefly.
(5%)
(1997)the
because
the
taxes
are
imposed
by
different
does
not
provide
for
prescription,
the
right
of
Yes.
The
exempting
statutes
are
both
granted
State
can
exist
or
endure.
The
power
to
tax
period
to
collect
is
within
TEN
YEARS
consumer.
Example:
value
added
tax.
(2004)..........................................................................................
66
Local
Taxation:
Rule
of
Uniformity
and
fundamental
law
cannot
be
withdrawn
by
..........................................................................................................................
9
Power
of
Taxation:
Equal
revocations
constitutional?
Garnishment:
Bank
Account
of
a
Taxpayer
(1998).............................................................................................
50
Corporations
in
general
are
taxed
at
a
flat
its
own
limitations
such
as
the
requirement
Personal;
...................................................................................................................
Income
36byExemptions;
Married
Institutions
Individual
the
issues
by
the Philippine
Bar
Examinations
and
its Charitable
trend
on existence
specifically
Direct
Tax
vs.
Indirect
Taxwithout
(2006)touched
taxing
authorities.
The
House
ofcommonly
Representatives
introduced
HB Tax;unilaterally
the
government
to
collect
taxes
becomes
Congress
in
the
exercise
of
proceeds
upon
the
theory
that
from
discovery
need
of
an
Equality
(2003).............................................................................................
66
Local
Taxation;
Situs
of
Congress.
Protection
the for
Law
(2000)
............................................................................................
10
Power
of
Taxation:
BIR:
Pre-Assessment
not 22License
Necessary
(2002)
rate
of
thirtyof"direct
five
percent
(35%)
of net
that
it should
be
ataxes"
public
purpose,
thatNotice
it
(1997).......................................................................................................
(2006)
Personal;
36Fee
Exemptions;
Tax;
Educational
Retiring
SUGGESTED
ANSWER:
Double
Taxation;
vs.Income
Local
Tax
(2004)
Distinguish
from
7000
which...............................................................................................................
envisioned
to levy
a "indirect
tax on
imprescriptible.
taxing
powers.
Since
taxation
is
the
rule
and
of
a
government
is
a
necessity
and
this
assessment.
Professional
Taxes
(2005)...................................................................................................
66
Local
Taxation;
Inherent
in
athat
Sovereign
State
(2003)
...........................................................................................
10
Power
of
...................................................................................................
51 BIR: Prescriptive
Period:
Civil
(2002)
income.
be
legislative,
it(2005)
is(5%)
territorial
and
that it
Alien
institution
Employee
(2004)...............................................................................................................
.............................................................................................
23ordinance
Personal;
36 Action
Exemptions;
Income
A
municipality,
BB,
has
an
which
(b)
Tariff
and
Customs
Code
- It
does
taxes."
Give
examples.
Direct
Tax
Indirect
Taxthe
(1994)
various
transactions.
After
the
bill
was
exemption,
exception,
any
tax
Taxation
Laws.
ItMORE
is
specifically
intended
fortax
law
students
from
the
provinces
who,
very
power
isvs.
an
essential
and
inherent
attribute
Special
Levy
on
Idle
Lands
(2005)....................................................................................................
66
Real
(c)on
It
has
retained
SCHEDULAR
Taxation:
Legality;
Local
Govt
Taxation
(2003)..........................................................................................
10
.............................................................................................................
51
BIR:
Prescriptive
Period;
Assessment
should
be
subject
to
international
comity.
Taxation:
Exemptions
Non-Resident
are
Unilateral
Citizen
in
(1997)
Nature
..........................................................................................
(2004)...........................................................................................
23
Taxable
37
SUGGESTED
ANSWER:
requires
thataunilaterally
all
stores,
restaurants,
and
not
express
any
general
statute
ofwas
limitation;
Distinguish
direct
from
an
indirect
approved
by
the
House,
the
bill
sent
to
exemption
granted
can
be
of
sovereignty,
belonging
as
a
matter
of
right
Property
Tax:
Underground
Gasoline
Tanks
(2003)...........................................................................................
67
CAPITAL
GAIN
TAX................................................................................................................................
38
THAN
Purpose
of
GLOBAL
Taxation;
Interpretation
FEATURES
(2004)
respect
to
Power
of
Taxation:
Legislative
inwith
Nature
(1994)
........................................................................................................
&
Collection
(1999)........................................................................................
51 BIR:
Prescriptive
Period;
Income:
Exemptions;
Illegal
Income
Govt
(1995
Bar)................................................................................................................
Bonus,
Gifts,
&
Allowances
(1994)
23
DIRECT
TAXES
are
demanded
from
the
very
SUGGESTED
ANSWER:
other
establishments
selling
liquor
should
pay
it provided,
however,
that
"when
articles
have
tax.
the
Senate
as
so
required
by
the
withdrawn
at
the
pleasure
of
the
taxing
to
every
independent
state
or
government.
Capital
Asset
vs.
Ordinary
Asset
(2003)....................................................................................................................
38
Real
Property
Tax;
Requirements;
Auction
Sales
of
Property
for
Tax
Delinquency
(2006)
individual
taxpayers
but
has
maintained
a
Which
of
the
following
propositions
may
now
10 Criminal
Power
ofof deliberately
Taxation:
Limitations
of TAX
theone in
(2001)
often,
are
recipients
distorted
notes
from
other
unscrupulous
schools
and
Action or
(2002).......................................................................................................
51 law
BIR:
Secrecy
of
Taxable
..............................................................................................
Non-Taxable;
Income
37
Exemptions;
and
Personal
& Congress
Additional
Gains
Exemption
(2005)
person
who
pay
tax
and
which
A
DIRECT
is
which
the
taxpayer
a
fixed
annual
fee
of
P20.000.
Subsequently,
entered
and should
passed
freethe
ofhouse,
duty
orinstead
final
Constitution.
In
the
upper
ofhe
aTaxation:
without
violating
the
Constitution
No
sovereign
state
can
continue
to
exist
Capital
Gain
Tax;
Nature
(2001)
.........................................
67
Real
Property
Capital
Asset
vs.
Ordinary
Asset
(1995)
more
global
treatment
on
corporations.
be
untenable:
1)another.
The
court
should
construe
a
.............................................................................................
10authority
Power
of37Taxation:
Limitations:
Passing
of
Revenue
Bank
Deposits
Law
(1998)
...............................................................................................................
52
BIR:
...................................................................................................
(2006)
..............................................................................................
23
Withholding
Exemptions;
Tax:
Roman
Non-Resident
Catholic
Church;
Alien
can
not
shift
to
An
INDIRECT
TAX
is
who
pays
the
tax
is
directly
liable
therefor,
the
municipal
board
proposed
an vs.
ordinance
adjustment
ofon
duties
with
deliberation
the made,
House
Bill,subsequent
thecited
Senate
(Mactan
Cebu
International
Airport
without
theTaxation:
means
to
payLimitations;
its
expenses;
and52
................................................................................................................................
38
Ordinary
Sale
ofRetirement
a Capital
Note:
..............................................................................
The
mightTax
also
be
by67 Real
Property
Capital
Gains
Ordinary
law
granting
tax
Bills
(1997)following
..............................................................................
11 is,
Power
of
Taxation:
Power
to
Summary
Remedy:
Estate
Deficiencies
(1998)
(2001).............................................................................................................
Limitations
(2005)
.........................................................................................
24
38
Withholding
Tax:
demanded
from
one
person
with
the ............................................................................................
that
the
burden
of
paying
the
tax
falls
students.
imposing
a
sales
tax
equivalent
to
5%
of
the
delivery,
such
entry
and
passage
free
of
duty
introduced
SB
8000
which
was
its
own
Authority
v,
Marcos,
G.R
No.
120082,
that
for67those
means,
itTaxation:
has
the right
toWages
Asset
(1994).....................................................................................................................
38
Sales
of
Share
Gains
(1998)
..............................................................................
Real
Property
Taxation:
Coverage
of
theDestroy
bar
candidates
as
features
of
the
income
exemption
strictly
against
the
taxpayer.
2)
(2000)
..........................................................................................
11
Power
of
Revocation
of
BIR:
Unpaid
Taxes
vs.
Claims
for
Unpaid
Benefit that
(2000)..............................................................................................................
24
Withholding
Tax:
expectation
hesame
can
shift
the
burden
to
Power
of Taxation:
Legality;
Local
Govt
Taxation
(2003)
Neither
of citizens
these
were
issued
by
the
taxing
directly
on
the
person
paying
the
tax.
amount
paid
for
the
purchase
or
consumption
or
settlement
of duties
will,
after
the
version
of
the
tax.
The
Senate
September
11,
1996).
compel
all
and
property
within
its in
Stocks:
Capital
Gains
Tax
Return
(1999)
.......................................................................................
39
Tax
Basis:
Ordinary
Income
(1998)
...................................................................................
67
Real
Property
Taxation:
taxExempting
system:
The
court
should
construe
a
law
granting
a
1
Individual
compensation
income
earners
Statutes
(1997)
...................................................................................
11
Power
of
Taxation;
Inherent
(1995)............................................................................................
53
BIR;
Assessment;
Criminal
Complaint
Retirement
Benefit
(2000)..............................................................................................................
24
Withholding
An
INDIRECT
TAX
isthe
one
paid
by
a person
someone
else,
not
as
a
tax Bill
but
as the
part
of the
May
Congress,
under
1987
Constitution,
authority
instores,
a contract
lawfully
entered
by
of liquor
in
restaurants
and
other
expiration
of
ONE
(1)
YEAR,
from
date
of
deliberated
on
this
Senate
and
approved
limits
to contribute,
hence,
the
emergence
ofit
Capital
Gains:
Merger
of power
Corporations
(1994)
..........................................................................................
39
Tax
ofState
Lot;
Capital
Gain
Tax
(1997)............................................................................
68
Real
Property
municipal
corporation
the
to Income
tax
most
areprice.
taxed
on
modified
Gross
(Gross
a Exchange
Sovereign
(2005)
...........................................................................................
11would
Power
of constitute
Taxation;
(2005)............................................................................................................
53
BIR;
Authority;
Refund
or
Credit
Tax:
Royalty
(2002)
...............................................................................................................................
24
who
is
not
directly
liable
therefor,
and
who
purchase
Examples
of
direct
taxes
are
abolish
the
power
to
tax
of
local
so
that
their
revocation
not
establishments.
The
municipal
mayor,
CC,
final
payment
of duties,
in........................................................................................................
the
absence
of (1998).........................................................................
the
same.
The
House
Bill
and
Senate
Bill
the
power
to tax. (51 Am.
Jur.,Taxation
Basis:
Capital
Gains:
Tax-Free
Exchange
of Tax
Property
(1994)
..............................................................................
3)
Taxation:
The
Court
Exemption/Deductions;
of
Tax
Appeals
Donors
has
6840).
Real
strictly.
compensation
income
less
personal
Legislative
in
Nature
(1996)
12 Compromise
Purpose
ofof
of
Taxes
(2005)
......................................................................................................
BIR;
SUGGESTED
Withholding
Tax;
Coverage
(2004)
may
therefore
shift
pass
on
the
tax39
to
the
income
tax,
the
estate
tax
andupon
the
governments?
(4%)
an
impairment
of or53
the
obligations
CORPORATION
&
PARTNERSHIP......................................................................................................
refused
to ANSWER:
sign
the
ordinance
on
the
ground
fraud
or
protest,
be
final
and
conclusive
were
then
consolidated
in
the
Bicameral
39
Property
Taxation:
Exemption:
Acquiring
New
Principal
Residence
(2000)
.......................................................
jurisdiction
over
decisions
of
the
Customs
Taxation;
exemptions).
Interpretation
Self-employed
(2004)................................................................................................................
and
12
Purpose
SUGGESTED
No.
Congress
ANSWER:
cannot
abolish
what
is
(2004)...........................................................................................................................................
53
BIR;
ALTERNATIVE
ANSWER:
............................................................................................................................
25
Withholding
Tax;
Domestic
another
person
or
entity,
which
ultimately
donor's
tax.
Examples
of
indirect
taxes
are
contracts.
Bad
Debts;
Factors;
Elements
thereof
(2004)............................................................................................................
39
that
it
would
constitute
double
taxation.
Is
all
parties,
unless
the
liquidation
of
Import
Committee.
Eventually,
the
consolidated
bill
68
Real
Property
Taxation:
Fundamental
Principles
(1997)
Commissioner
inseek
cases
liability
for
Taxation;
Legislative
ininvolving
Nature
(2004)
.....................................................................................................
12
Rule
professionals
are
taxed
on
net
income
with No.
The
refusal
oftax
the
mayor
not
justified.
The
withdrawal
of
the
tax
exemption
expressly
granted
by the
fundamental
law.
Compromise
(2005)...........................................................................................................................................
54v.
Iofwould
Corporation;
like
to
Cash
Dividends
the
indulgence
(2001)
of
..............................................................................
the
reader
for refusal
some
Bar
Questions
which
25 is
Withholding
are
improperly
Tax;
assumes
the
burden.
(Maceda
the
value-added
tax,
the
percentage
tax
and
Condominium
Corp.;
Sale
of
Common
Areas
(1994)
the
of
the
mayor
justified?
Reason
entry
was
merely
tentative"
(Sec
1603,
TCC).
was
approved
and
sent
to
the
President
who
4)
The
Court
of
Appeals
has
jurisdiction
to
............................................................................................
69
Real
Property
Taxation:
Principles
&
customs
DEDUCTIONS,
duties.
EXEMPTIONS,
EXCLUSIONS
&
INCLUSIONS.....................................................
26
on
Set-Off
or
Compensation
of
Taxes
(1996).....................................................................................................
12
Double
Taxation
(1997)
The
impositions
are
of
different
nature
and
deductions
limited
to
seven
items
or
in
lieu
amounts
to
a
deprivation
of
property
without
BIR;
Deficiency
Tax
Assessment
vs.
Tax
Refund
/
Tax
Credit
(2005)
only
authority
conferred
to
Congress
is
(c)
Local
Government
Code
Local
Income
subject
thereto
(2001)
.......................................................................................................
25
Withholding
Macaraig,
197
SCRA
771)
the
excise
tax
on of
exciseable
articles.
.................................................................................................
40 Corporation;
Sale;
Creditable
Withholding
briefly.
(5%)
signed
the
same.
The
private
sectors
affected
review
decisions
the
Court
of
Tax
Appeals.
Deduction:
Facilitation
Fees
or
"kickback"
(1998).....................................................................................................
26
Limitations:
LGU
(2000)...................................................................................
69
Real
Property
Taxation:
Direct
Tax
vs.
Indirect
Tax
(2000)
Rule
on
Set-Off
or
Compensation
of
Taxes
(2001).....................................................................................................
thereof
the
forty
percent
(40%)
maximum
character.
The
fixed
annual
fee
is
in
the
Is
double
taxation
a
valid
defense
against
due
process
law,
hence
unconstitutional.
.........................................................................
54 BIR;
Distraint;
Prescription
oflimitations
theTax Action
to
provide
the
guidelines
and
on
taxes,
fees,
or
charges
shall
be assessed
Tax;
Non-Resident
Alien
(1994).............................................................................................................
25
Edited
Arranged
by:
Tax
(1994)...............................................................................................
40ofDividends:
Withholding
(1999)
TARIFF
AND
CUSTOMS
DUTIES
........................................................................................................
70
under
topic
and
some
which
areofthe
improperly
orExpenses
ignorantly
phrased,
for
by
the
new
law
questioned
the for
validity
oftopics
the and
5) classified
The
Supreme
Court
has
jurisdiction
to
Deductions:
Ordinary
(2004)
Property
Sold
is aan
Ordinary
Asset
(1998)...........................................................................
Real
Property
12
Rule
onpersonal
Set-Off
or
Compensation
of the
Taxes
Among
taxes
imposed
by69
Bureau
of
nature
a license
fee
imposed
through
the70
the
legality
deduction
of
a YEARS
tax
plus
measure?
the
exemptions.
SUGGESTED
ANSWER:
(2002)........................................................................................................
54
BIR;
False
vs.
Fraudulent
Return
the Business
local
government's
exercise
of
the
power
within
Withholding
FIVE
(5)
from
Tax;
the
date
they Non-Resident
Corporation
(1994)
...........................................................................................................................
Customs:
Flexible
Tariff
Clause
(2001)
..................................................................................................................
40
Effect:
Dissolution;
Corporate
enactment
on
the
ground
that
the
ROMUALDO
L.
SEERIS
II
review
decisions
of the
Court
of constitutional
Appeals.
....................................................................................................
26
Deductions:
Amount
for
Bribe
Taxation:
Underground
Gasoline
Tanks
(2001)
...................................................................................
69
Real
SUGGESTED
ANSWER:
Power
of
Taxation;
Inherent
in
a
Sovereign
State
(2005)
There
(2005).....................................................................................................
is
no
violation
of
the
13
Rule
on
Set-Off
or
Compensation
on
Internal
Revenue
are
income
tax,
estate
and
Corporations
are
generally
taxed
on
net
exercise
of
police
power
while
the
5%
tax
on
(1996)....................................................................................................................
55
BIR;
Jurisdiction;
Review
to
tax
5, Art.
X,
1987
Constitution).
became
..................................................................................................
due. In
case Administrative
of fraud or intent to vs.
26 (Sec.
Withholding
Tax;
Digest
Award
Customs:
Judicial
Remedies
(1997)nd
Existence
(2004)........................................................................................................
41Reader's
Minimum
Corporate
constitutional
provision
requiring
that
all
Silliman
University
- College
ofthe
Law
No,
double
taxation
alone
and
not
Justify
(2001)........................................................................................................................
your
answer
orstanding
briefly.
(5%)
27
Deductions:
Capital
Property
Taxation;
Exempted
Properties
(2006)
Power
of Taxation:
inof
Nature
(1994)
Describe
power
taxation.
May
Taxes
(2005)....................................................................................................
13Legislative
Taxwhile
Avoidance
vs.
Tax
Evasion
requirement
that
all
revenue
bills
should
the
arranger
is (2001).....................................................................................................................
just
achoice
Bar
Reviewee
who
has................................................................................................
prepared
this
work
reviewing
for
the
2a
donor's
tax,
value-added
tax,
excise
tax,
other
purchase
or
consumption
is55
a BIR;
local
tax
income
except
for
non-resident
foreign
Rulings
of
the
Commissioner
(2006).................................................................................
Prescriptive
(1998)........................................................................................................
26
Withholding
Tax;
Time
Deposit
evade
the
payment
of
taxes,
fees
or
charges
Income
............................................................................................
Tax
70
Customs:
Importation
41
Minimum
(1995)
SUGGESTED
ANSWER:
revenue
bills
should
originate
from
the
being
forbidden
by House
our
fundamental
law
is(2002)..............................................................................
not
Losses;
Prohibitions
(2003)
......................................................................................................
27
Deductions:
69
The
Secretary
of
Finance,
upon
(1996)......................................................................................................................
13
Tax
Avoidance
vs.
Tax
Evasion
legislative
body
enact
laws
to
raise
revenues
originate
from
the
of
Representatives.
percentage
taxes,
and
documentary
stamp
corporations
which
are
taxed
on
gross
imposed
through
the
exercise
of
taxing
Period;
Assessment;
Fraudulent
Return
55
BIR;
Interest;
GSIS
Pension
(1994)
..................................................................................
26
theThe
same
maybe
assessed
within
TEN
YEARS
....................................................................................................................................
70 Customs: Jurisdiction;
2.
Corporate
court
should
Income
Tax;
construe
Exemption
a
law
(2001)
granting
41 27
House
of
Representatives
had
been
violated.
a
valid
defense
against
the
legality
of ..................................................................................................
a(1999)..........................................................................................
tax
Deductible
Items
Gross
Income
recommendation
of a
the
Commissioner
of be
(2000)......................................................................................................................
13
Tax
Exemptions:
Nature
&
in
absence
of
constitutional
provision
What
isincome.
prohibited
is from
for
the
to
enact
tax.theClassify
taxes
into
direct
and
powers.
Both
a these
license
fee
and
a tax
may
ESTATE
&
DONORS
TAXES
...............................................................................................................
Prescriptive
Period;
Criminal
Action
(2006).......................................................................................................
55
from
discovery
of the
fraud
orSenate
intent
to
evade
time
for
the
Bar
Exams
2007
under
time
constraints
and
within
his
limited
knowledge
of 41
the
Seizure
&
Forfeiture
Proceedings
(1996)
.............................................................................
70
Customs:
Kinds
a
municipal
corporation
the
power
to
tax
Resolve
the
issue.
measure
Deductions:
(Pepsi
Cola
Income
v. Tanawan,
Tax:69
SCRA
Donation:
Real
Property
(2002)
Coverage;
Proper
Party
(2004)
........................................................................................
Internal
Revenue,
issued
13
Tax
a
Revenue
Laws;
BIR
Ruling;
granting
said
body
the
power
to
tax?
Explain.
revenue
measures
on
its
own
without
a
bill
Donors
Tax:
Election
Contributions
(1998)
..............................................................................................................
41
indirect
taxes,
and
differentiate
direct
from
imposed
on
the
same
business
or
occupation,
BIR;
Taxpayer:
Civil
Action
&
Criminal
Action
(2002)
2
The
income
tax
is
generally
imposed
via
payment.
They
shall
also
be
collected
either
This
proposition
now
untenable.
The basic
Custom Duties
(1995)
.................................................................................................................
70 Customs:
mostof
strictly.
SUGGESTED
ANSWER:
........................................................................................
Deductions:
Non-Deductible
Items;
Gross
Income
460).
However,
ifisdouble
taxation
amounts
tofor 27or
of
Rulings
(2004)
.......................................................................................
14&and
Tax
Pyramiding;
Regulation
using
grossof
income
as
the
originating
from
the
House.
But
once
the
Donors
Tax;
Basis
Determining
Gain
(1995)
Indirect
taxes.
(5%)
for
selling
the
same
article
thistax
is
not
................................................................................................
55 Custom:
Violation
Tax
Custom
Duties
thefor
self-assessment
system
or
pay-as-youbyNon-Retroactivity
administrative
or
judicial
action
within
rationale
the
grant
of
tax
power
to
local
Kinds
of
Custom
Duties
(1997)
.................................................................................................................
71
From
the
ANSWERS
TO
BAR
EXAMINATION
QUESTIONS
Income
tax,
estate
and
donor's
tax
are
INCOME
TAXATION................................................................................................................................
Yes,
the
legislative
body
may
enact
laws
14
(1999)
.........................................................................................
28
Deductions:
Requisites;
Deducibility
ofeven
ain
law.
1
I
in
would
that
the
like
same
to
seek
subject
the
readers
is
taxed
twice
indulgence
also
for
a
number
of
typographical
errors
a
direct
duplicate
taxation,
Definition
&
Legality
(2006)
............................................................................................................
14
Taxpayer
base
for
corporations
doing
business
in
the
revenue
.......................................................................................................
bill
was
passed
by
the
House
and
41
Donors
Tax;
Dacion
en
Pago;
Effect:
in
violation
of
the
rule
against
double
(2002).....................................................................................................
56
Customs;
Basis;
Automatic
Review
FIVE
(5)
file
YEARS
concept
from
of
imposing
date
of
assessment
the
tax
although
government
units
is
to
safeguard
their
Customs:
Remedies
of
an
Importer
(1996)
considered
as
direct
taxes.
On
the
other
in
the
absence
of
a
constitutional
provision
Basic:
Allowable
Deductions
vs.
Personal
Exemptions
(2001)
..................................................................................
14
SUGGESTED
ANSWER:
Loss
(1998)
..............................................................................................
28
Deductions;
Income
Tax:
Allowable
when
it
should
be
taxed
but
once,
Power
of
Taxation:
Equal
Protection
of
the
Law
(2000)
Suit;
When
Allowed
(1996).........................................................................................................................
14
by
the
UP
LAW
COMPLEX
&
PHILIPPINE
ASSOCIATION
Philippines.
Is
the
Revenue
Regulation
valid?
sent
to
Taxation
the
Senate,
(1997)
..............................................................................................
the
latter
can
pass
its
own
42
Donors
Tax;
Donation
to
a
{Campania
General
Tabacos
(2002)................................................................................................................
56 Delinquent
Taxde
Return
(1998)
certain
incomes.
Including
income
of non- taxation
(Sec.
194,
LGC).
viability
and
self-sufficiency
by
directly
................................................................................................................
Customs:
Returning
Residents:
The
regulation
establishing
gross
income
asthe
Double
Taxation;
Methods
of
Avoiding
DT
(1997)
hand,
value-added
tax,
excise
tax,
other
Basic:
Meaning
of
Taxable
Income
(2000)
.................................................................................................................
because
the71power
to
tax
is
inherent
in
Deductions
(2001).............................................................................................
28
Deductions;
Vanishing
Anthis
Executive
Order
was
issued
pursuant
to
Uniformity
in
the
Collection
of
Taxes
(1998)
.............................................................................................................
2
in
a
fashion
that
both
taxes
are
imposed
for
Sibling
(2001).................................................................................................................
42
Donors
Tax;
Donation
version
on
the
same
subject
matter
consonant
...................................................................................................................................
vs.
de Filipinos v. City57ofJurisdiction:
8 Customs
SCRA
367
work.
residents,
are
taxed
on
the OF
pay-asyou-earn
LAW
SCHOOLS
granting
them
general
and..........................................................................................
broad
tax
powers
Tourist/Travelers
71Manila,
Customs:
Seizure
&
the
tax
base
for
corporations
doing
business
15
Basic:
Principle
of(2003)
Mobilia
Sequuntur
Personam
(1994)............................................................................................
percentage
and
documentary
stamp
What
are
thetaxes,
usual
methods
of
avoiding
the
government
and
not
merely
a42
constitutional
Deduction;
Purpose
(2006)
...................................................................................................
28
Exclusion
&
law,
14 granting
tax
and
duty
incentives
only
to
to
Non-Stock,
the
same
purpose
Non-Profit
Private
Educational
Institutions
(2000)...........................................
Donors
Tax;
with
the
latter's
power
to
propose
or
concur
CTA
(2000)......................................................................................................................
57 LGU:
Collection
of
[1963]).
concept
or
the
so
called
withholding
tax.
(Manila
Electric
Company
v.
Province
of
Forfeiture:
Effects
(1994)
..........................................................................................................
71
Customs:
Steps
in
(domestic
well
15 Inclusion;
Basic:
Proper
of power
Depreciation
(1998)
taxthe
arePhilippines
indirect
taxes.
grant.
occurrence
The
of double
of
taxation?
taxation
is Tax
anas
essential
Gross
Receipts
(2006)
..........................................................................................................
28
businesses
and
residents
within
the
"secured
TheasArranger
Donation
to&
Political
Candidate
(2003)
.................................................................................................
43
with
amendments.
This
follows
from
theAllowance
coFees
Charges
(1997)
.....................................................................................................
57
Amnesty
3Taxes,
byet.
the
same
taxing
authority,
the taxSUGGESTED
Laguna
al.,
306
SCRA
750
[1999]).
involving
Protest
Cases
(1994)........................................................................................................
72
Customs;
3
The
corporate
income
tax
is awithin
one-layer
DIRECT
TAXES
are
demanded
from
the
very
ANSWER:
resident
foreign)
is
not
valid.
This
is
no
.......................................................................................................
15
Basic:
Sources
of
Income:
Taxable
Income
and
inherent
attribute
of
sovereignty
Exclusion
vs.
Deduction
from
Gross
area"
of
the
Subic
Economic
Special
Zone,
Donors
Tax;
Donee
or
Beneficiary;
Stranger
(2000)
equality
of
the
two
chambers
of
Congress
vs.
Tax
Exemption
(2001)
....................................................................................................................
57
Basic
Stages
or Aspects
of Value;
Taxation
(2006)
same
jurisdiction
orof
taxing
district,
Considering
that
inasmuch
as
the
power(2005)
to
Basis
of
Dutiable
Imported
Article
.......................................................................................
72
The
usual
methods
ofTax
avoiding
theRule
in
that
distribution
profits
to
person
who,
as
should
pay
the
tax
longer
implementation
ofInclusions:
the
but
actually
(1998)
....................................................................................................
Basic:
Benefit
(2003)
belonging
as
aintended,
matter
of oflaw
right
to
every
(2001)..................................................................................................
2815
Exclusions
&
Benefits
on
Power
of
Taxation:
Limitations;
Power
to
Destroy
(2000)
and
denying
said
incentives
to
those
who
live
.................................................................................................
43
Donors
Tax;
Sale
of
shares
Stock
&
Sale
of
(Tolentino
v.
Secretary
of
Finance,
GR
No.
Taxpayer:
Administrative
&
Judicial
Remedies
Enumerate
the
3
stages
or
aspects
of
tax
may
be
exercised
by
local
legislative
4
Customs;
for
the
same
taxable
Countervailing
period
and
Duty
vs.
Dumping
Duty
occurrence
of
double
taxation
are:
stockholders
(except
to
nonresidents)
are
which
he
cannot
shift
to
another;
while
an
..................................................................................................................................
it constitutes
legislation
15Tax:
Basic;
because
Basiswithout
of&among
Income
the
Tax
independent
government
being
Account
of 30,
Injury
(1995)
.................................................................................
29
Exclusions
Inclusions:
Justice
Holmes
once
said:
The
power
to tax
within
the
Zone
but
outside
such
"secured
Real
Property
(1999).........................................................................
43
Estate
Comprehensive
Agrarian
OTHER
RELATED
MATTERS...............................................................................................................
73
115455,
Oct.
1995).
(2000)...............................................................................................
57
Taxpayer:
Assessment:
Protest:
Claims
taxation.
Explain
each.
(5%)
bodies,
no
longer
by
valid
congressional
Tanauan,
Leyte,
G.R.
No.
L-31156,
February
(2005)...........................................................................................
72
Customs;
Taxability;
Personal
Effects
not
subject
to
income
tax.
INDIRECT
1
Allowing
TAX
reciprocal
is
demanded
exemption
in
the
either
first
5
for
the
same
kind
or
character
of
a
tax
(1996)
............................................................................................................................
16the
Basic;
Gross
Income:
powers that
are exclusively
within
the
expressly
granted
people.
(Pepsi-Cola
Benefits
(1995)..................................................................................................
29Donation
Exclusions
&
is
notExecutive
the
power
to destroy
while
this
area".
Is
the
constitutional
right(2000)............................................................................................................
to Court
equal
BIR:
Bank
Deposits
Secrecy
Violation
73
Reform
Law
(1994)..........................................................................................
43 by
Estate
Tax:
Mortis
SUGGESTED
ANSWER:
for
refund
(2000).........................................................................................
58
Taxpayer:
Assessment;
Injunction
27,1976)
delegation
but
by
direct
authority
conferred
then
it
becomes
legally
objectionable
for ...........................................................................................
(2005)............................................................................................................
72
instance
from
person
with
the
byCompany
law
or byone
treaty;
SUGGESTED
Define
(1995)..........................................................................................................................
ANSWER:
16
Basic;
Income
vs.
legislative
authority
to
tax
is
the
power
to
Bottling
of
the
Philippines,
Inc.
v.
Inclusions;
Assets;
Resident
Alien
(2005)
29
(the
Supreme
Court)
sits."
Describe
the
protection
the
law
violated
by
the
The
aspects
of
taxation
are:
BIR:
Secrecy
of statutoryBankTaxation is
Deposit
Law
(2003)
Causa
(2001)
................................................................................................................
43 power
Estate BIR
Tax:
Donation
(2004)
.................................................................................................................
58 Taxpayer:
Audit
orto
the
inherent
of burden
a
State
by
the
Constitution,
in of
interpreting
being
oppressive
and
inequitable.
No.
Equal
protection
the law
clause
is
expectation
that
he
can
shift
the
to
(1995)...............................................................................................................................
16Death
Basic;
Schedular
determine
-the
of
the
tax.
(See
1 Tax:
SUGGESTED
ANSWER:
Municipality
of amount
2
Allowance
of
tax
credit
for
foreign
Exclusions
&
Inclusions;
Benefits
on
Account
of
(1996)
power
to
tax
and
its
limitations.
(5%)
(1)Capital
LEVYING

the
act
of
the
legislature
Executive
Order?
Explain.
(3%)
.................................................................................................................
73
Mortis
Causa
vs.
Inter
Vivos
(1994)
.........................................................................................
44
Estate
Investigation
(1999)..............................................................................................................
58 Taxpayer:
Cityto
collect
enforced
proportional
contribution
provisions
on
municipal
fiscal
powers,
doubts
subject
to
reasonable
classification.
someone
else,
not
as a tax
The
power
to
tax
is Global
an inherent
power
of the
Treatment
vs.
Treatment
(1994)
.........................................................................................
16of
Cooley
176-184).
Certainly,
the as
taxaof
ispart
taxes
paid;
.................................................................................
Exclusions
&
Inclusions;
Benefits
onifbut
Account
Injury
in
choosing
the
persons,
properties,
rights
or30
Gross
Estate:
Allowable
Deduction
(2001)..............................................................................................
44
Estate
Board
of
Assessment
Decision;
Where
to
appeal
(1999)....................................................................
59
support
the
expenses
of
government.
Taxation
Direct
Tax
vs.
Indirect
Tax
(2001)
Double
Taxation:
What
Constitutes
DT?
(1996)
will,
therefore,
have
to
be
resolved
in
favor
of
(1)
rest
on
substantial
distinctions,
(2)
be
Classification,
to
be
valid,
must
the
purchase
price.
sovereign
which
is
exercised
through
the
Compensation;
Income
Tax:
Due
to
Profitable
Business
Deal
(1995)
........................................................................
limited
to
gross
income
without
deductions
of
(2005)Gross
.................................................................................
30the
&
Inclusions;
Compensation
for
3 Exclusions
Allowance
of
deduction
for
foreign
privileges
to
be
subjected
toClaim
taxation.
Tax:
Estate:
Deductions
(2000)
............................................................................................................
44
Taxpayer:
for
Refund;
Procedure
Note:
Any
three
of
the
methods
shall
beto
is
power
vested
in
the
legislature
Distinguish
direct
taxes
from
indirect
taxes,
X,
a
lessor
of
a
property,
pays
real
estate
tax
municipal
corporations
(City
Government
of
germane
to
the
purpose
of
the
law,
(3)
not
be
legislature,
to
impose
burdens
upon
subjects
16
Corporate:
Income:
Donors
tax;
Tax
Liability
(1996)
these
corporations,
this
is
changing
the
personal
injuries
or
sickness
(2003)
.....................................................
30
Exclusions
&
Inclusions;
Facilities
Note:
If the examinee
chose proposition
(2) (2002)..........................................................................................................
ASSESSMENT
and COLLECTION

paid;
Estate
Tax:
Inclusion:
Resident
(1994)
given
full
credit.
59
Taxpayer:
Deficiency
Income
Tax
impose
burdens
orand
charges
persons
and
Power
of taxes
Taxation:
Limitations
ofeach
the upon
Congress
(2001)
and
give
example
forAlien
one.ultimately
(2%)
on
the
premises,
aconditions
real
estate
dealer's
tax
San
Pablo,
Laguna
v.
305
SCRA
353
limited
to
existing
only,
(4)
and
................................................................................................
objects
itsReyes,
Jurisdiction
forapply
the
17 Corporate;
Income
Tax;
Reasonableness
of the
amount
ofan
the
tax
as
said
amount
or
Privileges;
Military
Camp
(1995)
.....................................................................
30
Exclusions
&vs.
Inclusions;
no.
4
aswithin
his
answer,
it the
should
given
full
This
is
the
act
of
executing
lawbethrough
.............................................................................................................
44
Estate
Tax:
Payment
Probate
Imprescriptibility
of
Tax
Laws
(1997)
(1995)...................................................................................................................
59
Taxpayer:
Exhaustion
of
4
Reduction
of
the
Philippine
tax
rate.
SUGGESTED
ANSWER:
property
in
order
to
raise
revenue
for
public
Congress,
after
much
public
hearing
and
based
on
rental
receipts
and
income
tax
on
[1999]).
This
means
that
the
court
must
adopt
equally
to
all
members
of
the
same
class.
(2006)
..................................................................................
17 Corporate;
Income:
Coverage;
"Off-Line"
purpose
of
raising
revenues
carry
outCTA
the ................................................................
depends
on
the taxable
base.
Gifts
credit
over
considering
and
above
the
that
Retirement
the
present
Pay
(1995)
31Tax:
Exclusions
&
theBonus
administrative
agencies
ofto
government.
Proceedings
(2004)
...............................................................................................
45
Estate
Situs
of
DIRECT
TAXES
are
taxes
wherein
both
the
Taxes
were
generally
imprescriptible;
Administrative
Remedies
(1997).........................................................................................
60
Taxpayer:
Failure
purposes.
consultations
with various
sectors
of society,
the
rentals.
XITR;
claims
that
this
is
double
a
liberal
construction
aoflaw
granting
Airline
(1994)............................................................................................
17toCorporate;
Income:
Coverage;
"Offlegitimate
objects
ofof
government.
The
Act
(R.A.
No.
9282)
has
made
the de
CTA
aa
Inclusions;
13th
month
pay taxpayer
and
minimis
benefits
(2005)
.........................................................
31
(3)
PAYMENT

the
act
the
The
power
tax ismay
sofor
unlimited
inbe
force
and
Taxation:
Non-Resident
Decedent
(2000)...................................................................................
45
Estate
incidence
(orconclusion
liability
the
payment
ofTax:
the
statutes,
however,
provide
otherwise.
to
Withheld
&
Remit
Tax
(2000).....................................................................................................
60
Taxpayer:
SUGGESTED
ANSWER:
came
to
the
that
it
will
good
taxation?
Decide.
municipal
corporation
the
power
to
tax.
Line"
Airline
(2005)............................................................................................
17
Dividends:
Disguised
dividends
underlying
basis
for
its
exercise
is
BUSINESS
TAXES
..................................................................................................................................
45
coequal
judicial
body
of
the
Court
of
Exclusions
&
Inclusions;
ITR;
Dividends
received
by
a
domestic
corporation
(2005)
in
settling
his
tax
obligations.
Vanishing
(1994)..................................................................................................................
so
extent
that
courts
45scarcely
Estate
tax)searching
as
well
asinthat
the
impact
or
burden
of
NIRC
vs. Deductions
TCC Remedies
(1996).................................................................................................................
State
the
rules
have
been
adopted
on the
60
for
the
country
to
have
only
one
(1994).....................................................................................................................
18
Dividends;
Income 45
Tax;
governmental
for
without
no & Inclusions;
Appeals.
The
question
"Which
ofit the
................................................
31
Exclusions
ITR;
Income
realized
sale
Tax;
Paymentnecessity
vs. Probate
Proceedings
(2005)
...............................................................................................
venture
to
declare
it is
tax falls
onby
the
person.
An from (1999)
Taxpayer:
Overwitholding
Claim
this
score
for
- same
Refund
Deductible
Gross
Incomeexist
(1999) .........................................................................................
18 Interest on deposits
government
following
can
propositions
nor
endure.
(2005)................................................................................
31 Exclusions
& Inclusions;
ITR;
...................................................................................................
61 Taxpayer:
Prescriptive
Period: Suspended
Accordingly,
it
has
the
(2005).........................................................................................
31 Exclusions
& Inclusions;
ITR;
Proceeds
of
(2000).....................................................................................................
61 Taxpayer:
Prescriptive
Period;
Claim
life Refund
insurance
(2005)
............................................................................... 3261Exclusions
& Inclusions;
Life
for
(1997)
............................................................................................
Taxpayer: Prescriptive
Period;
Insurance
(2003)
..............................................................................................
Claims forPolicy
Refund
(1994)
..........................................................................................32
61 Taxpayer: Prescriptive

EXAMINATION QUESTIONS
IN

TAXATION LAW
* ARRANGED

BY TOPIC *

(1994 2006)

June 3, 2007

Period; Claims for Refund (2004) .......................................................................................... 62