DONORS TAXI. MEANING OF GIFTSec. 104, NIRCPirovano v. CIR, 14 SCRA 832 (1965)II. VALUATION OF GIFTSSec. 102, NIRC

III. TRANSFER FOR LESS THAN ADEQUATE CONSIDERATIONSec. 100, NIRC

IV. EXEMPT GIFTSSec. 101, NIRC

V. FOREIGN TAX CREDITSec. 101(C), NIRCA. Per Country LimitationB. Global Limitation

VI.ON WHOM IMPOSEDSec. 98(A), NIRC

VII.ADMINISTRATIVEA. Tax RatesSec. 99, NIRC

B. Donors Tax ReturnSec. 103(A), NIRC

C. Payment of Donors TaxSec. 103(B), NIRC

D. Consequences of Non-Payment of Donors TaxSecs. 248- Sec. 249, NIRC Sec. 95, NIRC Sec. 97, NIRC

Week 3VALUE-ADDED TAX

I. TAXABLE TRANSACTIONSA. In GeneralSec. 105, NIRCBIR Ruling 98-97, Aug. 28, 1997BIR Ruling No. 18-05, Sept. 16, 2005VAT Ruling No. 444-88VAT Ruling No. 207-90, Nov. 8, 1990BIR Ruling No. 10-98, Feb. 5, 1998CIR v. Commonwealth Mgt. & Services Corp., G.R. 125355, March 30, 2000VAT Ruling No. 26-97, April 1, 1997Tourist Trade and Travel Corp. v. CIR, CTA Case No. 4806, Jan. 19, 1996BIR Ruling No. 113-98, July 23, 1998Magsaysay Lines, Inc. v. CIR, CTA Case No. 4353, April 27, 1992, aff. in G.R.No. 146984, July 28, 2006Lapanday Foods Corp. v. CIR, CTA Case No. 7097, Oct. 18, 2007CS Garments, Inc. vs. Commissioner of Internal Revenue, CTA Case No. 6520 datedJanuary 4, 2007Kepco Ilijan Corporation v CIR, CTA Case No. 8091, October 23, 2012

B. Sale of Goods or Properties1. Transactions Covered a. Actual SaleSec. 106(A)(1), NIRC, as amended by Rep. Act. No. 9337BIR Ruling 424-2014 b. Transactions Deemed SaleSec. 106(B), NIRC, as amended by Rep. Act No. 9337Sec. 4.106-7, Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by Rev.Regs. No. 4-2007, Feb. 7, 2007 c. Changes in or Cessation of Status of a VAT-Registered PersonSec. 106(C), NIRC, as amended by Rep. Act. No. 9337Sec. 4.106-8, Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by Rev.Regs. No. 4-2007, Feb. 7, 2007BIR Ruling No. 24-2005, Dec. 23, 2005

2. Taxable Base a. Gross Selling PriceSec. 106(A)(1), 2nd par., NIRC, as amended by Rep. Act No. 9337Sec. 4.106-4, Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by Rev.Regs. No. 4-2007, Feb. 7, 2007 b. Sales Discounts, Returns and AllowancesSec. 106(D), NIRC, as amended by Rep. Act No. 9337Sec. 4.106-9, Rev. Regs. No. 16-2005, Sept. 1, 2005VAT Ruling No. 204-90, Oct. 16, 1990 c. Taxable Base for Transactions Deemed Sale and Below Market Gross Selling PriceSec. 4.106-7(b), Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended byRev. Regs. No. 4-2007, Feb. 7, 2007

C. Importation of GoodsSec. 107, NIRC, as amended by Rep. Act. No. 9337

D. Sale of Services 1. Meaning of Sale or Exchange of ServiceSec. 108(A), NIRC, as amended by Rep. Act. No. 9337Sec. 4.108-2, Rev. Regs. No. 16-2005, Sept. 1, 2005Lhuillier v. CIR, CTA Case No. 6533, May 16, 2003Revenue Memorandum Circular 42-2003BIR Ruling DA 320-07 2. Taxable Base: Gross Receipts Actually and Constructively ReceivedSec. 108(A), NIRC, as amended by Rep. Act. No. 9337Sec. 4.108-4, Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by Rev.Regs. No. 4-2007, Feb. 7, 2007BIR Ruling No. 195-89, Sept. 8, 1989VAT Ruling No. 111-88, April 25, 1989VAT Ruling No. 205-90, Oct. 16, 1990 a. Amounts Earmarked for Payment to Third PartiesSec. 4.108-4, Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by Rev.Regs. No. 4-2007, Feb. 7, 2007CIR v. Tours Specialists, Inc., G.R. 66416, March 21, 1990BIR Ruling No. DA-069-2006, March 1, 2006 b. Reimbursement of ExpensesSec. 4.108-4, Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by Rev.Regs. No. 4-2007, Feb. 7, 2007VAT Ruling No. 283-88, July 4, 1988VAT Ruling No. 87-88, April 14, 1988VAT Ruling No. 97-88, April 15, 1988Revenue Memorandum Circular 65-2012Officemetro Philippines, Inc. (formerly Regus Centres, Inc.) vs. Commissioner of InternalRevenue, CTA Case No. 8382, June 3, 2014, the Court of Tax Appeals Third Division (CTA)

II. RELIEF FROM VAT: ZERO-RATING AND EXEMPTIONSA. Difference Between Zero-Rating and ExemptionSecs. 4.106-5, 1st par., and 4.108-5(a), Rev. Regs. No. 16-2005, Sept. 1, 2005Cf. Sec. 4.109-1(A), Rev. Regs. No. 16-2005, Sept. 1, 2005CIR v. Seagate Tech. (Phil.), G.R. 153866, Feb. 11, 2005Contex Corp. v. CIR, G.R. No. 151135, July 2, 2004

B. Automatically Zero-Rated Transactions1. Sale of Goods and PropertiesSec. 106(A)(2)(a)(1), (2), (4) and (b), NIRC, as amended by Rep. Act. No. 9337Toshiba Information Equipment (Phils) Inc. v CIR GR No. 157594, March 9, 2010Revenue Regulations No 2-2012, February 17, 2012BIR Ruling DA 30-07, January 19, 2007BIR Ruling 031-07 January 19, 2007

2. Sale of ServicesSec. 108(B)(1), (2), (6) and (7), NIRC, as amended by Rep. Act. No. 9337CIR v. American Express Intl, Inc. (Phil.), G.R. 152609, June 29, 2005CIR v. Burmeister & Wain Scandinavian Contractor Mindanao, Inc., G.R.153205, Jan. 22, 2007

3. Meaning of Accounted for in Accordance with the Rules andRegulations of the BSPBIR Rul. No. 176-94VAT Ruling No. 47-00, Oct. 26, 2000

C. Effectively Zero-Rated Transactions1. Sale of Goods and PropertiesSec. 106(A)(2)(3), (5), (6) and (c), NIRC, as amended by Rep. Act No. 9337Sec. 4.106-6, Rev. Regs. No. 16-2005, Sept. 1, 2005

2. Sale of ServicesSec. 106(B)(3), (4) and (5), NIRC, as amended by Rep. Act No. 9337Sec. 4.108-6, Rev. Regs. No. 16-2005, Sept. 1, 20053. Requirement to Obtain Approved Application for Effective Zero-Rating: Deleted by Rev.Regs. No. 4-2007, Feb. 7, 2007Sec. 4.106-6, Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by Rev.Regs. No. 4-2007, Feb. 7, 2007 (which deleted par. requiring approved application foreffective zero-rating)Sec. 4.108-6, Rev. Regs. No. 16-2005, Sept. 1, 2005, as amended by Rev.Regs. No. 4-2007, Feb. 7, 2007 (which deleted par. requiring approved application foreffective zero-rating)

D. Exempt TransactionsSec. 109(1), NIRC, as amended by Rep. Act. No. 9337

1. Coverage of Exemptiona. General RulePhilippine Acetylene Co., Inc. v. CIR, 20 SCRA 1056 (1967)Phil. National Police Multi-Purpose Cooperative, Inc. v. CIR, CTA CaseNo. 4845, March 10, 1994BIR Ruling No. 155-98, Oct. 21, 1998BIR Ruling No. 47-99, April 13, 1999VAT Ruling No. 009-07, June 21, 2007BIR Revenue Regulation No 16-2011, effective January 1, 2012

b. ExceptionCIR v. John Gotamco & Sons, Inc., 148 SCRA 36 (1987)Maceda v. Macaraig, Jr., 223 SCRA 217 (1993)2. Waiver of VAT Exemption/Election to be Subject to VATSec. 109(2), NIRC, as amended by Rep. Act No. 9337

III. RATES OF VATA. For Output TaxB. For Input TaxC. Transitional Input TaxD. Presumptive Input TaxE. Final Withholding VAT on Government or GOCCs