Syllabus - Law on Taxation

7/27/2019 Syllabus - Law on Taxation

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COVERAGE

LAW ON TAXATION2013 BAR EXAMINATIONS

9. General Principles of Taxation

1. Definition and concept of taxation

2. Nature of taxation3. Characteristics of taxation4. Power of taxation compared with other powers

1. Police power

2. Power of eminent domain5. Purpose of taxation

1. Revenue-raising

2. Non-revenue/special or regulatory

6. Principles of sound tax system

1. Fiscal adequacy

2. Administrative feasibility

3.Theoretical justice

7. Theory and basis of taxation

1. Lifeblood theory

2. Necessity theory

3. Benefits-protection theory (Symbioticrelationship)

4.Jurisdiction over subject and objects

8. Doctrines in taxation

1. Prospectivity of tax laws

2. Imprescriptibility

3. Double taxation

1) Strict sense

2) Broad sense

3) Constitutionality of double taxation

4) Modes of eliminating double taxation

4. Escape from taxation

1) Shifting of tax burden(1)Ways of shifting the tax burden

(2)Taxes that can be shifted

(3) Meaning of impact and incidence oftaxation

2)Tax avoidance

3)Tax evasion


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2013 Bar Examination Coverage2 Law on Taxation

5. Exemption from taxation

1) Meaning of exemption from taxation

2) Nature of tax exemption

3) Kinds of tax exemption

(1) Express

(2) Implied

(3) Contractual

4) Rationale/grounds for exemption

5) Revocation of tax exemption

6. Compensation and set-off

7. Compromise

8.Tax amnesty

1) Definition

2) Distinguished from tax exemption

9. Construction and interpretation of:1)Tax laws

(1)General rule

(2) Exception

2)Tax exemption and exclusion

(1)General rule

(2) Exception

3)Tax rules and regulations

(1)General rule only

4) Penal provisions of tax laws

5) Non-retroactive application to taxpayers

(1)Exceptions

9.Scope and limitation oftaxation

1. Inherent limitations

1) Public purpose

2) Inherently legislative

(1)General rule(2) Exceptions

(1) Delegation tolocalgovernments

(2) Delegation tothe President

(3) Delegation toadministrative agencies

3)Territorial

(1)Situs of taxation

(1) Meaning

(2) Situs of income tax

(1) Fromsourceswithin thePhilippines


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(2) From sourceswithout thePhilippines

(3) Income partly withinand partly withoutthe Philippines

(3) Situs of property taxes

(1)Taxes on realproperty

(2)Taxes on personalproperty

(4) Situs of excise tax

(1) Estate tax

(2) Donors tax

(5) Situs of business tax

(1) Sale of realproperty

(2) Sale of personalproperty

(3) Value-Added Tax(VAT)

4) International comity

5) Exemption of governmententities, agencies, andinstrumentalities

2. Constitutional limitations

1) Provisions directly affectingtaxation

(1) Prohibition againstimprisonment for non-payment of poll tax

(2) Uniformity and equality oftaxation

(3) Grant by Congress ofauthority to the presidentto impose tariff rates

(4) Prohibition against

taxation of religious,

charitable

entities, and

educational

entities

(5) Prohibition againsttaxation of non-stock,non-profit institutions

(6) Majority vote of Congressfor grant of taxexemption

(7) Prohibition on use of taxlevied for specialpurpose

(8) Presidents veto poweron appropriation,revenue, tariff bills

(9) Non-impairment of jurisdiction of the

Supreme Court(10)Grant of power to the

local government units

to create its own sources

of revenue

(11) Flexible tariff clause

(12) Exemption from realproperty taxes

(13) No appropriation or useof public money for

religious purposes2) Provisions indirectly affectingtaxation

(1) Due process

(2) Equal protection

(3) Religious freedom

(4) Non-impairment of obligations of contracts

10. Stages of taxation

1. Levy

2. Assessment and collection

3. Payment


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4. Refund

11. Definition, nature, and characteristics of taxes

12. Requisites of a valid tax

13.Tax as distinguished from other forms of exactions

1.Tariff

2.Toll

3. License fee

4. Special assessment

5. Debt

14. Kinds of taxes

1. As to object

1) Personal, capitation, or poll tax

2) Property tax

3) Privilege tax

2. As to burden or incidence1) Direct

2) Indirect

3. As to tax rates

1) Specific

2) Ad valorem

3)Mixed

4. As to purposes

1) General or fiscal

2) Special, regulatory, or sumptuary

5. As to scope or authority to impose1) National internal revenue taxes

2) Local real property tax, municipal tax

6. As to graduation

1) Progressive

2) Regressive

3) Proportionate

II. National Internal Revenue Code (NIRC) of 1997, as amended

1. Income taxation1. Income tax systems

1) Global tax system

2) Schedular tax system

3) Semi-schedular or semi-global tax system

2. Features of the Philippine income tax law


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1) Direct tax

2) Progressive

3)Comprehensive

4) Semi-schedular or semi-global tax system

3. Criteria in imposing Philippine income tax

1) Citizenship principle

2) Residence principle

3) Source principle

4.Types of Philippine income tax

5.Taxable period

1) Calendar period

2) Fiscal period

3) Short period

6. Kinds of taxpayers

1) Individual taxpayers(9)Citizens

(1) Resident citizens

(2) Non-resident citizens

(35) Aliens

(1) Resident aliens

(2) Non-resident aliens

(1) Engaged in trade or business

(2) Not engaged in trade or business

(61) Special class ofindividualemployees

(1) Minimum wageearner

2) Corporations

(9)Domestic

corporations(35) Foreign

corporations

(1) Residentforeigncorporations

(2) Non-residentforeigncorporations

(61) Joint venture andconsortium

3) Partnerships

4) General professionalpartnerships

5) Estates and trusts

6)Co-ownerships

7. Income taxation

1) Definition

2) Nature

3) General principles


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8. Income

1) Definition

2) Nature

3) When income is taxable

(1)Existence of income

(2) Realization of income

(1)Tests of realization

(2) Actual vis--vis constructivereceipt

(3) Recognition of income

(4) Methods of accounting

(1) Cash method vis--visaccrual method

(2) Installment payment vis--vis

deferred payment vis--vis

percentage completion (inlong-term contracts)

4)Tests in determining whether incomeis earned for tax purposes

(1) Realization test

(2) Claim of right doctrine ordoctrine of ownership,command, or control

(3) Economic benefit test, doctrineof proprietary interest

(4) Severance test(5) All events test

9. Gross income

1) Definition

2) Concept of income fromwhatever source derived

3) Gross income vis--vis netincome vis--vis taxable income

4) Classification of income as tosource

(1)Gross income and taxable

income from sources withinthe Philippines

(2)Gross income and taxableincome from sources withoutthe Philippines

(3) Income partly within orpartly without thePhilippines

5) Sources of income subject to tax

(1)Compensation income

(2) Fringe benefits

(1) Special treatment offringe benefits

(2) Definition

(3)Taxable and non-taxablefringe benefits

(3) Professional income

(4) Income from business

(5) Income from dealings inproperty

(1)Types of properties

(1) Ordinary assets

(2) Capital assets

(2)Types of gains fromdealings in property


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(1) Ordinary income vis--vis capitalgain

(2) Actual gain vis--vis presumed gain

(3) Long term capital gain vis--visshort-term capital gain

(4) Net capital gain, net capital loss(5) Computation of the amount of gain

or loss

(6) Income tax treatment of capitalloss

(1) Capital loss limitation rule

(applicable to both

corporations and individuals)

(2) Net loss carry-over rule(applicable only to individuals)

(7) Dealings in real property situated inthe Philippines

(8) Dealings in shares of stock ofPhilippine corporations

(1) Shares listed and traded in thestock exchange

(2) Shares not listed and traded inthe stock exchange

(9) Sale of principal residence

(6) Passive investment income

(1) Interest income

(2) Dividend income(1) Cash dividend

(2) Stock dividend

(3) Property dividend

(4) Liquidating dividend

(3) Royalty income

(4) Rental income

(1) Lease of personal property

(2) Lease of real property

(3)Tax treatment of

(1) Leasehold

improvements bylessee

(2) VAT added torental/paid by thelessee

(3) Advance rental/longterm lease

(7) Annuities, proceeds from lifeinsurance or other types ofinsurance

(8) Prizes and awards

(9) Pensions, retirement benefit, orseparation pay

(10) Income from any sourcewhatever

(1) Forgiveness of indebtedness

(2) Recovery of accounts

previously written off when

taxable/when not taxable

(3) Receipt of tax refunds orcredit

(4) Income from any sourcewhatever

(5) Source rules in determiningincome from within andwithout

(1) Interests


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(2) Dividends

(3) Services

(4) Rentals

(5) Royalties

(6) Sale of real property

(7) Sale of personal property

(8) Shares of stock of domestic corporation

(6)Situs of income taxation (see page 2

under inherent limitations, territorial)

(7) Exclusions from gross income

(1) Rationale for the exclusions

(2)Taxpayers who may avail of theexclusions

(3) Exclusions distinguished fromdeductions and tax credit

(4) Under the Constitution

(1) Income derived by the government

or its political subdivisions from the

exercise of any essential

governmental function

(5) Under the Tax Code

(1) Proceeds of life insurance policies

(2) Return of premium paid

(3) Amounts received under life

insurance, endowment or

annuity contracts(4) Value of property acquired by

gift, bequest, devise or

descent

(5) Amount received throughaccident or healthinsurance

(6) Income exempt under taxtreaty

(7) Retirement benefits,

pensions, gratuities, etc.(8) Winnings, prizes,

and awards,

including those in

sports competition

(6) Under special laws

(1) Personal Equity andRetirement Account

(8) Deductions from gross income

(1) General rules

(1) Deductions must be paidor incurred in connectionwith

the taxpayers trade,business or profession

(2) Deductions must

be supported by

adequate receipts

or invoices (except

standard

deduction)

(3) Additional requirementrelating to withholding

(2) Return of capital (cost ofsales or services)


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(1) Sale of inventory of goods by

manufacturers and dealers of

properties

(2) Sale of stock in trade by a real

estate dealer and dealer in

securities(3) Sale of services

(3) Itemized deductions

(1) Expenses

(1) Requisites for deductibility

(1) Nature: ordinary and necessary

(2) Paid and incurred during taxableyear

(2) Salaries, wages and other forms of

compensation for personal

services actually rendered,including the grossed-up monetary

value of the fringe benefit

subjected to fringe benefit tax

which tax should have been paid

(3)Travelling/transportation expenses

(4) Cost of materials

(5) Rentals and/or other payments for

use or possession of property

(6) Repairs and maintenance

(7) Expenses under lease agreements(8) Expenses for professionals

(9) Entertainment/Representationexpenses

(10) Political campaign expenses

(11) Training expenses

(2) Interest

(1) Requisites fordeductibility

(2) Non-deductible interestexpense

(3) Interest subject tospecial rules

(1) Interest paid inadvance

(2) Interest periodicallyamortized

(3) Interest expense

incurred to

acquire property

for use in

trade/business/p

rofession(4) Reduction of

interest expense/interest arbitrage

(3)Taxes

(1) Requisites fordeductibility

(2) Non-deductible taxes

(3)Treatments ofsurcharges/interests/fines for delinquency

(4)Treatment of specialassessment

(5)Tax credit vis--visdeduction


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(4) Losses


(2) Other types of losses

(1) Capital losses

(2) Securities becoming worthless

(3) Losses on wash sales of stocks orsecurities

(4) Wagering losses

(5) Net Operating Loss Carry-Over(NOLCO)

(5) Bad debts


(2) Effect of recovery of bad debts

(6)Depreciation


(2) Methods of computing depreciationallowance

(1) Straight-line method

(2) Declining-balance method

(3) Sum-of-the-years-digit method

(7) Charitable and other contributions


(2) Amount that may be deducted

(8) Contributions to pension trusts


(9)Deductions under special laws

(4) Optional standard deduction

(1) Individuals, except non-resident aliens

(2) Corporations, except non-resident foreigncorporations

(3) Partnerships

(5) Personal and additional

exemption (R.A. No. 9504,

Minimum Wage Earner Law)

(1) Basic personalexemptions

(2) Additional exemptions fortaxpayer with dependents

(3) Status-at-the-end-of-the-year rule

(4) Exemptions claimed bynon-resident aliens

(6) Items not deductible(1) General rules

(2) Personal, living or familyexpenses

(3) Amount paid for new

buildings or for

permanent

improvements

(capital

expenditures)

(4) Amount expended inrestoring property (majorrepairs)


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(5) Premiums paid on life

insurance policy

covering life or any

other officer or

employee financially

interested(6)Interest expense,

bad debts, and

losses from sales

of property

between related

parties

(7) Losses from sales orexchange or property

(8) Non-deductible interest

(9) Nondeductible taxes(10) Non-deductible

losses

(11) Losses from washsales of stock orsecurities

(7) Exempt corporations

(1) Propriety educationalinstitutions andhospitals

(2) Government owned or

controlled corporations(3) Others

10.Taxation of resident citizens, non-residentcitizens, and resident aliens

1) General rule that resident citizens

are taxable on income from all

sources within and without the

Philippines

(9)Non-resident citizens

2) Taxation on compensation income

(9)Inclusions(1) Monetary compensation

(1) Regular salary/wage

(2) Separation pay/retirementbenefit not otherwiseexempt

(3) Bonuses, 13th month pay,

and other benefitsnot exempt

(4) Directors fees

(2) Non-monetarycompensation

(1) Fringe benefit notsubject to tax

(35) Exclusions(1) Fringe benefit subject

to tax

(2) De minimis benefits

(3) 13th

month payand other benefitsand paymentsspecificallyexcluded fromtaxablecompensation

income(61) Deductions

(1) Personal exemptionsand additionalexemptions

(2) Health andhospitalizationinsurance

(3)Taxation ofcompensation incomeof a minimum wage

earner(1) Definition of

statutory minimumwage

(2) Definition of minimum wageearner

(3) Income also

subject to tax

exemption: holiday

pay, overtime pay,

night shiftdifferential, and

hazard pay

3) Taxation of businessincome/income from practiceof profession


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4) Taxation of passive income

(9)Passive income subject to finaltax

(1) Interest income

(9) Treatment of income

from long-term deposits(2) Royalties

(3) Dividends from domesticcorporations

(4) Prizes and other winnings

(2) Passive income not subject tofinal tax

5) Taxation of capital gains

(1) Income from sale of shares ofstock of a Philippine corporation

(1) Shares traded and listed inthe stock exchange

(2) Shares not listed and tradedin the stock exchange

(2) Income from the sale of realproperty situated in thePhilippines

(3) Income from the sale,

exchange, or other

disposition of other capital

assets

11.Taxation of non-resident aliens engagedin trade or business

1) General rules

2) Cash and/or property dividends

3) Capital gains

Exclude: non-resident aliens not

engaged in trade or business

12. Individual taxpayers exempt fromincome tax

1) Senior citizens

2) Minimum wage earners

3) Exemptions granted underinternational agreements

13. Taxation of domestic corporations

1) Tax payable

(1) Regular tax

(2) Minimum Corporate IncomeTax (MCIT)

(1) Imposition of MCIT

(2) Carry forward of excessminimum tax

(3) Relief from the MCITunder certain conditions

(4) Corporations exemptfrom the MCIT

(5) Applicability of the MCIT

where a corporation is

governed both under

the regular tax system

and a special income

tax system

2) Allowable deductions

(1) Itemized deductions

(2) Optional standarddeduction

3) Taxation of passive income

(1) Passive income subject totax


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(1) Interest from deposits and

yield or any other

monetary benefit from

deposit substitutes and

from trust funds and

similar arrangements androyalties

(2) Capital gains from the sale

of shares of stock not

traded in the stock

exchange

(3) Income derived under theexpanded foreign currencydeposit system

(4) Inter-corporate dividends

(5)Capital gains realized from

the sale, exchange, or

disposition of lands and/or

buildings

(2) Passive income not subject totax

4) Taxation of capital gains

(1) Income from sale of shares ofstock

(2) Income from the sale of realproperty situated in the

Philippines(3) Income from the sale,

exchange, or other

disposition of other capital

assets

5) Tax on proprietary educationalinstitutions and hospitals

6) Tax on government-

owned or controlled

corporations,

agencies orinstrumentalities

14.Taxation of resident foreign corporations

1) General rule

2) With respect to their income fromsources within the Philippines

3) Minimum Corporate Income Tax

4)Tax on certain income

(1) Interest from deposits

and yield or any othermonetary benefit from

deposit substitutes, trust

funds and similar

arrangements and

royalties

(2) Income derived under theexpanded foreign currencydeposit system

(3) Capital gain from sale ofshares of stock not traded in

the stock exchange(4) Inter-corporate dividends

Exclude:

(1) International carrier

(2) Offshore banking units

(3) Branch profitsremittances

(4) Regional or

area

headquarters

and regionaloperating

headquarters

of

multinational

companies

15.Taxation of non-resident foreigncorporations

1) General rule

2)Tax on certain income

(1)Interest on foreign loans(2) Intercorporate dividends


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(3) Capital gains from

sale of shares of

stock not traded in

the stock exchange

Exclude:

(1) Non-residentcinematographic filmowner, lessor ordistributor

(2) Non-resident owner or

lessor of vessels

chartered by Philippine

nationals

(3) Non-resident owner or

lessor of aircraft

machineries and other

equipment

16. Improperly accumulated earnings ofcorporations

17. Exemption from tax on corporations

18.Taxation of partnerships

19.Taxation of general professionalpartnerships

20. Withholding tax

1) Concept

2) Kinds

(1) Withholding of final tax oncertain incomes

(2) Withholding of creditabletax at source

3) Withholding of VAT

4) Filing of return and paymentof taxes withheld

(1) Return and payment incase of governmentemployees

(2) Statements and returns

5) Final withholding tax atsource

6) Creditable withholding tax

(1) Expanded withholdingtax

(2) Withholding tax oncompensation

7) Timing of withholding

B. Estate tax

1. Basic principles2. Definition

3. Nature

4. Purpose or object

5. Time and transfer of properties

6. Classification of decedent

7. Gross estate vis--vis net estate

8. Determination of gross estateand net estate

9. Composition of gross estate

10. Items to be included in grossestate

11. Deductions from estate

12. Exclusions from estate


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13. Tax credit for estate taxes paid in aforeign country

14. Exemption of certain acquisitionsand transmissions

15. Filing of notice of death

16. Estate tax return

3. Donors tax

1. Basic principles

2. Definition

3. Nature

4. Purpose or object

5. Requisites of valid donation

6. Transfers which may be constitutedas donation

1) Sale/exchange/transfer ofproperty for insufficientconsideration

2) Condonation/remission of debt

7. Transfer for less than adequate andfull consideration

8. Classification of donor

9. Determination of gross gift

10. Composition of gross gift

11. Valuation of gifts made in property

12. Tax credit for donors taxes paid ina foreign country

13. Exemptions of gifts from donors

tax

14. Person liable

15. Tax basis

4. Value-Added Tax (VAT)

1. Concept

2. Characteristics/Elements of aVAT-Taxable transaction

3. Impact of tax

4. Incidence of tax

5. Tax credit method

6. Destination principle

7. Persons liable

8. VAT on sale of goods orproperties

1) Requisites of taxability ofsale of goods or properties

9. Zero-rated sales of goods or

properties, and effectively zero-

rated sales of goods or

properties

10. Transactions deemed sale

1) Transfer, use or consumption

not in the course of business

of goods/properties originally

intended for sale or use in

the course of business

2) Distribution or transfer toshareholders, investors orcreditors


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3) Consignment of goods if actual

sale not made within 60 days

from date of consignment

4) Retirement from or cessation ofbusiness with respect to inventories

on hand11. Change or cessation of status as VAT-

registered person

1) Subject to VAT

(1) Change of business activity

from VAT taxable status to

VAT-exempt status

(2) Approval of request for

cancellation of a registration

due to reversion to exempt

status

(3) Approval of request for

cancellation of registration due

to desire to revert to exempt

status after lapse of 3

consecutive years

2) Not subject to VAT

(1) Change of control of acorporation

(2) Change in the trade or corporatename

(3) Merger or consolidation ofcorporations

12. VAT on importation of goods

1) Transfer of goods by tax exemptpersons

13. VAT on sale of service and use or leaseof properties

1) Requisites for taxability

14. Zero-rated sale of services

15. VAT exempt transactions

1) VAT exempt transactions, ingeneral

2) Exempt transaction,enumerated

16. Input tax and output tax, defined17. Sources of input tax

1) Purchase or importation ofgoods

2) Purchase of real properties forwhich a VAT has actually beenpaid

3) Purchase of services in whichVAT has actually been paid

4) Transactions deemed sale

5) Presumptive input

6) Transitional input

18. Persons who can avail of input taxcredit

19. Determination of output/input tax;VAT payable; excess input taxcredits

1) Determination of output tax

2) Determination of input taxcreditable

3) Allocation of input tax on mixedtransactions

4) Determination of the output

tax and VAT payable and

computation of VAT payable

or excess tax credits

20. Substantiation of input tax credits

21. Refund or tax credit of excess inputtax


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1) Who may claim for refund/apply forissuance of tax credit certificate

2) Period to file claim/apply forissuance of tax credit certificate

3) Manner of giving refund

4) Destination principle or cross-borderdoctrine

22. Invoicing requirements

1) Invoicing requirements in general

2) Invoicing and recording deemed saletransactions

3) Consequences of issuing erroneousVAT invoice or VAT official receipt

23. Filing of return and payment

24. Withholdin

g of final VAT on

sales to

government E. Tax

remedies under

the NIRC

1.Taxpayers remedies

1) Assessment

(9)Concept of assessment

(1) Requisites for validassessment

(2) Constructive methods ofincome determination

(3) Inventory method for incomedetermination

(4)Jeopardy assessment

(5)Tax delinquency and taxdeficiency

(2) Power of the Commissioner to

make assessments andprescribe additional

requirements for tax

administration and

enforcement

(1) Power of the

Commission

er to obtain

information,

and to

summon/exa

mine, and

take

testimony of

persons

(61) When assessment is made

(1) Prescriptive period forassessment

(1) False, fraudulent,

and non-filing ofreturns

(2) Suspension of running ofstatute of limitations

(4) General provisions onadditions to the tax

(1) Civil penalties

(2) Interest

(3) Compromise penalties

(5) Assessment process

(1) Tax audit(2) Notice of informal

conference

(3) Issuance of preliminaryassessment notice

(4) Notice of informalconference

(5) Issuance of preliminaryassessment notice

(6) Exceptions to issuanceof preliminary

assessment notice(7) Reply to preliminary

assessment notice


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(8) Issuance of formal letter of

demand and assessment

notice/final assessment

notice

(9) Disputed assessment

(10)Administrative decision on adisputed assessment

6) Protesting assessment

(1) Protest of assessment bytaxpayer

(1) Protested assessment

(2) When to file a protest

(3) Forms of protest

(4) Content and validity ofprotest

(2) Submission of documents within60 days from filing of protest

(3) Effect of failure to protest

(4) Period provided for the protest tobe acted upon

(7) Rendition of decision byCommissioner

(1) Denial of protest

(1) Commissioners actionsequivalent to denial of protest

(1) Filing of criminal actionagainst taxpayer

(2) Issuing a warrant of distraint and levy

(2) Inaction by Commissioner

(8) Remedies of taxpayer to action byCommissioner

(1) In case of denial of protest

(2) In case of inaction by

Commissioner within 180

days from submission of

documents

(3) Effect of failure to appeal

2) Collection

(1)Requisites(2) Prescriptive periods

(3) Distraint of personal propertyincluding garnishment

(1) Summary remedy of distraint of personalproperty

(1) Purchase by thegovernment at saleupon distraint

(2) Report of sale to the

Bureau of InternalRevenue (BIR)

(3) Constructive distraint toprotect the interest ofthe government

(4) Summary remedy of levy onreal property

(1) Advertisement and sale

(2) Redemption of propertysold

(3) Final deed of purchaser

(5) Forfeiture to government forwant of bidder

(1) Remedy of enforcement offorfeitures

(1) Action to contestforfeiture of chattel

(2) Resale of real estate takenfor taxes


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(3) When property to be sold ordestroyed

(4) Disposition of funds

recovered in legal

proceedings or obtained

from forfeiture(6) Further distraint or levy

(7) Tax lien

(8) Compromise

(1) Authority of theCommissioner tocompromise and abate taxes

(9) Civil and criminal actions

(1) Suit to recover tax based onfalse or fraudulent returns

3)Refund(1)Grounds and requisites for refund

(2) Requirements for refund as laiddown by cases

(1) Necessity of written claimfor refund

(2) Claim containing acategorical demand forreimbursement

(3) Filing of administrative

claim for refund and the

suit/proceeding before theCTA within 2 years from

date of payment

regardless of any

supervening cause

(3) Legal basis of tax refunds

(4) Statutory basis for tax refundunder the tax code

(1) Scope of claims for refund

(2) Necessity of proof forclaim or refund

(3) Burden of proof forclaim of refund

(4) Nature of erroneouslypaid tax/illegallyassessed collected

(5) Tax refund vis--vis taxcredit

(6) Essential requisites forclaim of refund

(5) Who may claim/apply for taxrefund/tax credit

(1)Taxpayer/withholdingagents of non-residentforeign corporation

(6) Prescriptive period forrecovery of tax erroneously

or illegally collected(7) Other consideration

affecting tax refunds

2. Government remedies

1) Administrative remedies

(1) Tax lien

(2) Levy and sale of realproperty

(3) Forfeiture of real propertyto the government for want

of bidder(4) Further distraint and levy

(5) Suspension of businessoperation

(6) Non-availability of injunction to restraincollection of tax

2)Judicial remedies

3. Statutory offenses and penalties

1) Civil penalties


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(1)Surcharge

(2) Interest

(1) In general

(2) Deficiency interest

(3) Delinquency interest

(4) Interest on extended payment

4. Compromise and abatement of taxes

1) Compromise

2) Abatement

7. Organization and Function of the Bureau of Internal Revenue

1. Rule-making authority of the Secretary of Finance

1) Authority of Secretary of Finance to promulgate rules and regulations

2) Specific provisions to be contained in rules and regulations

3) Non-retroactivity of rulings2. Power of the Commissioner to suspend the business operation of ataxpayer

III. Local Government Code of 1991, as amended

1. Local government taxation

1. Fundamental principles

2. Nature and source of taxing power

1) Grant of local taxing power under the local government code

2) Authority to prescribe penalties for tax violations3) Authority to grant local tax exemptions

4) Withdrawal of exemptions

5) Authority to adjust local tax rates

6) Residual taxing power of local governments

7) Authority to issue local tax ordinances

3. Local taxing authority

1) Power to create revenues exercised through Local Government Units

2) Procedure for approval and effectivity of tax ordinances

4. Scope of taxing power

5. Specific taxing power of Local Government Units1)Taxing powers of provinces

(1) Tax on transfer of real property ownership

(2) Tax on business of printing and publication

(3) Franchise tax

(4) Tax on sand, gravel and other quarry services

(5) Professional tax


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(6) Amusement tax

(7) Tax on delivery truck/van

2)Taxing powers of cities

3)Taxing powers of municipalities

(1) Tax on various types of

businesses(2) Ceiling on business tax

impossible on municipalitieswithin Metro Manila

(3) Tax on retirement onbusiness

(4) Rules on payment of business tax

(5) Fees and charges forregulation & licensing

(6) Situs of tax collected

4)Taxing powers of barangays

5) Common revenue raising powers

(1) Service fees and charges

(2) Public utility charges

(3) Toll fess or charges

6) Community tax

6. Common limitations on the taxingpowers of LGUs

7. Collection of business tax

1) Tax period and manner ofpayment

2) Accrual of tax

3) Time of payment

4) Penalties on unpaid taxes,fees or charges

5) Authority of treasurer incollection and inspection ofbooks


1) Periods of assessment andcollection of local taxes, feesor charges

2) Protest of assessment

3) Claim for refund of tax credit

for erroneously or illegally

collected tax, fee or charge

9. Civil remedies by the LGU forcollection of revenues

1) Local governments lien fordelinquent taxes, fees or

charges2) Civil remedies, in general

(1)Administrative action

(2)Judicial action

2. Real property taxation

1. Fundamental principles

2. Nature of real property tax

3. Imposition of real property tax

1) Power to levy real property

tax2) Exemption from real property

tax


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4. Appraisal and assessment of real propertytax

1) Rule on appraisal of real property at fairmarket value

2) Declaration of real property

3) Listing of real property in assessmentrolls

4) Preparation of schedules of fair marketvalue

(1)Authority of assessor to takeevidence

(2) Amendment of schedule of fairmarket value

5) Classes of real property

6)Actual use of property as basis ofassessment

7) Assessment of real property

(1)Assessment levels

(2) General revisions of assessmentsand property classification

(3) Date of effectivity of assessment orreassessment

(4) Assessment of property subject toback taxes

(5) Notification of new or revisedassessment

8) Appraisal and assessment of machinery5. Collection of real property tax

1) Date of accrual of real property tax andspecial levies

2) Collection of tax

(1)Collecting authority

(2) Duty of assessor to furnish localtreasurer with assessment rolls

(3) Notice of time forcollection of tax

3) Periods within which to collectreal property tax

4) Special rules on payment

(1)Payment of real propertytax in installments

(2) Interests on unpaid realproperty tax

(3) Condonation of realproperty tax

5) Remedies of LGUs forcollection of real property tax

(1)Issuance of notice ofdelinquency for realproperty tax payment

(2) Local governments lien

(3) Remedies in general(4) Resale of real estate

taken for taxes, fees orcharges

(5) Further levy until fullpayment of amount due

6. Refund or credit of real propertytax

1) Payment under protest

2) Repayment of excessivecollections


1) Contesting an assessment ofvalue of real property

(1)Appeal to the Local Boardof Assessment Appeals

(2) Appeal to the CentralBoard of AssessmentAppeals


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(3) Effect of payment of tax

b. Payment of real property under protest

(1)File protest with local treasurer

(2) Appeal to the Local Board of Assessment Appeals

(3) Appeal to the Central Board of Assessment Appeals

(4) Appeal to the CTA

(5) Appeal to the Supreme Court

IV. Tariff and Customs Code of 1978, as amended

1.Tariff and duties, defined

2. General rule: all imported articles are subject to duty.

1. Importation by the government taxable

3. Purpose for imposition

4. Flexible tariff clause

5. Requirements of importation

1. Beginning and ending of importation

2. Obligations of importer

1) Cargo manifest

2) Import entry

3) Declaration of correct weight or value4) Liability for payment of duties

5) Liquidation of duties

6) Keeping of records

6. Importation in violation of tax credit certificate

1. Smuggling

2. Other fraudulent practices

7. Classification of goods

1.Taxable importation2. Prohibited importation

3. Conditionally-free importation

8. Classification of duties

1. Ordinary/regular duties


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1) Ad valorem; methods of valuation

(1) Transaction value

(2) Transaction value of identical goods

(3) Transaction value of similar goods

(4) Deductive value

(5) Computed value

(6) Fallback value

2) Specific

2. Special duties

1) Dumping duties

2) Countervailing duties

3) Marking duties

4) Retaliatory/discriminatory duties

5) Safeguard

9.Remedies

1. Government

1) Administrative/extrajudicial

(1)Search, seizure, forfeiture, arrest

2)Judicial

(1)Rules on appeal including jurisdiction

2.Taxpayer

1) Protest

2) Abandonment

3) Abatement and refund

V. Judicial Remedies (R.A. No. 1125, as amended, and the Revised

Rules of the Court of Tax Appeals)

1.Jurisdiction of the Court of Tax Appeals

1. Exclusive appellate jurisdiction over civil tax cases

1) Cases within the jurisdiction of the court en banc

2) Cases within the jurisdiction of the court in divisions

2. Criminal cases

1) Exclusive original jurisdiction2) Exclusive appellate jurisdiction in criminal cases

2.Judicial procedures

1.Judicial action for collection of taxes

1) Internal revenue taxes


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2) Local taxes

(1)Prescriptive period

2. Civil cases

1) Who may appeal, mode of appeal, effect of appeal

(1)Suspension of collection of tax

a) Injunction not available to restrain collection

(2)Taking of evidence

(3) Motion for reconsideration or new trial

2) Appeal to the CTA, en banc

3) Petition for review on certiorari to the Supreme Court

3. Criminal cases

1) Institution and prosecution of criminal actions

(1)Institution of civil action in criminal action

2) Appeal and period to appeal

(1)Solicitor General as counsel for the people and

government officials sued in their official capacity

3) Petition for review on certiorari to the Supreme Court

C. Taxpayers suit impugning the validity of tax measures or acts of taxingauthorities

1.Taxpayers suit, defined

2. Distinguished from citizens suit

3. Requisites for challenging the constitutionality of a tax measure or

act of taxing authority

1) Concept oflocus standi as applied in taxation

2) Doctrine of transcendental importance

3) Ripeness for judicial determination

IMPORTANT NOTES:

1. This listing of covered topics is not intended and should not be used by the lawschools as a course outline. This was drawn up for the limited purpose of ensuringthat Bar candidates are guided on the coverage of the 2013 Bar Examinations.Listings whose subject matters run across several Bar Subjects shall be deemed toinclude only the subject matters specific to the given Bar Subject. For example,

Impeachment is generally a topic under Political Law but is listed also under Legaland Judicial Ethics for the ethical components of this Bar Subject. Note that theremay be specific identification of the covering Bar Subject where a topic may becommon to several Bar Subjects. For example, Independent Civil Actionsmentioned in the Civil Code shall be included as a topic in Remedial Law rather thanin Civil Law. Note also that many special laws, rules or specific topics, otherwisecovered by the different examinable Bar Subjects, have been omitted or areexpressly excluded from the coverage of the 2013 Bar Examinations.


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2. The appreciation of the fact situations in, and the answers to, some questions inevery Bar Subject may require the consideration of underlying ethical rules andvalues.

3. All Supreme Court decisions - pertinent to a given Bar subject and its listedtopics, and promulgated up toJanuary 31, 2013 - are examinable materials withinthe coverage of the 2013 Bar Examinations.

Documents

Syllabus - Law on Taxation