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UNIVERSITY OF ST. LA SALLE BACOLOD CITY TAXATION II SY 2011-2012 9:00-12:00AM-SAT Fiscal. Ma. Theresa B. Ditching
Professor

TO: ALL STUDENTS IN TAXATION II

1. BOOKS RECOMMENDED/REFERENCES: A. THE LAW ON TRANSFER AND BUSINESS TAXATION By: Hector S. De Leon and Hector S. De Leon, Jr. (2009) B. COMPENDIUM OF TAX LAW and JURISPRUDENCE By: Jose C. Vitug
C. Law of basic taxation in the Philippines

By: Benjamin B. Aban , updated by Alicia De Leon-Tomacruz, Anita S. Regalado

D. Transfer and business taxation : principles and laws with accounting

application By: Edwin G. Valencia and Gregorio F. Roxas E. PHILIPPINE TRANSFER and BUSINESS TAXES By: Virgilio D. Reyes F. TRANSFER and BUSINESS TAXATION Made Easy By: Susan Ballada and Win Ballada G. NATIONAL INTERNAL REVENUE CODE (NIRC) H. RELATED REVENUE REGULATIONS and BIR RULINGS Course Requirement: 1. Prepare for an oral test/written exercise/test during the regular class session. 2. Term written exam GRADING SYSTEM : MIDTERM - 30% ENDTERM - 40% RECITATION- 30% ( to be distributed throughout the semester) Taxation II (Course Description) A study of the concepts and general principles of transfer taxes (estate and donors), value added, special excise taxes on certain goods and other percentage and miscellaneous taxes including documentary stamps tax, provided in the National Internal Revenue Code; Remedies available to the government and the taxpayer; The Court of Tax Appeals; (Fundamentals of Local Taxation, both under Local Tax Code and Real Property Tax Code); and the general principles on Tariff and Customs duties. (3 unit)

Methodology: Cases, recitations and lectures

OUTLINE OF COVERAGE:
I. TRANSFER TAXATION A. Transfer Taxation: Its general concepts B. Kinds of transfer taxes C. Kinds of transfers subject to transfer taxes ESTATE TAXATION A. Nature of estate tax B. Reasons/doctrines supporting the imposition of estate tax a. Benefits-received principle b. Ability to pay principle c. State partnership principle d. Redistribution of wealth principle e. Back-tax theory (Review theories in succession) C. The Gross Estate a. What comprise the gross estate? (Section 85, NIRC) b. Kinds of decedent for estate tax purposes c. Inclusions in the gross estate i. Decedents Interest ii. Transfers in contemplation of death iii. Revocable transfers iv. Property passing under a general power of appointment v. Proceeds of life insurance vi. Prior interest vii. Transfers for insufficient consideration d. Exclusions in the gross estate i. The merger of usufruct in the owner of the naked title ii. The transmission or delivery of the inheritance or legacy by the fiduciary heir or legatee to the fideicommissary iii. The transmission from the first heir, legatee or donee in favor of another beneficiary, in accordance with the desire of the predecessor iv. Transfers to social welfare, cultural and charitable institutions D. The Net Estate and the Deductions from the Gross Estate (Section 86) a. Expenses, Losses, Indebtedness, Taxes i. Funeral Expenses ii. Judicial Expenses 1. CIR v. CA and Pajonar, GR No. 123206, 22 March 2000 iii. Claims against the estate iv. Claims against insolvent persons v. Unpaid mortgage indebtedness 1. Accommodated loans b. Vanishing deductions c. Transfers for public use d. Family Home e. Standard deduction

f. Medical expenses g. Amount received by heirs under Republic Act No. 4917 h. Tax treatment of share in conjugal or community property i. Tax credits E. Valuation F. Administrative provisions a. Filing of notice of death b. Filing of estate tax return c. Payment of tax G. Provisions safeguarding the interest of the government in the collection of estate tax (Sections 94-97) a. Relevant cases: i. Marcos II v. CA, G.R. No. 120880, June 5, 1997 ii. CIR v. Pineda, G.R. No. L-22734, September 15, 1967 iii. Lorenzo v. Posadas, G.R. No. 43082, June 18, 1937 GIFT TAXATION H. Nature of gift tax I. Concept of gifts subject to gift taxes (Section 98) a. Direct gifts b. Indirect gifts i. Condonation of indebtedness ii. Transfers for insufficient consideration iii. Waivers iv. Renunciation of Inheritance J. Factors that affect liability for gift taxes a. Relationship of the donor and the donee (Section 99) K. Deductions/Exemptions from the gift tax (Section 101) L. Tax treatment of properties transferred for less than full or adequate consideration (Section 100) a. In general b. Real properties classified as capital asset M. Tax treatment of political contributions Case in point: a. Abello, et al. v. CIR, GR No. 120721, 23 February 2005 b. Rev. Regs 8-2009, 22 October 2009 re Creditable Withholding Tax N. Valuation O. Administrative provisions a. Filing of notice of donation b. Filing of donors tax return

c. Payment of tax II. BUSINESS TAXATION VALUE ADDED TAXATION P. Nature of Value Added Tax a. Kapatiran v. Tan, G.R. No. L-81311, June 30, 1988 b. Tolentino v. Secretary of Finance, G.R. No. 115455, August 25, 1994 (Original Decision) and G.R. No. 115455, October 30, 1995 (Motion for Reconsideration) c. ABAKADA Guro Party List v. Ermita G.R. No. 168056, 1 September 2005 Q. VAT as an indirect tax a. Distinctions between direct and indirect taxes b. Specific characteristics of an indirect tax i. Imposed on the seller/lessor/importer/service provider 1. CIR v. Magsaysay Lines, GR No. 146984, 28 July 2006 ii. Not a tax on the buyer/lessee/service availer 1. Cases in point: a. Philippine Acetylene v. CIR, 17 August 1967 b. CIR v. American Rubber, 29 November 1966 c. CIR v. John Gotamco and Sons, 27 February 1987 R. Specific characteristics of Value Added Tax a. Consumption based tax i. Destination Principle ii. Cross-border Doctrine b. Tax Credit Mechanism i. Input Tax ii. Output VAT S. Transactions subject to VAT T. Rates of VAT a. Ordinary b. Exempt Transactions c. Zero-Rated Transactions d. Effectively Zero-Rated Transactions i. Cases in Point 1. Contex v. CIR, G.R. No. 151135, July 2, 2004 2. CIR v. Seagate Technology (Phils.), GR No. 153866, 11 February 2005 3. CIR v. Acesite Hotel Corporation, 16 February 2007 U. Transactions Deemed Sale i. CIR v. Magsaysay Lines, GR No. 146984, 28 July 2006

V. Transitional Input Tax Fort Bonifacio Development Corporation v. Commissioner of Internal Revenue, GR Nos. 158885 & 170680, dated April 2, 2009 W. Presumptive Input Tax X. Compliance Requirements PERCENTAGE and OTHER SPECIAL EXCISE TAXES & DOCUMENTARY STAMP TAX PERCENTAGE TAX A. B. C. D. E. F. G. H. I. Tax on Small Business Enterprise Tax on Carriers and Keepers of Garages Tax on Franchises Overseas Communications Tax Tax on banks and Non-Bank Financial intermediaries Tax on Life Insurance companies Amusement Taxes Tax on Sale , Barter or Exchange of Shares of Stocks Returns, Withholding and payment of taxes EXCISE TAX A. B. C. D. E. F. G. H. Excise Tax on certain Goods Accrual, filing of Returns and Payment of the Taxes Tax on alcohol Products Tax on tobacco Products Tax on Petroleum products Tax on Miscellaneous Articles Tax on Mineral Products Administrative Provisions DOCUMENTARY STAMP TAX A. Returns, payment and sanctions B. Rates and Bases
III. INTERNAL REVENUE TAX ADMINISTRATION, ENFORCEMENT &

REMEDIES A. Tax Administration: Its general concepts B. Government agencies involved in tax administration C. Extent of Congress Power re Tax Administration a. ABAKADA Guro Party List v. Purisima, GR166715, 14 August 2008 b. British American Tobacco v. Camacho, GR163583, 20 August 2008 G. The Bureau of Internal Revenue a. Composition and Functions (Section 3, NIRC) b. Powers and Duties i. In General (Section 2) ii. Specific 1. Interpret tax laws and decide cases (Sec 4)

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BIR Issuances and the rules relevant thereto i. Section 246, NIRC ii. CIR v. Burroughs, 19 June 1986 iii. CIR v. CA and Fortune, 29 August 1996 iv. PB Com v. CIR, 28 January 1999

b. Cases that may be decided by the CIR i. CIR v. Leal, 18 November 2002 2. Examination of books of accounts, etc. (Sec 5) a. Requirement of issuance of a letter of authority b. Third-party verification rule c. Inquiry into bank deposits (Sec 6 F) d. Summon persons, take testimony 3. Power to assess and prescribe requirements for tax administration a. Power to examine returns (Sec 6A) i. Amendment of returns ii. Rule on confidentiality of tax returns and the exceptions thereto (Sections 71 and 270) 1. BIR v. Ombudsman, 11 April 2002 b. Power to make a return (Sec 6B) i. Best evidence obtainable rule 1. CIR v. Hantex Trading, GR No. 136975, 31 March 2005 2. CIR v. Embroidery and Garment Industries, GR No. 96262, 22 March 1999 c. Power to conduct inventory taking, surveillance, and to issue presumptive gross sales/receipts (Sec 6C) d. Termination of tax period (Sec 6D) e. Fixing of real property values (Sec 6E) f. Accredit tax agents (Sec 6G) g. Power to prescribe procedural/documentary requirements i. E.g. E-Filing, Substituted Filing ii. Net Worth Method h. Power to delegate (Sec 7) i. Non-delegable powers in relation to Section 1. Republic v. Hizon, 13 December 1999 i. Enforcement of police powers (Sec 15) j. Authority to Abate and Compromise Tax Liabilities (Sec 6F (2), 204 in relation to Rev. Regs. 30-2002 as amended by RR No. 8-2004); 1. PNOC v. Court of Appeals, G.R. No.109976, April 26, 2005* 2. People v. Tan, GR No. 152532, 16 August 2005

H. The rule on estoppel in relation to tax administration a. Against the government b. Against the taxpayer I. Assessments and its governing principles a. Definition b. What constitutes an assessment i. CIR v. Enron Subic Power Corporation, GR No. 166387, 19 January 2009 ii. CIR v. Pascor Realty, 29 June 1999 iii. CIR v. Reyes, G.R. No. 159694, January 27, 2006 c. Kinds of Assessment d. Statute of Limitation on Assessment of Internal Revenue Taxes (Sections 203, 222, NIRC) i. RMO 20-90, Philippine Journalists Inc., v. CIR, GR No. 162852, 16 December 2004 ii. CIR v. CA and Carnation, GR No. 115712, 25 February 1999, 303 SCRA 614 e. Instances where the running of the prescriptive period is suspended (Section 223) i. Republic v. Hizon, 13 December 1999 ii. BPI v. CIR, GR No. 139736, 17 October 2005 iii. BPI v. CIR, G.R. No. 174942, 7 March 2008 f. Procedure in the process of assessment (Section 228) i. Estate of the Late Juliana Diez Vda. De Gabriel v. CIR, G.R. No. 155541,January 27, 2004 ii. CIR v. Reyes, G.R. No. 159694, January 27, 2006 iii. PNOC v. Court of Appeals, G.R. No. 109976, April 26, 2005* iv. CIR v. Menguito, GR No. 16750, 17 September 2008 g. Instances when pre-assessment is not required (Section 228) h. Governing principles concerning assessment i. When do we reckon the period when assessment was made? j. Is assessment necessary before a taxpayer could be prosecuted for violation of the NIRC? i. Ungab v. Cusi, May 30, 1980 ii. CIR v. CA, GR No. 119322, 4 June 1996 iii. CIR v. Pascor Realty, 29 June 1999 k. Are the procedures outlined in Section 228 of the NIRC retroactive? i. CIR v. Reyes, G.R. No. 159694, January 27, 2006 TAX REMEDIES PROPER

A. Tax Remedies: Its general concepts a. Importance b. Classification (Overview) 1. Remedies in favor of the taxpayer 2. Remedies available to the government c. Applicability of the Doctrine of Exhaustion of Administrative Remedies B. Remedies available to taxpayers a. Before Payment 1. Protest (Section 228, NIRC) a. Requirements of a valid protestRev. Regs. 12-85 b. Effect of a protest on the period to collect deficiency taxesCases: CIR v. Wyeth Suaco Laboratories, GR No.76281, 30 September 1991 and CIR v. Atlas Consolidated Mining, GR Nos. 31230-32, 14 February 2000 c. Failure of the BIR to act within the 180-day period See the following: Lascona v. CIR, CTA Case 5777, 4 January 2000 vis--vis Section 7 (2), RA 9282 and the Revised Rules of Procedure of the CTA, AM No. 05-1107-CTA d. Administrative actions taken during the 180-day periodCompare: CIR v. Union Shipping, GR No. 66160, 21 May 1990, 185 SCRA 548 and CIR v. Isabela Cultural Corporation, GR No. 135210, 11 July 2001
e. Effect of a protest filed out of timeProtectors Services v. CA, GR No.

118176, 12 April 2000

f.

Remedies from a denial of the protest i. Motion for Reconsideration (BIR Appellate Division) ii. Appeal to the Court of Tax Appeals (RA 1125, as amended by RA9282)

2. Compromise (See Part 1 for details) b. After Payment 1. Refund (Section 229, NIRC) a. Must be strictly construed against the taxpayerCase: Citibank, NA v. Court of Appeals, GR No. 107434, 10 October 1997, 280 SCRA 459; FEBTC v. CIR, GR No. 138919, 02 May 2006 b. Grounds for filing a claim for refund (See Section 229, See also: Engtek Phils v. CIR, CTA Case No. 6644, 26 January 2005) c.Period within which to file a claim for refund i. General rule is two years from the date of paymentCases: ACCRA Investments Corporation v. Court of Appeals, GR No. 96322, 20 December 1991; CIR v. TMX Sales, 15 January 1992; CIR v. PhilAm Life, 29 May 1995; CIR v. CA and BPI, GR No. 117254, 21 January 1999; CIR v. PNB, GR No. 161997, 25 October 2005 (exception to the 2-year period); CIR v. Primetown Property Group, GR No. 162155, 28 August 2007).

ii. In case of amended returns iii. In case of taxpayers contemplating dissolutionCase: BPI v. CIR, 28 August 2001; See also: Sections 52(c) and 56(a) d. Who has the personality to file a claim for refund? CasesCIR v. Procter and Gamble, GR No. 66838, 2 December 1991; CIR v. CA, 20 January 1999; Silkair v. CIR, GR Nos. 171383 & 172379, 14 November 2008 e. Is setting-off of taxes against a pending claim for refund allowed?The doctrine of equitable recoupment-Case: Philex Mining Corp. v. CIR, GR No. 125704, 28 August 1998 f. Is automatic application of excess tax credits allowed? (Sec. 76)Please see Calamba Steel v. CIR, GR No.151857, 28 April 2005; Systra Philippines v. CIR, GR No. 176290, 21 September 2007; CIR v. BPI, GR No. 178490, 07 July 2009 (Irrevocability Rule)*** g. Effect of existing tax liability on a pending claim for refundCase: CIR v. CA and Citytrust, GR No.106611, 21 July 1994 h.Period of validity of a tax refund/credit (Sec. 230, NIRC) i. Returns are not actionable documents for purposes of the rules on civil procedure and evidence (See: Aguilar v. CIR, CA Case dated 30 March 1990) i. Refund and Protest are mutually exclusive remedies Case: Vda. De San Agustin v. CIR, 10 September 2001 j. Is the taxpayer entitled to claim interest on the refunded tax? (Sec. 79 (c) 2, NIRC) c. Other Remedies 1. Action to Contest Forfeiture of Chattel (Sec. 231) 2. Redemption of Property Sold (Sec. 214) C. Remedies available to the government a. No injunction to restrain collection of taxes (Sec. 218, NIRC) b. Period within which the government could collect (Sections 203, 222, NIRC) Case: Republic v. Hizon, GR No. 130430, 13 December 1999; CIR v. Javier Jr., GR No. 78953, 31 July 1991 (199 SCRA 825); PNOC v. CA, GR No. 109976, 26 April 2005; BPI v. CIR, GR No. 174942, 7 March 2008 c. Overview of Remedies (Section 205) 1. Tax Lien (Section 219, NIRC) a. CIR v. NLRC, GR No. 74965, 9 November 1994 2. Compromise 3. Distraint and/or Levy 4. Civil Action 5. Criminal Action 6. Forfeiture 7. Suspension of business operations

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8. Enforcement of administrative fines d. Administrative Remedies in Detail (Sections 206-217, NIRC) 1. Distraint a. Actual b. Constructive 2. Levy 3. Garnishment e. Judicial Remedies in Detail (Section 220, NIRC) 1. Period within which the action may be filed a. Civil Cases (Sections 203, 222, NIRC) b. Criminal Cases (See: Title X, NIRC; Section 281, NIRC) 2. Where should these cases be filed? a. Criminal Cases (See the imposable penalty vis--vis the jurisdiction of courts) b. Civil Cases (Consider the amount of tax sought to be collected vis--vis the jurisdiction of courts, together ith the provisions of RA9282) 3. Cases:
a. Republic v. Hizon, GR No. 130430, 13 December 1999 (re

approval of filing of civil and criminal action) b. CIR v. La Suerte Cigar, G.R. No. 144942, 4 July 2002 (Re participation of the Office of the Solicitor General) c. PNOC v. Court of Appeals, G.R. No. 109976, April 26, 2005 d. Lim v. CA, GR Nos. 48134-37, 18 October 1990, 190 SCRA 616 (re prescription of criminal actions, Section 281, NIRC) e. Marcos II v. CA, GR No. 120880, 5 June 1997 (re enforcement of tax liability during pendency of probate proceedings) f. Judy Anne Santos v. People, GR No. 173176, 26 August 2008 f. Effects of failure to pay the tax on time: Additions to the tax (Chapter I, Title X, NIRC) 1. Surcharges a. Ordinary (Section 248A, NIRC) i. Failure to pay tax on time as required by the tax code or the regulations ii. Failure to pay the deficiency tax within the time fixed in the notice iii. Filing of the return with the wrong office b. Fraud Penalty (Section 248B, NIRC) i. CIR v. Javier Jr., GR No. 78953, 31 July 1991 (199 SCRA 825) c. Cases: i. Imposition of Surcharge is mandatory 2. Interest (Section 249, NIRC) a. In General b. Deficiency Interest c. Delinquency Interest d. On Extended Payments 3. Compromise Penalties 4. Effect of failure to file information returns (Section 250, NIRC)

11 IV.

LOCAL TAXATION

A. Local Taxation : Its general concepts a. Nature of the local taxing power 1. Constitutional provision (Section 5, Article X) 2. A delegated power? a. City of San Pablo, Laguna v. Reyes, 25 March 1999 b. Meralco v. Province of Laguna, 5 May 1999 c. Mactan Cebu International Airport Authority v. Marcos, 11 September 1996 d. NAPOCOR v. City of Cabanatuan, 9 April 2003 3. Extent of the power of Congress in local taxation a. City Government of Quezon City v. Bayantel, G.R. No. 162015, March 6, 2006 4. Residual power to tax (Section 186, LGC) b. Fundamental principles on the exercise of the local taxing power (Section 130, LGC) c. Exercise of local taxing power B. Common Limitations on the exercise of the local taxing power and the principle of preemption/exclusionary rule (Section 133, LGC) a. The principle of preemption b. Cases: 1. Province of Bulacan v. Court of Appeals, 27 November 1998 2. First Philippine Industrial Corporation v. CA, G.R. No. 125948, December 29, 1998 (Section 133j; Local Tax on Common Carriers) 3. Palma Development Corporation v. Municipality of Malangas, GR No. 152492, 16 October 2003 (Section 133e) 4. Batangas Power Corporation v. Batangas City, GR No. 152675, 28 April 2004 (Section 133g) 5. MIAA v. CA and Paranaque, GR No. 155650, 20 July 2006 (Section 133 o) 6. LTO v. City of Butuan, 20 January 2000 (re Section 133 (l)) 7. Philreca v. DILG, 10 June 2003 (re Section 133 n) 8. Petron Corporation v. Tiangco, GR No. 158881, 16 April 2008 (Petroleum Products) C. Specific Taxing Powers of Local Government Units a. Provinces 1. Scope of the taxing power (Section 134 vis--vis Sections 142 and 186, LGC) 2. Taxes that may be levied by provinces (Sections 135-141, LGC) Cases: Province of Bulacan v. Court of Appeals, 27 November 1998; PBA v. CA, 8 August 2000 b. Municipalities 1. Scope of the taxing power (Section 142 vis--vis Sections 134 and 186, LGC) 2. Taxes that may be levied by municipalities (Sections 143-149,

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LGC) a. Yamane v. BA Lepanto Condominium Corporation, G.R. No. 154993, 25 October 2005 re taxes on businesses b. Ericson Telecommunications v. City of Pasig, GR No. 176667, 22 November 2007 3. Situs of the tax (Section 150, LGC) c. Cities (Section 151, NIRC) d. Barangays (Section 152, NIRC) e. Common revenue raising powers f. Community Tax D. Remedies in Local Taxation a. Remedies of the Government i. Administrative 1. Local governments lien 2. Assessment by local treasurer (Section 194, LGC) 3. Distraint (Section 175, LGC) 4. Levy (Section 176, LGC) a. Properties exempt from distraint and levy ii. Judicial 1. Period within which to collect (Section 194, LGC) iii. Other Provisions 1. Accrual of the tax (Section 166, LGC) 2. Time of Payment (Section 167, LGC) 3. Surcharges, Interests and Penalties b. Remedies of the Taxpayer i. Administrative 1. Appeal to the Secretary of Justice re newly enacted tax ordinance (Section 187, LGC) a. Drilon v. Lim, 4 August 1994 b. Jardine Davies v. Judge Aliposa, 27 February 2003 2. Protest of the Assessment (Section 195, LGC) a. Yamane v. BA Lepanto Condominium Corporation, G.R. No. 154993, 25 October 2005 re denial of protest
3. Claim for refund (Section 196, LGC)

4. Remedies from a denial of the protest and refund ii. Judicial

E. Grant of tax exemption by local government units (Section 282 (b), IRR)

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a. Tax Exemption v. Tax Incentive

V.

REAL PROPERTY TAXATION

A. Governing Law B. Nature of Real Property TaxesNational or Local? C. Fundamental Principles (Section 198, LGC) D. Properties Covered a. Article 415, et seq, Civil Code b. Caltex v. CBAA, 31 May 1982 E. Properties Exempt a. Section 234, LGC b. Section 238, LGC c. Constitutional Exemptions d. Cases MIAA v. Paranaque, GR No. 155650, 20 July 2006; MIAA v. Pasay GR No. 163072, April 2, 2009 ii. Lung Center of the Philippines v. QC, 29 June 2004 iii. LRTA v. CBAA, 12 October 2000
i.

F. May LGUs grant exemption? G. Who are liable for the Real Property Taxes a. Ownership v. Use b. Testate Estate of Concordia Lim v. Manila, 21 February 2000 H. Procedure in Real Property Taxation a. Lopez v. City of Manila, 19 February 1999 b. Declaration of real propertieswhose duty? c. Valuation by Assessors Callanta v. Ombudsman, 30 January 1998 d. Preparation of Schedule of Fair Market Values e. Enactment of a Real Property Tax Ordinance i. Levy annual ad valorem tax 1. Scope of the LGUs taxing power (Sec. 232, LGC) a. Provinces1%; Cities, Municipalities in MM2% b. SEF1%; Idle land tax5%; Special Assessments ii. Fix assessment levels iii. Provide for appropriations iv. Adopt Schedule of Fair Market Values 1. Fair Market Value and Assessed ValueWhats the difference? I. Remedies in Local Taxation a. Remedies of the Government i. Administrative 1. Contents of Assessment a. Meralco v. Barlis, 2 February 2002 2. Who is entitled to the notice of assessment?

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a. Talusan v. Tayag, G.R. No. 133698, 4 April 2001 ii. Judicial 1. Period within which to collect iii. Other Provisions 1. Accrual of the tax 2. Time of Payment 3. Surcharges, Interests and Penalties b. Remedies of the Taxpayer i. Administrative 1. Appeal to the Secretary of Justice re newly enacted tax ordinance (Section 187, LGC) a. Drilon v. Lim, 4 August 1994 b. Reyes v. Court of Appeals, 1999 c. Hagonoy Market Vendors Association v. Municipality of Hagonoy, Bulacan, G.R. No. 137621. February 6, 2002 d. Ty v. Trampe, 1 December 1995 2. Appeal to the Board of Assessment Appeals, (Section 226, 252, LGC) a. Systems Plus Computer College v. Caloocan City, G.R. No. 146382, August 7, 2003 b. Olivares v. Marquez, G.R. No. 155591, September 22, 2004 3. Protest of the Assessment (Section 226, 252, LGC) a. Cagayan Robina v. Court of Appeals, 12 October 2000 b. Meralco v. Barlis, 18 May 2001 c. Meralco v. Barlis, 2 February 2002 d. Meralco v. Barlis, 4. Claim for refund (Section 253, LGC) a. Period 5. Remedies from a denial of the protest and refund ii. Judicial
1. Questioning tax sale: Aquino v. QC, GR No. 137534, 3 August 2006; NHA

v. Iloilo City, GR No. 172267, 20 August 2008

VI. TARIFF AND CUSTOMS LAWS

A. Scope of Tariff and Customs Laws B. Meaning of Tariff and Customs Duties C. Governing Laws D. Agency tasked with enforcement of Tariff and Customs Laws a. Powers and Functions of the Bureau of Customs E. What may be the subject of customs duties F. Concept & Relevance of Importation a. When does importation begin b. When does importation end G. Classification of Goods for Importation Purposes i. Dutiable v. Duty-Free

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ii. Prohibited iv. Conditionally Free H. Kinds of Customs Duties a. Regular b. Special I. Valuation of Goods a. Home Consumption Value b. Transaction Value J. Flexible Tariff K. Cases that may be decided by the Bureau of Customs a. Customs Protest Cases i. Procedure ii. Case: Nestle Philippines v. Court of Appeals, G.R. No. 134114. July 6, 2001 iii. Concept of Automatic Review b. Seizure and Forfeiture Cases i. Proceeding In Rem ii. Primary Jurisdiction iii. Search of Dwelling House iv. Some Illustrative Cases: Mison v. Natividad, GR No. 82526, 11 September 1992; Provident Tree Farms v. Batario, GR No. 92285, 28 March 1994; Zuno v. Cabredo, A.M. No. RTJ-03-1779. April 30, 2003

END OF OUTLINE