COMMERCIAL AND TAXATION LAW SYLLABUS FOR BAR EXAMINATION 2027

 

COMMERCIAL AND TAXATION LAWS (20%)

 

NOTE: Only laws, rules, issuances, and jurisprudence pertinent to the topics below as of June 30, 2026 are examinable in the 2027 Bar Examinations.

 

I.       BUSINESS ORGANIZATIONS

 

A. Corporations (RA 11232)

                                1.    General Principles

a.            Definition

b.           Classes of Corporations

c.            Nationality of Corporations

i. Control Test ii. Grandfather Rule

                                2.    Corporate Personality

a.            Doctrine of Separate Juridical Personality

b.           Doctrine of Piercing the Corporate Veil

                                3.    Incorporation and Organization

a.            Incorporators; Number and Qualifications

b.           Promoters

i.             Liability of Promoter

ii.           Liability of Corporation for Promoter Contract

c.            Corporate Term

d.           Articles of Incorporation

e.            Corporate Name and Limitations on its Use

f.             Registration, Incorporation, and Commencement of

Corporate Existence

i.             De Facto Corporation

ii.           Corporation by Estoppel

g.           Bylaws

h.           Effects of Nonuse of Corporate Charter

                                4.    Capital Structure, Shares, and Capital Affairs

a.            Subscription Requirements

b.           Subscription Contract

c.            Pre-incorporation Subscription Agreements

d.           Consideration for Stocks

e.            Classification of Shares

f.             Doctrine of Equality of Shares

g.           Certificate of Stock

h.           Watered Stocks

i.             Liability of Directors

i.             Trust Fund Doctrine

j.             Payment of Balance of Subscription

k.           Sale of Delinquent Shares

l.             Transfer of Shares

6.           Corporate Powers

7.           Directors and Trustees

a.            Repository of Corporate Powers

b.           Tenure, Qualifications, and Disqualifications

c.            Independent Directors

d.           Election, Removal, and Filling of Vacancies

e.            Compensation

f.             Disloyalty

g.           Business Judgment Rule

h.           Liabilities and Responsibilities

i.             Special Fact Doctrine

j.             Self-dealing by Directors with the Corporation

k.           Dealings Between Corporations with Interlocking Directors

8.           Stockholders and Members

a.            Rights of a Stockholder

b.           Participation in Management; Voting Requirements

c.            Meetings

d.           Stockholder Suits

e.            Corporate Books and Records

9.           Merger, Consolidation, and Acquisition

a.            Concept

                                                                i.     Asset-only and Business Enterprise Transfers

b.           Review (RA 10667)

i.             Compulsory Notification

ii.           Prohibited Mergers and Acquisitions; Exemptions

c.            Effects

10.       Special Corporations

a.            Close Corporations

b.           Educational Corporations

c.            Religious Corporations

d.           One Person Corporations

11.       Dissolution and Liquidation

12.       Foreign Corporations (See also RA 7042, as amended by

RA 8179 and 11647)

a.            “Doing Business” in the Philippines

b.           Suability and Capacity to Sue

c.            Foreign Investments

i. Definition ii. Registration

iii. Nationalized Activities and the Negative List

B. Partnerships

                                1.    General Principles

a.            Definition and Separate Juridical Personality

b.           Rules to Determine Existence of a Partnership

c.            Partnership by Estoppel

d.           Kinds of Partnerships

2.           Rights and Obligations

a.            Property Rights of Partners

b.           Obligations of Partnership

c.            Obligations of Partners Among Themselves

d.           Obligations of Partners to Third Persons

3.           Dissolution and Winding Up

 

II.               INSURANCE LAW 

(PD 612, as amended by RA 10607)

 

A.         General Principles

B.          Insurable Interest

C.         Concealment

D.         Representation

E.          Policy

F.          Warranties

G.         Premium

H.         Loss; Notice and Proof

I.            Double Insurance and Overinsurance

J.           Reinsurance

K.         Rescission of Insurance Contracts

 

III.           TRANSPORTATION LAW

 

A.         Common Carriers

1.           Common Carrier vs. Private Carrier

2.           Extraordinary Diligence

3.           Defenses Available to a Common Carrier

B.          Vigilance Over Goods

1.           Under the Civil Code

2.           Under the Carriage of Goods by Sea Act

3.           Under the Montreal Convention

C.         Safety of Passengers

1.           Under the Civil Code

2.           Under the Montreal Convention

 

IV.            BANKING LAW

 

A.         General Banking Principles (RA 8791)

1.           Definition and Classification of Banks

2.           Banks, Quasi-banks, and Trust Entities Distinguished

3.           Diligence Required of Banks

4.           Nature of Bank Deposits

5.           Prohibited Transactions by Bank Directors, Officers, and Employees

B.          Secrecy of Bank Deposits (RA 1405; RA 6426, as amended by

PD 1035, 1246, and 1453)

1.           Purpose

2.           Prohibited Acts

3.           Coverage and Exceptions

4.           Garnishment of Deposits, Including Foreign Deposits

C.         Bangko Sentral ng Pilipinas (RA 7653, as amended by RA 11211)

1.           Powers and Functions of the Monetary Board

2.           Banks in Distress

a.            Conservatorship

b.           Closure

c.            Receivership

d.           Liquidation

D.         Deposit Insurance (RA 3591, as amended mainly by RA 11840)

1.           Definition of Insured Deposit

2.           Deposit Insurance Coverage

3.           Splitting of Deposits

E.          Anti-Money Laundering (RA 9160, as amended by RA 9194,

10167, 10365, 10927, 11521, 11930, and 12312)

1.           Covered Persons and Their Obligations

2.           Covered Transactions; Suspicious Transactions

3.           Safe Harbor Provision

4.           Money Laundering

a.            How Committed

b.           Predicate Offenses (Unlawful Activities) (See also RA 11930, Sec. 9(c), and RA 12312, Sec. 8)

5.           Authority to Inquire, Freeze, and Forfeit

 

V.               INTELLECTUAL PROPERTY LAW

(RA 8293, as amended by RA 9150, 9502, and 10372)

 

A.         Patents

1.           Patentable vs. Non-Patentable Inventions

2.           Ownership of Patents

3.           Rights and Limitations of Patent Owner

4.           Patent Infringement

5.           Assignment and Transmission of Rights

6.           Licensing

7.           Remedies of the True and Actual Inventor

8.           Cancellation of Patents

B.          Trademarks, Service Marks, and Trade Names

1.           Marks, Collective Marks, and Trade Names Distinguished

2.           Registrable and Non-Registrable Marks

3.           Well-known Marks

4.           Ownership, Registration, and Duration

5.           Rights Conferred by Registration

6.           Likelihood of Confusion (Dominancy Test)

7.           Trademark Infringement

8.           Unfair Competition

9.           Cancellation of Registration

C.         Copyright

1.           Copyrightable and Non-Copyrightable Works

2.           Ownership of Copyright

3.           Economic and Moral Rights

4.           Limitations on Copyright

a.            Fair Use

b.           Other Statutory Limitations

5.           Copyright Infringement

6.           Transfer, Assignment, and Licensing

 

VI.            SPECIAL COMMERCIAL LAWS

 

A.         Securities Regulation (RA 8799)

1.           Securities

a.            Definition; Howey Test

b.           Classes of Securities

2.           Registration of Securities

                                                a.    Exempt Securities and Exempt Transactions

B.          Financial Rehabilitation and Insolvency (RA 10142)

1.           General Principles

2.           Corporate Rehabilitation

a.            Commencement Order and Stay Order

b.           Rehabilitation Receiver and Rehabilitation Plan

c.            Cram Down Effect

3.           Liquidation

4.           Suspension of Payments

C.         Electronic Commerce and Digital Trade

1.           Electronic Commerce Act (RA 8792)

a.            Electronic Documents, Data Messages, and Signatures

b.           Lawful Access and Confidentiality

2.           Internet Transactions Act (RA 11967)

a.            Digital Platforms, Online Consumers and Merchants

b.           Extraterritorial Application

D.         Competition Law (RA 10667)

1.           Anticompetitive Agreements

a.            Per Se and Not Per Se Violations

b.           Determining Anticompetitive Agreement or Conduct

2.           Abuse of Dominant Position

3.           Determining the Relevant Market

4.           Determining Control and Market Dominance

E.          Public Services (CA 146, as amended by RA 11659)

1.           Public Service as Public Utility

2.           Critical Infrastructure

3.           Suspensive and Prohibitory Powers of the President

4.           Foreign Government or State-Owned Enterprise Investments

5.           Reciprocity

 

 

VII.        TAXATION LAW

 

A.         General Principles

1.           Concept, Nature, Purpose, and Basis of Taxation

2.           Inherent and Constitutional Limitations

3.           Requisites of a Valid Tax

4.           Doctrines in Taxation

a.            Lifeblood Doctrine

b.           Construction and Interpretation of Tax Laws and Tax

Exemptions

c.            Prohibition on Compensation and Set-off

d.           Double Taxation

e.            Escape from Taxation

i.        Shifting of Tax Burden ii.         Tax Avoidance and Tax Evasion

f.             Compromise and Tax Amnesty

g.           Taxpayer’s Suit

5.           Authority of Congress, Secretary of Finance, and Commissioner of Internal Revenue (CIR)

B.          National Taxation (National Internal Revenue Code of 1997, as amended mainly by RA 10963, 11534, 11976, 12066, and 12214)

1.           Income Tax

                                                a.    General Principles

i.        Criteria in Imposing Income Tax ii.    Kinds of Taxpayers

                                                b.    Income

i. Definition ii. Realization and Recognition

iii. Taxability iv. Sources

(a) Compensation Income (b) Professional Income

(c) Income from Business

                                                                                                1.    Active vs. Passive Income

(d) Income from Dealings in Property

                                                                                                1.    Capital vs. Ordinary Asset

c.            Situs of Income Taxation

d.           Gross Income vs. Net Income vs. Taxable Income

i.        Tax Deductions vs. Tax Credits ii.           Optional Standard Deduction

                                                e.    Withholding Taxes

i.           Rationale ii.           Final vs. Creditable Withholding Tax

iii. Duties of Withholding Agents

2.           Value-Added Tax (VAT)

a.            Persons and Transactions Subject to VAT

b.           Impact and Incidence of Tax

c.            Destination Principle and Cross-Border Doctrine

d.           Transactions Deemed Sale Subject to VAT

e.            Zero-Rated Transactions

f.             VAT Exempt Persons and Transactions

g.           Input and Output VAT

h.           Tax Refund and Tax Credit

i.             VAT on Digital Services (RA 12023)

                                3.    Estate Tax

                                                a.    Basic Principles and Concepts only

                                4.    Donor’s Tax

                                                a.    Basic Principles and Concepts only

C.         Local Taxation (RA 7160, as amended)

1.           Fundamental Principles

2.           Taxing Powers of Local Government Units (LGUs)

3.           Validity of Local Tax Ordinance

4.           Assessment and Collection of Local Taxes

a.            Remedies of LGUs

b.           Prescriptive Period

c.            Injunction

5.           Taxpayer Remedies in Local Taxation

a.            Protest

b.           Refund or Credit

c.            Court Action

6.           Real Property Taxation

a.            Fundamental Principles

b.           Exemptions

c.            Appraisal and Assessment (See also RA 12001)

d.           Collection

e.            Taxpayer Remedies in Real Property Taxation

                                                                i.     Against Assessment

(a)              Payment Under Protest; Exceptions

(b)             Compromise of Assessment ii. Against Valuation of Property

(a)        Appeal to Local Board of Assessment Appeals

(b)       Appeal to Central Board of Assessment Appeals

(c)        Effect of Payment of Taxes

7.           Other Selected Local Taxes

a.            Professional Tax

b.           Local Business Tax

c.            Community Tax

D.         Tax Remedies

1.           General Concepts

                                                a.    Tax Deficiency vs. Tax Delinquency

2.           Assessment Process

a.            Procedural Due Process in Tax Assessments

b.           Requisites of a Valid Assessment

c.            Burden of Proof in Tax Assessments

d.           Letter of Authority

e.            Submission of Supporting Documents by Taxpayer

f.             Notice of Discrepancy

g.           Preliminary Assessment Notice

h.           Formal Letter of Demand; Final Assessment Notice

i.             Prescriptive Period for Assessment

i.        False vs. Fraudulent vs. Non-filed Return ii. Suspension and Waiver of Prescriptive Period

3.           Collection Process

a.            Requisites

b.           Prescriptive Period for Collection

4.           Civil Penalties

a.            Deficiency Interest and Delinquency Interest

b.           Surcharge

c.            Compromise Penalty

5.           Taxpayer Remedies

a.            Protesting an Assessment

i.             Period to File Protest ii.     Effect of Failure to File Protest

b.           Submission of Supporting Documents by Taxpayer

c.            Decision of CIR on Protest

i.             Period to Act Upon or Decide ii. Remedies from CIR’s Denial or Failure to Act iii. Effect of Failure to Appeal

d.           Compromise and Abatement of Taxes

i.             Compromise of Criminal Violations; Effect of

Payment on Criminal Liability

e.            Recovery of Tax Erroneously or Illegally Collected

i.             Grounds, Requisites, and Period for Filing a

Claim for Refund or Tax Credit Certificate ii. Administrative vs. Judicial Claim for Refund iii. Proper Party to File Claim for Refund or Tax

Credit

6.           Government Remedies

a.            Administrative Remedies

i.             Tax Lien ii.    Distraint (Actual and Constructive) and Levy iii. Forfeiture of Real Property iv. Suspension of Business Operation

b.           Judicial Remedies

i.             Civil Action ii. Criminal Action

7.           Judicial Remedies

a.            Jurisdiction of the Court of Tax Appeals (CTA)

i.             Exclusive Original and Appellate Jurisdiction

Over Civil Cases ii. Exclusive Original and Appellate Jurisdiction

Over Criminal Cases iii. Certiorari Jurisdiction in Aid of Appellate Jurisdiction in Local Tax Cases

 

                                                b.    Procedure

                                                                i.     Action for Collection of Taxes

(a)              National Taxes

(b)             Local Taxes ii. Civil Cases

(a)        Who May Appeal, Mode of Appeal,

Period to Appeal, and Effect of Appeal

(b)       Power of the CTA to Suspend Collection of Taxes

(c)        Nonavailability of Injunction to Restrain

Tax Collection

iii. Criminal Cases

(a)              Institution and Prosecution of Criminal

Action

(b)             Institution of Civil Action in Criminal

Action

(c)              Period to Appeal iv. Appeal to the CTA En Banc

                                                                v.    Petition for Review on Certiorari to SC