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The National Internal Revenue Code provide solutions to the problems of the Government in enforcing
tax laws and solutions to the problems of the taxpayer against unlawful enforcement or collection of
tax. These solutions are termed remedies its basic purpose is to maintain equilibrium between the
interest of the state and the taxpayer.
JUDICIAL REMEDIES
Remedies of the state VS Remedies of the Taxpayer
1 Civil Suit/ Action Appeal to CTA
2 Criminal Suit/ Action TRO/Injunction
Criminal suit against erring BIR officials
May a property levied be redeemed? Within 1 year from the date of sale, the property may
be redeemed by the delinquent taxpayer or anyone from him, upon payment of the taxes,
penalties and interest thereon from the date of delinquency to the date of sale, together with
interest on purchase price at 15% per annum from the date of sale to the date of redemption
***What are the requisites for the exercise of the remedy of distraint or levy?
a. The taxpayer must be delinquent (except in constructive distraint) in the payment of
tax
b. There must be a subsequent demand for its payment (assessment)
c. The taxpayer must fail to pay the tax at the time required
d. The period within which to assess or collect the tax has not yet prescribed
C. Tax Lien it is a legal claim or charge on property, either real or personal, established by law
as a security in default of the payment of taxes. Generally, it attaches to the property
irrespective of ownership or transfer thereof.
The tax, together with interests, penalties, and costs that may accrue in addition thereto
is a lien upon all property and rights to property belonging to the taxpayer. The lien
shall not be valid against any mortgage, purchaser, or judgment creditor until notice of
such lien shall be filed by the Commissioner of Internal Revenue in the Office of the
Register of Deeds of the province or city where the property of the taxpayer is situated
or located. Lien attaches not only from the service of the warrant of distraint but from
the time tax became due and payable
May criminal action be filed during the pendency of an administrative protest in the BIR?
Yes, it is not a requirement for the filing of criminal complaint to have a precise computation
and assessment of the tax, since what is involved in the criminal action is not the collection
of tax but a criminal prosecution for the violation of the NIRC
Requisites of tax refund: claim must be in writing, must be filed with CIR within TWO (2)
YEARS after the payment of tax or penalty and must show proof of payment
B. Judicial with courts [A] Appeal to CTA [B] Temporary Restraining Order/Injunction from CTA
and [C] Filing criminal suit against erring BIR officials
1. Civil Action
a. Appeal to the Court of Tax Appeals) within 30 days from receipt of decision on the
protest or from the lapse of 180 days due to inaction of the Commissioner
whichever comes first
b. Action for damages against a revenue officer by reason of any act done in the
performance of official duty
2. Criminal Action
a. Filing of criminal complaint against erring BIR officials and employees
TAX REMEDIES
b. Injunction when the CTA in its opinion the collection by the BIR may jeopardize
taxpayer
** May the government be held liable for interest on tax refunds? NO, government
cannot be required to pay interest on taxes refunded to the taxpayer in the absence of a
statutory provision clearly or expressly directing or authorizing such payment
P21,000/month if married), and that it appears that the taxpayer possess no other
leviable/distranable assets, other than his family home
*** Compromise to be valid under the grounds of clear financial inability of taxpayer must be
accompanied by a waiver of RA1405, otherwise the known as the secrecy of bank deposit law
COMPROMISE PENALTY- an amount of money which the taxpayer pays to compromise a tax
violation. This is paid in lieu of criminal prosecution.
B. ABATEMENT- a tax may be cancelled or obliterated upon the authority of the BIR under certain
circumstances.
AMENDED RETURN If the amendment is substantially different (under declaration, 30%) from
the original return, the prescriptive period shall be counted form the filing of the amendment
return. But the said period shall run from the filing of the original return if the same is
sufficiently complete to enable the Commissioner to make proper assessment
iii. When the taxpayer cannot be located in the address given by him in the return, unless he
informs the CIR of any change in his address
iv. When the warrant of distraint or levy is duly served, and no property is located
v. When the taxpayer is out of the Philippines
D. Prescriptive Periods for the VIOLATION of any provision of the tax code
1. A protest must be filed within 30 days from receipt of assessment
2. Submit supporting documents within 60 days from date of filing of protest
3. If protest is denied; appeal the matter to the Division of the Court of Tax Appeals (CTA)
within 30 days from receipt of final decision of CIR or if the CIR fails to act on the protest
within 180 days from date of submission of evidentiary documents by taxpayer,
whichever comes first
4. Appeal within 15 days to the CTA en banc from receipt of the Division of the CTA denial
decision
5. Appeal to the Supreme Court within 15 days from the receipt of the CTA en banc denial
decision