TAX I

OUTLINE OF TOPICS AND CASES

November 2019

I. General Principles
1. Phil. Coconut Producers vs Republic G.R. 177857 24 Jan 2012
2. Osmeña vs Orbos 220 SCRA 703 (oil levy)
3. Central Luzon Drug, GR 159647, April 15, 2005 (eminent d., just comp.)
4. Carlos Superdrug, GR 166494 June 29, 2007 (pol. pwr)
5. Gerochi vs DOE 527 SCRA 696 (tax pwr as implement of police pwr)

6. Philex vs CIR 294 SCRA 687 (set off/compensation; lifeblood, pwr of taxn)
7. CIR vs CTA, G.R. 106611, July 21, 1994. 234 SCRA 348 (set off allowed)
8. South African Airways, GR 180356, February 16, 2010 (set off ok but remanded to CTA)
9. MCIAA vs Marcos 261 SCRA 667 (is pwr to tx destructive)
10. Commissioner vs Lincoln 379 SCRA 423 (tax laws cannot be circumvented...)

11. Diaz vs Sec. of Finance, GR 193007 July 19, 2011 (VAT & toll fees)
12. CIR vs Santos 277 SCRA 617 (auth of courts to decide consti. of tax laws)
13. Kilosbayan vs Guingona, Jr. GR113375; 5/5/94 (tax’rs suit – transcendental impt)
14. Estate of Benigno Toda, Jr., GR 147188, Sept14, 2004 (tax avoid vs tax evasion)
15. Nursery Care Corp vs Acevedo, GR 180651, July 30, 2014 (double taxn)

16. Smart vs Malvar, GR 204429, Feb 18, 2014 (regulatory purpose)

17. Meralco vs City Assessor, GR166102, Aug 5/15 (tax exmptns)
18. CIR vs Nippon, GR212920, Sept 16/15 (govt not estopped)
19. CIR vs Covanta, GR 203160 Jan 17, 2018 (tax amnesty)

II. Inherent Limitations

A. Public Purpose Planters Products vs Fertiphil 548 SCRA 485

B. International Comity Sec 2, Art II, Constitution
C. Territoriality (no double taxn) Deutsche Bank Manila GR188550, Aug 19, 2013
CIR vs S.C. Johnson 309 SCRA 87 (int'l juridical double taxn)
D. Non delegation of Power to Tax Osmeña vs Orbos 220 SCRA 703
Pepsi vs Tanauan 69 SCRA 460
E. Exemption from Taxation of Gov't

III. Constitutional Limitations

1. Coconut Oil Refineries vs Torres 29 July 05 (No law granting tax exemption etc...)
2. Camp John Hay vs Lim, March 29, 2005 ( -ditto- )
3. Tolentino vs Secretary of Finance 249 SCRA 628 (nature of VAT)
4. Tan vs Del Rosario, Jr. 237 SCRA 324 (uniformity/equal protectn)
5. Ormoc vs CIR, 22 SCRA 603 (equal protection & uniformity of taxn)
6. Shell vs Vaño 94 Phil 389 ( -ditto- )

IV. Court of Tax Appeals (R.A. 9282)

1. TFS Inc. , G.R. 166829, Apr 19, 2010 (CTA law; VAT on pawnshops)
2. *CIR vs FBDC, GR 167606, Aug 11/10 (appeal gone awry)
3. Smart vs Malvar
4. PPA vs Fuentes GR 91259, April 16, 1991. 195 SCRA 790
5. PSALM GR 198146 Aug 8, 2017

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V. Income
1. Conwi vs CTA 213 SCRA 83 (income, defined)
2. CIR vs British Airways 149 SCRA 395 “

Dividends
3. CIR vs CA 301 SCRA 152 (income vs capital; stock div; redemptn)
4. Goodyear, GR216130, Aug 3, 2016 (liquidating vs ord div)

5. CIR vs Solidbank 416 SCRA 436 (income vs percentage)

6. B. Van Zuiden Bros vs GTVL 523 SCRA 233 (doing bus in the Phils)
7. Mobil vs City Treasurer 463 SCRA 379 (business vs income tx)

8. CIR vs Baier Nickel 500 SCRA 87 (situs; tx on non-res.; source of income)

9. CIR vs CA 203 SCRA 72 (terminal leave pay: exclusion)
10. Intercontinental vs Amarillo 505 SCRA 687 (retirement benefits)
11. CIR vs BPI 492 SCRA 551 gross rcpts

MCIT/ IAET
12. Cyanamid vs CA 322 SCRA 638 (Imp. Acc. Earnings tx)
13. Manilabank 499 SCRA 782 (MCIT)
14. CREBA vs Romulo GR 160756 09 Mar 10 (MCIT)

Exempt Corporations
15. CIR vs CA 298 SCRA 83 (YMCA not an educ’l instn.; Sec. 30)
16. DLSU, GR 196596, Nov 9, 2016 (2 kinds of educ’l inst.)
17. St. Lukes GR 195909 26 Sept 12 (sec. 27 B)

CGT/DST
18. CIR vs Aquafesh GR170389 Oct20/10 (sec 27 (1,5) CGT, Sec 196 DST)
19. Republic vs Soriano GR211666 25 Feb 15 (CGT)
20. HSBC vs CIR, GR 166018, June 4/14 (elec msg not subj to DST)
21. CIR vs La Tondena, GR175188, July 15/15 (Sec. 196, DST)

22. Reyes vs. NLRC 529 SCRA 487 (retirement pay)

23. FEBTC vs CIR 488 SCRA 473 ( Y fm employees’ trust tax xempt).
24. MJOPFI vs CA & CIR, G.R. 162175, June 28, 2010 (sec. 60 ; -do- )
25. PAGCOR GR 210689, 22 Nov 2017 (tax exemptns, FBT, VAT)

VI. Expenses
1. Republic vs Meralco 391 SCRA 700 (operating exp.)
2. Esso vs CIR 175 SCRA 149 (req. for deductibility of exp.)
3. Aguinaldo vs. CIR 112 SCRA 136 (“services actually rendered’)
4. PRC vs. CA 256 SCRA 667 (req. for bad debts exp.)
5. CIR vs General Foods 401 SCRA 545 (req. for advertising exp.)
6. CIR vs CTA 127 SCRA 9 (2 kinds of expenses)
7. ING Bank G.R. No. 167679, July 22, 2015 (w/hold tax on bonuses)

VII. Income Taxation

1. China Bank vs CA 336 SCRA 179 (sec 39; cap gain/loss)
2. Filinvest GR 163653, July 19, 2011 (sec. 40 c )
3. PAL GR 206079 Jan 17, 2018 (sec. 56, withholding tax)
4. Systra vs CIR 533 SCRA 776 (sec. 76 NIRC)
5. Philam Asset Mgt vs CIR 477 SCRA 761 (sec. 76)
6. State Land 542 SCRA 114 (sec. 76)
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 7. CIR vs PHILAMGEN, GR175124 Sept 29/10 (sec. 76 Final Adj Ret)
8. CIR vs McGeorge GR174157 Oct20/10 (sec 76 irrevocable but unused...)
9. Belle vs CIR GR 181298 Jan10/11 (sec76 option irrevocable)
10. Univ. Physician Svc Inc. GR 205955 Mar 7, 2018 (irrevocability rule)
11. CIR vs Sony GR178697 Nov17/10 (sec 6; dole out not Vatable: subj to Ytx)
12. CIR vs CA 385 Phil 875 (2000) (reimb. for exp Vatable)
13. Exxon GR 180909 Jan19/11 (sec135 excise tx: proper party to claim ref)
14. Rep vs PAL GR209353 July 6,15 (in lieu of all other taxes clause)
15. Pilipinas Shell GR 192398 Sept 29, 2014

VIII. VAT
1. ABAKADA vs Ermita 01 Sept 05
2. –ditto- 18 Oct 05
3. CIR vs Seagate 451 SCRA 132
4. CIR vs Benguet 495 SCRA 59
5. Contex 433 SCRA 376 (effects re VAT exempt status)

6. CIR vs Cebu Toyo 451 SCRA 447 (0 rated vs tax exempt)

7. CIR vs American Express 462 SCRA2197 (destination principle)
8. CIR vs Toshiba 466 SCRA 211 (cross border doctrine)
9. CIR vs Burmeister GR 153205 22 Jan 07
10. Magsaysay Lines 497 SCRA 63
11. CIR vs Gotamco G.R. No. L-31092, February 27, 1987, 148 SCRA 36 (WHO exemption)
12. PSALM GR 198146 Aug 8, 2017
13. Mindanao II GR 193301 Mar 11, 2013

14. CIR vs Manila Mining 468 SCRA 571

15. Atlas vs CIR, GR 146221, Sept 25, 2007 (excess input VAT fm export sales)
16. Hitachi vs CIR GR174212 Oct10/10 (effect no “TIN, 0 rated” printed on invoice)
17. JRA vs CIR GR 177127 Oct 11/10 (effect failure to print “0 rated” on invoice)
18. AT&T vs CIR, GR182364, Aug 3/10 (req for tx refund in 0 rated tranxs)
19. Atlas, GR 159471, January 26, 2011. Voluminous records. Evidence.

20. Aichi, GR 184823, October 6, 2010. Claim for refund.

21. San Roque Power GR 187485 12 Feb 2013 (Secs 112 © and 229) en banc
22. CBK Power GR 202066, Sept 30, 2014 ( “ ) en banc
23. Silicon Phils GR 173241, March 25, 2015 (rules on prescriptv prds)
24. Toledo Pwr GR 195179 Aug 10, 2015 (sec 112; 120 + 30 days = rules)
25. CE Luzon Geothermal GR 200841-42 Aug 26, 2015 “
26. Cargill Phils, GR203774, 11 Mar 15 (applicability)
27. Pilipinas Total Gas. GR 107112, Dec 8/15. En banc.
28. Silicon GR182737 02Mar16 120+30 table
29. Mindanao I, GR 197519, 08 Nov 2017 (exceptns to mandatory periods)

IX. Best Evidence Obtainable (sec 6, NIRC)

1. Mindanao Bus, GR L-12873, February 24, 1961
2. Sy Po, GR L-81446, August 18, 1988
3. Hantex, GR 136975, March 31, 2005

X. Tax Remedies

Assignment: Compare Ungab vs Cusi 97 SCRA 877 (ass. not a pre requisite)
CIR vs CA 257 SCRA 200 (Fortune Tobacco case)
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Cases on Assessment
1. CIR vs Pascor 309 SCRA 402 (assessment; Secs. 203, 222)
2. CIR vs Reyes 480 SCRA 382
3. CIR vs BPI, 521 SCRA 373. Apr 2007
4. Barcelon vs CIR GR 157064 07 Aug 06 (prescriptn)
5. Phil Journalists vs CIR 447 SCRA 214. Dec 2004. Waiver
6. Trans Optical GR 227544 22 Nov 2017 (waiver)

7. FMF Dev't Corp 556 SCRA 698 (Sec 222 (b) NIRC)
8. Kudos Metal, 620 SCRA 232. May 2010. waiver
9. Metro Star Superama, GR 185371, Dec 8, 2010. PAN part of due process.
10. Allied Bank, 611 SCRA 692. Feb 2010. Estoppel.
11. Gonzales & LM Camus Eng'g, GR 177279 Oct 13, 2010. Final ass't.
12. Pacquiao GR213394 06 Apr16. GR & Exn pay’t before appeal to CTA

Cases on Prescription
1. CIR vs Tulio 474 SCRA 147. Oct 2005
2. BPI vs CiR 473 SCRA 205. Oct 2005
3. BPI vs CIR 548 SCRA 105 (assessmts; re-inv.) Mar 2008
4. CIR vs. Phil Global 506 SCRA 427 (prescriptn) Oct 2006
5. Hambrecht & Quist, GR 169225, Nov 17, 2010. Reinvestigation.
6. CIR vs GJM GR 202695 Feb 29/16. Sec. 203; Mailing; receipt

Tax Credit/Refund
1. Vda de San Agustin vs CIR 364 SCRA 802 . Sept 2001
2. CIR vs PNB 474 SCRA 303. Oct 2005
3. Central Luzon Drug, 554 SCRA 398. June 2008
4. Silkair, 544 SCRA 100. Feb 2008
5. Fortune Tobacco 559 SCRA 160 (solutio indebiti)
6. FEBTC, 615 SCRA 417. March 2010. Requisites
7. Smart, GR 179045 August 25, 2010. Withholding agent can file claim.