TAXATION SYLLABUS OUTLINE

TAX 1 - INCOME TAXATION

Suggested References: https://kupdf.net/download/syllabus-tax_59805503dc0d60f1032bb180_pdf

Casasola & Bcrnaldo, National Internal Revenue Code of 1997,2009 ed. 

Aban, Law of Basic Taxation in the Philippines, rev. ed. 

Dimaampao,  Tax Principles and Remedies , 2 0 1 0 e d .

Domondon, Taxation vol. I (General Principles), 2009 ed.

Mamalateo, Reviewer on Taxation, 2008 ed. 

Vitug & Acosta, Tax Law and Jurisprudence, 2006 ed. 

Mamalateo, Philippine Income Tax, 2004 ed. 

Valencia, Income Taxation, 5th ed. 

Domondon, Taxation vol. II (Income Taxation), 2009 ed. 

COURSE DESCRIPTION 

This course introduces the general principles of taxation and statutory provisions on income taxation including pertinent revenue regulations.   The main topics that will be covered include: the general principles of taxation, sources of income, determining income from employment, income from a business, and income from property,   deductions   from   business   and   property   income,   capital   gains   and losses, other income and deductions,  computation of  taxable income and tax administration

COURSE OBJECTIVES:
After successfully completing this course, the students are able to:
        Explain the nature and purpose of taxation
        Apply the basic principles and policies of Philippine Income Tax Law
        Describe the general structure of the Philippine Income Taxation system
        Explain and contrast the manner in which different entities are taxed

METHOD OF TEACHING

Socratic method; case method

PART A: GENERAL PRINCIPLES OF TAXATION

I. TAXATAION
    A. Defenition
    B. Nature of Internal Revenue Law
         - Hilado v CTR 100 Phil 288
    C. Scope and Nature of Taxation
         - Sec. 28, Art. VI, 1987 Constitution
          - Sison v Ancheta, 130 SCRA 654
          - CIR v Pineda, 21 SCRA 105
          - Phil Guaranty v CIR, 13 SCRA 775
          - Collector v Yuesi, 3 SCRA 313
           - CIR v Algue, Inc., L-28896, Feb. 17, 1988
     D. Underlying Theory and Basis; Necessity Theory; Benefit- Received Principle
            - 71 Am ]ur2"d 346-347
            - Commissioner v. Algue, 158 SCRA 9
            - NPC v. Cabanatuan, GR149110, April 19,2003
            - Lorenzo v. Posadas, 64 Phil 353
     E. Purpose of Taxation
           General / Fiscal/ Revenue 
          - Commissioner v. Algue, supra
         - PAL v. Edu, 164 SCRA 320
          - Tolentino v. Secretary of Finance, 235 SCRA 630; 249 SCRA 628
         Non-revenue/Special or Regulatory 
          - Osmena v. Orbos, 220 SCRA 703
          - Caltex v. COA, 208 SCRA 755
      F. Principles of a Sound Tax System 
         - Chavez vOngpin, 186 SCRA 331
          - Taganito Mining v. CIR, CTA Case 4702, April 28,1995
G. Comparison with Police Power and Eminent Domain 
        - Roxas v. CTA, 23 SCRA 276
        - Tanada v. Angara, GR118295, May 2,1997
         - LTO v. City of Butuan, GR 131512, Jan. 20,2000
         - Phil Match Co. v. Cebu, 81 SCRA 99
         - Matalin v Mun. Council of Malabang, 143 SCRA 404
        - Lutzv. Araneta, 98 Phil 48 - NTCv.CA, 311 SCRA 508


II. Taxes
      A. Definition 
          - 71 Am Jur2™» 343-346
      B. Essential Characteristics of Taxes 
         - Tan v. Del Rosario, 237 SCRA 324
           - CIR v. Santos, GR 119252, Aug. 18,1997
       C. Taxes distinguished from:
       1. Debts
            - Caltex v COA, 208 SCRA 726
            - Francia v IAC, 162 SCRA 735
            - RP v Ericta and Sampaguita Pictures, 172 SCRA 653
             - Republic v. Mambulao Lumber Company, 4 SCRA 622
             - Philex Mining v. CIR, GR 125704, August 28,1998
            - Domingo v Carlitos, 8 SCRA 443
        2. License Fees
             - Progressive Dev. Corp. v QC, 172 SCRA 629
             - PAL v Edu, 164 SCRA 320
             - ESSOvCIR,175SCRA149
       3. Special Assessments/Levies
               - Apostolic Prefect v Treasurer of Baguio, 71 Phil. 547
       4. Tolls
              - 71 Amjur351
       5. Penalties
             - NDC v CIR 151, SCRA 472
       6. Custom Duties
       D. Tax Evasion; Tax Avoidance
           - Sec. 254, NIRC
           - Republic v.Gonzales, 13 SCRA 633
           - Delpher Traders v. IAC, 157 SCRA 349
           - CIR v. Lincoln Philippine Life, GR 119176, Mar. 19,2002

III. Sources of Tax Law

          A. Constitution 
            
         B. Statutes
                       - RA 8424, as amended
                       - RA 9337 - Tariff and Customs Code
                       - Book II, Local Government Code
                      - Special Laws
           C Administrative Issuances 
                      - BIR Revenue Administrative Order (RAO) No. 1-2003
                      - Revenue Regulations - Sees. 244 - 245, NIRC
                      - Revenue Administrative Order 01-03
                      - Revenue Memorandum Circular 20-86 - Art. .7, Civil Code
                      - Asturias Sugar Central v Comm., 29 SCRA 617
                      - Tan v. Del Rosario, 237 SCRA 234
                      - CIR v. Seagate Technology, GR 153866, Feb. 11,2005
                 • BIR Rulings
                      - Sees. 4,246, NIRC
                      - CIR v Burroughs Ltd., G.R. 66653, June 19,1986
                      - CIR v Mega Gen. Merchandising, 166 SCRA 166
                      - PBCOM vs. CIR, 302 SCRA 241
          D. Tax/Revenue Ordinances 
                     - Tuazon v. CA, 212 SCRA 739
                   • Hagonoy Market Vendor v. Municipality of Hagonoy, GR 137621,
                     Feb. 6,2002
                    - Jardine Davies v. Aliposa, GR 118900, Feb. 27,2003
            E. Tax Treaties 
                      - Tanada v. Angara, GR 118295, May 2,1997
             F. Case Laws (SC/CA/CTA) 
             G. Legislative Materials