Inherent Limitations

For public purpose

Purely Legislative

Delegation valid

President

LGUs

Admin agencies

tariff

emergency powers

Except: subject/purpose/amount/rate of tax/mens of collection

Exemption of Government Agencies

Absolute Exemption

SSS

GSIS

PHIC

Income tax exemption

governmental educatinal inst

GR: exempt; includes governmental GOCCs

Territoriality

Test of taxability is the source and the source of an income is that activity which produced the income. (CIR v. BOAC)

International Comity

Constitutional Limitations

Due process

Equal Protection Clause

Uniform and Equitable

NOn-Impairment of COntracts

Non-Imprisonment for Debt

Art. VI, Sec. 28(3) Prohibition against taxation of religious and charitable/ educational insts (property taxes only for religious and chartiable)

prohibition against taxation of Non- stock non-profit educaitonal ints (Art. XIV, Sec. 4(3))

Bare allegation that it is a non-stock non-profit educational institution is insufficient to justify exemption from payment of income tax. Must prove:

  1. falls under classification
  2. income is used actually, directly and exclusively for educational purposes (CIR v. CA & YMCA, DLSU v. CIR)

Coverage:
income, property, donors tax, customs duties

Freedom of Religious Worship

Passage of Tax Bills

  • exemption needs majority vote of Congress

Veto Power of Pres

BIR

assess and collect NIR taxes

Composition

CIR

4 Deputy Commissioners

Interpret tax laws and decide tax cases
(EXCLUSIVE AND OG JD)

Review by secretary of Fiannce

decide disputed assessments, refunds, fees, penalties, other matters

exclusive appellate jurisdiction of the CTA

obtain info and to summon, examine, and take testimony of persons

make assessements and prescribe additional requirements for tax administration and enforcement

authority to delegate power
Except: power to recommend promulgation of internal revenue rules and regulations

duty to ensure the provision and distribution of forms, receipts, certificates and appliances and the acknowledgement of payment of taxes

Authority to make tax assessments may be delegated to subordiante officers. (Oceanic Wireless Network v. CIR)

requisites:

  1. necessary to the proper enforcement of law
  2. not contrary to law
  3. published in the Official Gazette

EFFECTIVITY: UP LAW center filing of 3 certified copes; effective within 15 days from filing

Ordinary Assets

stock in trade

inventory if on hand at the close of the taxable year

property held for sale to customers in ordinary course of his trade or business

property used in trade or business subject to allowance for depreciation

real property used in trade or business of the taxpayer

CTA

Exclusive Original JD

Civil

CIR decisions involving disputed assessments, refunds if IR taxes, other matters under the NIRC or other laws administered by the BIR

**Inaction by CIR in disputed assessments, refunds, fees, charges, penalties, other matters

  • inaction deemed denial**

Decisions of Commissioner of Customs on custom duties

Decisions of SoF on customs cases elevated to them automatically for review from COC decisions which are adverse to the government

Decisions of SoTI in cases of nonagricultural product, commodity, article and Sec. of Agri in cases of agricultural product, commodity or article involving dumping and countervailing duties

Criminal

criminal offenses arising from violations of the NIRC, CMTA, and other laws administered by the BIR or BOC, where
principal amount of taxes and fees, charges and penalties claimed is P1,000,000 or more

Tax Collection Cases

final and executory assessment of taxes, fees, charges and penalties
principal amount claimed is P 1,000,000 or more

exclusie APPELLATE jurisdiction

Civil Case

Criminal Case

Decisions/reso/order of RTC in local tax cases decided in exercise of their ORIGINAL jurisdiction (RRCTA)

appeals/resolutions/orders of the RTC in their original jurisdiction in criminal offenses from violations of the NIRC, CMTA, and other laws administered by the BIR or BOC
principal amount claimed is less than P 1M, or there is no specified amount claimed

Tax Collection Case

appeals from jdugments/reso/order of RTC in tax collection cases ORIGINALLY decided by them within their respective territorial JD (RRCTA)

from judgments, resolution or orders of the RTC in the exercise of APPELLATE JD in tax collection cases originally decided by lower courts

CTA En Banc

Civil

Decisions/resos/MR or new trial of the Court in Divisions in exercise of exclusive appellate jd

administrative agency cases

local tax cases decied by RTC in the exercise of their original JD

tax collection case decided by RTC(original jd)

RTC decisions decided in exercise of APPELLATE JD

Central Board of Assessment Appealls (appellate jd)
cases of assessment and taxation of real proeprty originally decided by the proincila or city board of assessment appeals

Criminal

from CTA in Division in exercise of exclusive OG JD
cases: NIRC violations/CMTA violations/ other laws administered by BIR/BOC

from MR or new trial of Court in Dvision in exercise of APPELLATE JD over criminal offenses udner Sec. 2f, RRCTA

RTC decisions in exercise of their APPELLATE JD over criminal offensess under Sec. 2f, Rule 4, RRCTA

Tax Collection

RTC tax collection casse in exercise of appellate JD

decisions on MR or new trial of Court Divison in exercise of exclusive OG JD over tax colelction cases