Pinoy Mobile Case Digests

FACTS: These cases involve the taxability of stemmed leaf tobacco imported and locally purchased by cigarette manufacturers for use as raw material in the manufacture of their cigarettes. Under the Tax Code, if it is to be exported or to be used in the manufacture of cigars, cigarettes, or other tobacco products on which the excise tax will eventually be paid on the finished product. La Suerte was assessed by the BIR for excise tax deficiency amounting to more than 34 million pesos. La Suerte protested invoking the Tax Code which allows the sale of stemmed leaf tobacco as raw material by one manufacturer directly to another without payment of the excise tax. However, the CIR insisted that stemmed leaf tobacco is subject to excise tax "unless there is an express grant of exemption from [the] payment of tax." La Suerte petitioned for review before the CTA which cancelled the assessment. The CIR appealed to the CA which reversed the CTA. The CIR invoked a revenue regu...

FACTS: BIR sent Apo cement a Final Assessment Notice (FAN) for deficiency taxes for the taxable year 1999, totalling to more than 144 million pesos. Apo Cement protested the FAN. However, BIR denied the protest. A Final Decision on Disputed Assessment (FDDA) was issued. Apo Cement petitioned for review with the CTA. The CIR admitted that Apo Cement had already paid the deficiency assessment in the FDDA, except the documentary stamp taxes (DST) based on several real property transactions. In the meantime, Apo Cement availed of the tax amnesty under Republic Act No. 9480, particularly affecting the 1999 deficiency. Hence, it filed a motion to cancel tax assessment. The CTA granted the motion. The CIR motioned for reconsideration and appealed but failed. One of the requirements for tax amnesty under said law is the submission of SALN. The CIR wished to question the correctness of Apo Cement's SALN. ISSUES: [1] Is Apo Cement entitled to tax amnesty under RA 9480? ...

FACTS: When SMC's October 19, 1999 letter requested the registration and authority to manufacture "San Mig Light," to be taxed at ₱12.15 per liter, the BIR granted the request, thus confirming SMC can register, manufacture, and sell "San Mig Light" as a new brand. The CIR argues that "San Mig Light," launched in November 1999, is not a new brand but merely a low-calorie variant of "San Miguel Pale Pilsen." Thus, the application of the higher excise tax rate for variant products is appropriate (₱19.91 per liter instead of ₱9.15 per liter) and SMC should not be entitled to a refund or issuance of a tax credit certificate. The CTA sided with SMC; hence, this petition by the CIR with the SC. ISSUES: [1] Can the BIR validly reclassify brands? [2]   Is "San Mig Light" is a new brand and not a variant of "San Miguel Pale Pilsen"? [3]   Is it not that estoppel does not apply to the government in case of collectio...

FACTS: ING Bank, "the Philippine branch of Internationale Nederlanden Bank N.V., a foreign banking corporation incorporated in the Netherlands, is duly authorized by the Bangko Sentral ng Pilipinas to operate as a branch with full banking authority in the Philippines."   Petitioner ING Bank asserts that it is "qualified to avail of the tax amnesty under Section 5 [of Republic Act No. 9480] and not disqualified under Section 8 [of the same law]."   Furthermore, Petitioner ING Bank claims that it is not liable for withholding taxes on bonuses accruing to its officers and employees during taxable years 1996 and 1997. It maintains its position that the liability of the employer to withhold the tax does not arise until such bonus is actually distributed. Petitioner ING Bank further argues that the Court of Tax Appeals' discussion on Section 29(j) of the 1993 National Internal Revenue Code and Section 3 of Revenue Regulations No. 8-90 is not applicable becau...

Summary: Parties must comply with the doctrines on hierarchy of courts and exhaustion of administrative remedies. Otherwise, they run the risk of bringing premature cases before this Court, which may result to protracted litigation and over clogging of dockets. FACTS: On July 12, 2011, the Sangguniang Panlungsod of Tagum City's Committee on Finance conducted a public hearing for the approval of a proposed ordinance. The proposed ordinance sought to adopt a new schedule of market values and assessment levels of real properties in Tagum City. It then passed City Ordinance No. 516, s2011, entitled An Ordinance Approving the New Schedule of Market Values, its Classification, and Assessment Level of Real Properties in the City of Tagum. The ordinance was approved by Mayor Rey T. Uy (Mayor Uy) on November 11, 2011 and was immediately forwarded to the Sangguniang Panlalawigan of Davao del Norte for review. On February 7, 2012, the Sangguniang Panlalawigan of Davao del Norte...

FACTS: On 09 June 2004, respondent received a copy of the Final Assessment Notice dated 17 March 2004 issued by petitioner notifying the former of its internal revenue tax liabilities for the year 1995. Respondent filed a protest to the said notice pleading prescription. In its Answer, petitioner claimed that its right to assess had not yet prescribed because the 1995 income tax return filed by respondent was false and fraudulent for its alleged intentional failure to reflect its true sales. ISSUE: Whether or not fraud may be presumed. HELD: No. The prescriptive period in making an assessment depends upon whether a tax return was filed or whether the tax return filed was either false or fraudulent. When a tax return that is neither false or fraudulent has been filed, the BIR may assess within three years, reckoned from the date of actual filing or from the last day prescribed by law for filing. However, in case of a false or fraudulent return with intent to evade tax, it ma...