Tax Law

Philippine Bar Exams will be held this month of November on the first time in Multiple Choice exam type at the University of Sto. Thomas at Manila.  Sample MCQ's were disseminated here in the internet a few months back.  But the MCQ from the Philippine Association of Law Schools have some inconsistency in the answers.  There are some items that have a different answers from a previous Set or next Set.  If this will be just a typographical error in the Answer key's provided, they must make it sure that what they are going to publish in the public are accurate.

I have found out some discrepancies in Tax Law MCQ from PALS aside from the other subjects.  As an example is in Set 1 Number 86 and Number 42 have the same problem which mentioned the following:

Mario disputed a deficiency tax assessment and upon receipt of an adverse decision by the Commissioner of Internal Revenue, filed an appeal with the Court of Tax Appeals.  While the appeal is pending, the BIR served a warrant of levy on the real properties of Marion to enforce the collection of the disputed tax.  Granting arguendo that the BIR can legally levy on the properties, what could Mario do to stop the process?

a.) Appeal the BIR's action to the Court of Appeals.

b.) Dispute BIR's levy on the properties before the Court of Tax Appeals.

c.) File a motion for injunction with the Court of Tax Appeals on the ground that such collection will jeopardize the interest of the taxpayer or the government.

d.) Secure a temporary restraining order before the Supreme Court.

In number 42 the Answer Key's choice is letter B while in number 86 the Answer Key's choice is letter A.

Below is the MCQ samples disseminated in the internet which have the same questions from those on sale MCQ of  Philippine Association of Law Schools (PALS).

How a bill may become a law?

As per our Philippine 1987 Constitution in Aricle VI Sec. 24 "All appropriation, revenue or tariff bills, bills authorizing increase of the public debt, bills of local application, and private bills shall originate exclusively in the House of Representatives, but the Senate may propose or concur with amendments."  

The provision was discussed during our UP Cebu Review by Prof. Edwin Sandoval and he emphasized the APRIL for keywords.  
                       A stands for approriations
                       P for private bills
                       R for revenue or tariff bills
                       I for increase of public debts
                        L for bills of local applications


Aside from the above, the President can item or line veto only on the below:
                      A ppropriation  
                      Revenue
                      Tariff

But the question is how a bill may become a law?  Sec. 24 of Article 6 enumerates those bills that will exclusively originates from the House of Representatives.  This means that congressmen from respective districts will make the law and the Senate may propose or concur with amendments.  This can also mean that there can be an amendment by substitution with the Senate of the bill but not on the bill itself.  This is how the bicameral systems works.

The bill will be presented to the President and once it is received by the President he or she will have a 3 options which are:  1) to sign it and the bill becomes a law, 2) veto it and the bill will not become a law and 3) the bill will be automatically becomes a law by the inaction of the President within 30 days from receipt of the bill.

Pocket veto does not exist in the Philippines.  It is existing in the other countries.  However, when the President will veto the bill, the bill will be sent back to the House of Representatives where the bill originated.  To over ride the veto of the President and make the bill a law, all that the House will do is to have a 2/3 votes of all the Members of the separate 2 houses.

One thing that is notable in Sec. 27 Article VI is that paragraph 1 refers to the general veto and paragraph 2 is the item or line veto of the President.

General veto means that the President can veto the whole bill while in item or line veto he or she can veto only those that are particularly on Approriation, Revenue and Tarriff Bills.

This is how the system of a democratic republican state works in the Philippines with regard to making of laws based on the fundamental law which is our 1987 Philippine Constitution.