Tax Laws

John V. Balanquit

Objectives

After the presentation, students should be able to:• Describe the nature of tax laws• Distinguish the sources of tax laws• Explain how tax laws are applied and

interpreted

Nature of Tax Laws

• Tax laws are civil in nature. It becomes criminal in nature when taxpayers refuse to pay taxes even after due process was done.

Sources of Tax Laws

• Constitution• Statues (R.A. 8428 and R.A. 9504)• Executive orders• Tax treaties• Revenue regulations• BIR revenue memorandum circulars

Sources of Tax Laws

• B.C. memorandum orders• BIR rulings• Judicial Decisions• Local tax ordinances

Application of Tax Laws

• Tax statutes are enforced as written• Imposition of tax burden is not presumed• Doubts should be resolved liberally in favor

of the taxpayer

Application of Tax Laws

• Exemptions are strictly construed against the taxpayer

• Tax laws are applied prospectively• Tax laws prevail over civil laws

Interpretation of Tax Laws

The BIR Commissioner issued BIR rulings which may be overruled by succeeding BIR Commissioners

Interpretation of Tax Laws

Revenue regulations are issued by the Department of Finance to cover implementing guidelines

Interpretation of Tax Laws

Revenue regulations are overruled by court decisions upon issuance of resolutions

End of Lecture.

Thank You!