PART I A.1. On October 5, 2016, the Bureau of Internal Revenue (BIR) sent KLM Corp. a Final Assessment Notice (FAN), stating that after its audit pursuant to a Letter of Authority duly issued thereof, KLM Corp. had deficiency value-added and withholding taxes. Subsequently, a warrant of distraint and/or levy was issued against KLM Corp.… Read More SUGGESTED ANSWERS to the 2019 Bar Exam in Taxation (UPLC)
FACTS: On April 11, 1996, Fitness filed its Annual Income Tax Return for the taxable year of 1995. According to Fitness, it was still in its pre-operating stage during the covered period. On June 9, 2004, Fitness received a copy of the Final Assessment Notice issued under a Letter of Authority which assessed that Fitness… Read More COMMISSIONER OF INTERNAL REVENUE v. FITNESS BY DESIGN, INC. G.R. No. 215957, November 09, 2016 Final Assessment Notice, Due Process of Law, Lifeblood Doctrine
FACTS: From 2016, the Philippines began regulating online gaming hubs, specifically the Philippine Offshore Gaming Operators (POGOs). The PAGCOR issued POGO Rules and Regulations defining offshore gaming as “the offering by a licensee of PAGCOR authorized online games of chance via the internet using a network and software or program, exclusively to offshore authorized players… Read More SAINT WEALTH LTD. v. BIR G.R. No. 252965 December 07, 2021, POGO Rules and Regulations, Franchise Tax
FACTS: Petitioner is a domestic corporation whose primary purpose is “to establish, maintain, conduct and operate a prepaid group practice health care delivery system or a health maintenance organization to take care of the sick and disabled persons enrolled in the health care plan and to provide for the administrative, legal, and financial responsibilities of… Read More PHILIPPINE HEALTH CARE PROVIDERS, INC. v. CIR G.R. No. 167330, September 18, 2009 Insurance Business, Documentary Stamp Tax, “Power to Destroy”
FACTS: Filminera Resources and Philippine Gold Processing and Refining Corporation (PGPRC), a domestic corporation registered with the BOI, entered into an Ore Sales and Purchase Agreement. For the third and fourth quarters of the fiscal year (FY) ending June 30, 2010, Filminera Resources’ sales were all made to PGPRC. On March 30, 2012 and June 29,… Read More CIR v. Filminera G.R. No. 236325, September 16, 2020 VAT, Cross Border Doctrine, Destination Principle, Refund or Tax Credit for the Input VAT Attributable to Zero-Rated Sales
FACTS: On July 8, 2011, Univation Motor Philippines, Inc. (respondent) filed its amended Annual Income Tax Return (ITR) for 2010 showing a total gross income of ₱117,084,174.00 and an overpayment of income taxes amounting to ₱26,103,898.52. Respondent opted to claim its overpayment of income tax through the issuance of a tax credit certificate. On March… Read More CIR v. Univation Motor Philippines, Inc. (formerly NISSAN MOTOR PHILIPPINES, INC.) Recovery of Tax Erroneously or Illegally Collected, Administrative and Judicial Remedies
FACTS: On November 30, 2011, Qatar Airways Company with Limited Liability (petitioner) filed, through the Electronic Filing and Payment System (eFPS) of the BIR, its 2nd Quarterly Income Tax Return (ITR) for the Fiscal Year ending March 31, 2012 and paid the corresponding tax due thereon in the amount of P29,540,836.00. The said filing was… Read More QATAR AIRWAYS COMPANY WITH LIMITED LIABILITY v. CIR G.R. No. 238914, June 08, 2020 Late Payment of Taxes, Abatement of Tax Liability, Surcharges
FACTS: On February 23, 1990, ICC, a domestic corporation, received from the BIR an Assessment Notice for deficiency income tax in the amount of P333,196.86 due to BIR’s disallowance of ICC’s claimed expense deductions for professional and security services billed to and paid by ICC in 1986, and the alleged understatement of ICC’s interest income… Read More CIR v. ISABELA CULTURAL CORP. G.R. No. 172231 February 12, 2007 All Events Test, Accrual Method of Accounting, Allowable Deductions
FACTS: On March 30, 2005, petitioner Nippon Express filed an application for tax credit of its excess/unused input taxesattributable to zero-rated sales for the taxable year 2004 in the total amount of ₱27,828,748.95.By reason of the inaction by the BIR, Nippon Express subsequently filed a Petition for Review before the CTA. In its Answer, respondent… Read More NIPPON EXPRESS (PHILIPPINES) CORPORATION v. CIR G.R. No. 191495 July 23, 2018 VAT
FACTS: On 11 March 1991, CIR Jose U. Ong issued Revenue Memorandum Order (RMO) No. 15-91 classifying pawnshops as lending investors and therefore imposing a 5% lending investor’s tax on pawnshops. This RMO was clarified by Revenue Memorandum Circular (RMC) No. 43-91 on 27 May 1991. Pursuant to these issuances, the BIR issued an Assessment… Read More CIR v. Michel J. Lhuillier Pawnshop, Inc. G.R. No. 150947, July 15, 2003 Rule-making Power of the Commissioner