Professional Documents
Culture Documents
COLLEGE OF LAW
Course Description
This is a special tax course focusing on the taxation of international transactions and specialized
activities (export zones, investment incentives, and trans-national taxation)
Course Coverage
Taxation of resident foreign corporations under the Tax Code
International/cross border taxation
International tax planning
Special laws granting investments incentives to foreign investors and the special tax
regimes under such laws
Transfer pricing
Course Outline
PART I
I.
II.
International Taxation
7.
III.
Commissioner of Internal Revenue v. S.C. Johnson and Son, Inc., et al., G.R.
No. 127105, June 25, 1999.
8.
Tax treaty relief
a.
Revenue Memorandum Order No. 1-2000
b.
Revenue Memorandum Order No. 72-2010
c.
Mirant (Philippines) Operations Corporation (formerly Southern Energy
Asia-Pacific Operations [Phils.]) v. Commissioner of Internal Revenue
(CIR), G.R. No. 168531, February 18, 2008.
d.
Deutche Bank AG Manila Branch v. CIR
1)
CTA En Banc (EB) No. 456, Decision dated May 29, 2009 and
Resolution dated July 1, 2009
2)
SC Decision in G.R. No. 188550, August 19, 2013
e.
CIR v. Penn Philippines, Inc., CTA EB No. 1002, CTA Case No. 7686,
February 12, 2014
Interpretation and Application of Tax Treaty Provisions
A.
Scope of the Convention
1.
Persons covered [Article 1, OECD Model]
2.
Taxes Covered [Article 2, OECD Model]
B.
Residence [Article 4, OECD Model]
1.
Function of residence concept in tax treaties
2.
Domestic law residence rules
3.
The tax treaty residence concept
4.
Tie-breaker rules
5.
Dual resident companies
C. Permanent Establishment [Article 5, OECD Model]
1.
Permanent Establishment (PE)
2.
Basic rule PE
3.
Specific PE
4.
Exclusions
5.
Construction PE
6.
Service PE
a.
Mirant (Philippines) Operations Corporation (formerly Southern Energy
Asia-Pacific Operations [Phils.]) v. CIR, supra.
7.
Agency PE
a.
BIR ITAD Ruling No. 182-00 dated December 6, 2000
b.
BIR ITAD Ruling No. 021-04 dated March 9, 2004
c.
BIR ITAD Ruling No. 106-05 dated September 21, 2005
d.
BIR ITAD Ruling No. 097-13 dated April 8, 2013
8.
Challenges to PE concept
D. Business Profits [Article 7, OECD Model]
1.
Relevance of Business Profits & Domestic Law
a.
Mirant (Philippines) Operations Corporation (formerly Southern Energy
Asia-Pacific Operations [Phils.]) v. (CIR), supra.
E.
F.
G.
Part II
I.
2.
Tax Treaty Law
3.
Main Rule; exception
Passive Income
1.
Active v. passive income
2.
Dividends [Article 10, OECD Model]
3.
Interest [Article 11, OECD, Model]
4.
Royalties [Article 12, OECD Model]
5.
Capital gains [Article 13, OECD Model]
6.
Concept of beneficial ownership
Elimination of Double Taxation
1.
Exemption methods [Article 23A, OECD Model]
2.
Credit methods [Article 23B, OECD Model]
3.
Mutual agreement procedure [Article 26, OECD Model Convention]
Anti-avoidance Measures
1.
Associated enterprises [Article 9, OECD Model]
2.
Exchange of information [Article 25, OECD Model]
3.
Assistance in the collection of taxes [Article 27, OECD Model]
International Tax Planning
2.
II.
Part III
I.
II.
III.
PART IV
I.
II.
TRANSFER PRICING
III.
Modes of instruction
Lectures
Recitations
Case studies
Grading Criteria
Attendance
Class participation
Mid-term examination
Final examination
Total
5%
20%
35%
40%
100%
References:
NATIONAL INTERNAL REVENUE CODE OF 1997 (TAX CODE)
OECD MODEL TAX CONVENTION ON INCOME AND ON CAPITAL (July 2010 version)
UN MODEL DOUBLE TAXATION CONVENTION (2011 Version)
Klaus Vogel, ON DOUBLE TAXATION CONVENTIONS, Third Edition, Kluwer Law
International
Roy Rohatgi, BASIC INTERNATIONAL TAXATION, Second Edition, Taxmann Publishing
International Bureau of Fiscal Documentation, FUNDAMENTALS OF INTERNATIONAL TAX
PLANNING, 2007
Brian J. Arnold and Michael J. McIntyre, INTERNATIONAL TAX PRIMER, Second Edition,
Kluwer Law International
Adrian Ogley, THE PRINCIPLES OF INTERNATIONAL TAX, Interfisc Publishing
Marissa O. Cabreros, MAXIMIZING TAX SAVINGS USING TAX TREATIES SEMINAR, Center
for Global Best Practices, March 12, 2009
OECD TRANSFER PRICING GUIDELINES FOR MULTINATIONAL ENTERPRISES AND TAX
ADMINISTRATIONS (July 2010 version)