tally of bar exams - tax (updated)

Tally of Frequently Asked Topics in the Bar Examinations

Legend:

E1 (Essay, Number in the Questionnaire)

M1 (MCQ, Number in the Questionnaire)

Note: Each may cover two or more topics.

Taxation Law Syllabus 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 TOTAL

I. General Principles of Taxation 0

A. Definition and concept of taxation M4 1

B. Nature of taxation M46 M4 2

C. Characteristics of taxation EIB EIa M17

M46 M4 5

D. Power of taxation compared with other powers EIA 1

1. Police power 0

2. Power of eminent domain 0

E. Purpose of taxation 0

1. Revenue-raising 0

2. Non-revenue/special or regulatory 0

F. Principles of sound tax system 0

1. Fiscal adequacy M45 1

2. Administrative feasibility MVIII 1

3. Theoretical justice 0

G. Theory and basis of taxation MIV 1

1. Lifeblood theory M6 M3 2

2. Necessity theory 0

3. Benefits-protection theory (Symbiotic relationship) M73 1

4. Jurisdiction over subject and objects 0

H. Doctrines in taxation 0

1. Prospectivity of tax laws 0

2. Imprescriptibility 0


3. Double taxation EXVII M9 M1 MIII 4

a) Strict sense M9 1

b) Broad sense 0

c) Constitutionality of double taxation M9 1

d) Modes of eliminating double taxation 0

4. Escape from taxation EV 1

a) Shifting of tax burden 0

(i) Ways of shifting the tax burden 0

(ii) Taxes that can be shifted 0

(iii) Meaning of impact and incidence of taxation 0

b) Tax avoidance M58 MIX 2

c) Tax evasion M59 MXIX

MXX 3

5. Exemption from taxation 0

a) Meaning of exemption from taxation 0

b) Nature of tax exemption 0

c) Kinds of tax exemption 0

(i) Express 0

(ii) Implied 0

(iii) Contractual 0

d) Rationale/grounds for exemption 0

e) Revocation of tax exemption 0

6. Compensation and set-off EIA

EIC EIc 3

7. Compromise EII2 1

8. Tax amnesty M72 1

a) Definition 0

b) Distinguished from tax exemption 0

9. Construction and interpretation of: 0

a) Tax laws 0

(i) General rule E1B M2 2


(ii) Exception 0

b) Tax exemption and exclusion EIVc 1

(i) General rule 0

(ii) Exception 0

c) Tax rules and regulations 0

(i) General rule only 0

d) Penal provisions of tax laws M2 1

e) Non-retroactive application to taxpayers M2 1

(i) Exceptions 0

I. Scope and limitation of taxation 0

1. Inherent limitations EII 1

a) Public purpose 0

b) Inherently legislative M17 1

(i) General rule 0

(ii) Exceptions 0

(a) Delegation to local governments 0

(b) Delegation to the President 0

(c) Delegation to administrative agencies 0

c) Territorial 0

(i) Situs of taxation

M21

M31

M48

3

(a) Meaning 0

(b) Situs of income tax EXII 1

(1) From sources within the Philippines M11 1

(2) From sources without the Philippines M11 1

(3) Income partly within and partly without the

Philippines 0

(c) Situs of property taxes 0

(1) Taxes on real property 0

(2) Taxes on personal property 0


(d) Situs of excise tax 0

(1) Estate tax EIE 1

(2) Donor’s tax 0

(e) Situs of business tax 0

(1) Sale of real property 0

(2) Sale of personal property 0

(3) Value-Added Tax (VAT) 0

d) International comity 0

e) Exemption of government entities, agencies, and

instrumentalities 0

2. Constitutional limitations M2 M4 2

a) Provisions directly affecting taxation 0

(i) Prohibition against imprisonment for non-

payment of poll tax 0

(ii) Uniformity and equality of taxation EII 1

(iii) Grant by Congress of authority to the

president to impose tariff rates 0

(iv) Prohibition against taxation of religious,

charitable entities, and educational entities EX EV EXI EId

M24

M55

M66

M75

8

(v) Prohibition against taxation of non-stock, non-

profit institutions EIII M55 M19 3

(vi) Majority vote of Congress for grant of tax

exemption 0

(vii) Prohibition on use of tax levied for special

purpose 0

(viii) President’s veto power on appropriation,

revenue, tariff bills 0

(ix) Non-impairment of jurisdiction of the Supreme

Court 0

(x) Grant of power to the local government units to

create its own sources of revenue 0

(xi) Flexible tariff clause 0


(xii) Exemption from real property taxes 0

(xiii) No appropriation or use of public money for

religious purposes M69 1

b) Provisions indirectly affecting taxation 0

(i) Due process 0

(ii) Equal protection MVII 1

(iii) Religious freedom 0

(iv) Non-impairment of obligations of contracts 0

J. Stages of taxation EI1 1

1. Levy E1A 1

2. Assessment and collection M16 1

3. Payment 0

4. Refund E1D 1

K. Definition, nature, and characteristics of taxes 0

L. Requisites of a valid tax 0

M. Tax as distinguished from other forms of

exactions 0

1. Tariff 0

2. Toll 0

3. License fee 0

4. Special assessment 0

5. Debt 0

N. Kinds of taxes 0

1. As to object 0

a) Personal, capitation, or poll tax 0

b) Property tax 0

c) Privilege tax 0

2. As to burden or incidence 0

a) Direct EII 1

b) Indirect EVI EII 2

3. As to tax rates 0


a) Specific 0

b) Ad valorem M1 1

c) Mixed 0

4. As to purposes 0

a) General or fiscal 0

b) Special, regulatory, or sumptuary 0

5. As to scope or authority to impose 0

a) National – internal revenue taxes EIII 1

b) Local – real property tax, municipal tax 0

6. As to graduation 0

a) Progressive M22 1

b) Regressive 0

c) Proportionate 0

II. National Internal Revenue Code (NIRC) of 1997,

as amended 0

A. Income Taxation 0

1. Income tax systems 0

a) Global tax system 0

b) Schedular tax system 0

c) Semi-schedular or semi-global tax system M5 1

2. Features of the Philippine income tax law 0

a) Direct tax 0

b) Progressive 0

c) Comprehensive 0

d) Semi-schedular or semi-global tax system 0

3. Criteria in imposing Philippine income tax 0

a) Citizenship principle 0

b) Residence principle 0

c) Source principle 0

4. Types of Philippine income tax 0


5. Taxable period EXe M23 2

a) Calendar period M35 1

b) Fiscal period 0

c) Short period 0

6. Kinds of taxpayers 0

a) Individual taxpayers 0

(i) Citizens EXI 1

(a) Resident citizens 0

(b) Non-resident citizens 0

(ii) Aliens 0

(a) Resident aliens 0

(b) Non-resident aliens EXh 1

(1) Engaged in trade or business M65 1

(2) Not engaged in trade or business 0

(iii) Special class of individual employees 0

(a) Minimum wage earner 0

b) Corporations 0

(i) Domestic corporations 0

(ii) Foreign corporations 0

(a) Resident foreign corporations M9 1

(b) Non-resident foreign corporations M14 1

(iii) Joint venture and consortium EIXa 1

c) Partnerships 0

d) General professional partnerships M15 1

e) Estates and trusts EXIX 1

f) Co-ownerships 0

7. Income Taxation 0

a) Definition 0

b) Nature 0

c) General principles 0


8. Income EVIIb 1

a) Definition 0

b) Nature 0

c) When income is taxable 0

(i) Existence of income MXVI 1

(ii) Realization of income M3 1

(a) Tests of realization 0

(b) Actual vis-à-vis constructive receipt 0

(iii) Recognition of income 0

(iv) Methods of accounting EXd 1

(a) Cash method vis-à-vis accrual method 0

(b) Installment payment vis-à-vis deferred payment

vis-à-vis percentage completion (in long-term

contracts)

MXIV 1

d) Tests in determining whether income is earned for

tax purposes EIIbc MVI 2

(i) Realization test 0

(ii) Claim of right doctrine or doctrine of ownership,

command, or control 0

(iii) Economic benefit test, doctrine of proprietary

interest 0

(iv) Severance test 0

(v) All events test EIIa M32 M17 3

9. Gross Income M19 M8 2

a) Definition 0

b) Concept of income from whatever source derived 0

c) Gross income vis-à-vis net income vis-à-vis

taxable income 0

d) Classification of income as to source 0

(i) Gross income and taxable income from sources

within the Philippines EVII M6 2

(ii) Gross income and taxable income from sources

without the Philippines 0


(iii) Income partly within or partly without the

Philippines 0

e) Sources of income subject to tax 0

(i) Compensation income EVIII 1

(ii) Fringe benefits EVIII MX 2

(a) Special treatment of fringe benefits EIV 1

(b) Definition 0

(c) Taxable and non-taxable fringe benefits EVIII 1

(iii) Professional income EVIII 1

(iv) Income from business 0

(v) Income from dealings in property EIXb

EIXc Exb M38 4

(a) Types of properties Eia 1

(1) Ordinary assets 0

(2) Capital assets EIV 1

(b) Types of gains from dealings in property 0

(1) Ordinary income vis-à-vis capital gain 0

(2) Actual gain vis-à-vis presumed gain 0

(3) Long term capital gain vis-à-vis short-term

capital gain 0

(4) Net capital gain, net capital loss 0

(5) Computation of the amount of gain or loss 0

(6) Income tax treatment of capital loss 0

(a) Capital loss limitation rule (applicable to

both corporations and individuals) 0

(b) Net loss carry-over rule (applicable only to

individuals) 0

(7) Dealings in real property situated in the

Philippines M11 1

(8) Dealings in shares of stock of Philippine

corporations EX M4

M13

M23 4

(a) Shares listed and traded in the stock

exchange M4 1


(b) Shares not listed and traded in the stock

exchange 0

(9) Sale of principal residence EXI 1

(vi) Passive investment income 0

(a) Interest income EXV M1 2

(b) Dividend income MII 1

(1) Cash dividend 0

(2) Stock dividend 0

(3) Property dividend 0

(4) Liquidating dividend MI 1

(c) Royalty income 0

(d) Rental income 0

(1) Lease of personal property 0

(2) Lease of real property 0

(3) Tax treatment of 0

(a) Leasehold improvements by lessee 0

(b) VAT added to rental/paid by the lessee 0

(c) Advance rental/long term lease 0

(vii) Annuities, proceeds from life insurance or other

types of insurance EIV Exa M58 3

(viii) Prizes and awards M52 1

(ix) Pensions, retirement benefit, or separation pay EIX EVIa 2

(x) Income from any source whatever 0

(a) Forgiveness of indebtedness 0

(b) Recovery of accounts previously written-off –

when taxable/when not taxable 0

(c) Receipt of tax refunds or credit EIII EI 2

(d) Income from any source whatever 0

(e) Source rules in determining income from within

and without 0

(1) Interests 0


(2) Dividends 0

(3) Services 0

(4) Rentals 0

(5) Royalties 0

(6) Sale of real property 0

(7) Sale of personal property 0

(8) Shares of stock of domestic corporation 0

(f) Situs of income taxation (see page 2 under

inherent limitations, territorial) EXVIII 1

(g) Exclusions from gross income M18 1

(1) Rationale for the exclusions 0

(2) Taxpayers who may avail of the exclusions 0

(3) Exclusions distinguished from deductions and

tax credit 0

(4) Under the Constitution 0

(a) Income derived by the government or its

political subdivisions from the exercise of any

essential governmental function

0

(5) Under the Tax Code 0

(a) Proceeds of life insurance policies 0

(b) Return of premium paid 0

(c) Amounts received under life insurance,

endowment or annuity contracts 0

(d) Value of property acquired by gift, bequest,

devise or descent EXIV 1

(e) Amount received through accident or health

insurance 0

(f) Income exempt under tax treaty 0

(g) Retirement benefits, pensions, gratuities,

etc. 0

(h) Winnings, prizes, and awards, including

those in sports competition 0

(6) Under special laws 0


(a) Personal Equity and Retirement Account 0

(h) Deductions from gross income EXII M18 2

(1) General rules EV 1

(a) Deductions must be paid or incurred in

connection with the taxpayer’s trade, business

or profession

0

(b) Deductions must be supported by

adequate receipts or invoices (except

standard deduction)

0

(c) Additional requirement relating to

withholding 0

(2) Return of capital (cost of sales or services) 0

(a) Sale of inventory of goods by manufacturers

and dealers of properties 0

(b) Sale of stock in trade by a real estate dealer

and dealer in securities M10 1

(c) Sale of services 0

(3) Itemized deductions 0

(a) Expenses 0

(1) Requisites for deductibility 0

(a) Nature: ordinary and necessary EXX 1

(b) Paid and incurred during taxable year 0

(2) Salaries, wages and other forms of

compensation for personal services actually

rendered, including the grossed-up monetary

value of the fringe benefit subjected to fringe

benefit tax which tax should have been paid

(3) Travelling/transportation expenses 0

(4) Cost of materials 0

(5) Rentals and/or other payments for use or

possession of property M12 1

(6) Repairs and maintenance 0

(7) Expenses under lease agreements 0

(8) Expenses for professionals 0


(9) Entertainment/Representation expenses 0

(10) Political campaign expenses M43 1

(11) Training expenses 0

(b) Interest 0


(2) Non-deductible interest expense 0

(3) Interest subject to special rules 0

(a) Interest paid in advance 0

(b) Interest periodically amortized 0

(c) Interest expense incurred to acquire

property for use in trade/business/profession M16 1

(d) Reduction of interest expense/interest

arbitrage 0

(c) Taxes 0


(2) Non-deductible taxes 0

(3) Treatments of surcharges/interests/fines

for delinquency 0

(4) Treatment of special assessment 0

(5) Tax credit vis-à-vis deduction EVI2 1

(d) Losses 0


(2) Other types of losses 0

(a) Capital losses M39 1

(b) Securities becoming worthless 0

(c) Losses on wash sales of stocks or

securities 0

(d) Wagering losses 0

(e) Net Operating Loss Carry-Over (NOLCO) M59 1

(e) Bad debts EIId 1


(2) Effect of recovery of bad debts 0


(f) Depreciation 0


(2) Methods of computing depreciation

allowance 0

(a) Straight-line method 0

(b) Declining-balance method 0

(c) Sum-of-the-years-digit method 0

(g) Charitable and other contributions M19 EII 2


(2) Amount that may be deducted 0

(h) Contributions to pension trusts 0


(i) Deductions under special laws 0

(4) Optional standard deduction 0

(a) Individuals, except non-resident aliens EXVI 1

(b) Corporations, except non-resident foreign

corporations 0

(c) Partnerships 0

(5) Personal and additional exemption (R.A. No.

9504, Minimum Wage Earner Law) 0

(a) Basic personal exemptions EVIII EII1

EVIII EXI1 4

(b) Additional exemptions for taxpayer with

dependents EXI2 M42 2

(c) Status-at-the-end-of-the-year rule 0

(d) Exemptions claimed by non-resident aliens 0

(6) Items not deductible 0

(a) General rules 0

(b) Personal, living or family expenses 0

(c) Amount paid for new buildings or for

permanent improvements (capital

expenditures)

0


(d) Amount expended in restoring property

(major repairs) 0

(e) Premiums paid on life insurance policy

covering life or any other officer or employee

financially interested

Exb 1

(f) Interest expense, bad debts, and losses from

sales of property between related parties 0

(g) Losses from sales or exchange or property 0

(h) Non-deductible interest 0

(i) Non–deductible taxes 0

(j) Non-deductible losses EXVI 1

(k) Losses from wash sales of stock or securities 0

(7) Exempt corporations M20 1

(a) Propriety educational institutions and

hospitals 0

(b) Government-owned or controlled

corporations 0

(c) Others 0

10. Taxation of resident citizens, non-resident citizens,

and resident aliens 0

a) General rule that resident citizens are taxable on

income from all sources within and without the

Philippines

0

(i) Non-resident citizens M7 1

b) Taxation on compensation income 0

(i) Inclusions 0

(a) Monetary compensation 0

(1) Regular salary/wage 0

(2) Separation pay/retirement benefit not

otherwise exempt 0

(3) Bonuses, 13th month pay, and other benefits

not exempt EXIV 1

(4) Director’s fees 0

(b) Non-monetary compensation 0


(1) Fringe benefit not subject to tax 0

(ii) Exclusions 0

(a) Fringe benefit subject to tax 0

(b) De minimis benefits 0

(c) 13th month pay and other benefits, and

payments specifically excluded from taxable

compensation income

0

(iii) Deductions 0

(a) Personal exemptions and additional exemptions 0

(b) Health and hospitalization insurance EXc 1

(c) Taxation of compensation income of a minimum

wage earner 0

(1) Definition of statutory minimum wage 0

(2) Definition of minimum wage earner 0

(3) Income also subject to tax exemption: holiday

pay, overtime pay, night-shift differential, and

hazard pay

0

c) Taxation of business income/income from practice

of profession 0

d) Taxation of passive income M18 1

(i) Passive income subject to final tax M10 1

(a) Interest income 0

(1) Treatment of income from long-term deposits 0

(b) Royalties 0

(c) Dividends from domestic corporations 0

(d) Prizes and other winnings 0

(ii) Passive income not subject to final tax 0

e) Taxation of capital gains 0

(i) Income from sale of shares of stock of a

Philippine corporation 0

(a) Shares traded and listed in the stock exchange 0

(b) Shares not listed and traded in the stock

exchange 0


(ii) Income from the sale of real property situated in

the Philippines

M12

M13 2

(iii) Income from the sale, exchange, or other

disposition of other capital assets 0

11. Taxation of non-resident aliens engaged in trade or

business 0

a) General rules 0

b) Cash and/or property dividends 0

c) Capital gains 0

Exclude: non-resident aliens not engaged in trade

or business 0

12. Individual taxpayers exempt from income tax 0

a) Senior citizens 0

b) Minimum wage earners 0

c) Exemptions granted under international

agreements 0

13. Taxation of domestic corporations 0

a) Tax payable 0

(i) Regular tax 0

(ii) Minimum Corporate Income Tax (MCIT) 0

(a) Imposition of MCIT 0

(b) Carry forward of excess minimum tax 0

(c) Relief from the MCIT under certain conditions 0

(d) Corporations exempt from the MCIT 0

(e) Applicability of the MCIT where a corporation is

governed both under the regular tax system and a

special income tax system

0

b) Allowable deductions 0

(i) Itemized deductions 0

(ii) Optional standard deduction EXb 1

c) Taxation of passive income 0

(i) Passive income subject to tax 0


(a) Interest from deposits and yield, or any other

monetary benefit from deposit substitutes and from

trust funds and similar arrangements

0

and royalties 0

(b) Capital gains from the sale of shares of stock

not traded in the stock exchange 0

(c) Income derived under the expanded foreign

currency deposit system 0

(d) Inter-corporate dividends 0

(e) Capital gains realized from the sale, exchange,

or disposition of lands and/or buildings EXIII EIIIa 2

(ii) Passive income not subject to tax 0

d) Taxation of capital gains 0

(i) Income from sale of shares of stock EXa 1

(ii) Income from the sale of real property situated in

the Philippines M13 1

(iii) Income from the sale, exchange, or other

disposition of other capital assets 0

e) Tax on proprietary educational institutions and

hospitals 0

f) Tax on government-owned or controlled

corporations, agencies or instrumentalities 0

14. Taxation of resident foreign corporations 0

a) General rule 0

b) With respect to their income from sources within

the Philippines 0

c) Minimum Corporate Income Tax 0

d) Tax on certain income 0

(i) Interest from deposits and yield, or any other

monetary benefit from deposit substitutes, trust

funds and similar arrangements and royalties

0

(ii) Income derived under the expanded foreign

currency deposit system 0


(iii) Capital gains from sale of shares of stock not

traded in the stock exchange 0

(iv) Inter-corporate dividends 0

Exclude: 0

(i) International carrier EVII 1

(ii) Offshore banking units 0

(iii) Branch profits remittances fair 0

15. Taxation of non-resident foreign corporations M14 1

a) General rule 0

b) Tax on certain income 0

(i) Interest on foreign loans 0

(ii) Inter-corporate dividends 0

(iii) Capital gains from sale of shares of stock not

traded in the stock exchange 0

Exclude:

(i) Non-resident cinematographic film-owner, lessor

or distributor 0

(ii) Non-resident owner or lessor of vessels

chartered by Philippine 0

nationals 0

(iii) Non-resident owner or lessor of aircraft

machineries and other equipment EVII 1

16. Improperly accumulated earnings of corporations EXf M15 2

17. Exemption from tax on corporations 0

18. Taxation of partnerships 0

19. Taxation of general professional partnerships EIV 1

20. Withholding tax EVII EXg 2

a) Concept 0

b) Kinds 0

(i) Withholding of final tax on certain incomes 0

(ii) Withholding of creditable tax at source 0

c) Withholding of VAT 0


d) Filing of return and payment of taxes withheld 0

(i) Return and payment in case of government

employees 0

(ii) Statements and returns 0

e) Final withholding tax at source 0

f) Creditable withholding tax 0

(i) Expanded withholding tax EIXb

EIXc M12 3

(ii) Withholding tax on compensation EIV EIX 2

g) Timing of withholding 0

B. Estate tax EVII

EXII

EII

EVI EXV 5

1. Basic principles EIX 1

2. Definition 0

3. Nature 0

4. Purpose or object 0

5. Time and transfer of properties 0

6. Classification of decedent 0

7. Gross estate vis-à-vis net estate 0

8. Determination of gross estate and net estate M12 MXVII 2

9. Composition of gross estate EXII M22 2

10. Items to be included in gross estate EXIIIa 1

11. Deductions from estate EVIIb EXIIIc M25 3

12. Exclusions from estate EXIIIb M25 2

13. Tax credit for estate taxes paid in a foreign country 0

14. Exemption of certain acquisitions and transmissions M28 1

15. Filing of notice of death 0

16. Estate tax return M37 1

C. Donor’s tax 0

1. Basic principles EXVb M6 2


2. Definition 0

3. Nature 0

4. Purpose or object 0

5. Requisites of valid donation M21 MXIV 2

6. Transfers which may be constituted as donation M6 EV

EIX 3

a) Sale/exchange/transfer of property for insufficient

consideration 0

b) Condonation/remission of debt 0

7. Transfer for less than adequate and full consideration 0

8. Classification of donor 0

9. Determination of gross gift M24 1

10. Composition of gross gift 0

11. Valuation of gifts made in property 0

12. Tax credit for donor’s taxes paid in a foreign country 0

13. Exemptions of gifts from donor’s tax EXI EXVa M20 3

14. Person liable M51 1

15. Tax basis EVb M51 2

D. Value-Added Tax (VAT) EXI

M26

M39

M43

4

1. Concept

M28

M31

M43

3

2. Characteristics/Elements of a VAT-Taxable

transaction EXIIb

M31

M43 3

3. Impact of tax M31 1

4. Incidence of tax M31 1

5. Tax credit method 0

6. Destination principle 0

7. Persons liable EXIIa M27

M43 3


8. VAT on sale of goods or properties EIIIb M28 2

a) Requisites of taxability of sale of goods or

properties

M29

M42 2

9. Zero-rated sales of goods or properties, and

effectively zero-rated sales of goods or properties 0

10. Transactions deemed sale M34

M35 2

a) Transfer, use or consumption not in the course of

business of goods/properties originally intended for

sale or use in the course of business

0

b) Distribution or transfer to shareholders, investors

or creditors 0

c) Consignment of goods if actual sale not made within

60 days from date of consignment M54 1

d) Retirement from or cessation of business with

respect to inventories on hand 0

11. Change or cessation of status as VAT-registered

person 0

a) Subject to VAT 0

(i) Change of business activity from VAT taxable

status to VAT-exempt status 0

(ii) Approval of request for cancellation of a

registration due to reversion to exempt status 0

(iii) Approval of request for cancellation of

registration due to desire to revert to exempt status

after lapse of 3 consecutive years

0

b) Not subject to VAT M39 1

(i) Change of control of a corporation 0

(ii) Change in the trade or corporate name 0

(iii) Merger or consolidation of corporations 0

12. VAT on importation of goods EIV M36 2

a) Transfer of goods by tax exempt persons EXI 1

13. VAT on sale of service and use or lease of properties EXIIb M33 EVII 3

a) Requisites for taxability 0


14. Zero-rated sale of services 0

15. VAT exempt transactions M26

M40 2

a) VAT exempt transactions, in general EIV M30

M40 3

b) Exempt transaction, enumerated EXIV M32 2

16. Input tax and output tax, defined M37

M40 2

17. Sources of input tax 0

a) Purchase or importation of goods 0

b) Purchase of real properties for which a VAT has

actually been paid 0

c) Purchase of services in which VAT has actually

been paid 0

d) Transactions deemed sale 0

e) Presumptive input 0

f) Transitional input 0

18. Persons who can avail of input tax credit M38 1

19. Determination of output/input tax; VAT payable;

excess input tax credits

M38

M40 2

a) Determination of output tax 0

b) Determination of input tax creditable M38 1

c) Allocation of input tax on mixed transactions 0

d) Determination of the output tax and VAT payable

and computation of VAT payable or excess tax credits 0

20. Substantiation of input tax credits 0

21. Refund or tax credit of excess input tax EXV 1

a) Who may claim for refund/apply for issuance of tax

credit certificate 0

b) Period to file claim/apply for issuance of tax credit

certificate 0

c) Manner of giving refund 0

d) Destination principle or cross-border doctrine 0


22. Invoicing requirements 0

a) Invoicing requirements in general M74 1

b) Invoicing and recording deemed sale transactions 0

c) Consequences of issuing erroneous VAT invoice or

VAT official receipt 0

23. Filing of return and payment M26 1

24. Withholding of final VAT on sales to government 0

E. Tax remedies under the NIRC 0

1. Taxpayer’s remedies 0

a) Assessment EXIa

EXIb

EXII

MV 4

(i) Concept of assessment M33 M44 2

(a) Requisites for valid assessment M44 1

(b) Constructive methods of income determination 0

(c) Inventory method for income determination 0

(d) Jeopardy assessment M47

M68 2

(e) Tax delinquency and tax deficiency EVI M55 EX 3

(ii) Power of the Commissioner to make assessments

and prescribe additional requirements for tax

administration and enforcement

EXIIa M74 2

(a) Power of the Commissioner to obtain

information, and to summon/examine, and take

testimony of persons

0

(iii) When assessment is made 0

(a) Prescriptive period for assessment EIX M8 M46 3

(1) False, fraudulent, and non-filing of returns EVI EIe M57 3

(b) Suspension of running of statute of limitations EIId MXI 2

(iv) General provisions on additions to the tax 0

(a) Civil penalties 0

(b) Interest 0

(c) Compromise penalties 0


(v) Assessment process EVIIa

EVIIb 2

(a) Tax audit M44 1

(b) Notice of informal conference M47 1

(c) Issuance of preliminary assessment notice M47 1

(d) Notice of informal conference 0

(e) Issuance of preliminary assessment notice 0

(f) Exceptions to issuance of preliminary assessment

notice EVI 1

(g) Reply to preliminary assessment notice M29 1

(h) Issuance of formal letter of demand and

assessment notice/final assessment notice EIV M47 MXII 3

(i) Disputed assessment 0

(j) Administrative decision on a disputed assessment 0

(vi) Protesting assessment M54

M71 M48 3

(a) Protest of assessment by taxpayer M48 1

(1) Protested assessment M60 1

(2) When to file a protest M48 1

(3) Forms of protest 0

(4) Content and validity of protest 0

(b) Submission of documents within 60 days from

filing of protest 0

(c) Effect of failure to protest 0

(d) Period provided for the protest to be acted upon 0

(vii) Rendition of decision by Commissioner 0

(a) Denial of protest EV 1

(1) Commissioner’s actions equivalent to denial of

protest 0

(a) Filing of criminal action against taxpayer M59 1

(b) Issuing a warrant of distraint and levy M30 M51 2


(2) Inaction by Commissioner EVIII M36

M71 M49 4

(viii) Remedies of taxpayer to action by Commissioner M49 1

(a) In case of inaction by Commissioner within 180

days from submission of documents M71 M49 2

(B) Effect of failure to appeal M49 1

b) Collection M34 M55 2

(i) Requisites 0

(ii) Prescriptive periods EXVII

b M55 2

(iii) Distraint of personal property including

garnishment M44 M56 2

(a) Summary remedy of distraint of personal

property M56 1

(1) Purchase by the government at sale upon

distraint 0

(2) Report of sale to the Bureau of Internal Revenue

(BIR) 0

(3) Constructive distraint to protect the interest of

the government 0

(iv) Summary remedy of levy on real property EV M56 2

(a) Advertisement and sale 0

(b) Redemption of property sold 0

(c) Final deed of purchaser 0

(v) Forfeiture to government for want of bidder 0

(a) Remedy of enforcement of forfeitures 0

(1) Action to contest forfeiture of chattel 0

(b) Resale of real estate taken for taxes 0

(c) When property to be sold or destroyed 0

(d) Disposition of funds recovered in legal

proceedings or obtained from forfeiture 0

(vi) Further distraint or levy 0

(vii) Tax lien 0


(viii) Compromise M40

M47 M52 3

(a) Authority of the Commissioner to compromise

and abate taxes EIb EV M52 3

(ix) Civil and criminal actions M59 1

(a) Suit to recover tax based on false or fraudulent

returns 0

c) Refund EXIII 1

(i) Grounds and requisites for refund EIV2a M60 2

(ii) Requirements for refund as laid down by cases 0

(a) Necessity of written claim for refund 0

(b) Claim containing a categorical demand for

reimbursement EVI3 1

(c) Filing of administrative claim for refund and the

suit/proceeding before the CTA within 2 years from

date of payment regardless of any supervening

cause

EX M49 M53

M60 4

(iii) Legal basis of tax refunds 0

(iv) Statutory basis for tax refund under the tax code 0

(a) Scope of claims for refund 0

(b) Necessity of proof for claim or refund EIV 1

(c) Burden of proof for claim of refund 0

(d) Nature of erroneously-paid tax/illegally

assessed collected 0

(e) Tax refund vis-à-vis tax credit EVI1 1

(f) Essential requisites for claim of refund 0

(v) Who may claim/apply for tax refund/tax credit EIV2b EIIIb 2

(a) Taxpayer/withholding agents of non-resident

foreign corporation EXa 1

(vi) Prescriptive period for recovery of tax

erroneously or illegally collected EIIIa 1

(vii) Other consideration affecting tax refunds 0

2. Government remedies 0


a) Administrative remedies 0

(i) Tax lien 0

(ii) Levy and sale of real property 0

(iii) Forfeiture of real property to the government for

want of bidder 0

(iv) Further distraint and levy 0

(v) Suspension of business operation 0

(vi) Non-availability of injunction to restrain

collection of tax 0

b) Judicial remedies 0

3. Statutory offenses and penalties 0

a) Civil penalties 0

(i) Surcharge 0

(ii) Interest 0

(a) In general 0

(b) Deficiency interest 0

(c) Delinquency interest 0

(d) Interest on extended payment 0

4. Compromise and abatement of taxes 0

a) Compromise EII2 1

b) Abatement 0

F. Organization and Function of the Bureau of

Internal Revenue 0

1. Rule-making authority of the Secretary of Finance EIV 1

a) Authority of Secretary of Finance to promulgate

rules and regulations 0

b) Specific provisions to be contained in rules and

regulations 0

c) Non-retroactivity of rulings EV EIVc M27 3

2. Power of the Commissioner to suspend the business

operation of a taxpayer 0

III. Local Government Code of 1991, as amended 0


A. Local Government Taxation 0

1. Fundamental principles M61 1

2. Nature and source of taxing power EI M61 2

a) Grant of local taxing power under the local

government code EIIe M61 2

b) Authority to prescribe penalties for tax violations 0

c) Authority to grant local tax exemptions M62 1

d) Withdrawal of exemptions M62 1

e) Authority to adjust local tax rates 0

f) Residual taxing power of local governments M62 1

g) Authority to issue local tax ordinances M62 MXV 2

3. Local taxing authority M62 1

a) Power to create revenues exercised through Local

Government Units M62 1

b) Procedure for approval and effectivity of tax

ordinances 0

4. Scope of taxing power EXIII 1

5. Specific taxing power of Local Government Units M63

M68 2

a) Taxing powers of provinces 0

(i) Tax on transfer of real property ownership M65 1

(ii) Tax on business of printing and publication 0

(iii) Franchise tax EII 1

(iv) Tax on sand, gravel and other quarry services 0

(v) Professional tax EXIV1 M56 2

(vi) Amusement tax M29 1

(vii) Tax on delivery truck/van 0

b) Taxing powers of cities EIII1 EVIII M70 3

c) Taxing powers of municipalities 0

(i) Tax on various types of businesses EXIV EIII 2

(ii) Ceiling on business tax impossible on

municipalities within Metro Manila M70 1


(iii) Tax on retirement on business EIIf 1

(iv) Rules on payment of business tax EXIV EXIIIb 2

(v) Fees and charges for regulation & licensing 0

(vi) Situs of tax collected 0

d) Taxing powers of barangays 0

e) Common revenue raising powers 0

(i) Service fees and charges EVI 1

(ii) Public utility charges 0

(iii) Toll fees or charges 0

f) Community tax 0

6. Common limitations on the taxing powers of LGUs M62 1

7. Collection of business tax 0

a) Tax period and manner of payment EXIIIa M64 2

b) Accrual of tax 0

c) Time of payment 0

d) Penalties on unpaid taxes, fees or charges EXIIIb 1

e) Authority of treasurer in collection and inspection of

books 0

8. Taxpayer’s remedies 0

a) Periods of assessment and collection of local taxes,

fees or charges 0

b) Protest of assessment EIX 1

c) Claim for refund of tax credit for erroneously or

illegally collected tax, fee or charge 0

9. Civil remedies by the LGU for collection of revenues 0

a) Local government’s lien for delinquent taxes, fees

or charges 0

b) Civil remedies, in general 0

(i) Administrative action 0

(ii) Judicial action 0

B. Real Property Taxation 0


1. Fundamental principles 0

2. Nature of real property tax 0

3. Imposition of real property tax EVIb EXIV M66 3

a) Power to levy real property tax EIII1 1

b) Exemption from real property tax EIII EIX M66 3

4. Appraisal and assessment of real property tax M65

M67 EVIII 3

a) Rule on appraisal of real property at fair market

value Eva M67 2

b) Declaration of real property 0

c) Listing of real property in assessment rolls 0

d) Preparation of schedules of fair market value 0

(i) Authority of assessor to take evidence 0

(ii) Amendment of schedule of fair market value 0

e) Classes of real property 0

f) Actual use of property as basis of assessment 0

g) Assessment of real property M41 1

(i) Assessment levels 0

(ii) General revisions of assessments and property

classification 0

(iii) Date of effectivity of assessment or

reassessment 0

(iv) Assessment of property subject to back taxes 0

(v) Notification of new or revised assessment 0

h) Appraisal and assessment of machinery 0

5. Collection of real property tax 0

a) Date of accrual of real property tax and special

levies M50 1

b) Collection of tax 0

(i) Collecting authority 0

(ii) Duty of assessor to furnish local treasurer with

assessment rolls 0


(iii) Notice of time for collection of tax EXVI 1

c) Periods within which to collect real property tax M64 1

d) Special rules on payment 0

(i) Payment of real property tax in installments 0

(ii) Interests on unpaid real property tax 0

(iii) Condonation of real property tax 0

e) Remedies of LGUs for collection of real property tax 0

(i) Issuance of notice of delinquency for real property

tax payment 0

(ii) Local government’s lien 0

(iii) Remedies in general 0

(iv) Resale of real estate taken for taxes, fees or

charges 0

(v) Further levy until full payment of amount due 0

6. Refund or credit of real property tax M67 1

a) Payment under protest 0

b) Repayment of excessive collections 0

7. Taxpayer’s remedies M69 1

a) Contesting an assessment of value of real property M69 1

(i) Appeal to the Local Board of Assessment Appeals 0

(ii) Appeal to the Central Board of Assessment

Appeals 0

(iii) Effect of payment of tax 0

b) Payment of real property tax under protest EXVII

I 1

(i) File protest with local treasurer 0

(ii) Appeal to the Local Board of Assessment Appeals 0

(iii) Appeal to the Central Board of Assessment

Appeals 0

(iv) Appeal to the CTA 0

(v) Appeal to the Supreme Court 0

IV. Tariff and Customs Code of 1978, as amended 0


A. Tariff and duties, defined 0

B. General rule: all imported articles are subject to

duty. M5 EVI 2

1. Importation by the government taxable M71 1

C. Purpose for imposition M5 1

D. Flexible tariff clause 0

E. Requirements of importation 0

1. Beginning and ending of importation M71 1

2. Obligations of importer 0

a) Cargo manifest M74 1

b) Import entry M74 1

c) Declaration of correct weight or value 0

d) Liability for payment of duties 0

e) Liquidation of duties 0

f) Keeping of records 0

F. Importation in violation of tax credit certificate 0

1. Smuggling MXVII

I 1

2. Other fraudulent practices 0

G. Classification of goods 0

1. Taxable importation EIII3 EIVa 2

2. Prohibited importation 0

3. Conditionally-free importation M61 1

H. Classification of duties 0

1. Ordinary/regular duties 0

a) Ad valorem; methods of valuation EIII2a M73 2

(i) Transaction value 0

(ii) Transaction value of identical goods 0

(iii) Transaction value of similar goods 0

(iv) Deductive value 0


(v) Computed value 0

(vi) Fallback value 0

b) Specific 0

2. Special duties 0

a) Dumping duties EIII2b 1

b) Countervailing duties EIII2b 1

c) Marking duties 0

d) Retaliatory/discriminatory duties M70 1

e) Safeguard 0

I. Remedies 0

1. Government 0

a) Administrative/extrajudicial 0

(i) Search, seizure, forfeiture, arrest EIXa

EIXb EV 3

b) Judicial 0

(i) Rules on appeal including jurisdiction EVIII 1

2. Taxpayer 0

a) Protest M72 1

b) Abandonment M63 1

c) Abatement and refund 0

V. Judicial Remedies (R.A. No. 1125, as amended,

and the Revised Rules of the Court of Tax Appeals) EX 1

A. Jurisdiction of the Court of Tax Appeals EIc M75 2

1. Exclusive appellate jurisdiction over civil tax cases EXVII

a 1

a) Cases within the jurisdiction of the court en banc EIe 1

b) Cases within the jurisdiction of the court in

divisions 0

2. Criminal cases 0

a) Exclusive original jurisdiction EId 1

b) Exclusive appellate jurisdiction in criminal cases 0

B. Judicial procedures 0


1. Judicial action for collection of taxes M53 1

a) Internal revenue taxes 0

b) Local taxes 0

(i) Prescriptive period EIab 1

2. Civil cases 0

a) Who may appeal, mode of appeal, effect of appeal 0

(i) Suspension of collection of tax EVII 1

(a) Injunction not available to restrain collection 0

(ii) Taking of evidence 0

(iii) Motion for reconsideration or new trial MXIII 1

b) Appeal to the CTA, en banc M50 1

c) Petition for review on certiorari to the Supreme

Court 0

3. Criminal cases EXIV2 EXIII M57 3

a) Institution and prosecution of criminal actions 0

(i) Institution of civil action in criminal action 0

b) Appeal and period to appeal 0

(i) Solicitor General as counsel for the people and

government officials sued in their official capacity 0

c) Petition for review on certiorari to the Supreme

Court 0

C. Taxpayer’s suit impugning the validity of tax

measures or acts of taxing authorities EXII M45 2

1. Taxpayer’s suit, defined 0

2. Distinguished from citizen’s suit 0

3. Requisites for challenging the constitutionality of a tax

measure or act of taxing authority 0

a) Concept of locus standi as applied in taxation 0

b) Doctrine of transcendental importance 0

c) Ripeness for judicial determination 0

tally of bar exams - tax (updated)

Documents

b tax exemption

power of taxation

purpose of taxation

donors tax

taxation ev

incidence of taxation

limitation of taxation

b nature of tax exemption