Professional Documents
Culture Documents
INCOME TAXATION
PURPOSE OF TAXATION -
NPC v. City of Cabanatuan, GR No. 149110, April 9, 2003, 259 SCRA 401
Progressive Devt. v. QC 172 SCRA 629
Republic v. COCOFED, GR Nos. 147062-64, December 14, 2001; 372 SCRA 462
Gomez v. Palomar, G.R. No. L-23645. October 29, 1968; 25 SCRA 827
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ASPECTS OF TAXATION -
1. Levy
2. Collection
CLASSIFICATION OF TAXES
1. As to scope
2. As to its purpose
Iloilo Bottlers, Inc. v. City of Iloilo, 164 SCRA 607, 615 [1988]
Sec. 156-158, Local Government Code
6. As to graduation of rate
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Cost of licensing/inspection -
Manila Electric Co. v. El Auditor General, G.R. No. 47368. August 25, 1941; 73 Phil. 128
2. Levies
3. Toll fees
4. Penalty
7. Subsidies
8. Debt
Pepsi Cola Bottling Co. v. Tanauan, G.R. No. L-31156. February 27, 1976
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a. Police power
b. Eminent domain
LEGISLATIVE IN NATURE-
Wee Poco & Co. v. Posadas, GR No. 43142, August 26, 1937
Cannot be delegated
CIR v. CA and Fortune Tobacco Corp., G.R. No. 119761. August 29, 1996 (see Bellosillo separate opinion)
GENERAL PRINCIPLE -
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LIMITATIONS -
Pascual v. Sec. of Public Works, G.R. No. L-10405. December 29, 1960
Manila Gas Corp. v. CIR, G.R. No. 42780. January 17, 1936
5. International Law
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7. Non-impairment of contract
Grant of Franchise
8. Religion Clauses
Non-establishment of religion
Exemption of lands, buildings and improvements, actually, directly and exclusively used for religious, charitable
or educational purposes
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o Exemption of property from taxation; taxation of income from use or transfer of property
Difference between the tax exemption of religious organizations and educational institutions
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13. Veto of appropriation revenue and tariff bills by the President; item veto
1. Constitution
2. Statutes
3. Executive Orders and Presidential Decrees
4. International Agreements
5. Administrative Issuances
6. Jurisprudence
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China Banking Corp. v. CA, G.R. No. 146749. June 10, 2003
POWER OF COMMISSIONER OF INTERNAL REVENUE TO INTERPRET TAX LAWS AND DECIDE TAX CASES; WEIGHT OF OPINION OF
COMMISSIONER OF INTERNAL REVENUE
Section 4, NIRC
Joebon Marketing Corporation v. Court of Appeals, the Commissioner of Internal Revenue, GR No. 125070, July 17, 1996
CIR v. CA and Alhambra Industries, Inc., G.R. No. 117982. February 6, 1997
Sec. 246, NIRC
ADMINISTRATIVE ISSUANCES MUST BE CONSISTENT WITH THE LAW; JUDICIAL REVOCATION OF ADMINISTRATIVE ISSUANCES:
Phil. Bank of Communications v. CIR & CA, G.R. No. 112024. January 28, 1999
Sec. 244, NIRC
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1. Constitution
2. Tax Statutes
c. Customs Code
d. Special Laws
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Cyanamid Phils., Inc. v. CA, G.R. No. 108067. January 20, 2000
Exception:
TAX EVASION
Tax Fraud
Aznar v. CTA, G.R. No. L-20569. August 23, 1974, 58 SCRA 519
a. Evidence of Fraud
Commissioner of Internal Revenue v. Court of Appeals and Fortune Tobacco, et.al, G.R. No. 119322. June 4, 1996
TAX AVOIDANCE
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ZERO RATING
DEDUCTION
COMPENSATION/SET-OFF OF TAXES
Exception:
COMPROMISE / ABATEMENT
TAX DEFERMENT
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Manila Gas Corp. v. CIR, G.R. No. 42780. January 17, 1936
Allied Thread Co., Inc. vs. Mayor of Manila, 133 SCRA 343
Wells Fargo Bank & Union Trust Co. v. CIR, G.R. No. 46720. June 28, 1940
CIR v. British Overseas Airways Corp, 149 SCRA 395
CIR v. Marubeni Corp., G.R. No. 137377. December 18, 2001
MULTIPLICITY OF SITUS
Victorias Milling Co., Inc. v. Municipality of Victorias, Negros Occidental, 25 SCRA 192
Pepsi-Cola Bottling Co. of the Phil., Inc. vs. Mun. of Tanauan, Leyte, 69 SCRA 460 [1976]
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Tax Treaties
Tax Sparing
Yutivo sons Hardware Company vs. CTA and Collector, G.R. No. L-13203, January 28, 1961
Koppel [Phil.], Inc. vs. Yatco, 77 Phil. 496
Commissioner of Internal Revenue vs. Tokyo Shipping Co., Ltd., 244 SCRA 332
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TAXPAYERS SUIT
INFORMERS REWARD
* * * * * * * *
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INCOME TAXATION
DEFINITION OF INCOME
GROSS INCOME
In general
i. Compensation
ii. Gross income from the conduct of trade, business or exercise of profession
In general
- exchange of property
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iii. Interest
v. Rent
-Improvements by lessees
Sec. 49, RR2
vi. Royalties
vii. Dividends
viii. Annuities
x. Pensions
xi. Partners distributive share from the net income of a general professional partnership
xii. Others
- Condonation of indebtedness
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SOURCES OF INCOME
REALIZATION OF INCOME
Sec. 43-44, id
Sec. 51-53 RR 2
CLASSIFICATION OF TAXPAYERS
1. Corporate Taxpayers
i. Domestic
ii. Foreign
Resident Foreign
Non-resident Foreign
2. Non-corporate taxpayers
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b. Individual Taxpayers
i. Citizens
Resident
Non-resident
ii. Aliens
Resident
Non-resident
CLASSIFICATION OF ASSETS
1. Resident Citizens
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Peso
Foreign Currency
Sec. 2.22 to 2.24 (A) (1) & (2), Revenue Regulations No. 10-98
ii. Royalties
- In general
-Exceptions:
iv. Dividends
- Cash
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- Property
- Stock
- Liquidating dividends
c. Capital gains from sale of shares of stock not traded in the stock exchange
i. In general
Exception
i. De Minimis Benefits
Revenue Regulations 10-2000
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a. In general
Sec. 24(A)(1)(b)&(c)
RR 10-98
i. In general
Sec. 25 (A)(3)
i. In general
Sec. 25 (B), id
ii. Aliens employed by RHQs, ROHQs and Petroleum Service Contractors and
Subcontractors
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2. Domestic Corporation
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iv. Royalties
Sec. 27 (D)(1)
iii. Capital gains on sale of shares of stock not traded in the stock exchange
v. Inter-corporate dividends
o liquidating dividends
Sec. 27 (D)(5)
Revenue Regulations No. 17-2003
e. Special corporations
a. In general
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i. Interest on deposits
ii. Royalties
iii. Income derived under the expanded foreign currency deposit system
iv. Capital gains from sale of shares of stock
v. Intercorporate dividends
i. International carrier
ii. RHQ and ROHQ
a. In general
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f. Intercorporate dividends
a. Itemized
Sec. 34 (L), id
o Personal exemption for individual taxpayers; additional exemption for dependents; Premium
payments on health and hospitalization insurance
Sec. 34 (M), id
Sec. 35, id
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3. Allowable deductions
a. Expenses; in general
b. Interest
i. In general; limitation
ii. Interest expense not allowed as deduction from gross income
iii. Optional treatment of interest expense
c. Taxes
i. in general
ii. Limitations on taxes deductible
iii. Refund or credit of taxes already claimed as deduction
iv. taxes not allowed as deduction from gross income
ii. Taxes paid to foreign countries; option to credit against Philippine income tax
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d. Losses
i. In general
Sec. 39(D)(3), id
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Sec. 39 (F), id
Sec. 34(D)(7), id
f. Bad Debts
Sec. 34 (E), id
Revenue Regulations 25-2002
g. Depreciation
Sec. 34(H)(2), id
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1. Registration
i. Individuals
ii. Corporations
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