TAXATION LAW REVIEW

OUTLINE FOR 2nd SEMESTER SY 2016-2017

JUDGE MERVIN JOVITO SAMADAN

Grading: Class standing 40%; Mid-terms 30%; Finals 30%

INCOME TAXATION

Part I. CONCEPT AND CHARACTERISTICS OF TAXATION

TAXATION/ TAX DEFINED -

PURPOSE OF TAXATION -

Primary Purpose: Revenue Generation

Incidental Purpose : Implement of Police Power

NPC v. City of Cabanatuan, GR No. 149110, April 9, 2003, 259 SCRA 401
Progressive Devt. v. QC 172 SCRA 629

ESSENTIAL ELEMENTS OF TAXATION -

Republic v. COCOFED, GR Nos. 147062-64, December 14, 2001; 372 SCRA 462

THEORY AND RATIONALE OF TAXATION -

NPC v. City of Cabanatuan, supra

CIR v. Algue, G.R. No. L-28896. February 17, 1988

BENEFIT DERIVED FROM TAXATION -

Gomez v. Palomar, G.R. No. L-23645. October 29, 1968; 25 SCRA 827

BASIC PRINCIPLES OF A SOUND TAX SYSTEM

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Chavez v. Ongpin, GR No. 76778, June 6, 1990; 186 SCRA 331

ASPECTS OF TAXATION -

1. Levy
2. Collection

CLASSIFICATION OF TAXES

1. As to scope

2. As to its purpose

Sec 29 (3), Article IV, Constitution

3. As to who bears the economic burden of taxation

CIR v. Gotamco, No. L-31092, February 27, 1987; 148 SCRA 36

4. As to the subject of taxation

Iloilo Bottlers, Inc. v. City of Iloilo, 164 SCRA 607, 615 [1988]
Sec. 156-158, Local Government Code

5. As to the basis of the tax

We Wa Yu v. City of Lipa 99 Phil. 575

6. As to graduation of rate

TAX DISTINGUISHED FROM OTHER EXACTIONS -

1. License fee; Inspection fee

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Progressive Devt. V. Quezon City, supra

Cost of licensing/inspection -

Manila Electric Co. v. El Auditor General, G.R. No. 47368. August 25, 1941; 73 Phil. 128

2. Levies

Republic of the Phil. v. COCOFED, supra

Special Assessment or Special Levy -

Section 240, Local Government Code

3. Toll fees

Sec 155 Local Government Code

4. Penalty

6. Tariff and Customs Duties

7. Subsidies

8. Debt

Republic v. Mambulao Lumber Co., 4 SCRA 622

Part II. NATURE OF THE POWER OF TAXATION

INHERENT POWER OF THE STATE; ESSENTIAL AND INHERENT ATTRIBUTE OF SOVEREIGNTY -

Pepsi Cola Bottling Co. v. Tanauan, G.R. No. L-31156. February 27, 1976

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a. Police power

LTO v. Butuan, G.R. No. 131512. January 20, 2000

b. Eminent domain

LEGISLATIVE IN NATURE-

Wee Poco & Co. v. Posadas, GR No. 43142, August 26, 1937

Cannot be delegated

De la Llana v. Alba, G.R. No. 57883. March 12, 1982

Exceptions to restriction on delegation

1. Delegation to the local government

Article X, Sections 3 & 5 of the 1987 Constitution

Mactan Cebu Intl. Airport v. Marcos, G.R. No. 120082. September 11, 1996

2. Delegation to the President

Sec. 28 (2) Art. VI, Constitution

Sections 401 & 402 of the Tariff and Customs Code of the Philippines

3. Delegation to Administrative Agencies

CIR v. CA and Fortune Tobacco Corp., G.R. No. 119761. August 29, 1996 (see Bellosillo separate opinion)

Part III. LIMITATION TO THE POWER OF TAXATION

GENERAL PRINCIPLE -

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Sison v. Ancheta, G.R. No. L-59431. July 25, 1984

LIMITATIONS -

1. Due Process of Law

Section 1 Art. III, Constitution

Instances when due process is considered violated:

a. When taxation is not for public purpose

Pascual v. Sec. of Public Works, G.R. No. L-10405. December 29, 1960

b. When levied beyond territorial limits (extraterritorial)

Manila Gas Corp. v. CIR, G.R. No. 42780. January 17, 1936

c. Arbitrary methods used in assessing and collecting taxes; Presumption of regularity

d. Law is so arbitrary that it finds no support in Constitution; presumption of Constitutionality

Marcos II v. CA, G.R. No. 120880. June 5, 1997

Figuerres vs. Court of Appeals, G.R. No. 119172, March 25, 1999

2. Equal protection of laws

Section 1 Art. III of the Constitution

3. Uniformity and equity

Section 28(1) Art. VI, Constitution

4. Directive to evolve a progressive system of taxation

Section 28(1) Art. VI, Constitution

5. International Law

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Sec. 2, Article II, Constitution

6. Prohibition against imprisonment for non-payment of poll tax

Sec. 20, Art. III, Constitution

7. Non-impairment of contract

Sec. 10, Art. 111, Constitution

Grant of Franchise

Article XII, Section 11, of the 1987 Constitution

8. Religion Clauses

Sec. 5 Art. III Constitution

Sec. 29(2), Article VI, id
Sec. 28(3), Art. VI, id
Estrada v. Escritor, A.M. No. P-02-1651, August 4, 2003

Free exercise of religion

Sec. 5 Art. III Constitution

Estrada v. Escritor, supra
American Bible Society v. City of Manila, 101 Phil. 386

Non-establishment of religion

Sec. 29(2), Article VI, Constitution

Estrada v. Escritor, supra

Exemption of lands, buildings and improvements, actually, directly and exclusively used for religious, charitable
or educational purposes

Sec. 28(3), Art. VI, Constitution

CIR v. CA, G.R. No. 124043. October 14, 1998

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o Exemption of property from taxation; taxation of income from use or transfer of property

See Sec. 30 (E)(H) & (K) par. 2, NIRC

9. Exemption of non-stock, non-profit educational institutions; proprietary educational institutions

Sec. 4(3)&(4) Art. XIV Constitution

Non stock non profit educational institution

CIR v. CA and YMCA, G.R. No. 124043. October 14, 1998

Proprietary educational institutions

Difference between the tax exemption of religious organizations and educational institutions

See Sec. 30 (E)(H) & (K) par. 2, NIRC

10. Infringement of press freedom

Sec. 4, Article III Constitution

Tolentino v. Sec. of Finance, supra

11. Voting requirement for grant of tax exemption

Sec 28 (4) Art. VI Constitution

12. Taxes levied for a special purpose treated as a special fund

Sec 29 (3), Article IV, Constitution

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13. Veto of appropriation revenue and tariff bills by the President; item veto

Sec. 27 (2), Art. VI Constitution

Gonzales v. Macaraig, 191 SCRA 452

14. Revenue Bills shall originate from the House of Representatives

Sections 24, Articles VI, Constitution

Tolentino v. Sec. of Finance, supra

15. Non-impairment of the jurisdiction of the Supreme Court

Secs. 2 & 5(2)(b), Article VIII of the Constitution

San Miguel Corp. v. Avelino, 89 SCRA 70

Part IV. TAX LAWS

SOURCES OF TAX LAWS

1. Constitution
2. Statutes
3. Executive Orders and Presidential Decrees
4. International Agreements
5. Administrative Issuances
6. Jurisprudence

NATURE OF TAX LAWS

Hillado v. CTA, 100 Phil. 288

Republic v. Gancayco, G.R. No. L-18307. June 30, 1965

CONSTRUCTIONOF TAX LAWS

CIR v. CA, G.R. No. 115349. April 18, 1997

Luzon Stevedoring Co. vs. Trinidad, 43 Phil., 803
CIR v. CA and Atlas Consolidated Mining and Devt. Corp, G.R. No. 104151. March 10, 1995

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Mandatory and directory provision of tax laws

Roxas v. Rafferty, 37 Phil 957 (1918)

CIR v. CA and Atlas Consolidated Mining and Devt. Corp, supra

Legislative approval by re-enactment; Contemporaneous interpretation

China Banking Corp. v. CA, G.R. No. 146749. June 10, 2003

EXECUTIVE (INTERNATIONAL) AGREEMENTS

CIR v. Gotamco, G.R. No. L-31092. February 27, 1987

RETROACTIVITY OF TAX STATUTES

Lorenzo v. Posadas, G.R. No. 43082. June 18, 1937

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

NON-RETROACTIVITY OF RULINGS OF THE COMMIISSIONER OF INTERNAL REVENUE

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

JURISDICTION OF THE COURT OF TAX APPEALS

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Republic Act No. 9228

Part V. TAX EXEMPTION

NATURE OF THE POWER TO GRANT TAX EXEMPTION

Sec 28 (4) Art. VI Constitution

RATIONALE FOR TAX EXEMPTION

CIR v. Bothelo Shipping, 29 June 1967

LAWS GRANTING TAX EXEMPTION

1. Constitution

Section 28 (3), Article VI

Section 4 (3,4), Article XIV

2. Tax Statutes

a. National Internal Revenue Code

See Sections 30, 32, 87, 109

b. Local Government Code

See Section 159 and 234

c. Customs Code

See Section 105

d. Special Laws

e. Treaties/ International Conventions

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CONSTRUCTION OF TAX EXEMPTION

Cyanamid Phils., Inc. v. CA, G.R. No. 108067. January 20, 2000

Exception:

Mactan Cebu Intl. Airport v. Marcos, supra

Part VI. OTHER MODES OF ESCAPE FROM TAXATION

SHIFTING OF TAX BURDEN

PICOP v. CA, G.R. Nos. 106949-50. December 1, 1995

Impact and incidence of taxation

Types of Shifting

TAX EVASION

Tax Fraud

Aznar v. CTA, G.R. No. L-20569. August 23, 1974, 58 SCRA 519

a. Evidence of Fraud

Republic v. Gonzales, G.R. No. L-17962. April 30, 1965

Avelino v. Collector, G.R. No. L-17715. July 31, 1963

b. Prosecution for Tax Fraud

Commissioner of Internal Revenue v. Court of Appeals and Fortune Tobacco, et.al, G.R. No. 119322. June 4, 1996

TAX AVOIDANCE

Delpher Traders Corporation v. IAC, 157 SCRA 349

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TAX REMISSION; TAX CONDONATION; TAX AMNESTY

Republic v. Intermediate Appellate Court, 196 SCRA 335, 340 [1991]

CIR v. Marubeni, G.R. No. 137377. December 18, 2001

ZERO RATING

See Secs. 106(A)(2) & 108(B), National Internal Revenue Code

DEDUCTION

COMPENSATION/SET-OFF OF TAXES

Republic v. Mambulao Lumber Co., 4 SCRA 622

Exception:

Domingo v. Garlitos, G.R. No. L-18994. June 29, 1963

COMPROMISE / ABATEMENT

See Sec. 204 (A), National Internal Revenue Code

TAX DEFERMENT

Deferment of payment of taxes that have already accrued

See Sec. 91(B), NIRC

Deferring recognition of taxability

See Section 40(c)(2) of the NIRC

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Part VII. SITUS; PRINCIPLE OF TERRITORIALITY; DOUBLE TAXATION

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

POWER OF LEGISLATURE TO FIX SITUS

Tan v. Del Rosario, G.R. No. 109289. October 3, 1994

MULTIPLICITY OF SITUS

Collector v. Lara 102 SCRA 813

Wells Fargo v. Collector, 70 Phil. 325

MEANING OF DOUBLE TAXATION

Victorias Milling Co., Inc. v. Municipality of Victorias, Negros Occidental, 25 SCRA 192

DIRECT DUPLICATE TAXATION AND INDIRECT DUPLICATE TAXATION

Pepsi-Cola Bottling Co. of the Phil., Inc. vs. Mun. of Tanauan, Leyte, 69 SCRA 460 [1976]

CONSTITUTIONALITY OF DOUBLE TAXATION

Villanueva v. City of Iloilo, G.R. No. L-26521. December 28, 1968

AVOIDANCE OF DOUBLE TAXATION

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Tax Treaties

CIR v. Procter & Gamble, G.R. No. 66838. December 2, 1991

CIR v. Johnson & Son, G.R. No. 127105. June 25, 1999)

Tax Credit or item of Deduction

see Sec. 34 (C)(1)(b) and 34(C)(2) &(3), NIRC

Tax Sparing

CIR v. Proctor & Gamble, supra

CIR v. SC Johnson, supra
See Sec. 29(B)(5)(b), NIRC

Part VIII. OTHER ASPECTS OF TAXATION

NATURE OF TAXPAYERS LIABILITY FOR TAXES

Yutivo sons Hardware Company vs. CTA and Collector, G.R. No. L-13203, January 28, 1961
Koppel [Phil.], Inc. vs. Yatco, 77 Phil. 496

PRESCRIPTION OF THE RIGHT TO ASSESS AND COLLECT TAXES; CONSTRUCTION

CIR v. Ayala Securities, G.R. No. L-29485. November 21, 1980

RIGHT TO REFUND OF TAXES

Commissioner of Internal Revenue vs. Tokyo Shipping Co., Ltd., 244 SCRA 332

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ESTOPPEL AGAINST GOVERNMENT

ABS CBN v. CTA, 108 SCRA 143

INJUNCTION IN COLLECTION OF TAXES

Sarasola vs. Trinidad, 40 Phil. 252

TAXPAYERS SUIT

Gonzales vs. Marcos, 65 SCRA 624 [1975].)

INFORMERS REWARD

Penid v. Virata, G.R. No. L-44004. March 25, 1983

* * * * * * * *

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INCOME TAXATION

Reference: Victorino Mamalateo, Income Taxation

DEFINITION OF INCOME

Net income/Taxable Income, in general

Sec. 31, Tax Code

Sec. 36 - 38, Revenue Regulations No. 2-40 (RR 2)

Differentiated from capital

GROSS INCOME

In general

Sec. 32 (A), Tax Code

i. Compensation

Sec. 2.78.1 (A), RR 2-98

ii. Gross income from the conduct of trade, business or exercise of profession

Sec. 43, RR2

iii. Gains derived from dealings in property

In general

- basis for determining gain or loss from sale or disposition of property

Sec. 40(B), Tax Code

- exchange of property

Sec. 40(1), (3) and (4), id.

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- Exception; Tax free exchange

Sec 40(C) (2), id

RR 18-01

iii. Interest

v. Rent

-Improvements by lessees
Sec. 49, RR2

vi. Royalties

vii. Dividends

Sec. 250 - 252, RR 2

viii. Annuities

Sec. 48, RR2

ix. Prizes and winnings

x. Pensions

xi. Partners distributive share from the net income of a general professional partnership

Sec. 73 (D), Tax Code

xii. Others

- Condonation of indebtedness

Sec. 50, RR2

Exclusions from gross income

Sec. 32 (B), Tax Code

Sec. 61-64, RR 2

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SOURCES OF INCOME

Sec. 42(A) & (C), Tax Code

REALIZATION OF INCOME

Sec. 43-44, id
Sec. 51-53 RR 2

CLASSIFICATION OF TAXPAYERS

1. Corporate Taxpayers

a. Definition of corporation under the Tax Code

Sec. 22, Tax Code

i. Partnership as corporate taxpayer

ii. Joint venture as corporate taxpayer; exceptions

BIR Ruling 018-99

b. Classification of corporate taxpayers

i. Domestic

ii. Foreign

Resident Foreign

Comm. v. BOAC, supra

Non-resident Foreign

2. Non-corporate taxpayers

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a. Estates and Trusts

Sec. 60, Tax Code

b. Individual Taxpayers

Sec. 1-5 Art. IV, Constitution

Sec. 2, 5 8, RR 2
Sec. 25(A)(1), Tax Code

i. Citizens

Resident
Non-resident

ii. Aliens

Resident
Non-resident

- Engaged in trade or business in the Philippines

- Not engaged in trade or business in the Philippines

Aliens employed by regional headquarters, regional

operating headquarters of multinationals, offshore banking
units and petroleum service contractors

CLASSIFICATION OF ASSETS

Sec. 39 (A)(1), Tax Code;

Revenue Regulations No. 7-2003

GENERAL PRINCIPLES OF INCOME TAXATION

Sec.23, Tax Code

INCOME TAXATION OF INDIVIDUALS

1. Resident Citizens

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a. Income Tax, in general

Section 24 (A), Tax Code

i. Capital gains, in general; limitations

Section 39 (B) and (C)

b. Income tax on certain passive income

Section 24 (B), Tax Code

i. Interest on deposits and deposit substitutes

Peso

Foreign Currency

Sec. 2.22 to 2.24 (A) (1) & (2), Revenue Regulations No. 10-98

- Interest income from long term deposit and investment

ii. Royalties

Revenue Memorandum Circular No. 77-2003

BIR Ruling No. 058-00

iii. Prizes and other winnings

- In general

-Exceptions:

Sec. 24 (A), Tax Code

Sec. 32 (B)(7)(c) & (d), id.

iv. Dividends

Sec. 73(A), (C) and (D), Tax Code

- Cash

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- Property

Sec. 251, RR2; valuation of property dividends

- Stock

Sec. 73(B), Tax Code

Sec. 252, RR2

- Liquidating dividends

BIR Ruling No. 036-2002

c. Capital gains from sale of shares of stock not traded in the stock exchange

Share of stock defined Sec. 22(L) Tax Code

Sec. 24(C), Tax Code

Revenue Regulations No. 2-82

d. Capital gains from sale of real property

Sec. 24(D), Tax Code

i. In general

Exception

- RR 14-00, Purchase of principal residence

e. Special treatment of fringe benefits; Fringe benefits tax

Article 212 (m), Labor Code

Revenue Regulations 3-98

i. De Minimis Benefits
Revenue Regulations 10-2000

2. Resident aliens and non-resident citizens

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a. In general

Sec. 24(A)(1)(b)&(c)

b. On certain passive income

RR 10-98

3. Non resident aliens

a. Engaged in trade or business in the Philippines

i. In general

Sec. 25 (A)(1), Tax Code

ii. Dividends, Interest, Royalties, Prizes and other winnings

Sec. 25 (A)(2), id.

RR 10-98

iii. Capital gains

Sec. 25 (A)(3)

iv. Fringe benefits tax

Revenue Regulations 3-98

b. Not engaged in trade or business in the Philippines

i. In general

Sec. 25 (B), id

ii. Aliens employed by RHQs, ROHQs and Petroleum Service Contractors and
Subcontractors

Sec. 22 (DD) & (EE), Tax Code

Sec. 25 (C) to (E); id.

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o Taxation of members of general professional partnerships

Sec. 22 (B), Tax Code

Sec. 26, id.

4. Income tax on estates and trusts

Sec. 60 64, Tax Code

INCOME TAX ON CORPORATIONS

1. Corporations exempt from Income Tax

Sec. 30, Tax Code

2. Domestic Corporation

a. Corporate Income Tax, in general

Sec. 27 (A), id.

b. Minimum Corporate Income Tax

Sec. 27 (E), id.

Revenue Regulation No. 9-98

c. Income Tax on Certain Passive Income

iii. Interest from deposits

1. Peso

-long term deposits

2. Expanded foreign currency deposit system

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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

Sec. 27 (D) (2)

Revenue Regulations 2-82

iv. Income from foreign currency deposit system

Sec. 27 (D)(3), Tax Code

v. Inter-corporate dividends

cash, property & stock dividends

o liquidating dividends

BIR Ruling 36-2002

vi. Capital gains on sale of real property

Sec. 27 (D)(5)
Revenue Regulations No. 17-2003

d. Improperly accumulated earnings tax

Sec. 29, Tax Code

Revenue Regulation No. 2-2001

e. Special corporations

- Proprietary Educational Institutions

- Government Owned and Controlled Corporations

3. Foreign corporations; Resident

a. In general

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Sec. 28 (A)(1), Tax Code

b. Minimum Corporate Income Tax

Sec. 28(A)(2), id.

Revenue Regulation No. 9-98
Revenue Memorandum Circular 4-2003

c. Tax on branch profit remittance

Sec. 28(A)(5), Tax Code

d. Tax on certain passive income

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

Sec. 28 (A)(7), id.

e. Income derived by:

i. International carrier
ii. RHQ and ROHQ

Sec. 28 (A) (3) & (6), id

4. Foreign corporations; Non-resident

a. In general

Sec. 28 (B)(1), id.

b. Cinematographic film lessors

Sec. 28 (B)(2), id.

c. Owner or lessor of vessels chartered by Philippine nationals

Sec. 28 (B)(3), id.

d. Owner or lessor of aircraft, machineries and other equipment

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Sec. 28 (B)(4), id.

e. Interest on foreign loans

Sec. 28 (B)(5)(a), id.

f. Intercorporate dividends

Sec. 28 (B)(5)(b), id.

g. Capital gains from sale of shares of stock

Sec. 28 (B)(5)(c), id.

I. Deductions from Gross Income

1. Types of deductions from gross income

a. Itemized

- persons entitled to claim itemized deductions from gross income

Sec. 34; 24(A); 25(A); 26(A), (B) and (C), id

b. Optional standard deductions

- persons entitled to claim optional standard deduction

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

2. When charges are deductible

Sec. 45, Tax Code

Sec. 76, RR2

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3. Allowable deductions

a. Expenses; in general

Ordinary and necessary expenses;

Difference between Revenue Expenditure and Capital Expenditure

Sec. 34 (A) (1), Tax Code

Sec. 65 - 74, RR 2

o Expenses allowed to private educational institutions

Sec. 34(A)(2), Tax Code

b. Interest

i. In general; limitation
ii. Interest expense not allowed as deduction from gross income
iii. Optional treatment of interest expense

Sec. 34 (B), id.

Sec. 36 (B), supra

c. Taxes

Sec. 34 (C), Tax Code

i. Taxes as deduction from gross income

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

Sec. 80 83, 85, RR 2

ii. Taxes paid to foreign countries; option to credit against Philippine income tax

v. persons who may exercise the option

vi. limitations on credit
vii. proof of credits

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Sec. 84 par. 1, 85 & 92, RR2

d. Losses

i. In general

Sec. 93, 94, 96 - 99, RR2

ii. Net operating loss carry over

BIR Ruling No. 011-2002

iii. Capital loss

Definition of capital asset

Sec. 39(A)(1), Tax Code

Limitation on capital losses

Sec. 39(A)(2) & (3), Tax Code

Sec. 39(B)&(C), id

Net capital loss carry over

Sec. 39(D)(3), id

iv. Securities becoming worthless

Sec. 99, RR2

Sec. 34(D)(4)(b), Tax Code

v. Losses from wash sales of stock

Sec. 38, RR2

Sec. 34(D)(5), Tax Code

vi. Loss from short sale of property; failure to exercise option

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Sec. 39 (F), id

vii. Wagering loss

Sec. 34(D)(6), Tax Code

viii. Abandonment loss

Sec. 34(D)(7), id

f. Bad Debts

Sec. 34 (E), id
Revenue Regulations 25-2002

g. Depreciation

Sec. 34 (F), Tax Code

Sec. 105 113, RR2

h. Charitable and other contributions

i. In general, limitations on deductions

Sec. 34 (H)(1), Tax Code

ii. Contributions deductible in full

Sec. 34(H)(2), id

i. Research and development

Sec. 34 (I), Tax Code

3. Additional requirements for deductibility of certain payments; withholding

Sec. 34 (K), Tax Code

a. Creditable withholding tax

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TAXATION LAW REVIEW
OUTLINE FOR 2nd SEMESTER SY 2016-2017
JUDGE MERVIN JOVITO SAMADAN

- Withholding tax on compensation

- Expanded withholding tax/ creditable withholding tax at source

b. Final withholding tax

Revenue Regulations No. 2-98

4. Items not deductible

Sec. 36, id.

ACCOUNTING PERIODS AND METHODS OF ACCOUNTING

Sec. 43 46, id.

RETURNS AND PAYMENT OF TAXES

1. Registration

2. Returns and payment of taxes

i. Individuals

Sec. 51, id.

i. Who are required to file returns

ii. Where to file
iii. When to file

ii. Corporations

Sec. 52, id.

i. who are required to file returns

ii. Where to file
When to file

Page 30 of 30