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    Tax Bar Q Topics

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    Mae
    1) Issuance of a PAN is required before a FAN can be issued, except in certain cases allowed by law. 2) If an assessment is valid, any subsequent levy or distraint will also be valid. 3) In cases of fraudulent tax returns filed with intent to evade taxes, collection suits can be pursued even without an assessment, and criminal complaints for tax evasion can be filed without an assessment.

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    Tax Bar Q Topics

    Uploaded by

    Mae
    72 views18 pages
    1) Issuance of a PAN is required before a FAN can be issued, except in certain cases allowed by law. 2) If an assessment is valid, any subsequent levy or distraint will also be valid. 3) In cases of fraudulent tax returns filed with intent to evade taxes, collection suits can be pursued even without an assessment, and criminal complaints for tax evasion can be filed without an assessment.

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    1) Issuance of a PAN is required before a FAN can be issued, except in certain cases allowed by law. 2) If an assessment is valid, any subsequent levy or distraint will also be valid. 3) In cases of fraudulent tax returns filed with intent to evade taxes, collection suits can be pursued even without an assessment, and criminal complaints for tax evasion can be filed without an assessment.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    72 views18 pages

    Tax Bar Q Topics

    Uploaded by

    Mae
    1) Issuance of a PAN is required before a FAN can be issued, except in certain cases allowed by law. 2) If an assessment is valid, any subsequent levy or distraint will also be valid. 3) In cases of fraudulent tax returns filed with intent to evade taxes, collection suits can be pursued even without an assessment, and criminal complaints for tax evasion can be filed without an assessment.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 18

    Issuance of PAN- part and parcel of due process accorded to a taxpayer; PAN must precede the issuance

    of a FAN, except in certain instances as provided by law in Sec 228, NIRC.


    If the assessment is valid, the subsequent levy or distraint shall also be invalid

    *In cases where a fraudulent return is filed with intent to evade, collection suit may pursue.
    *Assessment is not necessary before there can be a filing for criminal complaint for tax evasion
    Effectively Zero-rated transactions

    In the course of business..


    Capital Gains Tax:
    Individual- Land 6%); Stocks Not traded (15% for RC, NRC, RA, NRA)
    Corporation- Land/bldg. (6%).; Stocks not traded (15% for DC; 5% or 10% for RFC or NRFC, cap is 100K)

    Definition of Ordinary Assets (SOUR)


    Capital Assets, WON connected to taxpayer’s trade or business, but w/c are not included to those
    enumerated
    Double Taxation: taxing the same property twice when it should be taxed only once; Elements: same
    authority, same subject matter, same tax period (repeatedly asked)
    Limitation on Local Taxation- Sec. 133, LGC

    Olympic- sanctioned by Nat’l Sports Assoc

    Non-resident Alien:
    NEBT: below 180 days; within -0-35%
    EBT: 180 days and above; within-25%
    Fringe Benefits Tax
    *Benefits granted to employee for the benefit or convenience of the employer are exempt from FBT

    Real Property Tax


    *When the beneficial use of a public land is vested unto a non-exempt entity for a consideration, the
    same land can be subject to RPT
    Withholding Taxes
    *Withholding Tax Agents

    *filing for judicial claims for erroneous payments: Note, not the usual tax provision- 2 years from the
    time of payment… see below

    Claim for erroneous tax payment


    *vs. claim for input VAT
    another impt distinction is with respect to compliance with the waiting period for CIR to decide on the
    case- for erroneous payment- waiting for the 90 day period is NOT mandatory; but for input VAT-
    waiting period is mandatory (before train law that is 120 + 30; under train law 90+30)
    in the bar q, what was asked is in relation to excess input VAT; hence, answer is:

    Donation as Tax Deduction


    Improperly Accumulated Earnings Tax

    Branch Profit Remittance Tax


    Estate Taxation
    *Property, even though held as trust, but registered in the name of the decedent (and in the case, there
    is no deed of trust executed in favor of the alleged real owner), is included as part of the gross estate of
    the deceased.
    *Elements of each deductible expenses (eg. Losses- must be incurred before the last day of payment of
    estate tax)

    VAT

    *Transaction Deemed Sale (Presumed output VAT)


    Cessation of business- includes a situation where a sole proprietorship ceased to exist and
    incorporates
    * Real Property used in trade or business- subject to VAT (even if not part of the inventory subject for
    sale) and subject to income tax (not CGT)
    Tax-exempt buyer cannot invoke its exemption in order to avoid the imposition of the VAT on the
    transaction

    Tax-Free Exchange [Section 40 (C) Tax Code]


    Jurisdiction of the CTA
    CTA has jurisdiction over appealed cases and R65 cases involving taxes, not CA; such jurisdiction includes
    issues involving issuances of interlocutory orders
    Real Property Taxation
    * Reassessment of RP due to major change of its actual use has no retroactive effect. It is only effective
    at the beginning of the QUARTER next following the reassessment.
    * “Paid under Protest”- in writing, filed with the treasurer within 30 days from payment of the tax:
    payment is a must for protest to pursue
    *say 2/3 of the bldg. is commercially used and 1/3 is residential; owner argues that only 2/3 shall be
    subject to reassessment and not the whole building: Yes the property must be classified, valued and
    assessed on the basis of its actual use regardless of where located, whoever owns it and whoever uses
    it.

    Interesting Bar Q Problem:


    Local Taxation
    50% Surcharge
    S248 (B) NIRC, 50% surcharger on deficiency tax is imposable in case a false or fraudulent return is
    willfully made. Failure to report sales or income in an amount exceeding 30% of that declared per return
    constitutes substantial underdeclaration of sales and is prima facie evidence of a false or fraudulent
    return. Failure to controvert the same, tax return filed is deemed false or fraudulent, hence, proper
    imposition of 50% surcharge.

    Surcharge is in the nature of penalty- cannot be a subject of compromise. What can be compromised
    are internal revenue taxes (S 204, NIRC)

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