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:
- falls under classification
- 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:
- necessary to the proper enforcement of law
- not contrary to law
- 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