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TAX EXEMPTION:
IMPRESCRIPTIBILITY OF TAXES
Non-retroactivity of Rulings:
Gen Rule: Rulings issued by the BIR which are revoked, modified or
reversed shall not be given retroactive application if it will
be prejudicial to the taxpayer (NIRC Sec 246)
Exception:
1. When the taxpayer deliberately omits material facts in his ITR
2. When the taxpayer acted in bad faith
A taxpayer can no longer raise the defense that the errors in their
tax returns are not their responsibility or that is the fault of the accountants
they hire. (People vs. Kintanar, Dec 3, 2010)
However, in People vs Judy Ann Santos, the actress was charged for
failure to supply correct and accurate information in her ITR. She
interposed the defense of minority as she relied on her relied on her
manager to handle her tax transactions.
The CTA ruled that she was merely negligent , but not criminally
liable for her failure to supply correct and accurate information in her
ITR.
DOUBLE TAXATION
Elements:
1. Same property or subject matter is taxed twice;
2. Both taxes are levied for the same purpose
3. Imposed by the same taxing authority
- Within the same jurisdiction;
- Same taxing period
- Covering the same kind or character of tax
Example:
The City of Manila imposed local business taxes based on gross receipts on:
HELD:
It is well-settled that a license tax may be levied upon a business or
occupation although the land or property used in connection therewith
is subject to property tax.
It has been shown that a real estate tax and the tenement tax (license)
imposed by the Ordinance, although imposed by the same taxing
authority (City of Iloilo) are not of the same kind or character.