TAXATION LAW (DEL CASTILLO)
sales.
GENERAL PRINCIPLES OF TAXATION
BIR v. MANILA HOME TEXTILE, INC., THELMA LEE
AND SAMUEL LEE
Construction and Interpretation of Tax Exemptions
and Exclusions
DOCTRINE: Taxation is the rule and tax exemption the
exception. Tax exemptions should be granted only by
clear and unequivocal provision of law on the basis of
language too plain to be misunderstood.
COMMISSIONER OF INTERNAL REVENUE v. ST.
LUKE’S MEDICAL CENTER
Exemptions from Taxation
DOCTRINE: For an institution to be completely exempt
from income tax, it is required that the institution should
operate exclusively for charitable or social welfare
purpose. In case such institution earns income from its
for-profit activities, it will not lose its tax exemption.
However, its income from for profit activities will be
subject to income tax at the preferential 10% rate
pursuant to Sec. 27(B) of the NIRC.
NATIONAL TAXATION
CIR v. SM PRIME HOLDINGS
Value – Added Tax
DOCTRINE: Legislature never intended to include
cinema/theater operators or proprietors in the coverage of
VAT.
J.R.A PHILIPPINES, INC. v. CIR
Value – Added Tax
DOCTRINE: The absence of the word "zero-rated" on the
invoices/receipts is fatal to a claim for credit/refund of
input VAT.
FORT BONIFACTIO DEV’T CORP. v. CIR
Value – Added Tax
DOCTRINE: Prior payment of taxes is not required for a
taxpayer to avail of the 8% transitional input tax credit.
FORT BONIFACIO DEVELOPMENT CORPORATION v.
CIR (RESOLUTION)
Value – Added Tax
DOCTRINE: Prior payment of taxes is not required before
a taxpayer could avail of transitional input tax credit.
CIR v. TOLEDO POWER COMPANY
Value – Added Tax
DOCTRINE: A taxpayer has 2 years from the close of the
taxable quarter when the zero-rated sales were made
within which to file with the CIR an administrative claim for
refund or credit of unutilized input VAT attributable to such
PRUDENTIAL BANK v. COMMISSIONER OF
INTERNAL REVENUE
Documentary Stamp Tax
DOCTRINE: A certificate of deposit need not be in a
specific form. Thus, a passbook of an interest-earning
deposit account issued by a bank is a certificate of deposit
drawing interest that is subject to documentary stamp tax.
COMMISSIONER OF INTERNAL REVENUE v. LA
TONDENA DISTILLERS, INC. Documentary Stamp
Tax
DOCTRINE: Transfer of real property to a surviving
corporation pursuant to a merger is not subject to
Documentary Stamp Tax (DST).
ALLIED BANKING CORPORATION v.
COMMISSIONER OF INTERNAL REVENUE
Taxpayer’s Remedies
DOCTRINE: The Commissioner of Internal Revenue
(CIR) as well as his duly authorized representative must
indicate clearly and unequivocally to the taxpayer whether
an action constitutes a final determination on a disputed
assessment. It will determine whether the taxpayer should
exhaust administrative remedies before the CIR or file an
appeal to the CTA.
CIR v. FAR EAST BANK & TRUST COMPANY (BPI)
G.R. No. 173854 |15 March 2010 Taxpayer’s Remedies
DOCTRINE: Since tax refunds partake of the nature of
tax exemptions, which are construed strictissimi juris
against the taxpayer, evidence in support of a claim must
likewise be strictissimi scrutinized and duly proven.
COMMISSIONER OF INTERNAL REVENUE v. KUDOS
METAL CORPORATION G.R. Taxpayer’s Remedies
DOCTRINE: The prescriptive period on when to assess
taxes benefits both the government and the taxpayer.
Exceptions extending the period to assess must,
therefore, be strictly construed.
CIR v. SMART COMMUNICATIONS
Taxpayer’s Remedies
DOCTRINE: The withholding agent has authority to file a
claim for refund on behalf of the principal taxpayer
because the withholding agent is considered the statutory
taxpayer, and he is an agent of the principal taxpayer.
COMMISSIONER OF INTERNAL REVENUE v. AICHI
FORGING COMPANY OF ASIA, INC.
Taxpayer’s Remedies
1
DOCTRINE: A taxpayer must prove not only his
entitlement to a refund but also his compliance with the
procedural due process as non-observance of the
prescriptive periods within which to file the administrative
and the judicial claims would result in the denial of his
claim.

BELLE CORPORATION v. CIR

Taxpayer’s Remedies

DOCTRINE: Once the option to carry-over excess income

tax payments to the succeeding years has been made, it
becomes irrevocable.

SILICON PHILIPPINES, INC. v. COMMISSIONER OF

INTERNAL REVENUE
Taxpayer’s Remedies

DOCTRINE: The burden of proving entitlement to a

refund lies with the claimant.

BUREAU OF INTERNAL REVENUE v. COURT OF

APPEALS
Government Remedies

DOCTRINE: The government is allowed to resort to all

evidence or resources available to determine a taxpayer’s
income and to use methods to reconstruct his income.

LOCAL TAXATION

CE CASECAN WATER AND ENERGY COM. v NUEVA

ECIJA
Real Property Taxation

DOCTRINE: It is the CTA that has the power to determine

whether the RTC committed grave abuse of discretion in
issuing an interlocutory order in a local tax case. Local tax
cases include cases involving RPT because RPT is a
local tax.

JUDICIAL REMEDIES

ASIA TRUST DEVELOPMENT BANK, INC. v. CIR

Judicial Procedures

DOCTRINE: An appeal to the CTA En Banc must be

preceded by the timely filing of a motion for
reconsideration or new trial with the CTA Division;
amended decisions are considered different decisions,
hence, a separate MR or MNT must be filed assailing the
same.