Syllabus for the 2012 Bar Examinations

The Supreme Court already released the coverage of the 2012 Bar Examination.

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Civil Law

Criminal Law

Labor and Social Legislation

Legal and Judicial Ethics

Mercantile Law

Political and International Law

Remedial Law

Taxation

Philippine Bar Exam: 2012 Taxation Syllabus

SYLLABUS FOR THE 2012 BAR EXAMINATIONS

TAXATION

I. General Principles of Taxation

A. Definition and concept of taxation
B. Nature of taxation
C. Characteristics of taxation
D. Power of taxation compared with other powers
1. Police power
2. Power of eminent domain
E. Purpose of taxation
1. Revenue-raising
2. Non-revenue/special or regulatory
F. Principles of sound tax system
1. Fiscal adequacy
2. Administrative feasibility
3. Theoretical justice
G. Theory and basis of taxation
1. Lifeblood theory
2. Necessity theory
3. Benefits-protection theory (Symbiotic relationship)
4. Jurisdiction over subject and objects
H. Doctrines in taxation
1. Prospectivity of tax laws
2. Imprescriptibility
3. Double taxation a) Strict sense b) Broad sense
c) Constitutionality of double taxation
d) Modes of eliminating double taxation
4. Escape from taxation
a) Shifting of tax burden
(i) Ways of shifting the tax burden
(ii) Taxes that can be shifted
(iii) Meaning of impact and incidence of taxation b) Tax avoidance
c) Tax evasion
5. Exemption from taxation
a) Meaning of exemption from taxation b) Nature of tax exemption
c) Kinds of tax exemption
(i) Express
(ii) Implied
(iii) Contractual
d) Rationale/grounds for exemption e) Revocation of tax exemption
6. Compensation and set-off
7. Compromise
8. Tax amnesty a) Definition
b) Distinguished from tax exemption
9. Construction and interpretation of:
a) Tax laws
(i) General rule
(ii) Exception
b) Tax exemption and exclusion
(i) General rule
(ii) Exception
c) Tax rules and regulations
(i) General rule only
d) Penal provisions of tax laws
e) Non-retroactive application to taxpayers
(i) Exceptions
I. Scope and limitation of taxation
1. Inherent limitations a) Public purpose
b) Inherently legislative
(i) General rule
(ii) Exceptions
(a) Delegation to local governments
(b) Delegation to the president
(c) Delegation to administrative agencies c) Territorial
(i) Situs of taxation
(a) Meaning
(b) Situs of income tax
(1) From sources within the Philippines
(2) From sources without the Philippines
(3) Income partly within and partly without the Philippines
(c) Situs of property taxes
(1) Taxes on real property
(2) Taxes on personal property
(d) Situs of excise tax
(1) Estate tax
(2) Donor’s tax
(e) Situs of business tax
(1) Sale of real property
(2) Sale of personal property
(3) VAT
d) International comity
e) Exemption of government entities, agencies, and instrumentalities
2. Constitutional limitations
a) Provisions directly affecting taxation
(i) Prohibition against imprisonment for non-payment of poll tax
(ii) Uniformity and equality of taxation
(iii) Grant by congress of authority to the president to impose tariff rates (iv) Prohibition against taxation of religious, charitable entities, and educational entities
(v) Prohibition against taxation of non-stock, non-profit institutions
(vi) Majority vote of congress for grant of tax exemption
(vii) Prohibition on use of tax levied for special purpose
(viii) President’s veto power on appropriation, revenue, tariff bills
(ix) Non-impairment of jurisdiction of the Supreme Court
(x) Grant of power to the local government units to create its own sources of revenue
(xi) Flexible tariff clause
(xii) Exemption from real property taxes
(xiii) No appropriation or use of public money for religious purposes b) Provisions indirectly affecting taxation

(i) Due process
(ii) Equal protection
(iii) Religious freedom
(iv) Non-impairment of obligations of contracts
J. Stages of taxation
1. Levy
2. Assessment and collection
3. Payment
4. Refund
K. Definition, nature, and characteristics of taxes
L. Requisites of a valid tax
M. Tax as distinguished from other forms of exactions
1. Tariff
2. Toll
3. License fee
4. Special assessment
5. Debt
N. Kinds of taxes
1. As to object
a) Personal, capitation, or poll tax b) Property tax
c) Privilege tax
2. As to burden or incidence a) Direct
b) Indirect
3. As to tax rates a) Specific
b) Ad valorem c) Mixed
4. As to purposes
a) General or fiscal
b) Special, regulatory, or sumptuary
5. As to scope or authority to impose
a) National – internal revenue taxes
b) Local – real property tax, municipal tax
6. As to graduation a) Progressive b) Regressive
c) Proportionate

II. National Internal Revenue Code of 1997, as amended (NIRC) A. Income taxation

1. Income tax systems
a) Global tax system
b) Schedular tax system
c) Semi-schedular or semi-global tax system
2. Features of the Philippine income tax law
a) Direct tax
b) Progressive
c) Comprehensive
d) Semi-schedular or semi-global tax system
3. Criteria in imposing Philippine income tax
a) Citizenship principle b) Residence principle c) Source principle
4. Types of Philippine income tax
5. Taxable period
a) Calendar period b) Fiscal period
c) Short period
6. Kinds of taxpayers
a) Individual taxpayers
(i) Citizens
(a) Resident citizens
(b) Non-resident citizens
(ii) Aliens
(a) Resident aliens
(b) Non-resident aliens
(1) Engaged in trade or business
(2) Not engaged in trade or business
(iii) Special class of individual employees
(a) Minimum wage earner
b) Corporations
(i) Domestic corporations
(ii) Foreign corporations
(a) Resident foreign corporations
(b) Non-resident foreign corporations
(iii) Joint Venture and Consortium c) Partnerships
d) General professional partnerships
e) Estates and trusts f) Co-ownerships
7. Income taxation
a) Definition b) Nature
c) General principles
8. Income
a) Definition b) Nature
c) When income is taxable
(i) Existence of income
(ii) Realization of income
(a) Tests of realization
(b) Actual vis-à-vis constructive receipt
(iii) Recognition of income
(iv) Methods of accounting
(a) Cash method vis-à-vis accrual method
(b) Installment payment vis-à-vis deferred payment vis-à-vis percentage completion (in long term contracts)
d) Tests in determining whether income is earned for tax purposes
(i) Realization test
(ii) Claim of right doctrine or doctrine of ownership, command, or control
(iii) Economic benefit test, doctrine of proprietary interest
(iv) Severance test
9. Gross income
a) Definition
b) Concept of income from whatever source derived
c) Gross income vis-à-vis net income vis-à-vis taxable income d) Classification of income as to source
(i) Gross income and taxable income from sources within the Philippines (ii) Gross income and taxable income from sources without the Philippines (iii) Income partly within or partly without the Philippines
e) Sources of income subject to tax
(i) Compensation income
(ii) Fringe benefits
(a) Special treatment of fringe benefits
(b) Definition
(c) Taxable and non-taxable fringe benefits
(iii) Professional income
(iv) Income from business
(v) Income from dealings in property
(a) Types of properties (1) Ordinary assets (2) Capital assets
(b) Types of gains from dealings in property
(1) Ordinary income vis-à-vis capital gain
(2) Actual gain vis-à-vis presumed gain
(3) Long term capital gain vis-à-vis short term capital gain
(4) Net capital gain, net capital loss
(5) Computation of the amount of gain or loss
(a) Cost or basis of the property sold
(b) Cost or basis of the property exchanged in corporate readjustment
(1) Merger
(2) Consolidation
(3) Transfer to a controlled corporation (tax-free exchanges)
(c) Recognition of gain or loss in exchange of property
(1) General rule
(a) Where no gain or loss shall be recognized
(2) Exceptions
(a) Meaning of merger, consolidation, control securities
(b) Transfer of a controlled corporation
(6) Income tax treatment of capital loss
(a) Capital loss limitation rule (applicable to both corporations and individuals)
(b) Net loss carry-over rule (applicable only to individuals)
(7) Dealings in real property situated in the Philippines
(8) Dealings in shares of stock of Philippine corporations
(a) Shares listed and traded in the stock exchange
(b) Shares not listed and traded in the stock exchange
(9) Sale of principal residence
(vi) Passive investment income
(a) Interest income
(b) Dividend income (1) Cash dividend (2) Stock dividend
(3) Property dividend
(4) Liquidating dividend
(c) Royalty income
(d) Rental income
(1) Lease of personal property
(2) Lease of real property
(3) Tax treatment of
(a) Leasehold improvements by lessee
(b) VAT added to rental/paid by the lessee
(c) Advance rental/long term lease
(vii) Annuities, proceeds from life insurance or other types of insurance
(viii) Prizes and awards
(ix) Pensions, retirement benefit, or separation pay
(x) Income from any source whatever
(a) Forgiveness of indebtedness
(b) Recovery of accounts previously written off
(c) Receipt of tax refunds or credit
(d) Income from any source whatever
(e) Source rules in determining income from within and without
(1) Interests (2) Dividends (3) Services (4) Rentals (5) Royalties
(6) Sale of real property
(7) Sale of personal property
(8) Shares of stock of domestic corporation
(f) Situs of income taxation (see page 2 under inherent limitations, territorial)
(g) Exclusions from gross income
(1) Rationale for the exclusions
(2) Taxpayers who may avail of the exclusions
(3) Exclusions distinguished from deductions and tax credit
(4) Under the constitution
(a) Income derived by the government or its political subdivisions from the exercise of any essential governmental function
(5) Under the tax code
(a) Proceeds of life insurance policies
(b) Return of premium paid
(c) Amounts received under life insurance, endowment or annuity contracts
(d) Value of property acquired by gift, bequest, devise or
descent
(e) Amount received through accident or health insurance
(f) Income exempt under tax treaty
(g) Retirement benefits, pensions, gratuities, etc.
(h) Winnings, prizes, and awards, including those in sports competition
(6) Under a tax treaty
(7) Under special laws
(h) Deductions from gross income
(1) General rules
(a) Deductions must be paid or incurred in connection with the taxpayer’s trade, business or profession
(b) Deductions must be supported by adequate receipts or invoices (except standard deduction)
(2) Return of capital (cost of sales or services)
(a) Sale of inventory of goods by manufacturers and dealers of properties
(b) Sale of stock in trade by a real estate dealer and dealer
in securities
(c) Sale of services
(3) Itemized deductions
(a) Expenses
(1) Requisites for deductibility
(a) Nature: ordinary and necessary
(b) Paid and incurred during taxable year
(2) Salaries, wages and other forms of compensation for personal services actually rendered, including the grossed- up monetary value of the fringe benefit subjected to fringe benefit tax which tax should have been paid
(3) Traveling/transportation expenses
(4) Cost of materials
(5) Rentals and/or other payments for use or possession of property
(6) Repairs and maintenance
(7) Expenses under lease agreements
(8) Expenses for professionals
(9) Entertainment expenses
(10) Political campaign expenses
(11) Training expenses
(b) Interest
(1) Requisites for deductibility
(2) Non-deductible interest expense (3) Interest subject to special rules (a) Interest paid in advance
(b) Interest periodically amortized
(c) Interest expense incurred to acquire property for use in trade/business/profession
(c) Taxes
(1) Requisites for deductibility
(2) Non-deductible taxes
(3) Treatments of surcharges/interests/fines for delinquency
(4) Treatment of special assessment
(5) Tax credit vis-à-vis deduction
(d) Losses
(1) Requisites for deductibility
(2) Other types of losses
(a) Capital losses
(b) Securities becoming worthless
(c) Losses on wash sales of stocks or securities
(d) Wagering losses
(e) NOLCO (e) Bad debts
(1) Requisites for deductibility
(f) Depreciation
(1) Requisites for deductibility
(2) Methods of computing depreciation allowance
(a) Straight-line method
(b) Declining-balance method
(c) Sum-of-the-years-digit method
(g) Charitable and other contributions
(1) Requisites for deductibility
(2) Amount that may be deducted
(h) Contributions to pension trusts
(1) Requisites for deductibility
(4) Optional standard deduction
(a) Individuals, except non-resident aliens
(b) Corporations, except non-resident foreign corporations
(5) Personal and additional exemption (R.A. 9504, Minimum Wage
Earner Law)
(a) Basic personal exemptions
(b) Additional exemptions for taxpayer with dependents
(c) Status-at-the-end-of-the-year rule
(6) Items not deductible
(a) General rules
(b) Personal, living or family expenses
(c) Amount paid for new buildings or for permanent improvements (capital expenditures)
(d) Amount expended in restoring property (major repairs)
(e) Premiums paid on life insurance policy covering life or any other officer or employee financially interested
(f) Interest expense, bad debts, and losses from sales of
property between related parties
(g) Losses from sales or exchange or property
(h) Non-deductible interest (i) Non –deductible taxes (j) Non-deductible losses
(k) Losses from wash sales of stock or securities
(i) Exempt corporations
10. Taxation of resident citizens, non-resident citizens, and resident aliens
a) General rule that resident citizens are taxable on income from all sources within and without the Philippines
b) Taxation on compensation income
(i) Inclusions
(a) Monetary compensation
(1) Regular salary/wage
(2) Separation pay/retirement benefit not otherwise exempt (3)Bonuses, 13th month pay, and other benefits not exempt (4) Director’s fees
(b) Non-monetary compensation
(1) Fringe benefit not subject tax
(ii) Exclusions
(a) Fringe benefit subject to tax
(b) De minimis benefits
(c) 13th month pay and other benefits and payments specifically excluded from taxable compensation income
(iii) Deductions
(a) Personal exemptions and additional exemptions
(b) Health and hospitalization insurance
(c) Taxation of compensation income of a minimum wage earner
(1) Definition of statutory minimum wage
(2) Definition of minimum wage earner
(3) Income also subject to tax exemption: holiday pay, overtime pay, night shift differential, and hazard pay
c) Taxation of business income/income from practice of profession
d) Taxation of passive income
(i) Passive income subject to final tax
(a) Interest income
(b) Royalties
(c) Dividends from domestic corporation
(d) Prizes and other winnings
(ii) Passive income not subject to final tax e) Taxation of capital gains
(i) Income from sale of shares of stock of a Philippine corporation
(a) Shares traded and listed in the stock exchange
(b) Shares not listed and traded in the stock exchange
(ii) Income from the sale of real property situated in the Philippines
(iii) Income from the sale, exchange, or other disposition of other capital assets
11. Taxation of non-resident aliens engaged in trade or business
a) General rules
b) Cash and/or property dividends c) Capital gains

Exclude non-resident aliens not engaged in trade or business

12. Individual taxpayers exempt from income tax
a) Senior citizens
b) Exemptions granted under international agreements
13. Taxation of domestic corporations
a) Tax payable
(i) Regular tax
(ii) Minimum corporate income tax (MCIT) (a) Imposition of MCIT
(b) Carry forward of excess minimum tax
(c) Relief from the MCIT under certain conditions
(d) Corporations exempt from the MCIT
(e) Applicability of the MCIT where a corporation is governed both under the regular tax system and a special income tax system
b) Allowable deductions
(i) Itemized deductions
(ii) Optional standard deduction c) Taxation of passive income
(i) Passive income subject to tax
(a) Interest from deposits and yield or any other monetary benefit from deposit substitutes and from trust funds and similar arrangements and royalties
(b) Capital gains from the sale of shares of stock not traded in the stock exchange
(c) Income derived under the expanded foreign currency deposit system
(d) Intercorporate dividends
(e) Capital gains realized from the sale, exchange, or disposition of lands and/or buildings
(ii) Passive income not subject to tax d) Taxation of capital gains
(i) Income from sale of shares of stock
(ii) Income from the sale of real property situated in the Philippine
(iii) Income from the sale, exchange, or other disposition of other capital assets
e) Tax on proprietary educational institutions and hospitals
f) Tax on government-owned or controlled corporations, agencies or instrumentalities
14. Taxation of resident foreign corporations
a) General rule
b) With respect to their income from sources within the Philippines c) Minimum corporate income tax
d) Tax on certain income
(i) Interest from deposits and yield or any other monetary benefit from deposit substitutes, trust funds and similar arrangements and royalties (ii) Income derived under the expanded foreign currency deposit system
(iii) Capital gain from sale of shares of stock not traded in the stock exchange
(iv) Intercorporate dividends
Exclude:
(i) International carrier (ii)Offshore banking units (iii)Branch profits remittances
(iv) Regional or area headquarters and regional operating headquarters of multinational companies
15. Taxation of non-resident foreign corporations
a) General rule
b) Tax on certain income
(i) Interest on foreign loans
(ii) Intercorporate dividends
(iii) Capital gains from sale of shares of stock not traded in the stock exchange
Exclude:
(i) Non-resident cinematographic film owner, lessor or distributor
(ii) Non-resident owner or lessor of vessels chartered by Philippine nationals
(iii) Non-resident owner or lessor of aircraft machineries and other equipment
16. Improperly accumulated earnings of corporations
17. Exemption from tax on corporations
18. Taxation of partnerships
19. Taxation of general professional partnerships
20. Taxation on estates and trusts
a) Application b) Exception
c) Determination of tax
(i) Consolidation of income of two or more trusts
(ii) Taxable income
(iii) Revocable trusts
(iv) Income for benefit of grantor
(v) Meaning of “in the discretion of the grantor”
21. Withholding tax
a) Concept b) Kinds
(i) Withholding of final tax on certain incomes
(ii) Withholding of creditable tax at source c) Withholding on wages
(i) Requirement for withholding
(ii) Tax paid by recipient (iii) Refunds or credits (iv) Year-end adjustment (v) Liability for tax
d) Withholding of VAT
e) Filing of return and payment of taxes withheld
(i) Return and payment in case of government employees
(ii) Statements and returns
f) Final withholding tax at source g) Creditable withholding tax
(i) Expanded withholding tax
(ii) Withholding tax on compensation h) Fringe benefit tax

B. Estate tax

1. Basic principles
2. Definition
3. Nature
4. Purpose or object
5. Time and transfer of properties
6. Classification of decedent
7. Gross estate vis-à-vis net estate
8. Determination of gross estate and net estate
9. Composition of gross estate
10. Items to be included in gross estate
11. Deductions from estate
12. Exclusions from estate
13. Tax credit for estate taxes paid in a foreign country
14. Exemption of certain acquisitions and transmissions
15. Filing of notice of death
16. Estate tax return

C. Donor’s tax

1. Basic principles
2. Definition
3. Nature
4. Purpose or object
5. Requisites of valid donation
6. Transfers which may be constituted as donation
a) Sale/exchange/transfer of property for insufficient consideration b) Condonation/remission of debt
7. Transfer for less than adequate and full consideration
8. Classification of donor
9. Determination of gross gift
10.Composition of gross gift
11.Valuation of gifts made in property
12.Tax credit for donor’s taxes paid in a foreign country
13. Exemptions of gifts from donor’s tax
14. Person liable
15. Tax basis

D. Value-Added Tax (VAT)

1. Concept
2. Characteristics
3. Impact of tax
4. Incidence of tax
5. Tax credit method
6. Destination principle
7. Persons liable
8. VAT on sale of goods or properties
a) Requisites of taxability of sale of goods or properties
9. Zero-rated sales of goods or properties, and effectively zero-rated sales of goods or properties
10. Transactions deemed sale
a) Transfer, use or consumption not in the course of business of goods/properties originally intended for sale or use in the course of business
b) Distribution or transfer to shareholders, investors or creditors
c) Consignment of goods if actual sale not made within 60 days from date of consignment
d) Retirement from or cessation of business with respect to inventories on hand
11. Change or cessation of status as VAT-registered person a) Subject to VAT
(i) Change of business activity from VAT taxable status to VAT-exempt status (ii) Approval of request for cancellation of a registration due to reversion to exempt status
(iii) Approval of request for cancellation of registration due to desire to revert
to exempt status after lapse of 3 consecutive years b) Not subject to VAT
(i) Change of control of a corporation
(ii) Change in the trade or corporate name
(iii) Merger or consolidation of corporations
12. VAT on importation of goods
a) Transfer of goods by tax exempt persons
13. VAT on sale of service and use or lease of properties a) Requisites for taxability
14. Zero-rated sale of services
15. VAT exempt transactions
a) VAT exempt transactions, in general b) Exempt transaction, enumerated
16. Input tax and output tax, defined
17. Sources of input tax
a) Purchase or importation of goods
b) Purchase of real properties for which a VAT has actually been paid c) Purchase of services in which VAT has actually been paid
d) Transactions deemed sale e) Transitional input tax
f) Presumptive input tax
g) Transitional input tax credits allowed under the transitory and other provisions of the regulations
18. Persons who can avail of input tax credit
19. Determination of output/input tax; VAT payable; excess input tax credits a) Determination of output tax
b) Determination of input tax creditable
c) Allocation of input tax on mixed transactions
d) Determination of the output tax and VAT payable and computation of VAT
payable or excess tax credits
20. Substantiation of input tax credits
21. Refund or tax credit of excess input tax
a) Who may claim for refund/apply for issuance of tax credit certificate b) Period to file claim/apply for issuance of tax credit certificate
c) Manner of giving refund
d) Destination principle or cross-border doctrine
22. Invoicing requirements
a) Invoicing requirements in general
b) Invoicing and recording deemed sale transactions
c) Consequences of issuing erroneous VAT invoice or VAT official receipt
23. Filing of return and payment
24. Withholding of final VAT on sales to government

E. Compliance requirements (internal revenue taxes)

1. Administrative requirements
a) Registration requirements
(i) Annual registration fee
(ii) Registration of each type of internal revenue tax
(iii) Transfer of registration
(iv) Other updates
(v) Cancellation of registration
(vi) Power of the commissioner to suspend the business operations of any person who fails to register
b) Persons required to register for VAT
(i) Optional registration for VAT of exempt person
(ii) Cancellation of VAT registration
(iii) Changes in or cessation of status of a VAT-registered person c) Supplying taxpayer identification number (TIN)
d) Issuance of receipts or sales or commercial invoices
(i) Printing of receipts or sales or commercial invoices
(ii) Invoicing requirements for VAT
(a) Information contained in the VAT invoice or VAT official receipt
(b) Consequences of issuing erroneous VAT invoice or official receipts e) Exhibition of certificate of payment at place of business
f) Continuation of business of deceased person
g) Removal of business to other location
2. Tax returns
a) Income tax returns
(i) Individual tax returns
(a) Filing of individual tax returns

Page 18 of 29

(1) Who are required to file
(a) Return of husband and wife
(b) Return of parent to include income of children
(c) Return of persons under disability
(2) Who are not required to file
(b) Where to file
(c) When to file
(ii) Corporate returns
(a) Requirement for filing returns
(1) Declaration of quarterly corporate income tax
(a) Place of filing
(b)Time of fling
(2) Final adjustment return (a)Place of filing (b)Time of filing
(3) Taxable year of corporations
(4) Extension of time to file return
(b) Return of corporation contemplating dissolution or reorganization (c) Return on capital gains realized from sale of shares of stock not traded in the local stock exchange
(iii) Returns of receivers, trustees in bankruptcy or assignees
(iv) Returns of general partnerships
(v) Fiduciary returns b) Estate tax returns
(i) Notice of death to be filed
(ii) Estate tax returns
(a) Requirements
(b) Time of filing and extension of time
(c) Place of filing
(iii) Discharge of executor or administrator from personal liability
(a) Definition of deficiency c) Donor’s tax returns
(i) Requirements
(ii) Time and place of filing d) VAT returns
(i) In general
(ii) Where to file the return e) Withholding tax returns
(i) Quarterly returns and payments of taxes withheld
(ii) Annual information return
3. Tax payments
a) Income taxes
(i) Payment, in general; time of payment
(ii) Installment payment
(iii) Payment of capital gains tax b) Estate taxes
(i) Time of payment
(a) Extension of time
(ii) Liability for payment
(a) Discharge of executor or administrator from personal liability
(b) Definition of deficiency
(iii) Payment before delivery by executor or administrator
(a) Payment of tax antecedent to the transfer of shares, bonds or rights
(iv) Duties of certain officers and debtors
(v) Restitution of tax upon satisfaction of outstanding obligations c) Donor’s taxes
(i) Time and place of payment d) VAT
(i) Payment of VAT
(ii) Where to pay the VAT

F. Tax remedies under the NIRC

1. Taxpayer’s remedies
a) Assessment
(i) Concept of assessment
(a) Requisites for valid assessment
(b) Constructive methods of income determination
(c) Inventory method for income determination
(d) Jeopardy assessment
(e) Tax delinquency and tax deficiency
(ii) Power of the commissioner to make assessments and prescribe additional requirements for tax administration and enforcement
(a) Power of the commissioner to obtain information, and to summon/examine, and take testimony of persons
(iii) When assessment is made
(a) Prescriptive period for assessment
(1) False, fraudulent, and non-filing of returns
(b) Suspension of running of statute of limitations
(iv) General provisions on additions to the tax
(a) Civil penalties
(b) Interest
(v) Assessment process
(a) Tax audit
(b) Notice of informal conference
(c) Issuance of preliminary assessment notice
(d) Notice of informal conference
(e) Issuance of preliminary assessment notice
(f) Exceptions to issuance of preliminary assessment notice
(g) Reply to preliminary assessment notice
(h) Issuance of formal letter of demand and assessment notice/final assessment notice
(i) Disputed assessment
(j) Administrative decision on a disputed assessment vi) Protesting assessment
(a) Protest of assessment by taxpayer
(1)Protested assessment (2)When to file a protest (3) Forms of protest
(b) Submission of documents within 60 days from filing of protest
(c) Effect of failure to protest
(vii) Rendition of decision by commissioner
(a) Denial of protest
(1) Commissioner’s actions equivalent to denial of protest
(a) Filing of criminal action against taxpayer
(b) Issuing a warrant of distraint and levy
(2) Inaction by commissioner
(viii) Remedies of taxpayer to action by commissioner
(a) In case of denial of protest
(b) In case of inaction by commissioner within 180 days from submission of documents
(c) Effect of failure to appeal
b) Collection
(i) Requisites
(ii) Prescriptive periods
(iii) Distraint of personal property including garnishment
(a) Summary remedy of distraint of personal property
(1) Procedure for distraint and garnishment
(2) Sale of property distrained and disposition of proceeds
(a) Release of distrained property upon payment prior to sale
(3) Purchase by the government at sale upon distraint
(4) Report of sale to the BIR
(5) Constructive distraint to protect the interest of the government
(iv) Summary remedy of levy on real property
(a) Advertisement and sale
(b) Redemption of property sold
(c) Final deed of purchaser
(v) Forfeiture to government for want of bidder
(a) Remedy of enforcement of forfeitures
(1) action to contest forfeiture of chattel
(b) Resale of real estate taken for taxes
(c) When property to be sold or destroyed
(d) Disposition of funds recovered in legal proceedings or obtained from forfeiture
(vi) Further distraint or levy
(vii) Tax lien
(viii) Compromise
(a) Authority of the commissioner to compromise and abate taxes
(ix) Civil and criminal actions
(a) Suit to recover tax based on false or fraudulent returns
c) Refund
(i) Grounds and requisites for refund
(ii) Requirements for refund as laid down by cases
(a) Necessity of written claim for refund
(b) Claim containing a categorical demand for reimbursement
(c) Filing of administrative claim for refund and the suit/proceeding before the CTA within 2 years from date of payment regardless of any supervening cause
(iii) Legal basis of tax refunds
(iv) Statutory basis for tax refund under the tax code
(a) Scope of claims for refund
(b) Necessity of proof for claim or refund
(c) Burden of proof for claim of refund
(d) Nature of erroneously paid tax/illegally assessed collected
(e) Tax refund vis-à-vis tax credit
(f) Essential requisites for claim of refund
(v) Who may claim/apply for tax refund/tax credit
(a) Taxpayer/withholding agents of non-resident foreign corporation
(vi) Prescriptive period for recovery of tax erroneously or illegally collected
(vii) Other consideration affecting tax refunds
2. Government remedies
a) Administrative remedies
(i) Tax lien
(ii) Levy and sale of real property
(iii) Forfeiture of real property to the government for want of bidder
(iv) Further distraint and levy
(v) Suspension of business operation
(vi) Non-availability of injunction to restrain collection of tax b) Judicial remedies
3. Statutory offenses and penalties
a) Civil penalties (i) Surcharge (ii) Interest
(a) In general
(b) Deficiency interest
(c) Delinquency interest
(d) Interest on extended payment
4. Compromise and abatement of taxes
a) Compromise b) Abatement

G. Organization and Function of the Bureau of Internal Revenue

1. Rule-making authority of the secretary of finance
a) Authority of secretary of finance to promulgate rules and regulations b) Specific provisions to be contained in rules and regulations
c) Non-retroactivity of rulings
2. Power of the commissioner to suspend the business operation of a taxpayer

III. Local Government Code of 1991, as amended

A. Local government taxation
1. Fundamental principles
2. Nature and source of taxing power
a) Grant of local taxing power under the local government code b) Authority to prescribe penalties for tax violations
c) Authority to grant local tax exemptions d) Withdrawal of exemptions
e) Authority to adjust local tax rates
f) Residual taxing power of local governments g) Authority to issue local tax ordinances
3. Local taxing authority
a) Power to create revenues exercised through Local Government Units b) Procedure for approval and effectivity of tax ordinances
4. Scope of taxing power
5. Specific taxing power of Local Government Units (LGUs)
a) Taxing powers of provinces
(i) Tax on transfer of real property ownership (ii) Tax on business of printing and publication (iii) Franchise tax
(iv) Tax on sand, gravel and other quarry services
(v) Professional tax
(vi) Amusement tax
(vii) Tax on delivery truck/van b) Taxing powers of cities
c) Taxing powers of municipalities
(i) Tax on various types of businesses
(ii) Ceiling on business tax impossible on municipalities within Metro Manila
(iii) Tax on retirement on business
(iv) Rules on payment of business tax
(v) Fees and charges for regulation & licensing
(vi) Situs of tax collected
d) Taxing powers of barangays
e) Common revenue raising powers
(i) Service fees and charges
(ii) Public utility charges
(iii) Toll fess or charges f) Community tax
6. Common limitations on the taxing powers of LGUs
7. Collection of business tax
a) Tax period and manner of payment b) Accrual of tax
c) Time of payment
d) Penalties on unpaid taxes, fees or charges
e) Authority of treasurer in collection and inspection of books
8. Taxpayer’s remedies
a) Periods of assessment and collection of local taxes, fees or charges b) Protest of assessment
c) Claim for refund of tax credit for erroneously or illegally collected tax, fee or charge
9. Civil remedies by the LGU for collection of revenues
a) Local government’s lien for delinquent taxes, fees or charges b) Civil remedies, in general
(i) Administrative action
(ii) Judicial action
c) Procedure for administrative action
(i) Distraint of personal property
(ii) Levy of real property, procedure
(iii) Further distraint or levy
(iv) Exemption of personal property from distraint or levy
(v) Penalty on local treasurer for failure to issue and execute warrant of distraint or levy
d) Procedure for judicial action
B. Real property taxation
1. Fundamental principles
2. Nature of real property tax
3. Imposition of real property tax
a) Power to levy real property tax
b) Exemption from real property tax
4. Appraisal and assessment of real property tax
a) Rule on appraisal of real property at fair market value b) Declaration of real property
c) Listing of real property in assessment rolls
d) Preparation of schedules of fair market value
(i) Authority of assessor to take evidence
(ii) Amendment of schedule of fair market value e) Classes of real property
f) Actual use of property as basis of assessment g) Assessment of real property
(i) Assessment levels
(ii) General revisions of assessments and property classification
(iii) Date of effectivity of assessment or reassessment
(iv) Assessment of property subject to back taxes
(v) Notification of new or revised assessment h) Appraisal and assessment of machinery
5. Collection of real property tax
a) Date of accrual of real property tax b) Collection of tax
(i) Collecting authority
(ii) Duty of assessor to furnish local treasurer with assessment rolls
(iii) Notice of time for collection of tax
c) Periods within which to collect real property tax d) Special rules on payment
(i) Payment of real property tax in installments
(ii) Interests on unpaid real property tax
(iii) Condonation of real property tax
e) Remedies of LGUs for collection of real property tax
(i) Issuance of notice of delinquency for real property tax payment
(ii) Local government’s lien
(iii) Remedies in general
(iv) Resale of real estate taken for taxes, fees or charges
(v) Further levy until full payment of amount due
6. Refund or credit of real property tax a) Payment under protest
b) Repayment of excessive collections
7. Taxpayer’s remedies
a) Contesting an assessment of value of real property
(i) Appeal to the Local Board of Assessment Appeals
(ii) Appeal to the Central Board of Assessment Appeals
(iii) Effect of payment of tax
b. Payment of real property under protest
(i) File protest with local treasurer
(ii) Appeal to the Local Board of Assessment Appeals (iii) Appeal to the Central Board of Assessment Appeals (iv) Appeal to the CTA
(v) Appeal to the Supreme Court

IV. Tariff and Customs Code of 1978, as amended

A. Tariff and duties, defined
B. General rule: all imported articles are subject to duty.
1. Importation by the government taxable
C. Purpose for imposition
D. Flexible tariff clause
E. Requirements of importation
1. Beginning and ending of importation
2. Obligations of importer a) Cargo manifest
b) Import entry
c) Declaration of correct weight or value d) Liability for payment of duties
e) Liquidation of duties f) Keeping of records
F. Importation in violation of tax credit certificate
1. Smuggling
2. Other fraudulent practices
G. Classification of goods
1. Taxable importation
2. Prohibited importation
3. Conditionally-free importation
H. Classification of duties
1. Ordinary/regular duties
a) Ad valorem; methods of valuation
(i) Transaction value
(ii) Transaction value of identical goods (iii) Transaction value of similar goods (iv) Deductive value
(v) Computed value
(vi) Fallback value b) Specific
2. Special duties
a) Dumping duties
b) Countervailing duties c) Marking duties
d) Retaliatory/discriminatory duties
e) Safeguard
I. Drawbacks
J. Remedies
1. Government
a) Administrative/extrajudicial
(i) Search, seizure, forfeiture, arrest b) Judicial
(i) Rules on appeal including jurisdiction
2. Taxpayer
a) Protest
b) Abandonment
c) Abatement and refund

V. Judicial Remedies (R.A. 1125, as amended, and the Revised Rules of the Court of

Tax Appeals)

A. Jurisdiction of the Court of Tax Appeals
1. Exclusive appellate jurisdiction over civil tax cases
a) Cases within the jurisdiction of the court en banc
b) Cases within the jurisdiction of the court in divisions
2. Criminal cases
a) Exclusive original jurisdiction
b) Exclusive appellate jurisdiction in criminal cases
B. Judicial procedures
1. Judicial action for collection of taxes a) Internal revenue taxes
b) Local taxes
(i) Prescriptive period
2. Civil cases
a) Who may appeal, mode of appeal, effect of appeal
(i) Suspension of collection of tax
a) Injunction not available to restrain collection
(ii) Taking of evidence
(iii) Motion for reconsideration or new trial b) Appeal to the CTA, en banc
c) Petition for review on certiorari to the Supreme Court
3. Criminal cases
a) Institution and prosecution of criminal actions
(i) Institution on civil action in criminal action b) Appeal and period to appeal
(i) Solicitor General as counsel for the people and government officials sued in their official capacity
c) Petition for review on certiorari to the Supreme Court
C. Taxpayer’s suit impugning the validity of tax measures or acts of taxing authorities
1. Taxpayer’s suit, defined
2. Distinguished from citizen’s suit
3. Requisites for challenging the constitutionality of a tax measure or act of taxing authority
a) Concept of locus standi as applied in taxation
b) Doctrine of transcendental importance c) Ripeness for judicial determination

INCLUDE: Pertinent Supreme Court decisions promulgated up to January 31, 2012.

IMPORTANT NOTE: This bar coverage description is not intended and should not be used by law schools as a syllabus or course outline in the covered subjects. It has been drawn up for the limited purpose of ensuring that candidates reviewing for the bar examinations are guided on what basic and minimum amounts of laws, doctrines, and principles they need to know and be able to use correctly before they can be licensed to practice law. More is required for

excellent and distinguished work as members of the Bar.

Philippine Bar Exam: 2012 Remedial Law Syllabus

SYLLABUS FOR THE 2012 BAR EXAMINATIONS

REMEDIAL LAW

I. General Principles

A. Concept of remedial law
B. Substantive law as distinguished from remedial law
C. Rule-making power of the Supreme Court
1. Limitations on the rule-making power of the Supreme Court
2. Power of the Supreme Court to amend and suspend procedural rules
D. Nature of Philippine courts
1. Meaning of a court
2. Court as distinguished from a judge
3. Classification of Philippine courts
4. Courts of original and appellate jurisdiction
5. Courts of general and special jurisdiction
6. Constitutional and statutory courts
7. Courts of law and equity
8. Principle of judicial hierarchy
9. Doctrine of non-interference or doctrine of judicial stability

II. Jurisdiction

A. Jurisdiction over the parties
1. How jurisdiction over the plaintiff is acquired
2. How jurisdiction over the defendant is acquired
B. Jurisdiction over the subject matter
1. Meaning of jurisdiction over the subject matter
2. Jurisdiction versus the exercise of jurisdiction
3. Error of jurisdiction as distinguished from error of judgment
4. How jurisdiction is conferred and determined
5. Doctrine of primary jurisdiction
6. Doctrine of adherence of jurisdiction
7. Objections to jurisdiction over the subject matter
8. Effect of estoppel on objections to jurisdiction
C. Jurisdiction over the issues
D. Jurisdiction over the res or property in litigation
E. Jurisdiction of courts
1. Supreme Court
2. Court of Appeals
3. Court of Tax Appeals
4. Sandiganbayan
5. Regional Trial Courts
6. Family Courts
7. Metropolitan Trial Courts/Municipal Trial Courts
8. Shariah Courts
F. Jurisdiction over small claims, cases covered by the Rules on Summary Procedure and barangay conciliation
G. Totality rule

III. Civil Procedure

A. Actions
1. Meaning of ordinary civil actions
2. Meaning of special civil actions
3. Meaning of criminal actions
4. Civil actions versus special proceedings
5. Personal actions and real actions
6. Local and transitory actions
7. Actions in rem, in personam and quasi in rem
B. Cause of action
1. Meaning of cause of action
2. Right of action versus cause of action
3. Failure to state a cause of action
4. Test of the sufficiency of a cause of action
5. Splitting a single cause of action and its effects
6. Joinder and misjoinder of causes of action
C. Parties to civil actions
1. Real parties in interest; indispensable parties;
Representatives as parties; necessary parties; indigent parties; alternative
Defendants
2. Compulsory and permissive joinder of parties
3. Misjoinder and non-joinder of parties
4. Class suit
5. Suits against entities without juridical personality
6. Effect of death of party litigant
D. Venue
1. Venue versus jurisdiction
2. Venue of real actions
3. Venue of personal actions
4. Venue of actions against non-residents
5. When the rules on venue do not apply
6. Effects of stipulations on venue
E. Pleadings
1. Kinds of pleadings a) Complaint b) Answer
(i) Negative defenses
(ii) Negative pregnant
(iii) Affirmative defenses c) Counterclaims
(i) Compulsory counterclaim
(ii) Permissive counterclaim
(iii) Effect on the counterclaim when the complaint is dismissed d) Cross-claims
e) Third (fourth, etc.) party complaints f) Complaint-in-intervention
g) Reply
2. Pleadings allowed in small claim cases and cases covered by the Rules on
Summary Procedure
3. Parts of a pleading a) Caption
b) Signature and address
c) Verification and certification against forum shopping
(i) Requirements of a corporation executing the verification/certification of non-forum shopping
d) Effect of the signature of counsel in a pleading
4. Allegations in a pleading
a) Manner of making allegations
(i) Condition precedent
(ii) Fraud, mistake, malice, intent, knowledge and other condition of the mind, judgments, official documents or acts
b) Pleading an actionable document c) Specific denials
(i) Effect of failure to make specific denials
(ii) When a specific denial requires an oath
5. Effect of failure to plead
a) Failure to plead defenses and objections
b) Failure to plead a compulsory counterclaim and cross-claim
6. Default
a) When a declaration of default is proper
b) Effect of an order of default
c) Relief from an order of default
d) Effect of a partial default
e) Extent of relief
f) Actions where default are not allowed
7. Filing and service of pleadings a) Payment of docket fees
b) Filing versus service of pleadings c) Periods of filing of pleadings
d) Manner of filing
e) Modes of service
(i) Personal service
(ii) Service by mail
(iii) Substituted service
(iv) Service of judgments, final orders or resolutions
(v) Priorities in modes of service and filing
(vi) When service is deemed complete
(vii) Proof of filing and service
8. Amendment
a) Amendment as a matter of right b) Amendments by leave of court
c) Formal amendment
d) Amendments to conform to or authorize presentation of evidence e) Different from supplemental pleadings
f) Effect of amended pleading
F. Summons
1. Nature and purpose of summons in relation to actions in personam, in rem and quasi in rem
2. Voluntary appearance
3. Personal service
4. Substituted service
5. Constructive service (by publication)
a) Service upon a defendant where his identity is unknown or where his whereabouts are unknown
b) Service upon residents temporarily outside the
Philippines
6. Extra-territorial service, when allowed
7. Service upon prisoners and minors
8. Proof of service
G. Motions
1. Motions in general
a) Definition of a motion
b) Motions versus pleadings
c) Contents and form of motions
d) Notice of hearing and hearing of motions e) Omnibus motion rule
f) Litigated and ex parte motions g) Pro-forma motions
2. Motions for bill of particulars
a) Purpose and when applied for b) Actions of the court
c) Compliance with the order and effect of noncompliance
d) Effect on the period to file a responsive pleading
3. Motion to dismiss a) Grounds
b) Resolution of motion
c) Remedies of plaintiff when the complaint is dismissed d) Remedies of the defendant when the motion is denied e) Effect of dismissal of complaint on certain grounds
f) When grounds pleaded as affirmative defenses g) Bar by dismissal
h) Distinguished from demurrer to evidence under Rule 33
H. Dismissal of actions
1. Dismissal upon notice by plaintiff; two-dismissal rule
2. Dismissal upon motion by plaintiff; effect on existing counterclaim
3. Dismissal due to the fault of plaintiff
4. Dismissal of counterclaim, cross-claim or third-party complaint
I. Pre-trial
1. Concept of pre-trial
2. Nature and purpose
3. Notice of pre-trial
4. Appearance of parties; effect of failure to appear
5. Pre-trial brief; effect of failure to appear
6. Distinction between pre-trial in civil case and pre-trial in criminal case
7. Alternative Dispute Resolution (ADR)
J. Intervention
1. Requisites for intervention
2. Time to intervene
3. Remedy for the denial of motion to intervene
K. Subpoena
1. Subpoena duces tecum
2. Subpoena ad testificandum
3. Service of subpoena
4. Compelling attendance of witnesses; contempt
5. Quashing of subpoena
L. Modes of discovery
1. Depositions pending action; depositions before action or pending appeal a) Meaning of deposition
b) Uses; scope of examination
c) When may objections to admissibility be made
d) When may taking of deposition be terminated or its scope limited
2. Written interrogatories to adverse parties a) Consequences of refusal to answer
b) Effect of failure to serve written interrogatories
3. Request for admission
a) Implied admission by adverse party
b) Consequences of failure to answer request for admission c) Effect of admission
d) Effect of failure to file and serve request for admission
4. Production or inspection of documents or things
5. Physical and mental examination of persons
6. Consequences of refusal to comply with modes of discovery
M. Trial
1. Adjournments and postponements
2. Requisites of motion to postpone trial a) For absence of evidence
b) For illness of party or counsel
3. Agreed statement of facts
4. Order of trial; reversal of order
5. Consolidation or severance of hearing or trial
6. Delegation of reception of evidence
7. Trial by commissioners
a) Reference by consent or ordered on motion b) Powers of the commissioner
c) Commissioner’s report; notice to parties and hearing on the report
N. Demurrer to evidence
1. Ground
2. Effect of denial
3. Effect of grant
4. Waiver of right to present evidence
5. Demurrer to evidence in a civil case versus demurrer to evidence in a criminal case
O. Judgments and final orders
1. Judgment without trial
2. Contents of a judgment
3. Judgment on the pleadings
4. Summary judgments
a) For the claimant
b) For the defendant
c) When the case not fully adjudicated d) Affidavits and attachments
5. Judgment on the pleadings versus summary judgments
6. Rendition of judgments and final orders
7. Entry of judgment and final order
P. Post-judgment remedies
1. Motion for new trial or reconsideration a) Grounds
b) When to file
c) Denial of the motion; effect d) Grant of the motion; effect
e) Remedy when motion is denied, fresh 15-day period rule
2. Appeals in general
a) Judgments and final orders subject to appeal b) Matters not appealable
c) Remedy against judgments and orders which are not appealable d) Modes of appeal
(i) Ordinary appeal
(ii) Petition for review
(iii) Petition for review on certiorari e) Issues to be raised on appeal
f) Period of appeal
g) Perfection of appeal
h) Appeal from judgments or final orders of the MTC
i) Appeal from judgments or final orders of the RTC
j) Appeal from judgments or final orders of the CA
k) Appeal from judgments or final orders of the CTA
l). Review of final judgments or final orders of the COA
m) Review of final judgments or final orders of the Comelec n) Review of final judgments or final orders of the CSC
o) Review of final judgments or final orders of the Ombudsman p) Review of final judgments or final orders of the NLRC
q) Review of final judgments or final orders of quasi-judicial agencies
3. Relief from judgments, orders and other proceedings a) Grounds for availing of the remedy
b) Time to file petition c) Contents of petition
4. Annulment of judgments or final orders and resolutions a) Grounds for annulment
b) Period to file action
c) Effects of judgment of annulment
5. Collateral attack of judgments
Q. Execution, satisfaction and effect of judgments
1. Difference between finality of judgment for purposes of appeal; for purposes of execution
2. When execution shall issue
a) Execution as a matter of right b) Discretionary execution
3. How a judgment is executed
a) Execution by motion or by independent action b) Issuance and contents of a writ of execution
c) Execution of judgments for money
d) Execution of judgments for specific acts e) Execution of special judgments
f) Effect of levy on third persons
4. Properties exempt from execution
5. Proceedings where property is claimed by third persons
a) In relation to third party claim in attachment and replevin
6. Rules on redemption
7. Examination of judgment obligor when judgment is unsatisfied
8. Examination of obligor of judgment obligor
9. Effect of judgment or final orders
10. Enforcement and effect of foreign judgments or final orders
R. Provisional remedies
1. Nature of provisional remedies
2. Jurisdiction over provisional remedies
3. Preliminary attachment
a) Grounds for issuance of writ of attachment b) Requisites
c) Issuance and contents of order of attachment; affidavit and bond
d) Rule on prior or contemporaneous service of summons
e) Manner of attaching real and personal property; when property attached is claimed by third person
f) Discharge of attachment and the counter-bond
g) Satisfaction of judgment out of property attached
4. Preliminary injunction
a) Definitions and differences: preliminary injunction and temporary restraining order
b) Requisites
c) Kinds of injunction
d) When writ may be issued
e) Grounds for issuance of preliminary injunction
f) Grounds for objection to, or for the dissolution of injunction or restraining order
g) Duration of TRO
h) In relation to R.A. 8975, ban on issuance of TRO or writ of injunction in cases involving government infrastructure projects
i) Rule on prior or contemporaneous service of summons in relation to attachment
5. Receivership
a) Cases when receiver may be appointed b) Requisites
c) Requirements before issuance of an order d) General powers of a receiver
e) Two kinds of bonds
f) Termination of receivership
6. Replevin
a) When may writ be issued b) Requisites
c) Affidavit and bond; redelivery bond
d) Sheriff’s duty in the implementation of the writ; when property is claimed by third party
S. Special civil actions
1. Nature of special civil actions
2. Ordinary civil actions versus special civil actions
3. Jurisdiction and venue
4. Interpleader
a) Requisites for interpleader b) When to file
5. Declaratory reliefs and similar remedies a) Who may file the action
b) Requisites of action for declaratory relief
c) When court may refuse to make judicial declaration d) Conversion to ordinary action
e) Proceedings considered as similar remedies
(i) Reformation of an instrument
(ii) Consolidation of ownership
(iii) Quieting of title to real property
6. Review of judgments and final orders or resolution of the Comelec and COA
a) Application of Rule 65 under Rule 64
b) Distinction in the application of Rule 65 to judgments of the Comelec and COA and the application of Rule 65 to other tribunals, persons and officers
7. Certiorari, prohibition and mandamus a) Definitions and distinctions
(i) Certiorari distinguished from appeal by certiorari
(ii) Prohibition and mandamus distinguished from injunction b) Requisites
c) When petition for certiorari, prohibition and mandamus is proper d) Injunctive relief
e) Exceptions to filing of motion for reconsideration before filing petition f) Reliefs petitioner is entitled to
g) Actions/omissions of MTC/RTC in election cases
h) When and where to file petition
i) Effects of filing of an unmeritorious petition
8. Quo warranto
a) Distinguish from quo warranto in the omnibus election code b) When government commence an action against individuals
c) When individual may commence an action d) Judgment in quo warranto action
e) Rights of a person adjudged entitled to public office
9. Expropriation
a) Matters to allege in complaint for expropriation b) Two stages in every action for expropriation
c) When plaintiff can immediately enter into possession of the real property, in relation to R.A. 8974
d) New system of immediate payment of initial just compensation e) Defenses and objections
f) Order of expropriation
g) Ascertainment of just compensation
h) Appointment of commissioners; commissioner’s report; court action upon commissioner’s report
i) Rights of plaintiff upon judgment and payment
j) Effect of recording of judgment
10. Foreclosure of real estate mortgage
a) Judgment on foreclosure for payment or sale b) Sale of mortgaged property; effect
c) Disposition of proceeds of sale d) Deficiency judgment
(i) Instances when court cannot render deficiency judgment
e) Judicial foreclosure versus extrajudicial foreclosure f) Equity of redemption versus right of redemption
11. Partition
a) Who may file complaint; who should be made defendants b) Matters to allege in the complaint for partition
c) Two stages in every action for partition
d) Order of partition and partition by agreement
e) Partition by commissioners; appointment of commissioners, commissioner’s report; court action upon commissioner’s report f) Judgment and its effects
g) Partition of personal property h) Prescription of action
12. Forcible entry and unlawful detainer
a) Definitions and distinction
b) Distinguished from accion publiciana and accion reivindicatoria c) How to determine jurisdiction in accion publiciana and accion reivindicatoria
d) Who may institute the action and when; against whom the action may be maintained
e) Pleadings allowed
f) Action on the complaint
g) When demand is necessary
h) Preliminary injunction and preliminary mandatory injunction i) Resolving defense of ownership
j) How to stay the immediate execution of judgment k) Summary procedure, prohibited pleadings
13. Contempt
a) Kinds of contempt
b) Purpose and nature of each
c) Remedy against direct contempt; penalty
d) Remedy against indirect contempt; penalty e) How contempt proceedings are commenced f) Acts deemed punishable as indirect contempt
g) When imprisonment shall be imposed h) Contempt against quasi-judicial bodies

IV. Special Proceedings

A. Settlement of estate of deceased persons, venue and process
1. Which court has jurisdiction
2. Venue in judicial settlement of estate
3. Extent of jurisdiction of probate court
4. Powers and duties of probate court
B. Summary settlement of estates
1. Extrajudicial settlement by agreement between heirs, when allowed
2. Two-year prescriptive period
3. Affidavit of self-adjudication by sole heir
4. Summary settlement of estates of small value, when allowed
5. Remedies of aggrieved parties after extra-judicial settlement of estate
C. Production and probate of will
1. Nature of probate proceeding
2. Who may petition for probate; persons entitled to notice
D. Allowance or disallowance of will
1. Contents of petition for allowance of will
2. Grounds for disallowing a will
3. Reprobate
a) Requisites before a will proved abroad will be allowed in the Philippines
4. Effects of probate
E. Letters testamentary and of administration
1. When and to whom letters of administration granted
2. Order of preference
3. Opposition to issuance of letters testamentary; simultaneous filing of petition for administration
4. Powers and duties of executors and administrators; restrictions on the powers
5. Appointment of special administrator
6. Grounds for removal of administrator
F. Claims against the estate
1. Time within which claims shall be filed; exceptions
2. Statute of non-claims
3. Claim of executor or administrator against the estate
4. Payment of debts
G. Actions by and against executors and administrators
1. Actions that may be brought against executors and administrators
2. Requisites before creditor may bring an action for recovery of property fraudulently conveyed by the deceased
H. Distribution and partition
1. Liquidation
2. Project of partition
3. Remedy of an heir entitled to residue but not given his share
4. Instances when probate court may issue writ of execution
I. Trustees
1. Distinguished from executor/administrator
2. Conditions of the bond
3. Requisites for the removal and resignation of a trustee
4. Grounds for removal and resignation of a trustee
5. Extent of authority of trustee
J. Escheat
1. When to file
2. Requisites for filing of petition
3. Remedy of respondent against petition; period for filing a claim
K. Guardianship
1. General powers and duties of guardians
2. Conditions of the bond of the guardian
3. Rule on guardianship over minor
L. Adoption
1. Distinguish domestic adoption from inter-country adoption
2. Domestic Adoption Act
a) Effects of adoption
b) Instances when adoption may be rescinded c) Effects of rescission of adoption
3. Inter-country adoption a) When allowed
b) Functions of the RTC
c) “Best interest of the minor” standard
M. Writ of habeas corpus
1. Contents of the petition
2. Contents of the return
3. Distinguish peremptory writ from preliminary citation
4. When not proper/applicable
5. When writ disallowed/discharged
6. Distinguish from writ of amparo and habeas data
7. Rules on Custody of Minors and Writ of Habeas Corpus in Relation to Custody of Minors (A.M. No. 03-04-04-SC)
N. Writ of Amparo (A.M. No. 07-9-12-SC)
1. Coverage
2. Distinguish from habeas corpus and habeas data
3. Differences between amparo and search warrant
4. Who may file
5. Contents of return
6. Effects of failure to file return
7. Omnibus waiver rule
8. Procedure for hearing
9. Institution of separate action
10. Effect of filing of a criminal action
11. Consolidation
12. Interim reliefs available to petitioner and respondent
13. Quantum of proof in application for issuance of writ of amparo
O. Writ of Habeas Data (A.M. No. 08-1-16-SC)
1. Scope of writ
2. Availability of writ
3. Distinguish from habeas corpus and amparo
4. Who may file
5. Contents of the petition
6. Contents of return
7. Instances when petition be heard in chambers
8. Consolidation
9. Effect of filing of a criminal action
10. Institution of separate action
11. Quantum of proof in application for issuance of writ of amparo
P. Change of name
1. Differences under Rule 103, R.A. 9048 and Rule 108
2. Grounds for change of name
Q. Absentees
1. Purpose of the rule
2. Who may file; when to file
R. Cancellation or correction of entries in the civil registry
1. Entries subject to cancellation or correction under Rule 108, in relation to R.A.
9048
S. Appeals in special proceeding
1. Judgments and orders for which appeal may be taken
2. When to appeal
3. Modes of appeal
4. Rule on advance distribution

V. Criminal Procedure

A. General matters
1. Distinguish jurisdiction over subject matter from jurisdiction over person of the accused
2. Requisites for exercise of criminal jurisdiction
3. Jurisdiction of criminal courts
4. When injunction may be issued to restrain criminal prosecution
B. Prosecution of offenses
1. Criminal actions, how instituted
2. Who may file them, crimes that cannot be prosecuted de officio
3. Criminal actions, when enjoined
4. Control of prosecution
5. Sufficiency of complaint or information
6. Designation of offense
7. Cause of the accusation
8. Duplicity of the offense; exception
9. Amendment or substitution of complaint or information
10. Venue of criminal actions
11. Intervention of offended party
C. Prosecution of civil action
1. Rule on implied institution of civil action with criminal action
2. When civil action may proceed independently
3. When separate civil action is suspended
4. Effect of the death of accused or convict on civil action
5. Prejudicial question
6. Rule on filing fees in civil action deemed instituted with the criminal action
D. Preliminary investigation
1. Nature of right
2. Purposes of preliminary investigation
3. Who may conduct determination of existence of probable cause
4. Resolution of investigation prosecutor
5. Review
6. When warrant of arrest may issue
7. Cases not requiring a preliminary investigation
8. Remedies of accused if there was no preliminary investigation
9. Inquest
E. Arrest
1. Arrest, how made
2. Arrest without warrant, when lawful
3. Method of arrest
a) By officer with warrant
b) By officer without warrant c) By private person
4. Requisites of a valid warrant of arrest
5. Determination of probable cause for issuance of warrant of arrest
6. Distinguish probable cause of fiscal from that of a judge
F. Bail
1. Nature
2. When a matter of right; exceptions
3. When a matter of discretion
4. Hearing of application for bail in capital offenses
5. Guidelines in fixing amount of bail
6. Bail when not required
7. Increase or reduction of bail
8. Forfeiture and cancellation of bail
9. Application not a bar to objections in illegal arrest, lack of or irregular preliminary investigation
10. Hold departure order & bureau of immigration watch list
G. Rights of the accused
1. Rights of accused at the trial
2. Rights of persons under custodial investigation
H. Arraignment and plea
1. Arraignment and plea, how made
2. When should plea of not guilty be entered
3. When may accused enter a plea of guilty to a lesser offense
4. Accused plead guilty to capital offense, what the court should do
5. Searching inquiry
6. Improvident plea
7. Grounds for suspension of arraignment
I. Motion to quash
1. Grounds
2. Distinguish from demurrer to evidence
3. Effects of sustaining the motion to quash
4. Exception to the rule that sustaining the motion is not a bar to another prosecution
5. Double jeopardy
6. Provisional dismissal
J. Pre-trial
1. Matters to be considered during pre-trial
2. What the court should do when prosecution and offended party agree to the plea offered by the accused
3. Pre-trial agreement
4. Non-appearance during pre-trial
5. Pre-trial order
6. Referral of some cases for court annexed mediation and judicial dispute resolution
K. Trial
1. Instances when presence of accused is required by law
2. Requisite before trial can be suspended on account of absence of witness
3. Trial in absentia
4. Remedy when accused is not brought to trial within the prescribed period
5. Requisites for discharge of accused to become a state witness
6. Effects of discharge of accused as state witness
7. Demurrer to evidence
L. Judgment
1. Requisites of a judgment
2. Contents of judgment
3. Promulgation of judgment; instances of promulgation of judgment in absentia
4. When does judgment become final (four instances)
M. New trial or reconsideration
1. Grounds for new trial
2. Grounds for reconsideration
3. Requisites before a new trial may be granted on ground of newly discovered evidence
4. Effects of granting a new trial or reconsideration
5. Application of Neypes doctrine in criminal cases
N. Appeal
1. Effect of an appeal
2. Where to appeal
3. How appeal taken
4. Effect of appeal by any of several accused
5. Grounds for dismissal of appeal
O. Search and seizure
1. Nature of search warrant
2. Distinguish from warrant of arrest
3. Application for search warrant, where filed
4. Probable cause
5. Personal examination by judge of the applicant and witnesses
6. Particularity of place to be searched and things to be seized
7. Personal property to be seized
8. Exceptions to search warrant requirement a) Search incidental to lawful arrest
b) Consented search
c) Search of moving vehicle
d) Check points; body checks in airport e) Plain view situation
f) Stop and frisk situation
g) Enforcement of custom laws
h) Remedies from unlawful search and seizure
P. Provisional remedies
1. Nature
2. Kinds of provisional remedies

VI. Evidence

A. General principles
1. Concept of evidence
2. Scope of the Rules on Evidence
3. Evidence in civil cases versus evidence in criminal cases
4. Proof versus evidence
5. Factum probans versus factum probandum
6. Admissibility of evidence
a) Requisites for admissibility of evidence
b) Relevance of evidence and collateral matters c) Multiple admissibility
d) Conditional admissibility e) Curative admissibility
f) Direct and circumstantial evidence
g) Positive and negative evidence
h) Competent and credible evidence
7. Burden of proof and burden of evidence
8. Presumptions
a) Conclusive presumptions b) Disputable presumptions
9. Liberal construction of the rules of evidence
10. Quantum of evidence (weight and sufficiency of evidence)
a) Proof beyond reasonable doubt b) Preponderance of evidence
c) Substantial evidence
d) Clear and convincing evidence
B. Judicial notice and judicial admissions
1. What need not be proved
2. Matters of judicial notice a) Mandatory
b) Discretionary
3. Judicial admissions
a) Effect of judicial admissions
b) How judicial admissions may be contradicted
4. Judicial notice of foreign laws, law of nations and municipal ordinance
C. Object (real) evidence
1. Nature of object evidence
2. Requisites for admissibility
3. Categories of object evidence
4. Demonstrative evidence
5. View of an object or scene
6. Chain of custody in relation to Section 21 of the Comprehensive Dangerous Drugs
Act of 2002
7. Rule on DNA Evidence (A.M. No. 06-11-5-SC)
a) Meaning of DNA
b) Applicable for DNA testing order
c) Post-conviction DNA testing; remedy
d) Assessment of probative value of DNA evidence and admissibility e) Rules on evaluation of reliability of the DNA testing methodology
D. Documentary evidence
1. Meaning of documentary evidence
2. Requisites for admissibility
3. Best Evidence Rule
a) Meaning of the rule b) When applicable
c) Meaning of original
d) Requisites for introduction of secondary evidence
4. Rules on Electronic Evidence (A.M. No. 01-7-01-SC)
a) Meaning of electronic evidence; electronic data massage
b) Probative value of electronic documents or evidentiary weight; method of proof c) Authentication of electronic documents and electronic signatures
d) Electronic documents and the hearsay rule
e) Audio, photographic, video and ephemeral evidence
5. Parol Evidence Rule
a) Application of the parol evidence rule
b) When parol evidence can be introduced
c) Distinctions between the best evidence rule and parol evidence rule
6. Authentication and proof of documents a) Meaning of authentication
b) Public and private documents
c) When a private writing requires authentication; proof of a private writing d) When evidence of authenticity of a private writing is not required (ancient
documents)
e) How to prove genuineness of a handwriting
f) Public documents as evidence; proof of official record
g) Attestation of a copy
h) Public record of a public document i) Proof of lack of record
j) How a judicial record is impeached k) Proof of notarial documents
l) How to explain alterations in a document
m) Documentary evidence in an unofficial language
E. Testimonial evidence
1. Qualifications of a witness
2. Competency versus credibility of a witness
3. Disqualifications of witnesses
a) Disqualification by reason of mental capacity or immaturity b) Disqualification by reason of marriage
c) Disqualification by reason of death or insanity of adverse party d) Disqualification by reason of privileged communications
(i) Husband and wife (ii) Attorney and client (iii) Physician and patient (iv). Priest and penitent
(v). Public officers
(vi). Parental and filial privilege rule
4. Examination of a witness
a) Rights and obligations of a witness
b) Order in the examination of an individual witness
(i) Direct examination
(ii) Cross examination
(iii) Re-direct examination (iv) Re-cross examination (v) Recalling the witness
c) Leading and misleading questions
d) Methods of impeachment of adverse party’s witness
e) How the witness is impeached by evidence of inconsistent statements (laying the predicate)
f) Evidence of the good character of a witness
5. Admissions and confessions a) Res inter alios acta rule b) Admission by a party
c) Admission by a third party
d) Admission by a co-partner or agent e) Admission by a conspirator
f) Admission by privies g) Admission by silence h) Confessions
i) Similar acts as evidence
6. Hearsay Rule
a) Meaning of hearsay
b) Reason for exclusion of hearsay evidence c) Exceptions to the hearsay rule
(i) Dying declaration
(ii) Declaration against interest
(iii) Act or declaration about pedigree
(iv) Family reputation or tradition regarding pedigree
(v) Common reputation
(vi) Part of the res gestae
(vii) Entries in the course of business
(viii) Entries in official records
(ix) Commercial lists and the like
(x) Learned treaties
(xi) Testimony or deposition at a former trial
7. Opinion rule
a) Opinion of expert witness
b) Opinion of ordinary witness
8. Character evidence a) Criminal cases b) Civil cases
9. Rule on Examination of a Child witness (A.M. No. 004-07-SC)
a) Applicability of the rule
b) Meaning of “child witness”
c) Competency of a child witness d) Examination of a child witness
e) Live-link TV testimony of a child witness f) Videotaped deposition of a child witness
g) Hearsay exception in child abuse cases h) Sexual abuse shield rule
i) Protective orders
F. Offer and objection
1. Offer of evidence
2. When to make an offer
3. Objection
4. Repetition of an objection
5. Ruling
6. Striking out of an answer
7. Tender of excluded evidence
G. Supreme Court rulings as of January 31, 2012

VII. Revised Rules on Summary Procedure

A. Cases covered by the rule
B. Effect of failure to answer
C. Preliminary conference and appearances of parties

VIII. Katarungang Pambarangay

A. Cases covered
B. Subject matter for amicable settlement
C. Venue
D. When parties may directly go to court
E. Execution
F. Repudiation

IX. Rule of Procedure for Small Claims Cases (A.M. No. 08-8-7-SC)

A. Scope and applicability of the rule
B. Commencement of small claims action; response
C. Prohibited pleadings and motions
D. Appearances
E. Hearing; duty of the judge
F. Finality of judgment

X. Rules of Procedure for Environmental Cases (A.M. No. 09-6-8-SC)

A. Scope and applicability of the rule
B. Civil procedure
1. Prohibition against temporary restraining order and preliminary injunction
2. Pre-trial conference; consent decree
3. Prohibited pleadings and motions
4. Temporary environmental protection order (TEPO)
5. Judgment and execution; reliefs in a citizen’s suit
6. Permanent environmental protection order; writ of continuing mandamus
7. Strategic lawsuit against public participation
C. Special proceedings
1. Writ of Kalikasan
2. Prohibited pleadings and motions
3. Discovery measures
4. Writ of continuing mandamus
D. Criminal procedure
1. Who may file
2. Institution of criminal and civil action
3. Arrest without warrant, when valid
4. Procedure in the custody and disposition of seized items
5. Bail
6. Arraignment and plea
7. Pre-trial
8. Subsidiary liabilities
E. Evidence
1. Precautionary principle
2. Documentary evidence

INCLUDE: Pertinent Supreme Court decisions promulgated as of January 31, 2012.

IMPORTANT NOTE: This bar coverage description is not intended and should not be used by law schools as a syllabus or course outline in the covered subjects. It has been drawn up for the limited purpose of ensuring that candidates reviewing for the bar examinations are guided on what basic and minimum amounts of laws, doctrines, and principles they need to know and be able to use correctly before they can be licensed to practice law. More is required for excellent and distinguished work as members of the Bar.

Philippine Bar Exam: 2012 Political and International Law Syllabus

SYLLABUS FOR THE 2012 BAR EXAMINATIONS

POLITICAL AND INTERNATIONAL LAW

I. The Constitution

A. Definition, nature and concepts
B. Parts
C. Amendments and revisions
D. Self-executing and non-self-executing provisions
E. General provisions

II. General Considerations

A. National territory
1. Archipelagic doctrine
B. State immunity
C. Principles and policies D. Separation of powers E. Checks and balances F. Delegation of powers G. Forms of government

III. Legislative Department

A. Who may exercise legislative power
1. Congress
2. Regional/Local legislative power
3. People’s initiative on statutes
a) Initiative and referendum
B. Houses of Congress
1. Senate
2. House of Representatives
a) District representatives and questions of apportionment b) Party-list system
C. Legislative privileges, inhibitions and disqualifications
D. Quorum and voting majorities
E. Discipline of members
F. Electoral tribunals and the commission on appointments
1. Nature
2. Powers
G. Powers of Congress
1. Legislative
a) Legislative inquiries and the oversight functions b) Bicameral conference committee
c) Limitations on legislative power
(i) Limitations on revenue, appropriations and tariff measures
(ii) Presidential veto and Congressional override
2. Non-legislative
a) Informing function

IV. Executive Department

A. Privileges, inhibitions and disqualifications
1. Presidential immunity
2. Presidential privilege
B. Powers
1. Executive and administrative powers in general
2. Power of appointment a) In general
b) Commission on appointments confirmation c) Midnight appointments
d) Power of removal
3. Power of control and supervision
a) Doctrine of qualified political agency b) Executive departments and offices
c) Local government units
4. Military powers
5. Pardoning power
a) Nature and limitations
b) Forms of executive clemency
6. Diplomatic power
7. Powers relative to appropriation measures
8. Delegated powers
9. Veto powers
10. Residual powers
C. Rules on Succession

V. Judicial Department

A. Concepts
1. Judicial power
2. Judicial review
a) Operative fact doctrine b) Moot questions
c) Political question doctrine
B. Safeguards of Judicial independence
C. Judicial restraint
D. Appointments to the Judiciary
E. Supreme Court
1. En banc and division cases
2. Procedural rule-making
3. Administrative supervision over lower courts

VI. Constitutional Commissions

A. Constitutional safeguards to ensure independence of commissions
B. Powers and functions of each commission
C. Prohibited offices and interests
D. Jurisdiction of each constitutional commission
E. Review of final orders, resolutions and decisions
1. Rendered in the exercise of quasi-judicial functions
2. Rendered in the exercise of administrative functions

VII. Bill of Rights

A. Fundamental powers of the state (police power, eminent domain, taxation)
1. Concept and application
2. Requisites for valid exercise
3. Similarities and differences
4. Delegation
B. Private acts and the bill of rights
C. Due process
1. Relativity of due process
2. Procedural and substantive due process
3. Constitutional and statutory due process
4. Hierarchy of rights
5. Judicial standards of review
6. Void-for-vagueness doctrine
D. Equal protection
1. Concept
2. Requisites for valid classification
3. Standards of judicial review a) Rational Basis Test
b) Strict Scrutiny Test
c) Intermediate Scrutiny Test
E. Searches and seizures
1. Concept
2. Warrant requirement a) Requisites
3. Warrantless searches
4. Warrantless arrests
5. Administrative arrests
6. Drug, alcohol and blood tests
F. Privacy of communications and correspondence
1. Private and public communications
2. Intrusion, when allowed
3. Writ of habeas data
G. Freedom of expression
1. Concept and scope
a) Prior restraint (censorship)
b) Subsequent punishment
2. Content-based and content-neutral regulations a) Tests
b) Applications
3. Facial challenges and the overbreadth doctrine
4. Tests
5. State regulation of different types of mass media
6. Commercial speech
7. Private vs. Government speech
8. Heckler’s veto
H. Freedom of religion
1. Non-establishment clause a) Concept and basis
b) Acts permitted and not permitted by the clause c) Test
2. Free exercise clause
3. Tests
a) Clear and Present Danger Test b) Compelling State Interest Test
c) Conscientious Objector Test
I. Liberty of abode and freedom of movement
1. Limitations
2. Right to travel
3. Return to return to one’s county
J. Right to information
1. Limitations
2. Publication of laws and regulations
3. Access to court records
4. Right to information relative to
a) Government contract negotiations b) Diplomatic negotiations
K. Right of association
L. Eminent domain
1. Concept
2. Expansive concept of “public use”
3. Just compensation
a) Determination b) Effect of delay
4. Abandonment of intended use and right of repurchase
5. Miscellaneous application
M. Contract clause
1. Contemporary application of the contract clause
N. Legal assistance and free access to courts
O. Rights of suspects
1. Availability
2. Requisites

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3. Waiver
P. Rights of the accused
1. Criminal due process
2. Bail
3. Presumption of innocence
4. Right to be heard
5. Assistance of counsel
6. Right to be informed
7. Right to speedy, impartial and public trial
8. Right of confrontation
9. Compulsory process
10. Trials in absentia
Q. Writ of habeas corpus
R. Writ of amparo
S. Self-incrimination clause
1. Scope and coverage a) Foreign laws
2. Application
3. Immunity statutes
T. Involuntary servitude and political prisoners
U. Excessive fines and cruel and inhuman punishments
V. Non-imprisonment for debts
W. Double jeopardy
1. Requisites
2. Motions for reconsideration and appeals
3. Dismissal with consent of accused
X. Ex post facto laws and bills of attainder

VIII. Citizenship

A. Who are Filipino citizens
B. Modes of acquiring citizenship
C. Naturalization and denaturalization
D. Dual citizenship and dual allegiance
E. Loss and re-acquisition of Philippine citizenship
F. Natural-born citizens and public office

IX. Law on Public Officers

A. General principles
B. Modes of acquiring title to public office
C. Modes and kinds of appointment
D. Eligibility and qualification requirements
E. Disabilities and inhibitions of public officers
F. Powers and duties of public officers
G. Rights of public officers
H. Liabilities of public officers
1. Preventive suspension and back salaries
2. Illegal dismissal, reinstatement and back salaries
I. Immunity of public officers
J. De facto officers
K. Termination of official relation
L. The civil service
1. Scope
2. Appointments to the civil service
3. Personnel actions
M. Accountability of public officers
1. Impeachment
2. Ombudsman
a) Functions
b) Judicial review in administrative proceedings c) Judicial review in penal proceedings
3. Sandiganbayan
4. Ill-gotten wealth
N. Term limits

X. Administrative Law

A. General principles
B. Administrative agencies
1. Definition
2. Manner of creation
3. Kinds
C. Powers of administrative agencies
1. Quasi-legislative (rule making) power
a) Kinds of administrative rules and regulations b) Requisites for validity
2. Quasi-judicial (adjudicatory) power
a) Administrative due process
b) Administrative appeal and review c) Administrative res judicata
3. Fact-finding, investigative, licensing and rate-fixing powers
D. Judicial recourse and review
1. Doctrine of primary administrative jurisdiction
2. Doctrine of exhaustion of administrative remedies
3. Doctrine of finality of administrative action

XI. Election Law

A. Suffrage
B. Qualification and disqualification of voters
C. Registration of voters
D. Inclusion and exclusion proceedings
E. Political parties
1. Jurisdiction of the Comelec over political parties
2. Registration
F. Candidacy
1. Qualifications of candidates
2. Filing of certificates of candidacy a) Effect of filing
b) Substitution of candidates
c) Ministerial duty of COMELEC to receive certificate d) Nuisance candidates
e) Petition to deny or cancel certificates of candidacy
f) Effect of disqualification
g) Withdrawal of candidates
G. Campaign
1. Premature campaigning
2. Prohibited contributions
3. Lawful and prohibited election propaganda
4. Limitations on expenses
5. Statement of contributions and expenses
H. Board of Election Inspectors and Board of Canvassers
1. Composition
2. Powers
I. Remedies and jurisdiction in election law
1. Petition not to give due course to certificate of candidacy
2. Petition to declare failure of elections
3. Pre-proclamation controversy
4. Election protest
5. Quo warranto
J. Prosecution of election offenses

XII. Local Governments

A. Public corporations
1. Concept
a) Distinguished from government-owned or controlled corporations
2. Classifications
a) Quasi-corporations
b) Municipal corporations
B. Municipal corporations
1. Elements
2. Nature and functions
3. Requisites for creation, conversion, division, merger or dissolution
C. Principles of local autonomy
D. Powers of local government units (LGUs)
1. Police power (general welfare clause)
2. Eminent domain
3. Taxing power
4. Closure and opening of roads
5. Legislative power
a) Requisites for valid ordinance b) Local initiative and referendum
6. Corporate powers
a) To sue and be sued
b) To acquire and sell property c) To enter into contracts
(i) Requisites
(ii) Ultra vires contracts
7. Liability of LGUs
8. Settlement of boundary disputes
9. Succession of elective officials
10. Discipline of local officials a) Elective officials
(i) Grounds
(ii) Jurisdiction
(iii) Preventive suspension
(iv) Removal
(v) Administrative appeal
(vi) Doctrine of condonation b) Appointive officials
11. Recall
12. Term limits

XIII. National Economy and Patrimony

A. Regalian doctrine
B. Nationalist and citizenship requirement provisions
C. Exploration, development and utilization of natural resources
D. Franchises, authority and certificates for public utilities
E. Acquisition, ownership and transfer of public and private lands
F. Practice of professions
G. Organization and regulation of corporations, private and public
H. Monopolies, restraint of trade and unfair competition

XIV. Social Justice and Human Rights

A. Concept of social justice
B. Commission on human rights

XV. Education, Science, Technology, Arts, Culture and Sports

A. Academic freedom

XVI. Public International Law

A. Concepts
1. Obligations erga omnes
2. Jus cogens
3. Concept of aeguo et bono
B. International and national law
C. Sources
D. Subjects
1. States
2. International organizations
3. Individuals
E. Diplomatic and consular law
F. Treaties
G. Nationality and statelessness
H. Treatment of aliens
1. Extradition
a) Fundamental principles b) Procedure
c) Distinguished from deportation
I. International Human Rights Law
1. Universal Declaration of Human Rights
2. International Covenant on Civil and Political Rights
3. International Covenant on Economic, Social and Cultural Rights
J. International Humanitarian Law and neutrality
1. Categories of armed conflicts
a) International armed conflicts
b) Internal or non-international armed conflict c) War of national liberation
2. Core international obligations of states in International Humanitarian Law
3. Principles of International Humanitarian Law a) Treatment of civilians
b) Prisoners of war
4. Law on neutrality
K. Law of the sea
1. Baselines
2. Archipelagic states
a) Straight archipelagic baselines b) Archipelagic waters
c) Archipelagic sea lanes passage
3. Internal waters
4. Territorial sea
5. Exclusive economic zone
6. Continental shelf
a) Extended continental shelf
7. International Tribunal for the Law of the Sea
L. International environment law
1. Principle 21 of the Stockholm Declaration

INCLUDE: Pertinent Supreme Court decisions promulgated up to January 31, 2012.

Important note: This bar coverage description is not intended and should not be used by law schools as a syllabus or course outline in the covered subjects. It has been drawn up for the limited purpose of ensuring that candidates reviewing for the bar examinations are guided on what basic and minimum amounts of laws, doctrines, and principles they need to know and be able to use correctly before they can be licensed to practice law. More is required for excellent and distinguished work as members of the Bar.

Phillipine Bar Exam: 2012 Mercantile Law Syllabus

SYLLABUS FOR THE 2012 BAR EXAMINATIONS

MERCANTILE LAW

I. Letters of Credit

A. Definition/concept
B. Governing laws
C. Nature of letter of credit
D. Parties to a letter of credit
1. Rights and obligations of parties
E. Basic principles of letter of credit
1. Doctrine of independence
2. Fraud exception principle
3. Doctrine of strict compliance

II. Warehouse Receipts Law

A. Nature and functions of a warehouse receipt
1. To whom delivered
2. Kinds
3. Distinction between a negotiable instrument and a negotiable warehouse receipt
4. Rights of a holder of a negotiable warehouse receipt as against a transferee of a non- negotiable warehouse receipt
B. Duties of a warehouseman
C. Warehouseman’s lien

III. Trust Receipts Law

A. Definition/concept of a trust receipt transaction
1. Loan/security feature
2. Ownership of the goods, documents and instruments under a trust receipt
B. Rights of the entruster
1. Validity of the security interest as against the creditors of the entrustee/innocent purchasers for value

C. Obligations and liability of the entrustee
1. Payment/delivery of proceeds of sale or disposition of goods, documents or instruments
2. Return of goods, documents or instruments in case of sale
3. Liability for loss of goods, documents or instruments
4. Penal sanction if offender is a corporation
D. Remedies available

IV. Negotiable Instruments Law

A. Forms and interpretation
1. Requisites of negotiability
2. Kinds of negotiable instrument
B. Completion and delivery
1. Insertion of date
2. Completion of blanks
3. Incomplete and undelivered instruments
4. Complete but undelivered instruments
C. Rules of interpretation
D. Signature
1. Signing in trade name
2. Signature of agent
3. Indorsement by minor or corporation
4. Forgery
E. Consideration
F. Accommodation party
G. Negotiation
1. Distinguished from assignment
2. Modes of negotiation
3. Kinds of indorsement
H. Rights of the holder
1. Holder in due course
2. Defenses against the holder
I. Liabilities of parties
1. Maker
2. Drawer
3. Acceptor
4. Indorser
5. Warranties
J. Presentment for payment
1. Necessity of presentment for payment
2. Parties to whom presentment for payment should be made
3. Dispensation with presentment for payment
4. Dishonor by non-payment
K. Notice of dishonor
1. Parties to be notified
2. Parties who may give notice of dishonor
3. Effect of notice
4. Form of notice
5. Waiver
6. Dispensation with notice
7. Effect of failure to give notice
l. Discharge of negotiable instrument
1. Discharge of negotiable instrument
2. Discharge of parties secondarily liable
3. Right of party who discharged instrument
4. Renunciation by holder
M. Material alteration
1. Concept
2. Effect of material alteration
N. Acceptance
1. Definition
2. Manner
3. Time for acceptance
4. Rules governing acceptance
O. Presentment for acceptance
1. Time/place/manner of presentment
2. Effect of failure to make presentment
3. Dishonor by non-acceptance
P. Promissory notes
Q. Checks
1. Definition
2. Kinds
3. Presentment for payment
a) Time
b) Effect of delay

V. Insurance Code

A. Concept of insurance
B. Elements of an insurance contract
C. Characteristics/nature of insurance contracts
D. Classes
1. Marine
2. Fire
3. Casualty
4. Suretyship
5. Life
6. Compulsory motor vehicle liability insurance
E. Insurable interest
1. In life/health
2. In property
3. Double insurance and over insurance
4. Multiple or several interests on same property
F. Perfection of the contract of insurance
1. Offer and acceptance/consensual a) Delay in acceptance
b) Delivery of policy
2. Premium payment
3. Non-default options in life insurance
4. Reinstatement of a lapsed policy of life insurance
5. Refund of premiums
G. Rescission of insurance contracts
1. Concealment
2. Misrepresentation/omissions
3. Breach of warranties
H. Claims settlement and subrogation
1. Notice and proof of loss
2. Guidelines on claims settlement
a) Unfair claims settlement; sanctions b) Prescription of action
c) Subrogation

VI. Transportation Law

A. Common carriers
1. Diligence required of common carriers
2. Liabilities of common carriers
B. Vigilance over goods
1. Exempting causes
a) Requirement of absence of negligence b) Absence of delay
c) Due diligence to prevent or lessen the loss
2. Contributory negligence
3. Duration of liability
a) Delivery of goods to common carrier b) Actual or constructive delivery
c) Temporary unloading or storage
4. Stipulation for limitation of liability a) Void stipulations
b) Limitation of liability to fixed amount
c) Limitation of liability in absence of declaration of greater value
5. Liability for baggage of passengers a) Checked-in baggage
b) Baggage in possession of passengers
C. Safety of passengers
1. Void stipulations
2. Duration of liability
a) Waiting for carrier or boarding of carrier b) Arrival at destination
3. Liability for acts of others a) Employees
b) Other passengers and strangers
4. Extent of liability for damages
D. Bill of lading
1. Three-fold character
2. Delivery of goods
a) Period for delivery
b) Delivery without surrender of bill of lading c) Refusal of consignee to take delivery
3. Period for filing claims
4. Period for filing actions
E. Maritime commerce
1. Charter parties
a) Bareboat/demise charter b) Time charter
c) Voyage/trip charter
2. Liability of ship owners and shipping agents a) Liability for acts of captain
b) Exceptions to limited liability
3. Accidents and damages in maritime commerce a) General average
b) Collisions
4. Carriage of Goods by Sea Act a) Application
b) Notice of loss or damage
c) Period of prescription d) Limitation of liability
F. Public Service Act
1. Definition of public utility
2. Necessity for certificate of public convenience a) Requisites
(i) Citizenship
(ii) Promotion of public interests
(iii) Financial capability b) Prior operator rule
(i) Meaning
(ii) Exceptions
(iii) Ruinous competition
3. Fixing of rate
a) Rate of return
b) Exclusion of income tax as expense
4. Unlawful arrangements a) Boundary system b) Kabit system
5. Approval of sale, encumbrance or lease of property
G. The Warsaw Convention
1. Applicability
2. Limitation of liability
a) Liability to passengers
b) Liability for checked baggage
c) Liability for hand-carried baggage
3. Willful misconduct

VII. The Corporation Code

A. Corporation, defined
B. Classification of corporations
C. Nationality of corporations
1. Control test
2. Grandfather rule
D. Corporate juridical personality
1. Doctrine of separate juridical personality a) Liability for tort and crimes
b) Recovery of damages
2. Doctrine of piercing the corporate veil
a) Grounds for application of doctrine b) Test in determining applicability
E. Capital structure
1. Number and qualifications of incorporators
2. Minimum capital stock and subscription requirements
3. Corporate term
4. Classification of shares
F. Incorporation and organization
1. Promoter
a) Liability of promoter
b) Liability of corporation for promoter’s contracts
2. Subscription contract
3. Pre-incorporation subscription agreements
4. Consideration for stocks
5. Articles of incorporation a) Contents
b) Non-amendable items
6. Corporate name -- limitations on use of corporate name
7. Registration and issuance of certificate of incorporation
8. Election of directors or trustees
9. Adoption of by-laws
a) Requisites of valid by-laws b) Binding effects
c) Amendments
G. Corporate powers
1. General powers, theory of general capacity
2. Specific powers, theory of specific capacity
a) Power to extend or shorten corporate term
b) Power to increase or decrease capital stock or incur, create, increase bonded indebtedness
c) Power to deny pre-emptive rights
d) Power to sell or dispose of corporate assets e) Power to acquire own shares
f) Power to invest corporate funds in another corporation or business g) Power to declare dividends
h) Power to enter into management contract
i) Ultra vires acts
(i) Applicability of ultra vires doctrine
(ii) Consequences of ultra vires acts j) Doctrine of individuality of subscription
k) Doctrine of equality of shares l) Trust fund doctrine
3. How exercised
a) By the shareholders
b) By the board of directors c) By the officers
H. Stockholders and members
1. Fundamental rights of a stockholder
2. Participation in management a) Proxy
b) Voting trust
c) Cases when stockholders’ action is required
(i) By a majority vote
(ii) By a two-thirds vote
(iii) By cumulative voting
3. Proprietary rights
a) Right to dividends b) Right of appraisal c) Right to inspect
d) Pre-emptive right e) Right to vote
f) Right to dividends
4. Remedial rights
a) Individual suit
b) Representative suit c) Derivative suit
5. Obligation of a stockholder
6. Meetings
a) Regular or special
(i) When and where
(ii) Notice
b) Who calls the meetings c) Quorum
d) Minutes of meetings
I. Board of directors and trustees
1. Repository of corporate powers
2. Tenure, qualifications and disqualifications of directors
3. Elections
a) Cumulative voting b) Quorum
4. Removal
5. Filling of vacancies
6. Compensation
7. Disloyalty
8. Business judgment rule
9. Solidary liabilities for damages
10. Liability for watered stocks
11. Personal liabilities
12. Responsibility for crimes
13. Special fact doctrine
14. Inside information
15. Contracts
a) By self-dealing directors with the corporation
b) Between corporations with interlocking directors
16. Executive committee a) Creation
b) Limitations on its powers
17. Meetings
a) Regular or special
(i) When and where
(ii) Notice b) Who presides c) Quorum
d) Rule on abstention
J. Capital affairs
1. Certificate of stock
a) Nature of the certificate b) Uncertificated shares
c) Negotiability
(i) Requirements for valid transfer of stocks d) Issuance
(i) Full payment
(ii) Payment pro-rata e) Stock and transfer book
(i) Contents
(ii) Who may make valid entries f) Lost or destroyed certificates
g) Situs of the shares of stock
2. Watered stocks
a) Definition
b) Liability of directors for watered stocks
c) Trust fund doctrine for liability for watered stocks
3. Payment of balance of subscription a) Call by board of directors
b) Notice requirement
4. Sale of delinquent shares
a) Effect of delinquency
b) Call by resolution of the board of directors c) Notice of sale
d) Auction sale
5. Alienation of shares
a) Allowable restrictions on the sale of shares b) Sale of partially paid shares
c) Sale of a portion of shares not fully paid d) Sale of all of shares not fully paid
e) Sale of fully paid shares
f) Requisites of a valid transfer g) Involuntary dealings
K. Dissolution and liquidation
1. Modes of dissolution a) Voluntary
(i) Where no creditors are affected
(ii) Where creditors are affected
(iii) By shortening of corporate term b) Involuntary
(i) By expiration of corporate term
(ii) Failure to organize and commence business within 2 years from incorporation
(iii) Legislative dissolution
(iv) Dissolution by the SEC on grounds under existing laws
2. Methods of liquidation
a) By the corporation itself
b) Conveyance to a trustee within a 3-year period
c) By management committee or rehabilitation receiver d) Liquidation after three years
L. Other corporations
1. Close corporations
a) Characteristics of a close corporation
b) Validity of restrictions on transfer of shares
c) Issuance or transfer of stock in breach of qualifying conditions d) When board meeting is unnecessary or improperly held
e) Pre-emptive right
f) Amendment of articles of incorporation g) Deadlocks

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2. Non-stock corporations a) Definition
b) Purposes
c) Treatment of profits
d) Distribution of assets upon dissolution
3. Religious corporations
a) Corporation sole
(i) Nationality
(ii) Religious societies
4. Foreign corporations
a) Bases of authority over foreign corporations
(i) Consent
(ii) Doctrine of “doing business” (relate to definition under the Foreign
Investments Act, R.A. 7042)
b) Necessity of a license to do business
(i) Requisites for issuance of a license
(ii) Resident agent c) Personality to sue
d) Suability of foreign corporations
e) Instances when unlicensed foreign corporations may be allowed to sue isolated transactions
f) Grounds for revocation of license
M. Merger and consolidation
1. Definition and concept
2. Constituent vs. Consolidated corporation
3. Plan of merger or consolidation
4. Articles of merger or consolidation
5. Procedure
6. Effectivity
7. Limitations
8. Effects

VIII. Securities Regulation Code (R.A. 8799)

A. State policy (purpose)
B. Powers and functions of the SEC
1. Regulatory
2. Adjudicative
C. Securities required to be registered
1. Exempt securities
2. Exempt transactions
D. Procedure for registration of securities
E. Prohibitions on fraud, manipulation and insider trading
1. Manipulation of security prices
2. Short sales
3. Fraudulent transactions
4. Insider trading
F. Protection of investors
1. Tender offer rule
2. Rules on proxy solicitation
3. Disclosure rule
G. Civil liability

IX. Banking Laws

A. The New Central Bank Act (R.A. 7653)
1. State policies
2. Creation of the Bangko Sentral ng Pilipinas (BSP)
3. Responsibility and primary objective
4. Monetary board - powers and functions
5. How the BSP handles banks in distress a) Conservatorship
b) Closure
c) Receivership d) Liquidation
6. How the BSP handles exchange crisis a) Legal tender power
b) Rate of exchange
B. Law on Secrecy of Bank Deposits (R.A. 1405, as amended)
1. Purpose
2. Prohibited acts
3. Deposits covered
4. Exceptions
5. Garnishment of deposits, including foreign deposits
6. Penalties for violation
C. General Banking Act (R.A. 8791)
1. Definition and classification of banks
2. Distinction of banks from quasi-banks and trust entities
3. Bank powers and liabilities a) Corporate powers
b) Banking and incidental powers
4. Diligence required of banks - relevant jurisprudence
5. Nature of bank funds and bank deposits
6. Stipulation on interests
7. Grant of loans and security requirements
a) Ratio of net worth to total risk assets b) Single borrower’s limit
c) Restrictions on bank exposure to DOSRI (directors, officers, stockholders and their related interests)
8. Penalties for violations
a) Fine, imprisonment
b) Suspension or removal of director or officer c) Dissolution of bank
D. Philippine Deposit Insurance Corporation Act
1. Basic policy
2. Concept of insured deposits
3. Liability to depositors
a) Deposit liabilities required to be insured with PDIC
b) Commencement of liability
c) Deposit accounts not entitled to payment d) Extent of liability
e) Determination of insured deposits f) Calculation of liability
(i) Per depositor, per capacity rule
(ii) Joint accounts
(iii) Mode of payment
(iv) Effect of payment of insured deposit
(v) Payments of insured deposits as preferred credit under Art. 2244, Civil
Code
(vi) Failure to settle claim of insured depositor
(vii) Failure of depositor to claim insured deposits
(a) Examination of banks and deposit accounts
(b) Prohibition against splitting of deposits
(c) Prohibition against issuances of TROs, etc.

X. Intellectual Property Law (excluding implementing rules and regulations)

A. Intellectual property rights in general
1. Intellectual property rights
2. Differences between copyrights, trademarks and patent
3. Technology transfer arrangements
B. Patents
1. Patentable inventions
2. Non-patentable inventions
3. Ownership of a patent
a) Right to a patent b) First-to-file rule
c) Inventions created pursuant to a commission d) Right of priority
4. Grounds for cancellation of a patent
5. Remedy of the true and actual inventor
6. Rights conferred by a patent
7. Limitations of patent rights a) Prior user
b) Use by the government
8. Patent infringement
a) Tests in patent infringement
(i) Literal infringement
(ii) Doctrine of equivalents b) Civil and criminal action
c) Prescriptive period
d) Defenses in action for infringement
9. Licensing
a) Voluntary b) Compulsory
10. Assignment and transmission of rights
C. Trademarks
1. Definitions of marks, collective marks, trade names
2. Acquisition of ownership of mark
3. Acquisition of ownership of trade name
4. Non-registrable marks
5. Prior use of mark as a requirement
6. Tests to determine confusing similarity between marks a) Dominancy test
b) Holistic test
7. Well-known marks
8. Rights conferred by registration
9. Use by third parties of names, etc. similar to registered mark
10. Infringement and remedies
a) Trademark infringement b) Damages
c) Requirement of notice
11. Unfair competition
12. Trade names or business names
13. Collective marks
14. Criminal penalties for infringement, unfair competition, false designation of origin, and false description or misrepresentation
D. Copyrights
1. Basic principles, Secs. 172.2, 175, and 181
2. Copyrightable works a) Original works
b) Derivative works
3. Non-copyrightable works
4. Rights of copyright owner
5. Rules on ownership of copyright
6. Limitations on copyright
a) Doctrine of fair use
b) Copyright infringement
(i) Remedies
(ii) Criminal penalties

XI. Special Laws

A. The Chattel Mortgage Law (Act 1508 in rel. to Arts. 1484, 1485, 2140 and 2141 of the Civil Code)
1. Essential requisites
2. Formal requisites
3. Registration, when and where
4. After-acquired property
5. After-incurred obligation
6. Right of junior mortgagee
7. Foreclosure procedure
8. Redemption
9. Claim for deficiency a) General rule
b) Exception
c) Article 1484
B. Real Estate Mortgage Law (Act 3135, as amended by R.A. 4118)
1. Coverage
2. Remedies available to mortgagee upon default of the mortgagor
3. Need for special power of attorney
4. Authority to foreclose extrajudicially
5. Procedure
a) Where to file b) Where to sell
c) Posting requirement
d) Publication requirement
(i) Sufficiency of newspaper publication
(ii) Need for republication in case of postponement
(iii) Personal notice to the mortgagor when and when not needed
6. Possession by purchaser of foreclosed property
7. Remedy of debtor if foreclosure is not proper
8. Redemption
a) Who may redeem
b) Amount of redemption price c) Period for redemption
d) Effect of pendency of action for annulment of sale
9. Writ of possession
a) Ministerial duty of the court
b) Enforcement against third parties
c) Pendency of action for annulment of sale
10. Annulment of sale
C. Truth in Lending Act (R.A. 3765)
1. Purpose
2. Obligation of creditors to person to whom credit is extended
3. Covered and excluded transactions
4. Consequences of non-compliance with obligation
D. Anti-money Laundering Law (R.A. 9160, as amended by R.A. 9194)
1. Policy of the law
2. Covered institutions
3. Obligations of covered institutions
4. Covered transactions
5. Suspicious transactions
6. When is money laundering committed
7. Unlawful activities or predicate crimes
8. Anti-money laundering council
9. Functions
10. Freezing of monetary instrument or property
11. Authority to inquire into bank deposits
E. Foreign Investments Act (R.A. 7042)
1. Policy of the law
2. Definition of terms
a) Foreign investment
b) “Doing business” in the Philippines c) Export enterprise
d) Domestic market enterprise
3. Registration of investments of non-Philippine nationals
4. Foreign investments in export enterprises
5. Foreign investments in domestic market enterprises
6. Foreign investment negative list

INCLUDE: Pertinent Supreme Court decisions promulgated up to January 31, 2012.

Important note: This bar coverage description is not intended and should not be used by law schools as a syllabus or course outline in the covered subjects. It has been

drawn up for the limited purpose of ensuring that candidates reviewing for the bar examinations are guided on what basic and minimum amounts of laws, doctrines, and principles they need to know and be able to use correctly before they can be licensed to practice law. More is required for excellent and distinguished work as members of the Bar.