TAX I

OUTLINE OF TOPICS AND CASES

03 November 2014
I.

General Principles
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II.

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Republic vs Cocofed 372 SCRA 462 (coco levy)

Osmea vs Orbos 220 SCRA 703 (oil levy)
Central Luzon Drug, GR 159647, April 15, 2005 (eminent d., just comp.)
Carlos Superdrug, GR 166494 June 29, 2007 (pol. pwr)
Gerochi vs DOE 527 SCRA 696 (tax pwr as implement of police pwr)
Philex vs CIR 294 SCRA 687 (set off/compensation; lifeblood, pwr of taxn)
CIR vs CTA, G.R. 106611, July 21, 1994. 234 SCRA 348 (set off allowed)
South African Airways, GR 180356, February 16, 2010 (set off ok but remanded
to CTA for further proceedings)
MCIAA vs Marcos 261 SCRA 667 (is pwr to tx destructive)(principles on tax
exemptns)
Commissioner vs Lincoln 379 SCRA 423 (tax laws cannot be circumvented...)
Diaz vs Sec. of Finance, GR 193007 July 19, 2011 (VAT & toll fees)
CIR vs Santos 277 SCRA 617 (auth of courts to decide consti. of tax laws)
Kilosbayan vs Guingona, Jr. 232 SCRA 110 (taxpayers suit transcendental
importance)
Estate of Benigno Toda, Jr., GR 147188, Sept14, 2004. 438 SCRA 290 (tax
avoidance vs tax evasion)

Inherent Limitations

A. Public Purpose Planters Products vs Fertiphil 548 SCRA 485

B. International Comity
Sec 2, Art II, Constitution
C. Territoriality (no double taxation) CIR vs Solidbank, 416 SCRA 437 (2003)
CIR vs S.C. Johnson 309 SCRA 87 (int'l juridical double
taxn)
D. Non delegation of Power to Tax
BOCEA GR 181704, 06 Dec 2011
Osmea vs Orbos 220 SCRA 703
ABAKADA case (below)
E. Exemption from Taxation of Gov't
II.

Constitutional Limitations
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Coconut Oil Refineries vs Torres 29 July 05 (No law granting tax exemption etc...)
Camp John Hay vs Lim, March 29, 2005 (
-ditto)
Tolentino vs Secretary of Finance 249 SCRA 628 (nature of VAT)
ABAKADA vs Ermita 01 Sept 05 (new VAT law)
Tan vs Del Rosario, Jr. 237 SCRA 324 (uniformity/equal protectn)
Southern Cross Cement vs CMAP 465 SCRA 532 (delegated auth.)
Ormoc vs CIR, 22 SCRA 603 (equal protection & uniformity of taxn)
Shell vs Vao 94 Phil 389 ( -ditto- )

VI.

Income
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Conwi vs CTA 213 SCRA 83 (income, defined)
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CIR vs Marubeni 372 SCRA 576 (branch profit remit. tx)
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CIR vs British Airways 149 SCRA 395
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South African Airways, GR 180356, February 16, 2010 (GPB, sec 28, NIRC)
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CIR vs CA 301 SCRA 152 (income vs capital; stock div; redemptn)
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CIR vs Solidbank 416 SCRA 436 (income vs percentage)
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B. Van Zuiden Bros vs GTVL 523 SCRA 233 (doing bus in the Phils)
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Mobil vs City Treasurer 463 SCRA 379 (business vs income tx)
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CIR vs Baier Nickel 500 SCRA 87 (situs; tx on non-res.; source of income)
10. CIR vs CA 203 SCRA 72 (terminal leave pay: exclusion)

Expenses
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Republic vs Meralco 391 SCRA 700 (operating exp.)

Esso vs CIR 175 SCRA 149 (req. for deductibility of exp.)
Aguinaldo vs. CIR 112 SCRA 136 (services actually rendered)
PRC vs. CA 256 SCRA 667 (req. for bad debts exp.)
China Bank vs CA 336 SCRA 179 (cap gain/loss)
CIR vs General Foods 401 SCRA 545 (req. for advertising exp.)
Gancayco vs CIR 1 SCRA 980 (ded. Exp.)
CIR vs CTA 127 SCRA 9 (2 kinds of expenses)
CIR vs Central Luzon Drug 492 SCRA 575 (tax cr deduction)
Pansacola 507 SCRA 81 (personal ex.; taxable yr.)

VII. Income Taxation

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Delpher Trades vs IAC 157 SCRA 349 (sec. 40 c , estate planning)
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Filinvest GR 163653, July 19, 2011 (sec. 40 c )
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Systra vs CIR 533 SCRA 776 (sec. 76 NIRC)
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Philam Asset Mgt vs CIR 477 SCRA 761 (sec. 76)
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State Land 542 SCRA 114 (sec. 76)
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CIR vs PHILAMGEN, GR175124 Sept 29/10 (sec. 76 Final Adj Ret)
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CIR vs McGeorge GR174157 Oct20/10 (sec 76 irrevocable but unused...)
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Belle vs CIR GR 181298 Jan10/11 (sec76 option irrevocable)
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CIR vs Sony GR178697 Nov17/10 (sec 6; dole out not Vatable: subj to Ytx)
10. CIR vs CA 385 Phil 875 (2000) (reimb. for exp Vatable)
11. Exxon GR 180909 Jan19/11 (sec135 excise tx: proper party to claim ref)
VIII. VAT
1. ABAKADA vs Ermita 01 Sept 05
2. ditto18 Oct 05
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CIR vs Seagate 451 SCRA 132
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CIR vs Benguet 495 SCRA 59
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Contex 433 SCRA 376 (effects re VAT exempt status)

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

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*Yamane vs BA Lepanto 474 SCRA 258 (R.A. 9282)
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*CIR vs FBDC, GR 167606, Aug 11/10 (appeal gone awry)
V.

Abello vs CIR 452 SCRA 162 (political contributions=donations)

CIR vs BPI 492 SCRA 551 (gross rcpts )
Cyanamid vs CA 322 SCRA 638 (Imp. Acc. Earnings tx)
CIR vs CA 298 SCRA 83 (YMCA not an educl instn.; Sec. 30)
CIR vs Aquafesh GR170389 Oct20/10 (sec 27 (1,5) CGT, Sec 196 DST)
Reyes vs. NLRC 529 SCRA 487 (retirement pay)
Intercontinental vs Amarillo 505 SCRA 687 (retirement benefits)
Manilabank 499 SCRA 782 (MCIT)
FEBTC vs CIR 488 SCRA 473 ( Y fm employees trust tax xempt).
MJOPFI vs CA & CIR, G.R. 162175, June 28, 2010 (sec. 60 Y fm employees' trusts
exempt)

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

CIR vs American Express 462 SCRA2197 (destination principle)
CIR vs Toshiba 466 SCRA 211 (cross border doctrine)
CIR vs Burmeister GR 153205 22 Jan 07
Magsaysay Lines 497 SCRA 63

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CIR vs Manila Mining 468 SCRA 571

Atlas vs CIR, GR 146221, Sept 25, 2007 (excess input VAT fm export sales)
Hitachi vs CIR GR174212 Oct10/10 (effect no TIN, 0 rated printed on invoice)
JRA vs CIR GR 177127 Oct 11/10 (effect failure to print 0 rated on invoice)
AT&T vs CIR, GR182364, Aug 3/10 (req for tx refund in 0 rated tranxs)

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Atlas, GR 159471, January 26, 2011. Voluminous records. Evidence.

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

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Best Evidence Obtainable (sec 6, NIRC)

Mindanao Bus, GR L-12873, February 24, 1961
Sy Po, GR L-81446, August 18, 1988
Hantex, GR 136975, March 31, 2005
Tax Remedies

Assignment: Compare

Ungab vs Cusi 97 SCRA 877 (ass. not a pre requisite)

CIR vs CA 257 SCRA 200 (Fortune Tobacco case)

Cases on Assessment
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CIR vs Pascor 309 SCRA 402 (assessment; Secs. 203, 222)

CIR vs Reyes 480 SCRA 382
CIR vs BPI, 521 SCRA 373. Apr 2007
Barcelon vs CIR GR 157064 07 Aug 06 (prescriptn)
Phil Journalists vs CIR 447 SCRA 214. Dec 2004. waiver
FMF Dev't Corp 556 SCRA 698 (Sec 222 (b) NIRC)
Kudos Metal, 620 SCRA 232. May 2010. waiver
Metro Star Superama, GR 185371, Dec 8, 2010. PAN part of due process.
Allied Bank, 611 SCRA 692. Feb 2010. Estoppel.
Gonzales & LM Camus Eng'g, GR 177279 Oct 13, 2010. Final ass't.

Cases on Prescription
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CIR vs Tulio 474 SCRA 147. Oct 2005

BPI vs CiR 473 SCRA 205. Oct 2005
BPI vs CIR 548 SCRA 105 (assessmts; re-inv.) Mar 2008
CIR vs. Phil Global 506 SCRA 427 (prescriptn) Oct 2006
Hambrecht & Quist, GR 169225, Nov 17, 2010. Reinvestigation.

Tax Credit/Refund
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Vda de San Agustin vs CIR 364 SCRA 802 . Sept 2001

CIR vs PNB 474 SCRA 303. Oct 2005
Central Luzon Drug, 554 SCRA 398. June 2008
Silkair, 544 SCRA 100. Feb 2008
Fortune Tobacco 559 SCRA 160 (solutio indebiti)
FEBTC, 615 SCRA 417. March 2010. Requisites
Smart, GR 179045 August 25, 2010. Withholding agent can file claim.