NIRC

1. Protesting an assessment
SEC. 228. Protesting of Assessment
When the Commissioner or his duly authorized
representative finds that proper taxes should be
assessed, he shall first notify the taxpayer of his
findings: Provided, however, That a preassessment
notice shall not be required in the following cases:
(a) When the finding for any deficiency tax is the
result of mathematical error in the computation of
the tax as appearing on the face of the return;
(b) When a discrepancy has been determined
between the tax withheld and the amount actually
remitted by the withholding agent;
(c) When a taxpayer who opted to claim a refund or
tax credit of excess creditable withholding tax for a
taxable period was determined to have carried over
and automatically applied the same amount claimed
against the estimated tax liabilities for the taxable
quarter or quarters of the succeeding taxable year;
(d) When the excise tax due on exciseable articles
has not been paid; or
(e) When the article locally purchased or imported by
an exempt person, such as, but not limited to,
vehicles, capital equipment, machineries and spare
parts, has been sold, traded or transferred to nonexempt persons.
The taxpayers shall be informed in writing of the
law and the facts on which the assessment is made;
otherwise, the assessment shall be void.
Within a period to be prescribed by implementing
rules and regulations, the taxpayer shall be required
to respond to said notice. If the taxpayer fails to
respond, the Commissioner or his duly authorized
representative shall issue an assessment based on
his findings.
Such
assessment
may
be
protested
administratively
by
filing
a
request
for
reconsideration or reinvestigation within thirty (30)
days from receipt of the assessment in such form
and manner as may be prescribed by implementing
rules and regulations.
Within 60 days from filing of the protest, all
relevant supporting documents shall have been
submitted; otherwise, the assessment shall become
final.
If the protest is denied in whole or in part, or is
not acted upon within 180 days from submission of
documents, the taxpayer adversely affected by the
decision or inaction may appeal to the Court of Tax
Appeals within 30 days from receipt of the said
decision, or from the lapse of 180-day period;
otherwise, the decision shall become final, executory
and demandable.
Commissioner vs. Algue
Comissioner vs. Union Shipping
Decision of the Commissioner denying the protests
must be stated in clear, unequivocal terms
Commissioner vs. Ayala Securities Corporation
Collector vs. Batangas Transportation
An assessment may be revise, even after a decision
is made

Lascona Land Co. vs. CIR, CTA Case

- there must first be a decision
- the remedies are optional: appeal or wait
Bonifacio Sy Po vs. CTA Case
Protectors Services vs. CA
Exhaust administrative remedies before CTA.
first, then CTA within 30 days

BIR

Aguinaldo Industries vs. CIR

Dont raise defenses for the first time on appeal
Surigao vs. CTA
RCBC vs. CIR
- after expiration of the 180-day period and there
was no decision, RCBS appealed. But it mistakenly
calculated the 30-day period within which it could
avail itself of a remedy.
After its appeal was
dismissed, RCBC claims it can still await a decision
from the Commissioner.
- confirms Lascona case. Taxpayer has 2 options:
appealwith the CTA or wait. Remedies are indeed
optional
- But, they are mutually exclusive. Resort to one
bars resort to the other remedy

Customs

Sec. 2308. Protest and Payment upon Protest

in Civil Matters. When a ruling or decision of
the Collector is made whereby liability for duties,
fees, or other money charge is determined,
except the fixing of fines in seizure cases, the party
adversely affected may protest such ruling
or decision by presenting to the Collector at the time
when payment of the amount claimed to be
due the Government is made, or within thirty days
thereafter, a written protest setting forth his
objections to the ruling or decision in question,
together with the reasons therefor. No protest
shall be considered unless payment of the amount
due after final liquidation has first been
made.
Sec. 2309. Protest Exclusive Remedy in
Protestable Case. In all cases subject to protest,
the interested party who desires to have the action
of the Collector reviewed, shall make a
protest, otherwise, the action of the Collector shall be
final and conclusive against him, except
as to matters correctible for manifest error in the
manner prescribed in section one thousand
seven hundred and seven hereof.
Sec. 2310. Form and Scope of Protest. Every
protest shall be filed in accordance with the
prescribed rules and regulations promulgated under
this section and shall point out the particular
decision or ruling of the Collector to which exception
is taken or objection made, and shall

indicate with reasonable precision the particular

ground or grounds upon which the protesting
party bases his claim for relief.
The scope of a protest shall be limited to the subject
matter of a single adjustment or other
independent transaction; but any number of issue
may be raised in a protest with reference to
the particular item or items constituting the subject
matter of the protest.
"Single adjustment", as hereinabove used, refers to
the entire content of one liquidation,
including all duties, fees, surcharges or fines incident
thereto.
Sec. 2311. Samples to be Furnished by
Protesting Parties. If the nature of the articles
permit, importers filing protests involving questions
of fact must, upon demand, supply the
Collector with samples of the articles which are the
subject matter of the protests. Such samples
shall be verified by the custom official who made the
classification against which the protest are
filed.
Sec. 2312. Decision or Action by Collector in
Protest and Seizure Cases. When a protest
in proper form is presented in a case where protest in
required, the Collector shall reexamine the
matter thus presented, and if the protest is
sustained, in whole or in part, he shall enter the
appropriate order, the entry reliquidated if necessary.
In seizure cases, the Collector, after a hearing, shall
in writing make a declaration of forfeiture or
fix the amount of the fine or take such other action
as may be proper.
Sec. 2313. Review by Commissioner. The person
aggrieved by the decision or action of the
Collector in any matter presented upon protest or by
his action in any case of seizure may, within

fifteen days after notification in writing by the

Collector of his action or decision, give written
notice to the Collector of his desire to have the
matter reviewed by the Commissioner.
Thereupon the Collector shall forthwith transmit all
the records of the proceedings to the
Commissioner, who shall approve, modify or reverse
the action or decision of the Collector and
take such steps and make such orders as may be
necessary to give effect to his decision.

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Sec. 2314. Notice of Decision of Commissioner.
Notice of the decision of the Commissioner
shall be given to the party by whom the case was
brought before him for review, and in seizure
cases such notice shall be effected by personal
service if practicable.
Sec. 2315. Supervisory Authority of
Commissioner And of Department Head in
Certain
Cases. If in any case involving the assessment of
duties the importer shall fail to protest the
ruling of the Collector, and the Commissioner shall be
of the opinion that the ruling was
erroneous and unfavorable to the Government, the
latter may order a reliquidation; and if the
ruling of the Commissioner in any unprotested case
should, in the opinion of the department
head, be erroneous and unfavorable to the
Government, the department head may require the
Commissioner to order a reliquidation.
Except as in the preceding paragraph provided, the
supervisory authority of the department
head over the Bureau of Customs shall not extend to
the administrative review of the ruling of
the Commissioner in matters appealed to the Court
of Tax Appeals.