Professional Documents
Culture Documents
"
5
a. Assessment and collection of revenues
from imported articles and all other
impositions under the tariff and customs
laws!
b. Control smuggling and related frauds!
c. Supervision and control over the
entrance and clearance of vessels and
aircraft engaged in foreign commerce!
d. Enforcement of &++ and related laws!
e. Supervision and control over the
handling of foreign mails arriving in the
Philippines!
f. Supervise and control all import and
export cargoes for the protection of
government revenue!
g. Exclusive original jurisdiction over
sei)ure and forfeiture cases under the
tariff and customs laws.
= 73RISDICTION OF COLLECTOR OF C3STOMS
O8ER IMPORTATION OF ARTICLES
1. +ause all articles for importation to be
entered in the customhouse(
2. +ause all such articles to be appraised
and classified(
". -ssess and collect the duties( taxes and
other charges thereon( and
4. Hold possession of all imported articles
until the duties( taxes and other charges
are paid thereon. -4ec. 596C, 'CC.
= TERRITORIAL 73RISDICTION OF THE BOC
1. -ll seas within the jurisdiction of the
Philippines
2. -ll coasts( ports( airports( harbors( bays(
rivers and inland waters whether
navigable or not from the sea. -5
st
+ar,
4ec. C6A, 'CC.
= WHEN TARIFF AND C3STOMS APPLIED
Gnly after importation has begun but
before importation is terminated.
&m+ortation beins3
a. when the conveying vessel or aircraft
b. enters the jurisdiction of the Phil.
c. with intention to unload therein
&m+ortation is deemed terminated3
a. 3i4 upon payment of the duties( taxes
and other charges due upon the
articles.
3ii4 and legal permit for withdrawal
shall have been granted.
b. 0n case the articles are free of
duties( taxes and other charges(
until they have legally left the
jurisdiction of the customs -4ec.
5969, 'CC.
= ARTICLES 3NDER TCC
/ay eit%er be3
MEMORY AID IN TAXATION LAW
SAN BEDA COLLEGE OF LAW 2003 CENTRALIZED BAR OPERATIONS
Reproduction in any form of this copy is strictly prohibited!!!
MEMORY AID IN TAXATION LAW
SAN BEDA COLLEGE OF LAW 2003 CENTRALIZED BAR OPERATIONS
Reproduction in any form of this copy is strictly prohibited!!!
="
TAXATION LAW COMMITTEE: Chairperson: Rhodaline Regoso; Asst. Chairperson & EDP: Maricel Alisuag; Subject
Heads:unelet Mataro! Michelle Al"are#! E$ren Di#on! %han &uieb; Me'bers: Alexis Cervantes. Leizl Calimaran, Berna
Quibal, Noreli De Claro, Jocelyn Gamboa, Albert Rodriuez, !arla Cabel, Rodol"o Quitolbo, Liam #adananan, #aul
La$rence Lim, Alder Delloro, Jo%n &van 'ablizo, Ria &baviosa, #anc%o (as)uez, Aileen Roxas, Lei" *+i,a
1. S1&<e,! !" (1!+ /
a. 1ive animals and animal products!
b. Iegetable products!
c. -nimal or vegetable fats! oils and their
cleavage products! prepared edible
fats! animal or vegetable waxes!
d. Prepared foodstuffs! beverages(
spirits and vinegar! tobacco and
manufactured tobacco substitutes!
e. ;ineral products!
f. Products of chemical or allied
industries!
g. Plastics and articles thereof! rubber
and articles thereof!
h. Raw hides and s*ins! leather( etc.!
i. 'ood and articles of wood( etc.!
j. Pulp of wood( etc.!
*. &extiles and textile articles!
l. -rticles of stone! plaster( cement( etc.!
m. >ootwear( headgear( etc.!
n. ?atural or cultured pearls
preciousJsemi,precious stones!
o. 2ase metals and articles of base
metals!
p. ;achinery and mechanical
appliances! electric e6uipment! sound
recorders( etc.!
6. Iehicles( aircraft( vessels and
associated transport e6uipment!
r. Gptical( photographic( medical(
surgical instruments( etc.!
s. -rms( ammunition( parts and
accessories!
t. ;iscellaneous manufactured articles!
and
u. 'or*s of art( collector.s pieces arid
anti6ues -4ec. 567, 'itle 5, 'CC..
2. P*")i&i!e( f*"4 &ei= i4/"*!e(
3Prohibited importation4
a. -bsolutely prohibited such asC
weapons of war! gambling devices!
narcotics or prohibited drugs!
immoral( obscene or insidious articles!
and those prohibited under special
laws -4ec.569, 'CC..
b. Zualifiedly prohibited
". C"(i!i"$''+6f*ee f*"4 !$*iff $(
,1#!"4# (1!ie# 3conditionally,free
importation4
a. &hose provided in ec. 1B$( &++!
b. &hose granted to government
agencies( @G++s with agreements
with foreign countries!
c. &hose given to international
institutions entitled to exemption by
agreement or special laws! and
d. &hose that may be granted by the
President upon ?E7-5s
recommendation.
#. F*ee f*"4 TC (1!ie# 3duty,free4
0mported goods must be entered in a
customhouse at their port of entry otherwise they
shall be considered as contraband and the
importer is liable for smuggling -4ee 4ec. 565,
'CC..
-ll articles when imported from any
country into the Philippines shall be subject to
duty upon each importation( even though
previously exported from the Philippines( except
as otherwise specifically provided for in the &++
or other laws.
= LIABILITY FOR C3STOMS D3TIES
E General Rule3 -ll importations J exportations
of goods are subject to customs duties -4ec.
56@, 'CC..
E 2xce+tions3
a. Exemptions under the &++!
b. Exemptions granted to gov5t agencies(
instrumentalities or @G++s with existing
contracts( commitments( agreements( or
obligations with foreign countries!
c. Exemptions of international
organi)ations pursuant to agreements or
special laws! and
d. Exemptions granted by the Pres. of the
Phil. upon recommendation of ?E7-
-4ec. 56@, 'CC..
= LIABILITY OF IMPORTER FOR C3STOM D3TIES
a. - /e*#"$' (e&! which can be
discharged only by payment in full
thereof!
b. - 'ie upon the imported articles while
they are in custody or subject to the
control of the gov5t -4ec. 5967, 'CC..
= DRAWBAC:
- device resorted to for enabling a
commodity affected by taxes to be exported and
sold in foreign mar*ets upon the same terms as
if it had not been taxed at all -My C%iaco 4ons
vs. Collector o" Customs, 97 #%il @C9.
= IMPORT ENTRY
0t is a declaration to the 2G+ showing
particulars of the imported article that will enable
the customs authorities to determine the correct
duties. -n importer is re6uired to file an import
entry. 0t must be accomplished from
disembar*ing of last cargo from vessel.
= TRANSACTION 8AL3E 3NDER RA JCJC
0t is the invoice value of the goods plus freight(
insurance( costs( expenses and other necessary
expenses. &his replaces the Home +onsumption
Ialue as basis of valuation of goods.
MEMORY AID IN TAXATION LAW
SAN BEDA COLLEGE OF LAW 2003 CENTRALIZED BAR OPERATIONS
Reproduction in any form of this copy is strictly prohibited!!!
MEMORY AID IN TAXATION LAW
SAN BEDA COLLEGE OF LAW 2003 CENTRALIZED BAR OPERATIONS
Reproduction in any form of this copy is strictly prohibited!!!
=#
TAXATION LAW COMMITTEE: Chairperson: Rhodaline Regoso; Asst. Chairperson & EDP: Maricel Alisuag; Subject
Heads:unelet Mataro! Michelle Al"are#! E$ren Di#on! %han &uieb; Me'bers: Alexis Cervantes. Leizl Calimaran, Berna
Quibal, Noreli De Claro, Jocelyn Gamboa, Albert Rodriuez, !arla Cabel, Rodol"o Quitolbo, Liam #adananan, #aul
La$rence Lim, Alder Delloro, Jo%n &van 'ablizo, Ria &baviosa, #anc%o (as)uez, Aileen Roxas, Lei" *+i,a
= CLASSIFICATION OF C3STOM D3TIES
A. Re=1'$* D1!ie# those which are imposed
and collected merely as a source of revenue.
1. A( 9$'"*e4 (1!+: &his is a duty based
on the value of the imported article.
2. S/e,ifi, (1!+: &his is a duty based on
the dutiable weight of goods 3either the
gross weight( legal weight( or net
weight4.
". A'!e*$!i= (1!ie#: &his is a duty which
alternates ad valorem and specific.
#. C"4/"1( D1!+: &his is a duty
consisting of ad valorem and specific
duties.
B. S/e,i$' (1!ie# / those which are imposed
and collected in addition to the ordinary customs
duties usually to protect local industries against
foreign competition.
a. 7umping duty
b. +ountervailing duty
c. ;ar*ing duty
d. 7iscriminatory duty
= NAT3RE OF SPECIAL C3STOMS D3TIES
pecial customs duties are additional import
duties imposed on specific *inds of imported
articles under certain conditions.
= P3RPOSE OF SPECIAL C3STOMS D3TIES
&he special customs duties are imposed for the
protection of consumers and manufacturers( as
well as Phil. products from undue competition
posed by foreign,made products.
= SPEC,A. D/*,ES C(MPARED
D3MPING D3TY CO3NTER8AILING D3TY MAR:ING D3TY
DISCRIMINATORY
D3TY
-ature
0mposed upon foreign
products with value lower than
their fair mar*et value to the
detriment of local products.
0mposed upon foreign
goods enjoying subsidy
thus allowing them to sell
at lower prices to the
detriment of local products
similarly situated.
0mposed upon
those not properly
mar*ed as to
place of origin of
the goods.
0mposed upon
goods coming from
countries that
discriminate against
Philippine products.
A'ountMRate
7ifference between the actual
price and the normal value of
the article.
E6uivalent to the
bounty( subsidy( or
subvention.
$D ad
valorem of articles
-ny amount not
exceeding 1BBD ad
valorem of the
subject articles
,'posing Authorit6
pecial +ommittee on -nti,
7umping 3composed of the
ec. of >inance as +hairman!
;embersC the ec. of 7&0! and
either the ec. of -griculture if
article in 6uestion is agri.
product or the ec. of 1abor if
non,agri.4
ec. of >inance +ommissioner
of +ustoms
President of the
Philippines
= FLEXIBLE TARIFF CLA3SE
&he President may fix tariff rates( import and
export 6uotas( etc. under &++ -4ee 4ec. 98, Art.
(&, Constitution and 4ec. 765, 'CC.
a. to increase( reduce or remove existing
protective rates of import duty 3including any
necessary change in classification4.
&he existing rates may be increased or
decreased to any level( on one or several
stages but in no case shall the increased
rate of import duty be higher than a
maximum of one hundred 31BBD4 per cent
ad valorem
b. to establish import 6uota or to ban imports of
any commodity( as may be necessary! and
c. to impose an additional duty on all imports
not exceeding ten 31BD4 per cent ad
valorem whenever necessaryC
MEMORY AID IN TAXATION LAW
SAN BEDA COLLEGE OF LAW 2003 CENTRALIZED BAR OPERATIONS
Reproduction in any form of this copy is strictly prohibited!!!
MEMORY AID IN TAXATION LAW
SAN BEDA COLLEGE OF LAW 2003 CENTRALIZED BAR OPERATIONS
Reproduction in any form of this copy is strictly prohibited!!!
=$
TAXATION LAW COMMITTEE: Chairperson: Rhodaline Regoso; Asst. Chairperson & EDP: Maricel Alisuag; Subject
Heads:unelet Mataro! Michelle Al"are#! E$ren Di#on! %han &uieb; Me'bers: Alexis Cervantes. Leizl Calimaran, Berna
Quibal, Noreli De Claro, Jocelyn Gamboa, Albert Rodriuez, !arla Cabel, Rodol"o Quitolbo, Liam #adananan, #aul
La$rence Lim, Alder Delloro, Jo%n &van 'ablizo, Ria &baviosa, #anc%o (as)uez, Aileen Roxas, Lei" *+i,a
= LIMITATIONS IMPOSED REGARDING THE FLEXIBLE
TARIFF CLA3SE C
i. +onduct by the &ariff +ommission of an
investigation in a +ublic %earin.
&he +ommission shall also hear the
views and recommendations of any
government office( agency or instrumentality
concerned.
&he +ommission shall submit their
findings and recommendations to the ?E7-
within thirty 3"B4 days after the termination of
the public hearings.
&he ?E7- thereafter submits its
recommendation to the President.
ii. &he power of the President to increase or
decrease the rates of import duty within the
abovementioned limits fixed in the +ode
s%all include t%e modi"ication in t%e "orm o"
duty.
0n such a case the corresponding ad
valorem or specific e6uivalents of the duty
with respect to the imports from the principal
competing foreign country for the most
recent representative period shall be used
as bases 3ec. #B1( &++4.
' THE TARIFF COMMISSION 2TC5
= F1,!i"# "f !)e T$*iff C"44i#i":
&he +ommission shall investigate /
1. the administration of and the fiscal and
industrial effects of the tariff and customs
laws of this country now in force or which
may hereafter be enacted!
2. the relations between the rates of duty on
raw materials and the finished or partly
finished products!
". the effects of ad valorem and specific duties
and of compound specific and ad valorem
duties!
#. all 6uestions relative to the arrangement of
schedules and classification of articles in the
several schedules of the tariff law!
$. the tariff relations between the Philippines
and "orein countries( commercial treaties(
preferential provisions( economic alliances(
the effect of export bounties and preferential
transportation rates!
%. the volume of importations( compared with
domestic production and consumption!
=. conditions( causes( and effects relating to
competition of foreign industries with those
of the Philippines( including dumping and
cost of production! and
A. in general( to investigate the operation of
customs and tariff laws( including their
relation to the national revenues( their effect
upon the industries and labor of the country
and to submit reports of its investigation as
provided.
MEMORY AID IN TAXATION LAW
SAN BEDA COLLEGE OF LAW 2003 CENTRALIZED BAR OPERATIONS
Reproduction in any form of this copy is strictly prohibited!!!
MEMORY AID IN TAXATION LAW
SAN BEDA COLLEGE OF LAW 2003 CENTRALIZED BAR OPERATIONS
Reproduction in any form of this copy is strictly prohibited!!!
=%
TAXATION LAW COMMITTEE: Chairperson: Rhodaline Regoso; Asst. Chairperson & EDP: Maricel Alisuag; Subject
Heads:unelet Mataro! Michelle Al"are#! E$ren Di#on! %han &uieb; Me'bers: Alexis Cervantes. Leizl Calimaran, Berna
Quibal, Noreli De Claro, Jocelyn Gamboa, Albert Rodriuez, !arla Cabel, Rodol"o Quitolbo, Liam #adananan, #aul
La$rence Lim, Alder Delloro, Jo%n &van 'ablizo, Ria &baviosa, #anc%o (as)uez, Aileen Roxas, Lei" *+i,a
' TAX REMEDIES
3NDER THE TARIFF AND C3STOMS
CODE 2TCC5
= REMEDIES OF THE GO8ERNMENT TO EFFECT
COLLECTION OF TAXES
1. &ax 1ien -4ec. 5967 'CC.
2. Reduction of customs
dutiesJcompromise / subject to
approval of ec. of >inance -4ec.
>6=, 9A5C 'CC.
". +ivil -ction -4ec. 5967 'CC.
#. +riminal -ction
$. ei)ure( earch( -rrest -4ec. 996@,
9956, 9955 'C+4J forfeiture -4ec.
9@A6 'CC.
= REMEDIES OF THE TAXPAYER
0. ADMINISTRATI8E
A. P*"!e#!
a. -ny importer or interested party
if dissatisfied with published value
within 1$ days from date of
publication( or within $ days from the
date the importer is entitled to
refund if payment is rendered
erroneous or illegal by events
occurring after the payment.
b. &axpayer / within 1$ days from
assessment. Payment under
protest is necessary -4ec. 9A68,
9956 'CC.
B. Ref1( /
a. - written claim for refund may
be submitted by the importer in
abatement cases on missing
pac*ages( deficiencies in the
contents of pac*ages or shortages
before arrival of the goods in the
Philippines( articles lost or destroyed
after such arrival( dead or injured
animals( and for manifest clerical
errors! and
b. 7rawbac* cases where the
goods are re,exported -4ec. 5>65G
5>68 'CC..
C. Se!!'e4e! "f $+ #eiM1*e &+
/$+4e! "f fie "* *e(e4/!i" / 2E&
this shall not be allowed in any case
where importation is absolutely
prohibited( or the release would be
contrary to law( or when there is an
actual and intentional fraud -4ec. 9A6>
'CC..
D. A//e$' / within 1$ days to
+ommissioner after notification by
collector of his decision -4ec. 9A5A
'CC..
00. 73DICIAL
-. A//e$' / within "B days from receipt of
decision of the +ommissioner or
ecretary of >inance to the +&- -4ec.
976A 'CC, 4ec. > RA 559@.
2. A,!i" !" ;1e#!i" !)e 'e=$'i!+ "f
#eiM1*e
+. A&$("4e! -4ec. 5865 'CC.
= TWO :INDS OF PROCEEDINGS IN THE B3REA3 OF
C3STOMS 2BOC5
1. C1#!"4# /*"!e#! ,$#e#
2. C1#!"4# #eiM1*e $( f"*fei!1*e ,$#e#
A. C3STOMS PROTEST CASES
= Defii!i": &hese are cases which deal solely
with liability for customs duties( fees( and other
charges.
= WHEN C3STOMS PROTEST APPLICABLE
&he customs protest is re6uired to be
filed only in case the liability of the taxpayer for
duties( taxes( fees and other charges is
determined and the taxpayer disputes said
liability.
= WHEN C3STOMS PROTEST NOT RE>3IRED
'here there is no dispute( but the claim for
refund arises by reason of the happening of
supervening events such as when the raw
material imported is utili)ed in the production of
finished products subse6uently exported and a
duty drawbac* is claimed.
= RE>3IREMENTS FOR MA:ING A PROTEST
a. must be i .*i!i=
b. must point out the particular (e,i#i" "*
*1'i= "f !)e C"''e,!"* "f C1#!"4# to
which exception is ta*en or objection
made!
c. must state the =*"1(# relied upon for
relief!
d. must be 'i4i!e( to the subject matter of
a #i='e $(<1#!4e!!
e. must be fi'e( when the amount claimed
is paid or .i!)i CD ($+# after the
payment!
f. protestant must f1*i#) #$4/'e# "f
=""(# under protest when re6uired.
MEMORY AID IN TAXATION LAW
SAN BEDA COLLEGE OF LAW 2003 CENTRALIZED BAR OPERATIONS
Reproduction in any form of this copy is strictly prohibited!!!
MEMORY AID IN TAXATION LAW
SAN BEDA COLLEGE OF LAW 2003 CENTRALIZED BAR OPERATIONS
Reproduction in any form of this copy is strictly prohibited!!!
==
TAXATION LAW COMMITTEE: Chairperson: Rhodaline Regoso; Asst. Chairperson & EDP: Maricel Alisuag; Subject
Heads:unelet Mataro! Michelle Al"are#! E$ren Di#on! %han &uieb; Me'bers: Alexis Cervantes. Leizl Calimaran, Berna
Quibal, Noreli De Claro, Jocelyn Gamboa, Albert Rodriuez, !arla Cabel, Rodol"o Quitolbo, Liam #adananan, #aul
La$rence Lim, Alder Delloro, Jo%n &van 'ablizo, Ria &baviosa, #anc%o (as)uez, Aileen Roxas, Lei" *+i,a
= PROCED3RE ON C3STOMS PROTEST CASES
&he +ollector acting within his jurisdiction shall
cause the imported goods to be entered at the
customhouse
-
&he +ollector shall assess( li6uidate( and collect
the duties thereon( or detain the said goods if
the party liable does not pay the same
-
&he party adversely affected 3the protestant4
may file a written protest on his foregoing liability
with the +ollector within 1$ days after paying the
li6uidated amount 3the payment under protest
rule applies4
-
Hearing within 1$ days from receipt of the duly
presented protest. Epon termination of the
hearing( the +ollector shall decide on the same
within "B days
u ^
0f decision is adverse
to the protestant
0f decision is adverse
to the government
- -
-ppeal with the
+ommissioner within
1$ days from notice
-utomatic Review by
the +ommissioner
-
-
-ppeal with the +ourt
of &ax -ppeals within
"B days from notice
-utomatic review by
the ecretary of
>inance
-
-
-ppeal with the +ourt
of -ppeals within 1$
days from notice
-
-ppeal by certiorari
with the upreme
+ourt within 1$ days
from notice
0f decision of
+ommissioner or
ecretary of >inance is
adverse to the
protestant( he may
appeal to the +&-( +-
and + under the
same procedure on
the left.
= REASONS FOR THE A3TOMATIC RE8IEW OF
DECISIONS AD8ERSE TO THE GO8ERNMENT
1. &o protect the interest of the @overnment
2. - favorable decision will not be appealed by
the taxpayer and certainly a +ollector will
not appeal his own decision.
". 1ifeblood &heory
B. SEIZ3RE AND FORFEIT3RE CASES
= Defii!i": &hese refer to matters involving
smuggling. 0t is administrative and civil in nature
and is directed against the res or imported
articles and entails a determination of the legality
of their importation. &hese are actions in rem.
= SM3GGLING
-. -n act of any person who shallC
1 1. >raudulently import any article contrary to
2 law( or
3 2. -ssist in so doing( or
4 ". Receive( conceal( buy( sell( facilitate(
5 transport( conceal or sell such article
6 *nowing its illegal importation -4ec. AC65,
7 'CC.
#. Export contrary to law. -4ec. A@57, 'CC.
2. &he Philippines is divided into various ports
of entry / entry other than port of entry( will
be ;E@@10?@.
= CONTRABAND: -rticles of prohibited
importations or exportations. -4ec. A@57, 'CC.
= E8IDENCE FOR CON8ICTION IN SM3GGLING
CASES
;ere possession of the article in 6uestion ,
E?1E defendant could explain that his
possession is lawful to the satisfaction of the
court -4ec. AC65, 'CC.. Payment of the tax due
after apprehension is not a valid defense
-Rodriuez v. CA, 978 4CRA 988.
= THINGS S3B7ECT TO CONFISCATION IN
SM3GGLING CASES
-nything that was used for smuggling is
subject to confiscation( li*e the vessel( plane(
etc. -Llamado vs. Comm. o" Customs, 5=8A..
E 2xce+tion3 +ommon carriers that are not
privately chartered cannot be confiscated.
= RIGHT OF C3STOMS OFFICERS TO EFFECT
SEIZ3RE N ARREST
a. ;ay sei)e any vessel( aircraft( cargo(
article( animal or other movable property
when the same is subject to forfeiture or
liable for any time as imposed under
tariff and customs laws( rules X
regulations
b. ;ay exercise such powers only in
conformity with the laws and provisions
of the &++ -4ec. 996@.
= COMMON CARRIERSR FORFEIT3RE
+ommon carriers are generally not subject
to forfeiture although if the owner has
MEMORY AID IN TAXATION LAW
SAN BEDA COLLEGE OF LAW 2003 CENTRALIZED BAR OPERATIONS
Reproduction in any form of this copy is strictly prohibited!!!
MEMORY AID IN TAXATION LAW
SAN BEDA COLLEGE OF LAW 2003 CENTRALIZED BAR OPERATIONS
Reproduction in any form of this copy is strictly prohibited!!!
=A
TAXATION LAW COMMITTEE: Chairperson: Rhodaline Regoso; Asst. Chairperson & EDP: Maricel Alisuag; Subject
Heads:unelet Mataro! Michelle Al"are#! E$ren Di#on! %han &uieb; Me'bers: Alexis Cervantes. Leizl Calimaran, Berna
Quibal, Noreli De Claro, Jocelyn Gamboa, Albert Rodriuez, !arla Cabel, Rodol"o Quitolbo, Liam #adananan, #aul
La$rence Lim, Alder Delloro, Jo%n &van 'ablizo, Ria &baviosa, #anc%o (as)uez, Aileen Roxas, Lei" *+i,a
*nowledge of its use in smuggling and was a
consenting party( it may also be forfeited.
0f a motor vehicle is hired to carry smuggled
goods but it has no +ertificate of Public
+onvenience 3+P+4( it is not a common
carrier. 0t is thus subject to forfeiture( and
lac* of personal *nowledge of the owner or
the carrier is not a defense to forfeiture.
= PROPERTIES NOT S3B7ECT TO FORFEIT3RE IN
THE ABSENCE OF PRIMA FACIE E8IDENCE /
&he forfeiture of the vehicle( vessel or
aircraft shall not be effected if it is established
that the owner thereof or his agent in charge of
the means of conveyance used as aforesaid has
no Eno$lede o" or +artici+ation in t%e unla$"ul
actC
Provided( however( that a prima facie
presumption shall exist against the vessel(
vehicle or aircraft under any of the following
circumstancesC
a. 0f the conveyance has been used for
smuggling at least twice before!
b. 0f the owner is not in the business for
which the conveyance is generally
used! and
c. 0f the owner is financially not in a
position to own such conveyance.
= DOCTRINE OF HOT P3RS3IT
Re)uisites
C. O9e* 8e##e'#
a. -n act is done in Phil. 'aters which
constitutes a violation of the tariff
and customs laws
b. a pursuit of such vessel began
within the jurisdictional waters which
i. may continue beyond the
maritime )one( and
ii. the vessel may be sei)ed on the
high seas.
2. O9e* I4/"*!e( A*!i,'e#
a. &here is a violation of the tariff and
customs laws
b. -s a conse6uence they may be
pursued in the Phil.
c. 'ith jurisdiction over them at any
place therein for the enforcement of
the law. -9
nd
+ar. 4ec. C6A, 'CC.
= R*C "s. 1(C
&he R&+s do not have jurisdiction over
sei)ure and forfeiture proceedings conducted by
the 2G+ and to interfere with these proceedings.
&he +ollector of +ustoms has exclusive
jurisdiction over all 6uestions touching on the
sei)ure and forfeiture of dutiable goods. ?o
petitions for certiorari( prohibition or mandamus
filed with the R&+ will lie because these are in
reality attempts to review the +ommissioner.s
actuations. ?either replevin filed with the R&+
will issue. R$!i"$'e: 7octrine of Primary
Nurisdiction.
= PERSONS HA8ING POLICE A3THORITY TO
ENFORCE THE TARIFF N C3STOMS LAWS AND
EFFECT SEARCHES? SEIZ3RES AND ARRESTS
a. officials of the 2G+( district collectors(
police officers( agents( inspectors( and
guests of the 2G+!
b. officers of the Phil. ?avy and other
members of the ->P and national law
enforcement agencies when authori)ed
by the +ommissioner of +ustoms
c. officials of the 20R on all cases falling
within the regular performances of their
duties( when the payment of internal
taxes are involved!
d. officers generally empowered by law to
effect arrests and execute processes of
courts( when acting under the direction
of the +ollector. -4ec. 996A, 'CC.
= ADMINISTRATI8E AND 73DICIAL PROCED3RES
RELATI8E TO C3STOMS SEIZ3RES AND
FORFEIT3RES
7etermination of probable cause and
issuance of warrant
-
-ctual sei)ure of the articles
-
1isting of description( appraisal and
classification of sei)ed property
-
Report of sei)ure to the +omm. of +ustoms
and the +hairman( +omm. on -udit
-
0ssuance by the +ollector of a warrant of
detention
-
?otification to owner or importer
-
>ormal hearing
-
7istrict collector renders his decisions
u ^
0f decision is not
favorable to the
aggrieved owner or
importer
0f decision is not
favorable to the
government
- -
-ppeal by the -utomatic Review by
MEMORY AID IN TAXATION LAW
SAN BEDA COLLEGE OF LAW 2003 CENTRALIZED BAR OPERATIONS
Reproduction in any form of this copy is strictly prohibited!!!
MEMORY AID IN TAXATION LAW
SAN BEDA COLLEGE OF LAW 2003 CENTRALIZED BAR OPERATIONS
Reproduction in any form of this copy is strictly prohibited!!!
=8
TAXATION LAW COMMITTEE: Chairperson: Rhodaline Regoso; Asst. Chairperson & EDP: Maricel Alisuag; Subject
Heads:unelet Mataro! Michelle Al"are#! E$ren Di#on! %han &uieb; Me'bers: Alexis Cervantes. Leizl Calimaran, Berna
Quibal, Noreli De Claro, Jocelyn Gamboa, Albert Rodriuez, !arla Cabel, Rodol"o Quitolbo, Liam #adananan, #aul
La$rence Lim, Alder Delloro, Jo%n &van 'ablizo, Ria &baviosa, #anc%o (as)uez, Aileen Roxas, Lei" *+i,a
aggrieved owner or
importer
the +ommissioner
= RE>3IREMENTS FOR C3STOMS FORFEIT3RE
1. &he .*"=f1' 4$Hi= by the owner(
importer( exporter or consignee of any
declaration or affidavit( or the wrongful
ma*ing or delivery by the same persons of
any invoice( letter or paper , all touching on
the importation or exportation of
merchandise.! and
2. &hat such declaration( affidavit( invoice(
letter or paper is f$'#e. -Darolan, Jr. v. C'A,
95> 4CRA 9=8.
= PLACES WHERE SEARCHES N SEIZ3RES MAY BE
COND3CTED
a. enclosures
b. dwelling house 3there must be search
warrant issued by a judge4
c. vessels or aircrafts and persons or
articles conveyed therein
d. vehicles( beasts and persons
e. persons arriving from foreign countries.
= B3RDEN OF PROOF IN SEIZ3RE OR FORFEIT3RE
, claimant -4ec. 9@A@, 'CC..
= RE>3IREMENTS FOR MANIFEST
- manifest in coastwise trade for cargo
and passengers transported from one place or
port in the Philippines to another is re6uired
when one or both of such places is a port of
entry -4ec. =6C, 'CC.. ;anifests are also
re6uired of vessel from a foreign port -4ec.
566@, 'CC..
= >3ERY: IS MANIFEST RE>3IRED ONLY FOR
IMPORTED GOODSA
?o. -rticles subject to sei)ure do not
have to be imported goods. ;anifests are also
re6uired for articles found on vessels or aircraft
engaged in coastwise trade -Rior vs. Rosales,
55> 4CRA >86..
= 3NMANIFESTED CARGO IS S3B7ECT TO
FORFEIT3RE whether the act of smuggling is
established or not under the principle of res ipsa
lo6uitur. 0t is enough that the cargo was
unmanifested and that there was no showing
that payment of duties thereon had been made
for it to be subject to forfeiture.
= CARGO? SEA STORE? AND PRO8ISIONS
DISTING3ISHED
1. C$*=": -rticle of value 3including foreign
currencies4( usually movables( other than
those as part of sea stores or provisions.
2. Se$ S!"*e: 0t is where the passengers can
buy their necessities.
3. P*"9i#i"#: &hose necessary for the
subsistence of the crew.
= SETTLEMENT OF FORFEIT3RE CASES
E General Rule3 ettlement of cases by
payment of fine or redemption of forfeited
property is $''".e(.
E 2xce+tions3
1. the importation is $&#"'1!e'+ /*")i&i!e( or
2. the surrender of the property to the person
offering to redeem would be ,"!*$*+ !"
'$.( or
". when there is f*$1(. -4ec. 9A6>, 'CC.
= AC>3ITTAL IN CRIMINAL CHARGE NOT RES
73DICATA IN SEIZ3RE OR FORFEIT3RE
PROCEEDINGS
Reasons3
1. +riminal proceedings are actions in
personam while sei)ure or forfeiture
proceedings are actions in rem.
2. +ustoms compromise does not extinguish
criminal liability -#eo+le vs. Desiderio, Nov.
9C, 5=C@..
= -t any time prior to the sale( the delin6uent
importer 4$+ #e!!'e )i# "&'i=$!i"# with the
2ureau of +ustoms( in which case the aforesaid
articles may be delivered upon payment of the
corresponding duties and taxes and compliance
with all other legal re6uirements -4ec. 5@68,
'CC.
= ABATEMENT
&he reduction or non,imposition of
customs duties on certain imported materials as
a result ofC
1. 7amage incurred during voyage!
2. 7eficiency in contents pac*ages
". 1oss or destruction of articles after arrival
#. 7eath or injury of animals
= FRA3D3LENT PRACTICES CONSIDERED AS
CRIMINAL OFFENSES AGAINST C3STOMS RE8EN3E
LAWS
a. Enlawful importation!
b. Entry of imported or exported article by
means of any false or fraudulent
practices( invoice( declaration( affidavit(
or other documents!
c. Entry of goods at less than their true
weights or measures or upon a
classification as to 6uality or value!
MEMORY AID IN TAXATION LAW
SAN BEDA COLLEGE OF LAW 2003 CENTRALIZED BAR OPERATIONS
Reproduction in any form of this copy is strictly prohibited!!!
MEMORY AID IN TAXATION LAW
SAN BEDA COLLEGE OF LAW 2003 CENTRALIZED BAR OPERATIONS
Reproduction in any form of this copy is strictly prohibited!!!
AB
TAXATION LAW COMMITTEE: Chairperson: Rhodaline Regoso; Asst. Chairperson & EDP: Maricel Alisuag; Subject
Heads:unelet Mataro! Michelle Al"are#! E$ren Di#on! %han &uieb; Me'bers: Alexis Cervantes. Leizl Calimaran, Berna
Quibal, Noreli De Claro, Jocelyn Gamboa, Albert Rodriuez, !arla Cabel, Rodol"o Quitolbo, Liam #adananan, #aul
La$rence Lim, Alder Delloro, Jo%n &van 'ablizo, Ria &baviosa, #anc%o (as)uez, Aileen Roxas, Lei" *+i,a
d. Payment of less than the amount due!
e. >iling any false or fraudulent claim for
the payment of drawbac* or refund of
duties upon the exportation of
merchandise! or
f. >iling any affidavit( certificate or other
document to secure to himself or others
the payment of any drawbac*(
allowance or refund of duties on the
exportation of mdse. greater than that
legally due thereon. -4ec. AC69, 'CC.
8II. CO3RT OF TAX
APPEALS 2RA CC2D5
' S$'ie! fe$!1*e# "f !)e CTA
1. 0t is a judicial body!
2. 0t is a court of special jurisdiction!
". 0t is not governed by technical rules of
evidence.
' P".e*# "f !)e CTA
= THE FOLLOWING ARE THE POWERS OF THE CTA
1. to administer "$!)#!
2. to *e,ei9e e9i(e,e!
". to summon witnesses by #1&/"e$!
#. to re6uire production or papers or
documents by #1&/"e$ (1,e# !e,14R
$. to punish ,"!e4/!!
%. to /*"41'=$!e *1'e# $( *e=1'$!i"# for
the conduct of its business!
=. to $##e## ($4$=e against appellant if
appeal to +&- is found to be frivolous or
dilatory!
A. to #1#/e( !)e ,"''e,!i" "f !)e !$%
/e(i= $//e$'! and
8. to *e(e* (e,i#i"# on cases brought
before it.
' 71*i#(i,!i" "f !)e CTA
= EXCL3SI8E APPELLATE 73RISDICTION TO RE8IEW
ON APPEAL
1. decisions of +0R in /
a. disputed assessments( refunds of internal
revenue taxes( fees or other charges!
penalties imposed in relation thereto! or
b. other matters arising under the ?0R+( or
other law or part of law administered by
the 20R.
2. decision of +ommissioner of +ustoms in /
a. cases involving liability from custom
duties( fees or other money charges!
sei)ure( detention or release of property
affected! fines( forfeitures or other
penalties imposed in relation thereto! or
b. other matters arising under the +ustoms
1aw( or other law or part of law
administered by the 2ureau of +ustoms.
". decision of the ecretary of >inance( such
as the imposition of dumping or
countervailing duty 3ec. "B1( &++( as
amended by P7 1#%#4( and in automatic
review cases where such decision of the
ecretary of >inance is adverse to the
taxpayer.
?.2.C Grdinary tax collection cases initiated by
the @overnment falls outside the +&-5s
jurisdiction( the reason being that said action is
not a case involving a disputed assessment.
= -OTHER MATTERS0
&hose controversies which can be
considered within the scope of the
function of the 20R J 2G+ under
ejusdem generis rule 3e.g. action for the
nullity of distraint and levy! 6uestioning
the propriety of the assessment!
collection of compromise penalties4.
= THIRTY6DAY PRESCRIPTI8E PERIOD FOR APPEAL
tarts to run from the date the taxpayer
receives the appealable decision. 0f the
taxpayer5s re6uest for reconsideration 3i.e.( the
protest is denied or the original assessment is
maintained( the appealable decision is the
decision denying the re6uest for reconsideration.
&he said period is jurisdictional and non,
extendible. Re6uests or motions for
reconsideration( however( operate to suspend
the running of the period to appeal. - pro forma
re6uest for reconsideration or one which is
directed to the ecretary of >inance does not
suspend the running of the "B,day reglamentary
period.
= GENERAL R3LE: ?ew issues cannot be raised
for the first time on appeal.
E2xce+tions3
1. 7efense of prescription
RE-G?C &his is a statutory right -(isayan
Land 'rans+ortation vs Collector.
2. Errors of administrative officials
RE-G?C tate can never be in estoppel
and lifeblood theory. -C&R vs #rocter and
Gamble #%ils. /". Cor+..
= TAX COLLECTION NOT S3SPENDED D3RING
APPEAL
MEMORY AID IN TAXATION LAW
SAN BEDA COLLEGE OF LAW 2003 CENTRALIZED BAR OPERATIONS
Reproduction in any form of this copy is strictly prohibited!!!
MEMORY AID IN TAXATION LAW
SAN BEDA COLLEGE OF LAW 2003 CENTRALIZED BAR OPERATIONS
Reproduction in any form of this copy is strictly prohibited!!!
A1
TAXATION LAW COMMITTEE: Chairperson: Rhodaline Regoso; Asst. Chairperson & EDP: Maricel Alisuag; Subject
Heads:unelet Mataro! Michelle Al"are#! E$ren Di#on! %han &uieb; Me'bers: Alexis Cervantes. Leizl Calimaran, Berna
Quibal, Noreli De Claro, Jocelyn Gamboa, Albert Rodriuez, !arla Cabel, Rodol"o Quitolbo, Liam #adananan, #aul
La$rence Lim, Alder Delloro, Jo%n &van 'ablizo, Ria &baviosa, #anc%o (as)uez, Aileen Roxas, Lei" *+i,a
-n appeal to the +&- from a decision of
the +0R shall not suspend the payment( levy(
distraintandJor slae of any of the property of the
taxpayer. However( the CTA i# e4/".e*e( !"
#1#/e( !)e ,"''e,!i" of internal revenue
taxes and custom duties "'+ .)e !)e*e .$#
$
1. showing that collection of the tax may
<e"/$*(iMe !)e i!e*e#! of the government
and J or the taxpayer!
2. (e/"#i! of the amount claimed or file a
surety bond for not more than double the
amount of tax with the +ourt when re6uired!
and
". showing by taxpayer that appeal is "!
f*i9"'"1# "* (i'$!"*+.
= SIM3LTANEO3S FILING OF AN APPLICATION FOR
REF3ND OR CREDIT AND INSTIT3TION OF A CASE
BEFORE THE CTA ALLOWED
&he law fixes the same period of two 324
years for filing a claim for refund with the
+ommissioner and for filing a case with the +&-.
&he two,year period for both starts from the date
after the payment of the tax or penalty( or from
the approval of the application for credit.
(bser"ation: 0f we are not going to allow
the taxpayer to file a refund before the +&-
and let him wait for the +0R5s decision( and
the latter failed to render a decision within
the 2,year period( the said taxpayer can no
longer file a refund before the +&- because
his right to appeal has prescribed.