SUMMARY OF TAX

REMEDIES FOR
TAXPAYERS AND THE
GOVERNMENT
 REMEDIES OF THE TAXPAYER

 Before Payment of Tax ( but after payment under self-assessment)

 Administrative remedies
 Protest against assessment
 Compromise

 Redemption of property after sale at public auction

 Judicial Remedies
 Ordinary Civil action

 Filing of Petition before the CTA

 After payment of Tax

 Administrative Remedies
 Claim for refund or tax credit

 Judicial Remedies
 Filing of Petition before the CTA
REMEDIES OF THE GOVERNMENT

 Administrative Remedies
 To make deficiency assessments within 3 or 10 years
 To enforce deficiency assessments and collect taxes within 5 years
 To effect distraint of personal property
 To effect levy on real property
 To pursue judicial proceeding to collect
 To compromise abate or cancel taxes
 To enforce tax liens
 To enforce statutory penal provisions
 To enforce forfeiture or property

 Judicial Remedies
 File civil or criminal case
ASSESSMENT

 An assessment contains not only a computation of tax liabilities but also a

demand for payment within a prescribed period
KINDS OF ASSESSMENTS
 Self assessment
 Deficiency assessment
 Jeopardy assessment
 Disputed assessment
DIFFERENCE BETWEEN TAX
DELINQUENCY AND TAX DEFICIENCY
 Tax Deficiency –
 Refers to the amount by which the tax imposed or required to be paid exceeds the
amount shown in the taxpayer’s return and/or paid by him.
 Tax Delinquency –
 failure to pay the tax due on any return required to be filed, or tax due for which
no return is required
 Subject to administrative penalties such as 25% surcharge, interest anad compromise
penalty,
 Can be immediately collected thru administrative action, like, issuance of distraint
and levy and or thru judicial filing of action to colelct
POWERS OF THE CIR IN RELATION TO
ASSESSMENTS
 Power to obtain information, summon/examine and take testimony of
persons
 Power to make assessments and prescribe requirements for tax
administration and enforcement
POWER TO OBTAIN INFORMATION,
SUMMON/EXAMINE AND TAKE
TESTIMONY OF PERSONS
 Purpose
 To ascertain correctness of any return;
 make return when none has been made; ;
 determine liability of any person for any internal revenue tax; evaluate tax
compliance
 AUTHORITIES OF THE CIR
 Examine any relevant or material book, record, etc.
 Obtain info on a regular basis from
 Any person other than the person being investigated
 Any office or officer of the natl/local government, government agencies and
instrumentalities
 Summon to require to produce books, papers, recordsm, etc or to give
testimony the FF persons:
 The taxpayer
 Any officer or employee of the taxpayer
 Any person having in possessions of the book of records

 To take testimony of the person concerned, under oath

 To cause revenue officers and employees to make a canvass of any revenue
district or region
 POWER TO MAKE ASSESSMENTS AND PRESCRIBE
REQUIREMENTS FOR TAX ADMINISTRATION AND
ENFORCEMENTS
1. Examination of returns and determination of tax due
2. Failure to submit required returns and other documents
3. Inventory taking surveillance prescribing presumptive gross sales and receipts
4. Terminate taxable period
5. Prescribe real property values
6. Authority to inquire bank deposits
7. Authority to register tax agents
8. Authority to issue access letters addressed to 3rd parties
Third party Information Rule
WHEN IS AN ASSESSMENT MADE
 Section 203 and Section 222 of the NIRC
 Provide for a statute of limitation on the assessment and collection of internal
revenue taxes in order to safe guard the interest of the taxpayer against
unreasonable investigation
 Meaning of unreasonable investigation
 Law on prescription a remedial measure –

 The law on prescription being a remedial measure should be interpreted in a way conducive
to bringing about the beneficent purpose of affording protection to the taxpayer ( Phil
Journalsits, Inc. vs CIR 447 SCRA 214, 2004)
RULES ON PRESCRIPTION
 When the tax law itself is silent on prescription or when return is not
required to be filed the tax is imprescriptible
 In computing the legal periods, the administrative Code of 1987 is
followed and not the civil code, /this is according to the case of CIR vs
Primetown , 531 SCRA 436, 2007 . A year is composed of 12 months;
the number of days is irrelevant.
 PRESCRIPTIVE PERIOD FOR ASSESSMENT

 General Rule : 3 years after the date of the return is due or filed, whichever
is later.
 Exceptions:
 Failure to file return : 10 years from date of discovery;
 False or fraudulent return with intention to evade tax – 10 years from date of discovery
 Fraud must be alleged and proved as a fact by
 Intentional and substantial understatement of taxpayers sales, income by 30%
 Intentional and substantial overstatement of deductions by 30%

 Falsity constitutes a deviation from the truth due to mistake , carelessness or ignorance
 EXTENSION OF PERIOD TO ASSESS
 Only upon written agreement between the CIR and the taxpayer executed
before the expiration of the 3 year period (Section 222(b), NIRC)
 Waiver must be signed by the taxpayer himself or his duly authorized
representative. In case of corp. By responsible officials, duly authorized and
notarized authority.
RULE IN CASE OF AMENDED RETURN
 If the amended return is substantially different from the original return,
the prescriptive period shall be counted from the filing of the amended
return ( CIR vs Phoenix Assurance 14 SCRA 52, 1965)
SUSPENSION OF RUNNING OF STATUTE OF
LIMITATIONS

 1. When the CIR is prohibited from making the assessment or beginning the
distraint or levy or a proceeding in court – during such period and for 60
days thereafter
 2. When taxpayer request for reinvestigation which is granted by the CIR
 3. When taxpayer can not be located in the address given by him in the
return
 4. When the warrant of distraint or levy is duly served and no property is
located
 5. when taxpayer is out of the country
REQUISITES FOR VALID ASSESSMENT
 the taxpayer shall be informed in writing of the law and the facts on
which the assessment is made
 There is a demand to pay
MEANING OF BEST EVIDENCE
OBTAINABLE
 The CIR may use the best evidence obtainable to issue an assessment
under the following circumstances (Section 6 (B), NIRC)
 The records requested from the taxpayer are not forthcoming either because the
records are lost or the taxpayer refuses to submit such records
 The records submitted are false, incomplete or erroneous (RMC 23-00)
VARIOUS WAYS OF DETERMINING
INCOME OF TAXPAYER
 Constructive Methods of Income determination
 Constructive receipt
 Assignment of Income

 Inventory or Net worth method for income determination

 Jeopardy assessment
ADDITIONS TO BASIC TAX
 Civil Penalties –
 Penalty : 25%
 Failure to file any return and pay tax on the date prescribed
 Wrong filing of the return
 Failure to pay deficiency tax with in the time prescribed for the payment in the notice of assessment

 Penalty – 50%
 Willful neglect to file the return within the period prescribed
 False or fraudulent return is willfully made,

 Interest
 Deficiency interest – 20% per annum
 Delinquency interest – 20% per annum

 Compromise penalties
PRIMA FACIE EVIDENCE OF A FALSE OR
FRAUDULENT RETURN
 1. Substantial understatement of taxable sales, income etc. by 30%
 2. Substantial overstatement of deductions by more than 30%
ASSESSMENT PROCESS
 Tax Audit

 In a tax audit , revenue officers examine the books of account and other accounting
records of the taxpayers to determine the correct tax liability , on the strength of a
Letter of Authority
 A letter of Authority (LOA) is an official document that empowers a revenue
officer to examine and scrutinize a taxpayer’s books of accounts and other
accounting records in order to determine the taxpayer’s correct internal
revenue tax liabilities..– valid for 120 days but can be extended – LOA should
cover a taxable period not exceeding one taxable year.
 A letter Notice (LN) is a discrepancy notice issued by the CIR after conducting
data matching processes, informing the taxpayer of findings of discrepancy, e.g.
undeclared sales or over claimed purchases.
 Notice the findings of the audit and the taxpayer is given 15 days to explain his
side ( RR 18-13 has since removed this as part of the process
PRELIMINARY ASSESSMENT NOTICE (PAN)

 A PAN is the communication issued by the BIR informing a taxpayer of

its findings after audit. The PAN shall be in writing and shall show in
detail the facts and the law, rules and regulations or jurisprudence on
which the assessment is based.
INSTANCES WHEN PAN IS NOT
NECESSARY
 Finding of deficiency tax is a result of mathematical error in the
computation of tax appearing on the face of the return
 Discrepancy is determined between tax withheld and the amount
actually remitted by the withholding agent
 A taxpayer who opted to claim a refund was determined to have
carried over the succeeding tax liabilities
 Excise tax has not been paid
 An article locally purchased or imported by an exempt person has been
sold, traded or transferred to non exempt person
FORMAL LETTER OF DEMAND (FLD)
AND/OR FINAL ASSESSMENT NOTICE
(FAN)
 A FLD/FAN is a formal letter of demand where a declaration of
deficiency taxes is issued to a taxpayer who fails to respond to a PAN
within 15 days from receipt of the PAN, or whose reply to the PAN is
found to be without merit.
 The FLD/FAN shall be issued by the CIR or his duly authorized rep. and
shall state the facts and the law, the rules and regulations or
jurisprudence on which the assessment is based , Otherwise the
assessment is void (RMC 18-13)
 ASSESSMENT NOTICE ASSESSMENT NOTICE
(PAN) (FAN)

15 days to reply 30 days to file protest after receipt of

FAN

Response is general due to shorter Protest must be comprehensive that

time. Does not necessarily tackle explains the legal and factual basis
specific findings why the assessment is wrong and
must present all documentary
evidences

Filing of reply is directory Filing of protest is mandatory

Non filing of reply will warrant Failure to file protest to FAN will
issuance of Final A9ssessment Notice make the assessment final and
(FAN) executory and the taxpayer loses its
right to seek judicial remedy
REINVESTIGATION VS RECONSIDERATION

 Reinvestigation refers to a plea of re-evaluation of an assessment on the

basis of newly discovered evidence or additional evidence that a
taxpayer intends to present in the reinvestigation. It may involve
questions of fact or law or both.
 Reconsideration refers to a plea of re-evaluation of an assessment on
the basis of existing records without need of additional evidence. It
may also involve a question of fact or law or both.
BIR’S ACTION ON THE PROTEST TO THE FAN

 The CIR either:

 Denies the protest to the FAN,
 The nomenclature of the BIR’s denial of the protest to the FAN could vary. It may be called
a Final Decision on a Disputed Assessment (FDDA) ( RMC 18-13)
 A final demand letter for payment of delinquent taxes may be considered a decision on a
disputed assessment
 Does not act on such protest
ACTIONS OF CIR WHICH IS EQUIVALENT
TO DENIAL OF PROTEST
 Filing of Criminal action against the taxpayer
 Issuance of a warrant of distraint and levy
UNGAB VS CUSI 97 SCRA 877, 1980
 An assessment of a deficiency is not necessary to a criminal prosecution
for willful attempt to defeat and evade the income tax. A crime is
complete when the violator has knowingly and willfully filed a fraudulent
return with intent to evade and defeat the tax. The perpetration of the
crime is grounded upon knowledge on the part of the taxpayer and he
has made an inaccurate return, the government’s failure to discover the
error promptly to assess has no connections with the commission of
the crime
CIR VS CA, CTA, FORTUNE TOBACCO, 257
SCRA 200, 1996
 The Court held that before the tax liabilities are finally determined, it
cannot be correctly asserted that the taxpayer had willfully attempted
to evade or defeat the taxes sought to be collected. “ Before one is
prosecuted for willfull attempt to evade tax, the fact that a tax is due ,
must first be proved.
REMEDIES UNDER THE NIRC
A. Assessment and Collection: The Return was not false or fraudulent

Date return was filed, or last day required by law

for filing, if filed before the last day
* (NIRC, Section 203)

3 years
Last day to collect (By Judicial proceeding only)
*(NIRC, Section 222 (d) & CIR v. Phil. Global
Communications, inc., GR No. 167146, Oct 31, 2006)
Date return was filed, or last day required by law
for filing, if filed before the last day
*(NIRC, Section 203)

3 years 5 years
Last day to assess
Last day to collect either by:
[a] Summary proceedings; or
[b] Judicial proceedings
* (NIRC Section 222 (d))
ASSESSMENT AND COLLECTION: THE RETURN WAS
FALSE OR FRAUDULENT
Date of discovery of the falsity, fraud or omission
*(NIRC, Section 222 (a))

10 years
Last day to collect (By judicial proceedings only)
*(NIRC, Section 222 (a) & CIR v. Phil. Global C
Communications, Inc., GR No. 167146, Oct. 31,
2006
Date of discovery of the falsity, fraud or omission
* (NIRC, Section 222 (a))

10 years Last day to 5 years

assess
Last day to collect either by:
[a] Summary proceedings; or
[b] Judicial procedings
* (NIRC, Section 222 (c))
 REMEDY AGAINST AN ASSESSMENT WHERE THE BIR DID
NOT DECIDE WITHIN 180 DAYS
Receipt of Letter of Authority
(Tax Audit starts)
(No more need for notice of informal
conference )
* (RR 18-2013)
Pre-assessment notice Assessment and demand
*(NIRC, Section 228(e) & RR 18- *(NIRC, Section 228 (e) & RR 18-2013 Submit Support Docs – if
2013 Section 2)) Section 2)) request for reinvestigation
* (NIRC, Section 228(e) &RR
18-2013 Section 2))
Respond Protest
*(NIRC, Sec. 228(e) & *(NIRC, Sec 228 (e) &
RR 18-2013 Sec. 2)) RR 18-2013 Sec. 2))

15 days 30 days 60 days

Appeal to CTA Decision of CTA Decision of CTA Div. Decision of en banc

Div.

No decision by the BIR Motion for Appeal to Appeal to

*(NIRC, Section 228 (e) & Recon. CTA SC
RR 18-2-13 Section 2)) en banc
A

180 days 30 days 15 days 15 days 15 days

*(NIRC, *(NIRC, *(A.M. *(A.M. *Rules of
Section 228 (e) Section 228 (e) No. 05-11- No. 05-11- Court,
& RR 18-2013 & RR 18-2013 07-CTA, 07-CTA, Rule 45)
Section 2)) Section 2)) Rule 8, Sec. Rule 8,
3 (b)) Sec. 3 (c))
 REMEDY AGAINST AN ASSESSMENT WHERE THE BIR
DECIDE WITHIN 180 DAYS
Receipt of Letter of Authority (
Tax audit starts)No more need for
notice of informal Conference
* (RR 18-2013)
Pre-assessment notice Assessment and demand
*(NIRC, Section 228(e) & RR 18- *(NIRC, Section 228 (e) & RR 18-2013 Submit Support Docs – if
2013 Section 2)) Section 2)) request for reinvestigation
* (NIRC, Section 228(e) &RR
Protest 18-2013 Section 2))
Respond
*(NIRC, Sec. 228(e) & *(NIRC, Sec 228 (e) &
RR 18-2013 Sec. 2)) RR 18-2013 Sec. 2))

A
15 days 30 days 60 days

Decision of the BIR Decision of CTA Decision of CTA Div. Decision of en banc
Div.

Motion for Appeal to Appeal to

Recon. CTA SC
en banc
A
Appeal to CTA

30 days 15 days 15 days 15 days

*(NIRC, *(A.M. *(A.M. *Rules of
Section 228 (e) No. 05-11- No. 05-11- Court,
& RR 18-2013 07-CTA, 07-CTA, Rule 45)
Section 2)) Rule 8, Sec. Rule 8,
3 (b)) Sec. 3 (c))
REFUND OF TAX ERRONEOUSLY OF ILLEGALLY COLLECTED (SECTION
204/229) – CASE 1
Date of Payment Claim filed with BIR Denial Received Appeal to CTA

30 days
* (NIRC, Sec 204/229)
2 years
* (NIRC, Sec 204/229)

F. Refund to tax erroneously or illegally collected (Section 204/229) – Case 2

Date of Payment Claim filed with BIR Denial Received Appeal to CTA

30 days
* (NIRC, Sec 204/229)
2 years
* (NIRC, Sec 204/229)

• Admin claim and judicial claim must be done within the 2 year period.
 REFUND OF UNUTILIZED INPUT VAT (SECTION 112, SAN ROQUE)

Close of Taxable period when Claim filed with BIR Appeal to CTA
the sales were made

120+30 days
*(NIRC, Sec 112
(c) & CIR v San
Rogue Power
Corp., GR No.
187485, Feb. 12,
2 years 2013)
* (NIRC, Sec 112 (a)

Admin claim must be filed with the 2 years after close of taxable period.
Exception: 2 year period must be counted from the fling of VAT return for cases filed between June 8, 2007 and September 12,
2008 (CIR v. San Roque Power Corp., GR No. 187485, Feb. 12, 2013)

Judicial claim must follow the 120+30 day mandatory period, i.e. it can only be filed within the 30 day period. Filing a judicial claim before
the 120-day period expires will make the claim premature, while filing it beyond the 120+30 day period will make it late.
Exception: Premature filing of judicial claim made between December 10, 2003 and October 6, 2010 (CIR v. San Roque Power Corp.,
GR No. 187485, Feb. 12, 2013)
COLLECTION PROCESS
 Requisites
 Valid assessment
 Assessment must be final, executory and demandable
 Collection must be made within 5 years following the assessment of the tax, except
in case of false or fraudulent return, failure or omission to file return – 10 years and
execution of waiver in writing
SUMMARY REMEDY OF DISTRAINT OF
PERSONAL PROPERTY INCLUDING
GARNISHMENT
 Distraint involves the seizure by the government of personal property,
tangible or intangible to enforce payment of taxes; followed by the public
sale of such property
KINDS OF DISTRAINT
 Actual distraint – resorted to when there is actual delinquency in tax
payment
 Constructive distraint – a preventive remedy which aims at forestalling a
possible dissipation of the taxpayer’s assets when delinquency sets in; it
shall be effected by requiring the taxpayer or any person having
possession or control of such property; 1) to sign a receipt covering the
property distraint and 2) to obligate himself to preserve the same
intact and unaltered and not to dispose of the same in any manner
whatever, without the authority of the CIR
 Government may purchase the property under distraint if the amount
bid is less than the amount of the tax due.
PROCEDURE FOR DISTRAINT AND
GARNISHMENT
 Service of Warrant of Distraint
 Goods, chattels, effects, or other personal property - A copy of the warrant of distraint
shall be left either with the owner or person from whom the property was taken, or at the
dwelling or place of business of such person and with someone of suitable age and
discretion; together with a stament of the sum demanded and a note of time and place of
sale
 Stocks and other securities – copy of the warrant to be served upon the President, manger
or other responsible officer of the issuing corp.
 Debts and credits- warrant to be served upon the person in possession
 Bank accounts – copy of the warrant of garnishment

 Posting of Notice
 Sale of property distrained and disposition of proceeds
 Purchase by the government at sale upon distraint
INSTANCES WHEN THE CIR CAN PLACE
PROPERTY OF A TAXPAYER UNDER
CONSTRUCTIVE DISTRAINT
 Delinquent taxpayer
 Taxpayer is retiring from any business subject of tax
 Taxpayer is intending to leave the Philippines
 Taxpayer is intending to remove his property from the Phils.
 Taxpayer is intending to hide or conceal his property
 Taxpayer is intending to perform any act tending to obstruct the
proceedings for collecting the tax due or which may be due therefrom.
SUMMARY REMEDY OF LEVY ON REAL
PROPERTY
 Levy involves the seizure by the government of real property to enforce
payment of taxes; followed by the public sale of such property, if the
taxpayer fails to pay the taxes voluntarily; Real property maybe levied
upon before, simultaneously or after the distraint of personal property
PROCEDURE FOR LEVY
 Service of warrant of Levy
 Advertisement and sale
 Redemption of property sold

 Final Deed of Purchases is issued if property is not redeemed

TAX LIEN
 A legal claim or charge on property either real or personal, established
by law as a security in default of the payment of taxes; it is a lien in
favor of the Gov’t of the Philippines when a person liable to pay tax
neglects or refuses to do so upon demand; it exists from the time
assessment is made by the CIR until paid.
 Extent – upon all property and rights to property belonging to the
taxpayer
 If annotated valid against any third party
 Superior to a judgment claim of a private person
FORFEITURE OF PERSONAL/REAL
PROPERTY
 Is the divestiture of property without compensation, in consequence of
a default or offense
COMPROMISE
 Cases which maybe compromised
 Delinquent accounts
 Cases under Administrative protest after issuance of the FAN
 Civil tax cases being disputed before the courts
 Collection cases filed in courts; and
 Criminal violations, other than those already filed in court or those involving tax
fraud.
INSTANCES WHEN THE CIR MAY
COMPROMISE TAXES
 Doubtful validity of the assessment
 Financial incapacity
DOUBTFUL VALIDITY OF THE ASSESSMENT

 When the delinquent account or disputed assessment is one resulting from

a jeopardy assessment
 Assessment seem to be arbitrary in nature, appearing to be based on
presumptions and there is reason to believe that it is looking in legal and/or
factual basis
 Taxpayer failed to elevate to the CTA an adverse decision of the CIR and
there is reason to believe that the assessment is lacking in legal and/or
factual basis
 Assessment made based on “Best Evidence Obtainable Rule’ and there is
reason to believe that the same can be disputed by sufficient and competent
evidence
 Assessment is based on an issue where a court of competent jurisdiction
made an adverse decision against the bIR, but for which the SC has not
decided upon with finality
FINANCIAL INCAPACITY
 The corp ceased operation or is already dissolved
 Taxpayer has a surplus deficit resulting to capital impairment by at least
50%
 Taxpayer is suffering from a net worth deficit
 taxpayer is a compensation income earner with no other source of
income
 The taxpayer has been declared bankrupt or insolvent by competent
tribunal
CASES THAT MAY NOT BE SUBJECT OF
COMPROMISE
 Withholding tax cases, unless applicant taxpayer invokes provisions of law
that cast doubt on the taxpayer’s obligation to withhold;
 Criminal tax fraud cases
 Criminal violations already filed in court
 Delinquent accounts with duly approved schedule of nsntallments payments
 Cases where final reports of reinvestigation or reconsideration have been
issued resulting to reduction in the original assessment and the taxpayer is
agreeable to such decision
 Cases which become final and executoty after final judgment
 Estate tax cases where compromise is requested on the ground of financial
incapacity of the taxpayer
ABATEMENT
 The diminution or decrease in the amount of tax imposed , such that to
abate is to nullify or reduce in value or amount.
INSTANCES WHEN THE CIR MAY ABATE OR
CANCEL TAX LIABILITY

 The tax or any portion thereof appears to be unjustly or excessively

assessed; or
 The administration and collection costs involved do not justify the
collection of the amount due
REFUNDS- GROUNDS AND REQUISITES
FOR CLAIMS FOR TAX REFUND
 Tax erroneously or illegally received
 Penalties imposed without authority
 Any sum alleged to have been excessively or in any manner wrongfully
collected
 Value of internal revenue stamps when returned in good condition by
the purchaser
 Value of unused stamps rendered unfiit for use upon proof of
destruction, in the discretion of the CIR
PRESCRIPTIVE PERIOD
 Application must be filed within 2 years after the payment of the tax or
penalty; no suit or proceeding shall be commenced after the expiration
of the said 2 years regardless of any supervising cause that may arise
after the payment
 A return filed showing an overpayment shall be considered a written
claim for tax refund
REQUIREMENTS FOR CLAIMS FOR TAX REFUND
AS LAID DOWN BY JURISPRUDENCE

 Necessity of written claim for refund

 Claim must contain a categorical demand for reimbursement
 Filing of administrative claim for refund and the suit/proceeding before the
CTA both within 2 years from date of payment regardless of any supervising
cause
STATUTORY BASES FOR TAX REFUNDS

 Scope of claims
 Taxes erroneously or illegally received
 Penalties imposed without authority
 Any sum alleged to have been excessively or in any manner wrongfully collected
 Refund the value of internal revenue stamps when returned in good condition by the
purchaser
 Redeem or change unused stamps rendered unfit for use and refund their value upon
proof of destruction in the discretion of the CIR.
STATUTORY BASES OF REFUND
• Necessity of proof for claim or refund- A tax refund partakes of the nature of an
exemption and is strictly construed against the claimant
 Burden of proof for claim of refund
 Nature of erroneously paid tax/illegally assessed collected
 Taxes are erroneously paid when a taxpayer pays under a mistake of tact, such as
when he is not aware of an existing exemption in his favor at the time that payment
is made
 Taxes are illegally collected when payments are made under duress
 Refunds for input VAT are NOT in the nature of erroneously paid tax/illegally
assessed/collected
STATUTORY BASES OF REFUND
 Who may claim/apply for tax refund/tax credit
 Taxpayer
 Statutory taxpayer
 Withholding agent
 Corporate taxpayer – if the sum of quarterly tax payments exceeds the total tax due
on the entire taxable income fo that year the corp shall either 1)file a claim for
refund, 2) avail a tax credit 3) carry over the excess credit in the succeeding taxable
periods-which is irrevocable
REMEDIES OF THE GOVERNMENT

 Administrative Remedies
 To make deficiency assessments within 3 or 10 years
 To enforce deficiency assessments and collect taxes within 5 years
 To effect distraint of personal property
 To effect levy on real property
 To pursue judicial proceeding to collect
 To compromise abate or cancel taxes
 To enforce tax liens
 To enforce statutory penal provisions
 To enforce forfeiture or property

 Judicial Remedies
 File civil or criminal case
OTHER GOVERNMENT REMEDIES
 Suspension of business operations
 Suspend business operations and temporarily close the business establishment of a
VAT-registered person for failure to issue receipts or invoices, or failure to file VAT
returns, or understatement of taxable sales or receipts by 30%
 For failure to to register as required under Section 236
 Duration of temporary closure shall be for a period of not less than 5 days
 Closure shall be lifted upon compliance with the requirements in the closure order
NON AVAILABILITY OF INJUNCTION TO
RESTRAIN COLLECTION OF TAX
 General Rule – no court can issue an injunction to restrain collection of
taxes
 Exception : When in the opinion of the CTA, the collection tax may
jeopardize the interest of the government and/or the taxpayer, the CTA
may suspend said collection and require the taxpayer to deposit the
amount claimed or file a surety bond