1AxA1lCn 2

llnALS 8LvlLWL8

1. Who has the power to co||ect kea| roperty tax?

1he power Lo lmpose Lhe real properLy Lax has been glven Lo provlnces, clLles and munlclpal governmenLs
wlLhln Lhe MeLropollLan Manlla Area. 1he LCC of 1991 allocaLed Lhe Laxlng power among LCus Lo prevenL
double and mulLlple LaxaLlon.

2. Under Loca| Government (LG) tax, |s there any other source or |mpos|t|ons done or made on rea| property?

Local governmenL unlLs (LCus) derlve Lhelr revenues from local and exLernal sources. Local sources lnclude Lax
revenues from Lhe real properLy Lax and Lhe buslness Lax, and non-Lax revenues from fees and charges,
recelpLs from governmenL buslness operaLlons and proceeds from sale of asseLs. LxLernal sources, on Lhe oLher
hand, lnclude Lhe lnLernal 8evenue AlloLmenL (l8A) and oLher shares from speclal laws, granLs and alds and
borrowlngs.

C1nLk kLVLNUL-kAISING CWLkS CI LCCAL GCVLkNMLN1S
1. Common SLC 1S3-1SS
a. Serv|ce Iees and Charges
LCus may lmpose and collecL such reasonable fees and charges.
b. ub||c Ut|||ty Charges
LCus may flx Lhe raLes for Lhe operaLlon of publlc uLlllLles owned, operaLed and malnLalned by Lhem wlLhln
Lhelr [urlsdlcLlon.
c. 1o|| Iees and Charges
LCus may prescrlbe Lhe Lerms and condlLlons and flx Lhe raLes for Lhe lmposlLlon of Loll fees or charges for Lhe
use of any publlc road, pler or wharf, waLerway, brldge, ferry or LelecommunlcaLlon sysLem funded and
consLrucLed by Lhe LCu concerned.
2. Mun|c|pa||t|es
a. lees and charges on buslness and occupaLlon and, excepL as reserved Lo Lhe provlnce ln SecLlon 139 of Lhe
LCC, on Lhe pracLlce of any professlon or calllng, commensuraLe wlLh Lhe cosL of regulaLlon, lnspecLlon and
llcenslng aL raLes Lo be prescrlbed by Lhe Sanggunlang 8ayan. SLC 147
b. lees for Lhe seallng and llcenslng of welghLs and measures aL raLes Lo be prescrlbed by Lhe Sanggunlang
8ayan.SLC148
c. 8enLals, fees or charges on Lhe use of munlclpal waLers aL raLes prescrlbed by Lhe Sanggunlang 8ayan.SLC149

3. C|t|es SLC 1S1
lees and charges lmposed by Lhe provlnce or munlclpallLy.

8arangays SLC 1S2 8,C,D
lees and charges:
1. lor servlces rendered ln connecLlon wlLh Lhe regulaLlon or Lhe use of barangay-owned properLles or servlce
faclllLles.
2. lor Lhe lssuance of a barangay clearance for any buslness or acLlvlLy locaLed or conducLed wlLhln Lhe
LerrlLorlal [urlsdlcLlon of Lhe barangay before Lhe clLy or munlclpallLy may lssue a llcense or permlL Lo sald
buslness or acLlvlLy.
3. Cn commerclal breedlng of flghLlng cocks, cockflghLs and cockplLs.
4. Cn places of recreaLlon whlch charge admlsslon fees.
3. Cn blllboards, slgnboards, neon slgns, and ouLdoor adverLlsemenL.




3. Automat|c rev|ew prov|s|ons on 1ar|ff & Customs Code (1CC)

AuLomaLlc 8evlew ln CusLoms roceedlngs

Whenever Lhe declslon of Lhe CollecLor ls adverse Lo Lhe CovernmenL, sald declslon ls auLomaLlcally
elevaLed Lo Lhe Commlssloner for revlew, and lf such declslon ls afflrmed by Lhe commlssloner, Lhe same shall
be auLomaLlcally elevaLed Lo and flnally recelved by Lhe SecreLary of llnance.

8aLlonale: lL ls lnLended Lo proLecL Lhe lnLeresL of Lhe CovernmenL ln Lhe collecLlon of Laxes and cusLom
duLles ln selzures and proLesL cases. Moreover, a favorable declslon wlll no be appealed by Lhe Laxpayer and
cerLalnly a collecLor wlll noL appeal hls own declslon (See ?aokasln vs. Commlssloner of CusLoms, eL al. C.8. no.
84111, uec. 22, 1989.)

AuLomaLlc 8evlew Applles Lo:

1) CusLom roLesL Cases

2) Selzures and lorfelLure Cases



4. Author|ty of LG to ad[ust tax rates

1he LCu shall have Lhe auLhorlLy Lo ad[usL Lhe Lax raLes prescrlbed ln LCC noL ofLener Lhan once every 3
years, buL ln no case shall such ad[usLmenL exceed 10 of Lhe raLes flxed (Sec 191, LCC)

S. kes|dua| tax|ng powers of the LG

1he LCu can levy Laxes noL enumeraLed under Lhe code or ralse revenue from oLher sources provlded
noL ln vlolaLlon of any law. (Sec 186, LCC)

6. now do you determ|ne the dut|ab|e va|ue of |mported art|c|es sub[ect to ad va|orem tax

Va|uat|on of the Goods:

lnvolce value of Lhe goods plus:

1. frelghL
2. lnsurance
3. cosL
4. expenses, and
3. oLher necessary expenses.

noLe: lmporLed goods musL be enLered lnLo a cusLom house aL Lhelr porL of enLry oLherwlse Lhey shall be
consldered as conLraband and Lhe lmporLer ls llable for smuggllng.


7. kemed|es ava||ab|e to aggr|eved taxpayer under 1CC

1axpayer's 8emedles

AdmlnlsLraLlve 8ecourse

Clalm for refund-a wrlLLen clalm for refund may be submlLLed by Lhe lmporLer:


1. ln abaLemenL uses such as:
a. on mlsslng packages,
b. deflclencles ln Lhe conLenLs of packages or shorLage before arrlval of Lhe goods ln Lhe hlllpplnes,
c. arLlcles losL or desLroyed afLer such arrlval,
d. arLlcles losL or desLroyed
e. dead or ln[ured anlmals, and
f. for manlfesL classlcal errors, (see secLlon 1701-1708, 1CC)

2. !udlclal rellef
ln drawback cases where Lhe goods are re-exporLed
a. roLesL
b. ln selzure cases
c. SeLLlemenL of case by Lhe paymenL of flne or redempLlon of forfelLed properLy

noLe: 1he owner or lmporLer may abandon elLher expressly or 8y lmporLaLlon ln favor of Lhe CovernmenL Lhus
rellevlng hlmself of Lhe Lax llablllLy buL noL from Lhe posslble crlmlnal llablllLy.

1he Laxpayer may appeal Lo Lhe CourL of Appeals whlch has excluslve [urlsdlcLlon Lo revlew declslons of Lhe
Commlssloner of CusLom ln cases lnvolvlng:

a) llablllLy for cusLoms duLles, fees or oLher money charges,
b) selzures, deLenLlon or release of properLy affecLed,

c) flnes forfelLures or oLher penalLles lmposed ln relaLlon LhereLo, and

d) oLher maLLers arlslng under Lhe cusLoms Law or oLher laws admlnlsLered by Lhe 8evenue of CusLoms.


8. VA1 - study reg|strat|on, opt|ons of taxpayer on VA1, thresho|d prov|s|on se. 109
Who are llable Lo reglsLer as vA1 Laxpayers?
Any person who, ln Lhe course of Lrade or buslness, sells, barLers or exchanges goods or properLles or
engages ln Lhe sale or exchange of servlces shall be llable Lo reglsLer lf:
a. Pls gross sales or recelpLs for Lhe pasL Lwelve (12) monLhs, oLher Lhan Lhose LhaL are exempL
under SecLlon 109 (A) Lo (u), have exceeded Cne Mllllon llve Pundred 1housand esos
(1,300,000.00): or
b. 1here are reasonable grounds Lo belleve LhaL hls gross sales or recelpLs for Lhe nexL Lwelve (12)
monLhs, oLher Lhan Lhose LhaL are exempL under SecLlon 109 (A) Lo (u), wlll exceed Cne Mllllon
llve Pundred 1housand esos (1,300,000.00).
When ls a new vA1 Laxpayer requlred Lo apply for reglsLraLlon and pay Lhe reglsLraLlon fee?
new vA1 Laxpayers shall apply for reglsLraLlon as vA1 1axpayers and pay Lhe correspondlng reglsLraLlon
fee of flve hundred pesos (300.00) uslng 8l8 lorm no. 0603 for every separaLe or dlsLlncL esLabllshmenL
or place of buslness before Lhe sLarL of Lhelr buslness followlng exlsLlng lssuances on reglsLraLlon.
1hereafLer, Laxpayers are requlred Lo pay Lhe annual reglsLraLlon fee of flve hundred pesos (300.00) noL
laLer Lhan !anuary 31, every year.
WhaL compllance acLlvlLles should a vA1 Laxpayer, afLer reglsLraLlon as such, do prompLly or perlodlcally?
1he followlng compllance acLlvlLles musL be performed by a vA1-reglsLered Laxpayer:
a. ay Lhe annual reglsLraLlon fee of 300.00 for every place of buslness or esLabllshmenL LhaL
generaLes sales,
b. 8eglsLer Lhe books of accounLs of Lhe buslness/occupaLlon/calllng, lncludlng pracLlce of
professlon, before uslng Lhe same,
c. 8eglsLer Lhe sales lnvolces and offlclal recelpLs as vA1-lnvolces or vA1 offlclal recelpLs for use on
LransacLlons sub[ecL Lo vA1. (lf Lhere are oLher LransacLlon noL sub[ecL Lo vA1, a separaLe seL of
non-vA1 lnvolces or non-vA1 offlclal recelpLs need Lo be reglsLered for use on LransacLlons noL
sub[ecL Lo vA1),
d. llllng of Lhe MonLhly value-added 1ax ueclaraLlon on or before Lhe 20Lh day followlng Lhe end of
Lhe Laxable monLh (for manual fllers)/on or before Lhe prescrlbed due daLes enunclaLed ln 88 no.
16-2003 (for e-fllers) uslng 8l8 lorm no. 2330M and of Lhe CuarLerly vA1 8eLurn on or before Lhe
23Lh day followlng Lhe end of Lhe Laxable quarLer uslng 8l8 lorm no. 2330C, reflecLlng Lhereln
gross recelpLs (for seller of servlce)/ gross sales (for seller of goods) and ouLpuL Lax (vA1 on sales),
purchases of goods and servlces made ln Lhe course of Lrade or buslness/exerclse of professlon
and lnpuL Lax (vA1 on purchases), oLher allowable Lax credlLs as ln Lhe case of advance vA1
paymenL and vA1 wlLhheld by governmenL payors, and vA1 payable or excess lnpuL vA1,
whlchever ls appllcable, wlLh Lhe accredlLed agenL banks (AA8s) of Lhe 8l8 or 8evenue CollecLlon
Cfflcers (8CCs) of Lhe 8l8 (ln areas wlLhouL AA8), for reLurns wlLh paymenL, or wlLh Lhe 8uC/L1uC
havlng [urlsdlcLlon over Lhe Laxpayer (home 8uC/L1uC), for reLurns wlLhouL paymenL. (1he
monLhly vA1 ueclaraLlon and Lhe CuarLerly vA1 8eLurn shall reflecL Lhe consolldaLed LoLal for all
Lhe Laxable llnes of acLlvlLy and all Lhe esLabllshmenLs - head offlce and branches),
e. SubmlL wlLh Lhe 8uC/L1uC havlng [urlsdlcLlon over Lhe Laxpayer, on or before Lhe deadllne seL ln
Lhe flllng of Lhe CuarLerly vA1 8eLurn, Lhe sofL copy of Lhe CuarLerly Schedule of MonLhly Sales
and CuLpuL 1ax (lf Lhe quarLerly sales exceed 2,300,000.00), and Lhe sofL copy of Lhe CuarLerly
Schedule of MonLhly uomesLlc urchases and lnpuL 1ax/ Lhe sofL copy of Lhe Schedule of
1ransacLlonal/lndlvldual lmporLaLlon ( lf Lhe quarLerly LoLal purchases exceed 1,000,000.00),
reflecLlng Lhereln Lhe requlred daLa prescrlbed under exlsLlng revenue lssuances.



9. kemed|es - how to determ|ne |f case may be comprom|sed or not, cases that may or may not be
comprom|sed

Comprom|se

Compromlse-a conLracL whereby Lhe parLles, by reclprocal concesslons, avold llLlgaLlon or puL an end Lo one
already commenced.

kequ|s|tes:

1.1axpayer musL have a Lax llablllLy.

2.1here musL be an offer by Laxpayer or Cl8, of an amounL Lo be pald by Laxpayer.

3.1here musL be accepLance of Lhe offer ln seLLlemenL of Lhe orlglnal clalm.

When taxes may be comprom|sed:

1.A reasonable doubL as Lo Lhe valldlLy lf Lhe clalm agalnsL Lhe Laxpayer exlsLs,

2.1he flnanclal poslLlon of Lhe Laxpayer demonsLraLes a clear lnablllLy Lo pay Lhe assessed Lax.

3.Crlmlnal vlolaLlons, excepL:

a. 1hose already flled ln courL

b. 1hose lnvolvlng fraud.


L|m|tat|ons:

1.Mlnlmum compromlse raLe:

a.10 of Lhe baslc Lax assessed - ln case of flnanclal lncapaclLy.

b.40 of baslc Lax assessed - oLher cases.

2.Sub[ecL Lo approval of LvaluaLlon 8oard

a. When baslc Lax lnvolved exceeds 1,000,000.00 or

b. Where seLLlemenL offered ls less Lhan Lhe prescrlbed mlnlmum raLes.

De|egat|on of ower to Comprom|se

"#$#%&' ()'#: 1he power Lo compromlse or abaLe shall noL be delegaLed by Lhe commlssloner.

*+,#-./0$: 1he 8eglonal LvaluaLlon 8oard may compromlse Lhe assessmenL lssued by Lhe reglonal offlces
lnvolvlng baslc Laxes of 300 k or less.

kemedy |n case of fa||ure to comp|y:

1he Cl8 may elLher:

1.enforce Lhe compromlse, or

2.8egard lL as resclnded and lnslsLs upon Lhe orlglnal demand.

Comprom|se ena|ty

1.lL ls a cerLaln amounL of money whlch Lhe Laxpayer pays Lo compromlse a Lax vlolaLlon.

2.lL ls paln ln lleu of a crlmlnal prosecuLlon.

3.Slnce lL ls volunLary ln characLer, Lhe same may be collecLed only lf Lhe Laxpayer ls wllllng Lo pay
Lhem.

10. rocedure on adm|n|strat|ve procedure on |ssuance of def|c|ency taxes, Sec 228 - narrate and d|scuss
the f|ow chart

11. Study whether mandamus |s a||owed to |ssue bus|ness taxes? NC.
lacLs:
Checks were used Lo pay Lax llablllLles of oLher Laxpayers and noL Lhose of Lhe bank.
1he values of Lhe checks were evenLually credlLed Lo Lhe accounL of Lhe ClLy 1reasurer.
So Lhe bank made a demand on Lhe ClLy 1reasurer Lo lssue offlclal recelpLs Lo show LhaL lL had pald
lLs buslness Laxes for Lhe years 1992 and 1993 covered by Lhe dlverLed manager's checks.
When Lhe ClLy 1reasurer refused Lo lssue Lhe recelpLs requesLed, Lhe bank and lLs manager sued
hlm for mandamus and damages.
W/n Lhe case wlll prosper? nC.
ln order LhaL a wrlL of mandamus may apLly lssue, lL ls essenLlal LhaL, on Lhe one hand, Lhe person
peLlLlonlng for lL has a clear legal rlghL Lo Lhe clalm LhaL ls soughL and LhaL, on Lhe oLher hand, Lhe
person agalnsL whom he ls demandlng such rlghL has an lmperaLlve duLy Lo perform LhaL whlch ls
demanded of hlm. Mandamus wlll noL lssue Lo enforce a rlghL, or Lo compel compllance wlLh a duLy,
whlch ls quesLlonable or over whlch a subsLanLlal doubL exlsLs. 1he prlnclpal funcLlon of mandamus ls
Lo command and Lo expedlLe, noL Lo lnqulre and Lo ad[udlcaLe, Lhus, lL ls nelLher Lhe offlce nor Lhe alm
of Lhe wrlL Lo secure a legal rlghL buL Lo lmplemenL LhaL whlch ls already esLabllshed. unless Lhe rlghL Lo
Lhe rellef soughL ls unclouded, mandamus wlll noL lssue. (123 4&5/'6 7&8/$9: 1&$; 8:< =&$/;&$> "<(<
?@ABAC> D&$)&%6 ?E> FGGH< HCI 7J(K HBHL<)


12. rov|s|on on when AN |s not needed

1. Speclal 1ax Llen- Lransfer of Lax exempL lLems Lo non-exempL
2. ulscrepancy ln Lhe amounL of Lax remlLLed as agalnsL Lhe Lax wlLhheld by a wlLhholdlng agenL,
3. A Laxpayer who opLed Lo clalm a refund or Lax credlL was deLermlned Lo have carrled over and
auLomaLlcally applled Lhe amounL agalnsL succeedlng Lax llablllLles,
4. Lxclse Lax has noL been pald,
3. When Lhe flndlng of Lhe deflclency Lax ls a resulL of MA1PLMA1lCAL error appearlng on Lhe face of Lhe
Lax reLurn

A rellmlnary AssessmenL noLlce shall noL be requlred ln any of Lhe followlng cases, ln whlch case,
lssuance of Lhe formal assessmenL noLlce for Lhe paymenL of Lhe Laxpayer's deflclency Lax llablllLy shall
be sufflclenL:
When Lhe flndlng for any deflclency Lax ls Lhe resulL of maLhemaLlcal error ln Lhe compuLaLlon of
Lhe Lax appearlng on Lhe face of Lhe Lax reLurn flled by Lhe Laxpayer, or
When a dlscrepancy has been deLermlned beLween Lhe Lax wlLhheld and Lhe amounL acLually
remlLLed by Lhe wlLhholdlng agenL, or
When a Laxpayer who opLed Lo clalm a refund or Lax credlL of excess credlLable wlLhholdlng Lax for
a Laxable perlod was deLermlned Lo have carrled over and auLomaLlcally applled Lhe same amounL
clalmed agalnsL Lhe esLlmaLed Lax llablllLles for Lhe Laxable quarLer or quarLers of Lhe succeedlng
Laxable year, or
When Lhe exclse Lax due on exclsable arLlcles has noL been pald, or
When an arLlcle locally purchased or lmporLed by an exempL person, such as, buL noL llmlLed Lo,
vehlcles, caplLal equlpmenL, machlnerles and spare parLs, has been sold, Lraded or Lransferred Lo
non-exempL persons.


13. D|stra|nt]|evy on the co||ect|on of taxes

D|stra|nt of ersona| roperty

D|stra|nt- Selzure by Lhe governmenL of personal properLy, Langlble or lnLanglble, Lo enforce Lhe paymenL of
faces, Lo be followed by lLs publlc sale, lf Lhe Laxes are noL volunLarlly pald.

a. AcLual - 1here ls Laklng of possesslon of personal properLy ouL of Lhe Laxpayer lnLo LhaL of Lhe
governmenL. ln case of lnLanglble properLy. 1axpayer ls also dlverLed of Lhe power of conLrol over Lhe
properLy,

b. ConsLrucLlve - 1he owner ls merely prohlblLed from dlsposlng of hls personal properLy.


AcLual ulsLralnL. ConsLrucLlve ulsLralnL
Made on Lhe properLy only of a dellnquenL Laxpayer.
May be made on Lhe properLy of any Laxpayer
wheLher dellnquenL or noL
1here ls acLual Laklng or possesslon of Lhe properLy.
1axpayer ls merely prohlblLed from dlsposlng of hls
properLy.
LffecLed by havlng a llsL of Lhe dlsLralnL properLy or by
servlce or warranL of dlsLralnL or garnlshmenL.
LffecLed by requlrlng Lhe Laxpayer Lo slgn a recelpL
of Lhe properLy or by leavlng a llsL of same
An lmmedlaLe sLep for collecLlon of Laxes where
amounL due ls deflnlLe.
Such lmmedlaLe sLep ls noL necessary, Lax due may
noL be deflnlLe or lL ls belng quesLloned.


kequ|s|tes:

1.1axpayer ls dellnquenL ln Lhe paymenL of Lax.

2.SubsequenL demand for lLs paymenL.

3.1axpayer musL fall Lo pay dellnquenL Lax aL Llme requlred.

4.erlod wlLh ln Lo assess or collecL has noL yeL prescrlbed. ln case of consLrucLlve dlsLralnL, requlslLe
no. 1 ls noL essenLlal (see Sec. 206 1C)

When remedy not ava||ab|e:

Where amounL lnvolved does noL exceed 100 (Sec. 203 1C). ln keeplng wlLh Lhe provlslon on Lhe
abaLemenL of Lhe collecLlon of Lax as Lhe cosL of same mlghL even be more Lhan 100.

rocedure:

1.Servlce of warranL of dlsLralnL upon Laxpayer or upon person ln possesslon of Laxpayer's personal
properLy.

2.osLlng of noLlce ls noL less Lhan Lwo places ln Lhe munlclpallLy or clLy and noLlce Lo Lhe Laxpayer
speclfylng Llme and place of sale and Lhe arLlcles dlsLralned.

3.Sale aL publlc aucLlon Lo hlghesL bldder

4.ulsposlLlon of proceeds of Lhe sale.



Who may effecL dlsLralnL AmounL lnvolved
1. commlssloner or hls due auLhorlzed
represenLaLlve

2. 8uC
ln excess of
1,000,000.00
1,000,000.00 or less



now Actua| D|stra|nt Lffected

1.ln case of 1anglble roperLy:

a.Copy of an accounL of Lhe properLy dlsLralned, slgned by Lhe offlcer, lefL elLher wlLh Lhe
owner or person from whom properLy was Laken, aL Lhe dwelllng or place of buslness and wlLh
someone of sulLable age and dlscreLlon

b.SLaLemenL of Lhe sum demanded.

c.1lme and place of sale.

2.ln case of lnLanglble properLy:

a.SLocks and oLher securlLles

Servlng a copy of Lhe warranL upon Laxpayer and upon presldenL, manager, Lreasurer or oLher
responslble offlcer of Lhe lssulng corporaLlon, company or assoclaLlon.

b.uebLs and credlLs

1. Leavlng a copy of Lhe warranL wlLh Lhe person owlng Lhe debLs or havlng ln hls
possesslon such credlLs or hls agenL.

2. WarranL shall be sufflclenL auLhorlLy for such person Lo pay Cl8 hls credlLs or debLs.

c.8ank AccounLs - garnlshmenL

1. Serve warranL upon Laxpayer and presldenL, manager, Lreasurer or responslble
offlcer of Lhe bank.

2. 8ank shall Lurn over Lo Cl8 so much of Lhe bank accounLs as may be sufflclenL.

now construct|ve D|stra|nt Lffected

1.8equlre Laxpayer or person ln possesslon Lo

a. Slgn a recelpL coverlng properLy dlsLralned

b. CbllgaLe hlm Lo preserve Lhe same properLles.

c. rohlblL hlm from dlsposlng Lhe properLy from dlsposlng Lhe properLy ln any manner, wlLh
ouL Lhe auLhorlLy of Lhe Cl8.

2.Where 1axpayer or person ln possesslon refuses Lo slgn:

a. Cfflcer shall prepare llsL of Lhe properLy dlsLralned.

b. ln Lhe presence of Lwo wlLnesses of sufflclenL age and dlscreLlon, leave a copy ln Lhe
premlses where properLy ls locaLed.

Grounds of Construct|ve D|stra|nt

1.1axpayer ls reLlrlng from any buslness sub[ecL Lo Lax.

2.1axpayer ls lnLendlng Lo leave Lhe hlllpplnes, or

3.1o remove hls properLy Lhere from.

4.1axpayer hldes or conceals hls properLy.

3.1axpayer acLs Lendlng Lo obsLrucL collecLlon proceedlngs.

noLe:

1.8ank accounLs may be dlsLralned wlLh ouL vlolaLlng Lhe confldenLlal naLure of bank accounLs for no
lnqulry ls made. 8l8 slmply selzes so much of Lhe deposlL wlLh ouL havlng Lo know how much Lhe
deposlLs are or where Lhe money or any parL of lL came from.

2.lf aL any Llme prlor Lo Lhe consummaLlon of Lhe sale, all proper charges are pald Lo Lhe offlcer
conducLlng Lhe same, Lhe goods dlsLralned shall be resLored Lo Lhe owner.

3.When Lhe amounL of Lhe bld for Lhe properLy under dlsLralnL ls noL equal Lo Lhe amounL of Lhe Lax or
ls very much less Lhan Lhe acLual markeL value of arLlcles, Lhe Cl8 or hls depuLy may purchase Lhe
dlsLralned properLy on behalf of Lhe naLlonal governmenL.

Levy of kea| roperty

Levy - AcL of selzure of real properLy ln order Lo enforce Lhe paymenL of Laxes. 1he properLy may be sold aL
publlc sale, lf afLer selzure, Lhe Laxes are noL volunLarlly pald. 1he requlslLes are Lhe same as LhaL of dlsLralnL.

rocedure:

1.lnLernaLlonal 8evenue offlcer shall prepare a duly auLhenLlcaLed cerLlflcaLe showlng

a.name of Laxpayer

b.AmounL of Lax and

c.enalLy due.


- enforceable Lhrough ouL Lhe hlllpplnes

2.Cfflcer shall wrlLe upon Lhe cerLlflcaLe a descrlpLlon of Lhe properLy upon whlch levy ls made.

3.Servlce of wrlLLen noLlce Lo:

a. 1he Laxpayer, and

b. 8u where properLy ls locaLed.

4.AdverLlsemenL of Lhe Llme and place of sale.

3.Sale aL publlc aucLlon Lo hlghesL bldder.

6.ulsposlLlon of proceeds of sale.

1he excess shall be Lurned over Lo owner.

kedempt|on of property so|d or forfe|ted

a.erson enLlLled: 1axpayer or anyone for hlm

b.1lme Lo redeem: one year from daLe of sale or forfelLure

- 8eglns from reglsLraLlon of Lhe deed of sale or declaraLlon of forfelLure.

- CannoL be exLended by Lhe courLs.

c.ossesslon pendlng redempLlon - owner noL deprlved of possesslon

d.rlce: AmounL of Laxes, penalLles and lnLeresL Lhereon from daLe of dellnquency Lo Lhe daLe of sale
LogeLher wlLh lnLeresL on sald purchase prlce aL 13 per annum from daLe of purchase Lo daLe of
redempLlon.


D|stra|nt and Levy compared

1.8oLh are summary remedles for collecLlon of Laxes.

2.8oLh cannoL be avalled of where amounL lnvolved ls noL more Lhan 100.

3.ulsLralnL - personal properLy

Levy - real properLy

4.ulsLralnL - forfelLure by governmenL, noL provlded

Levy - forfelLure by governmenL auLhorlzed where Lhere ls no bldder or Lhe hlghesL bld ls noL sufflclenL
Lo pay Lhe Laxes, penalLles and cosLs.

3.ulsLralnL - 1axpayer no glven Lhe rlghL of redempLlon

Levy - 1axpayer can redeem properLles levled upon and sold/forfelLed Lo Lhe governmenL.

noLe:

1.lL ls Lhe duLy of Lhe 8eglsLer of ueeds concerned upon reglsLraLlon of Lhe declaraLlon of forfelLure, Lo
Lransfer Lhe LlLle Lo Lhe properLy wlLh ouL of an order from a compeLenL courL
2.1he remedy of dlsLralnL or levy may be repeaLed lf necessary unLll Lhe full amounL, lncludlng all
expenses, ls collecLed.


14. Iur|sd|ct|on of the C1A

naLure of Lhe [urlsdlcLlon of C1A ls excluslvely appellaLe. lL ls a courL of speclal [urlsdlcLlon and as such,
lL can only Lake cognlzance of such maLLers as are wlLhln lLs [urlsdlcLlon.

urpose of Lhe [urlsdlcLlon of C1A ls Lo revlew declslons and/or maLLers properly broughL before lL on
appeal by an aggrleved Laxpayer.

Lxpanded !urlsdlcLlon of C1A are :
l. Lxcluslve AppellaLe !urlsdlcLlon Lo revlew by appeal
-ueclslon/lnacLlon of Cl8
-ueclslon, orders or resoluLlon of Lhe 81C ln local Laxes
-ueclslon of Comm. Cf CusLoms
- ueclslon of CenLral 8oard of AssessmenL Appeals
- ueclslon of Sec of llnance on cusLom cases
- ueclslon of Sec of 1rade and lndusLry
ll. !urlsdlcLlon over cases lnvolvlng crlmlnal cases
lll. !urlsdlcLlon over Lax collecLlon cases

14. What |s "No In[unct|on ku|e"?
ln[uncLlon noL avallable Lo resLraln collecLlon of Lax.

SLC. 303. ln!unC1lCn nC1 AvAlLA8LL 1C 8LS18Aln 1PL CCLLLC1lCn Cl 1Ax. - no courL shall have auLhorlLy
Lo granL an ln[uncLlon Lo resLraln Lhe collecLlon of any lnLernal revenue Lax, fee, or charge lmposed by Lhls Code
(naLlonal lnLernal 8evenue Code).

SLC. 218. ln[uncLlon noL Avallable Lo 8esLraln CollecLlon of 1ax. - no courL shall have Lhe auLhorlLy Lo granL an
ln[uncLlon Lo resLraln Lhe collecLlon of any naLlonal lnLernal revenue Lax, fee or charge lmposed by Lhls Code.


1S. CIk vs. Un|ted Internat|ona| |cture: kat|ona| bas|s test

lL ls sufflclenL LhaL Lhe leglslaLlve classlflcaLlon ls raLlonally relaLed Lo achlevlng some leglLlmaLe sLaLe lnLeresL.


16. Lffect of wa|ver of statute of ||m|tat|on

1he Lax payer can no longer lnvoke Lhe defense of rescrlpLlon.

1he Walver of Lhe SLaLuLe of LlmlLaLlons ls a slgned sLaLemenL whereby Lhe 1axpayer conveys hls agreemenL Lo
exLend Lhe perlod wlLhln whlch Lhe 8ureau may valldly lssue an assessmenL for deflclency Laxes. lf a 1axpayer
opLs Lo execuLe a Walver of Lhe SLaLuLe of LlmlLaLlons, he shall llkewlse be, ln effecL, walvlng hls rlghL Lo lnvoke
Lhe defense of prescrlpLlon for assessmenLs lssued afLer Lhe reglemenLary perlod.
no Walver of Lhe SLaLuLe of LlmlLaLlons shall be consldered valld unless lL ls accepLed by a duly auLhorlzed
8ureau offlclal.


17. Sa|e of roperty - k|nd of taxes, |f you se|| to the government, what are the r|ghts and cho|ces?