2. REMEDIES OF THE TAXPAYER
Before PaymentofTax ( but afterpayment under self-assessment)
Administrative remedies
Protest against assessment
Compromise
Redemption of property after sale atpublic auction
JudicialRemedies
Ordinary Civil action
Filing of Petition before the CTA
After payment ofTax
AdministrativeRemedies
Claim for refund or tax credit
JudicialRemedies
Filing of Petition before the CTA
3. REMEDIES OFTHE GOVERNMENT
AdministrativeRemedies
To make deficiency assessments within 3 or 10 years
To enforce deficiency assessments and collect taxes within 5 years
To effectdistraint of personal property
To effectlevy on real property
To pursue judicial proceeding to collect
To compromise abateor canceltaxes
To enforce taxliens
To enforce statutory penalprovisions
To enforce forfeiture or property
JudicialRemedies
File civil or criminal case
6. 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 –
failureto paythe 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 anadcompromise
penalty
,
Can be immediatelycollected thru administrative action, like, issuance of distraint
and levy and or thru judicial filingof action to colelct
7. POWERS OF THE CIR IN RELATION TO
ASSESSMENTS
Power to obtain information, summon/examineand take testimony of
persons
Power to make assessments and prescribe requirements for tax
administration and enforcement
8. 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
9. AUTHORITIES OF THE CIR
Examine anyrelevant or material book,record, etc.
Obtain info on aregular basis from
Any person other than the person being investigated
Any office or officer of the natl/localgovernment, 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 thetaxpayer
Any person havingin possessions of the book of records
To take testimony of the person concerned, under oath
To cause revenue officers and employees to make acanvass of any revenue
district or region
10. POWER TO MAKE ASSESSMENTS AND PRESCRIBE
REQUIREMENTS FOR TAX ADMINISTRATION AND
ENFORCEMENTS
1.Examination of returns and determination of tax due
2.Failureto 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
11. WHEN ISAN ASSESSMENT MADE
Section 203 and Section 222 of the NIRC
Provide for astatute of limitation on the assessment and collection of internal
revenue taxes in order to safeguard the interest of the taxpayer against
unreasonable investigation
Meaning of unreasonable investigation
Law on prescription aremedial measure–
The lawon prescription being aremedial measure should be interpreted in away conducive
to bringing about the beneficentpurpose of affording protection to the taxpayer ( Phil
Journalsits,Inc.vs CIR 447 SCRA 214,2004)
12. RULES ON PRESCRIPTION
When the tax lawitself is silent on prescription or when return is not
required to be filed the tax is imprescriptible
In computing the legalperiods, the administrative Code of 1987 is
followed and not the civil code, /thisis 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.
13. PRESCRIPTIVE PERIOD FOR ASSESSMENT
General Rule :3 years after the date of the return is due or filed,whichever
is later
.
Exceptions:
Failure to filereturn :10 years from date of discovery;
False or fraudulent return with intention to evadetax – 10 years from date of discovery
Fraud must be allegedand proved as afact by
Intentional and substantial understatement of taxpayers sales,income by 30%
Intentional and substantial overstatement of deductions by 30%
Falsity constitutes adeviation from the truth due to mistake ,carelessness or ignorance
14. 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.
15. 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 PhoenixAssurance 14 SCRA 52,1965)
16. SUSPENSION OF RUNNING OF STATUTE OF
LIMITATIONS
1.When the CIR isprohibited from making the assessment or beginning the
distraint or levy or aproceeding 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 cannot 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
17. REQUISITES FOR VALID ASSESSMENT
the taxpayer shall be informed in writing of the lawand the factson
which the assessment is made
There is ademand to pay
18. MEANING OF BESTEVIDENCE
OBTAINABLE
The CIR mayuse 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)
19. VARIOUS WAYS OF DETERMINING
INCOME OFTAXPAYER
Constructive Methods of Incomedetermination
Constructivereceipt
Assignment ofIncome
Inventory or Net worth method for incomedetermination
Jeopardyassessment
20. ADDITIONS TO BASIC TAX
Civil Penalties–
Penalty:25%
Failure to file any return and pay tax on the date prescribed
Wrong filingof 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 filethe return within the period prescribed
False or fraudulent return is willfully made,
Interest
Deficiency interest – 20% perannum
Delinquency interest – 20% perannum
Compromisepenalties
21. PRIMA FACIE EVIDENCE OF A FALSE OR
FRAUDULENT RETURN
1.Substantial understatement of taxable sales, income etc.by30%
2.Substantial overstatement of deductions by more than 30%
22. ASSESSMENT PROCESS
TaxAudit
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 ofAuthority
A letter of Authority (LOA) is an official document that empowers a revenue
officer to examine and scrutinize ataxpayer’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 ataxable period not exceeding one taxableyear
.
A letter Notice (LN) is adiscrepancy notice issued by the CIR afterconducting
datamatching 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
23. PRELIMINARY ASSESSMENT NOTICE (PAN)
A PAN is the communication issued by the BIR informing ataxpayer of
its findings after audit.The PAN shall be in writing and shall show in
detail the factsand the law
,rules and regulations or jurisprudence on
which the assessment is based.
24. INSTANCES WHEN PAN IS NOT
NECESSARY
Finding of deficiency tax is aresult of mathematicalerror in the
computation of tax appearing on the faceof the return
Discrepancy is determined between tax withheld and the amount
actuallyremitted by the withholding agent
A taxpayer who opted to claimarefund was determined to have
carried over the succeeding tax liabilities
Excise tax has not been paid
An article locally purchased or imported by anexempt person has been
sold, traded or transferred to non exemptperson
25. FORMAL LETTER OF DEMAND (FLD)
AND/OR FINALASSESSMENT NOTICE
(FAN)
A FLD/FAN is aformal letter of demand where adeclaration of
deficiency taxes is issued to ataxpayer who fails to respond to aPAN
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 factsand the law,the rules and regulations or
jurisprudence on which the assessment is based ,Otherwise the
assessment is void (RMC 18-13)
26. ASSESSMENT NOTICE
(PAN)
15 days to reply
Response is general due to shorter
time.Does not necessarily tackle
specific findings
Filing of reply is directory
Non filing of reply will warrant
issuance of FinalA9ssessment Notice
(FAN)
ASSESSMENT NOTICE
(FAN)
30 days to fileprotest afterreceipt of
FAN
Protest must be comprehensive that
explains the legaland factualbasis
why the assessment is wrong and
must present alldocumentary
evidences
Filing of protest is mandatory
Failureto fileprotest to FAN will
make the assessment finaland
executory and the taxpayer loses its
right to seek judicial remedy
27. REINVESTIGATION VS RECONSIDERATION
Reinvestigation refers to aplea of re-evaluation of an assessment on the
basis of newly discovered evidence or additional evidence thata
taxpayer intends to present in the reinvestigation. It mayinvolve
questions of factor lawor both.
Reconsideration refers to apleaof re-evaluation of an assessment on
the basis of existing records without need of additional evidence. It
mayalso involve aquestion of factor lawor both.
28. BIR’SACTION ON THE PROTESTTO THE FAN
The CIR either:
Denies the protest to theFAN,
The nomenclature of the BIR’s denial of the protest to the FAN could vary
. It maybe called a
Final Decision on aDisputed Assessment (FDDA) ( RMC 18-13)
A final demand letter for paymentof delinquent taxes maybe considered adecision on a
disputed assessment
Does not act on suchprotest
29. ACTIONS OF CIR WHICH IS EQUIVALENT
TO DENIAL OF PROTEST
Filing of Criminal action againstthe taxpayer
Issuance of awarrant of distraint andlevy
30. UNGAB VS CUSI 97 SCRA 877,1980
An assessment of adeficiency is not necessary to acriminal prosecution
for willful attemptto defeatand evade the income tax.A crime is
complete when the violator has knowingly and willfully filed afraudulent
return with intent to evadeand defeatthe tax.The perpetration of the
crime is grounded upon knowledge on the part of the taxpayer and he
has made aninaccurate return, the government’s failure to discover the
error promptly to assess has no connections with the commission of
the crime
31. 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.
32. REMEDIES UNDERTHE NIRC
A. Assessment and Collection:The Return was not falseor fraudulent
Date return was filed,or last dayrequired by law
for filing,iffiled before the last day
* (NIRC, Section203)
3 years
Last dayto collect (By Judicialproceeding only)
*(NIRC, Section 222 (d) &CIR v
.Phil.Global
Communications, inc.,GR No. 167146, Oct 31,2006)
Date return was filed,or last dayrequired by law
for filing,iffiled before the last day
*(NIRC, Section203)
3 years
Last dayto assess
5 years
Last dayto collect either by:
a. Summary proceedings;or
b. Judicialproceedings
* (NIRC Section 222 (d))
33. ASSESSMENT AND COLLECTION:THE RETURN WAS
FALSE OR FRAUDULENT
Date of discovery of the falsity
,fraudor omission
*(NIRC, Section 222(a))
10 years
Last dayto collect (By judicialproceedings only)
*(NIRC, Section 222 (a) &CIR v
.Phil.GlobalC
Communications, Inc.,GR No. 167146, Oct.31,
2006
Date of discovery of the falsity
,fraudor omission
* (NIRC, Section 222(a))
10 years Last dayto
assess
5 years
Last dayto collect either by:
a. Summary proceedings;or
b. Judicialprocedings
* (NIRC, Section 222(c))
34. 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 )
* (RR18-2013)
Pre-assessment notice
*(NIRC, Section 228(e) &RR 18-
2013 Section 2))
Assessment and demand
*(NIRC, Section 228 (e) &RR 18-2013
Section 2))
Submit Support Docs – if
request for reinvestigation
* (NIRC,Section 228(e) &RR
18-2013 Section 2))
Respond
*(NIRC, Sec.228(e)&
RR 18-2013 Sec.2))
Protest
*(NIRC, Sec 228 (e)&
RR 18-2013 Sec.2))
A
15 days 30 days 60 days
No decision by theBIR
*(NIRC, Section 228 (e)&
RR 18-2-13 Section 2))
Appeal to CTA Decision of CTA
Div.
Decision of CTA Div. Decision of en banc
Motion for
Recon.
Appealto
CTA
en banc
Appeal to
SC
180 days
*(NIRC,
Section 228 (e)
&RR 18-2013
Section 2))
30 days
*(NIRC,
Section 228 (e)
&RR 18-2013
Section 2))
15 days
*(A.M.
No.05-11-
07-CTA,
Rule 8,Sec.
3 (b))
15 days
*(A.M.
No.05-11-
07-CTA,
Rule 8,
Sec.3 (c))
15 days
*Rules of
Court,
Rule 45)
A
35. 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
* (RR18-2013)
Pre-assessment notice
*(NIRC, Section 228(e) &RR 18-
2013 Section 2))
Assessment and demand
*(NIRC, Section 228 (e) &RR 18-2013
Section 2))
Submit Support Docs – if
request for reinvestigation
* (NIRC,Section 228(e) &RR
18-2013 Section 2))
Respond
*(NIRC, Sec.228(e)&
RR 18-2013 Sec.2))
Protest
*(NIRC, Sec 228 (e)&
RR 18-2013 Sec.2))
A
15 days 30 days 60 days
Decision of the BIR Decision of CTA
Div.
Decision of CTA Div. Decision of en banc
Motion for
Recon.
Appealto
CTA
en banc
Appealto
SC
30 days
*(NIRC,
Section 228 (e)
&RR 18-2013
Section 2))
15 days
*(A.M.
No.05-11-
07-CTA,
Rule 8,Sec.
3 (b))
15 days
*(A.M.
No.05-11-
07-CTA,
Rule 8,
Sec.3 (c))
15 days
*Rules of
Court,
Rule 45)
A
Appeal to CTA
36. REFUND OF TAX ERRONEOUSLY OF ILLEGALLY COLLECTED (SECTION
204/229) – CASE1
Date of Payment Claim filed with BIR Denial Received Appeal to CTA
30 days
* (NIRC,Sec 204/229)
2 years
* (NIRC, Sec204/229)
F
.Refund to tax erroneously or illegallycollected (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.
37. REFUND OF UNUTILIZED INPUTVAT (SECTION 112,SAN ROQUE)
Close of Taxableperiodwhen
the sales were made
Claim filed with BIR Appeal to CTA
120+30 days
*(NIRC, Sec112
(c) &CIR v San
Rogue Power
Corp., GR No.
187485,Feb.12,
2013)
2 years
* (NIRC,Sec 112 (a)
Admin claim must be filed with the 2 years afterclose of taxable period.
Exception: 2 year period must be counted from the flingof VAT return for cases filedbetweenJune8,2007 and September 12,
2008 (CIR v
.San RoquePowerCorp.,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 filingof judicialclaim madebetweenDecember 10, 2003 and October 6,2010 (CIR v
.San Roque PowerCorp.,
GR No. 187485, Feb.12,2013)
38. COLLECTION PROCESS
Requisites
Valid assessment
Assessment must be final,executory anddemandable
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
39. SUMMARY REMEDY OF DISTRAINT OF
PERSONAL PROPERTY INCLUDING
GARNISHMENT
Distraint involves the seizure by the government of personal property,
tangible or intangibleto enforce payment of taxes; followed by the public
sale of such property
40. KINDS OF DISTRAINT
Actual distraint – resorted to when there is actualdelinquency intax
payment
Constructive distraint – apreventive remedy which aims atforestalling a
possible dissipation of the taxpayer’s assets when delinquency sets in;it
shall be effectedby requiring the taxpayer or anyperson having
possession or control of such property; 1) to sign areceipt covering the
property distraint and 2) to obligate himself to preserve the same
intactand unaltered and not to dispose of the same in anymanner
whatever
,without the authority of the CIR
Government maypurchase the property under distraint ifthe amount
bid is less than the amount of the tax due.
41. PROCEDURE FOR DISTRAINT AND
GARNISHMENT
Service of Warrant ofDistraint
Goods, chattels,effects,or other personal property - A copy of the warrant of distraint
shall be lefteither with the owner or person from whom the property was taken,or atthe
dwelling or placeof business of such person and with someone of suitableageand
discretion; together with astament of the sum demanded and anote of time and placeof
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 atsale upon distraint
42. INSTANCES WHEN THE CIR CAN PLACE
PROPERTY OF A TAXPAYER UNDER
CONSTRUCTIVE DISTRAINT
Delinquenttaxpayer
Taxpayer is retiring from anybusiness subjectof tax
Taxpayer is intending to leavethe Philippines
Taxpayeris intending to remove his property from the Phils.
Taxpayeris intending to hide or conceal his property
Taxpayer is intending to perform anyacttending to obstruct the
proceedings for collecting the tax due or which maybe due therefrom.
43. 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 saleof such property, ifthe
taxpayer fails to paythe taxes voluntarily; Real property maybe levied
upon before, simultaneously or afterthe distraint of personal property
44. PROCEDURE FOR LEVY
Service of warrant of Levy
Advertisement andsale
Redemption of property sold
Final Deed of Purchases is issued ifproperty is not redeemed
45. TAX LIEN
A legalclaimor charge on property either real or personal,established
by lawas asecurity in defaultof the payment of taxes; it is alien in favor
of the Gov’t of the Philippines when aperson liableto paytax
neglects or refuses to do so upon demand;it exists from the time
assessment is made by the CIR until paid.
Extent – upon allproperty and rights to property belonging tothe
taxpayer
If annotated validagainstany third party
Superior to ajudgment claimof aprivateperson
47. COMPROMISE
Cases which maybecompromised
Delinquent accounts
Cases under Administrative protest after issuance of the FAN
Civil tax cases being disputed before the courts
Collection cases filedin courts;and
Criminal violations, other than those already filedin court or those involving tax
fraud.
48. INSTANCES WHEN THE CIR MAY
COMPROMISE TAXES
Doubtful validity of the assessment
Financialincapacity
49. DOUBTFUL VALIDITY OF THE ASSESSMENT
When the delinquent account or disputed assessment is one resulting from
ajeopardyassessment
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 legaland/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 acourt of competent jurisdiction
made an adverse decision against the bIR, but for which the SC has not
decided upon with finality
50. FINANCIAL INCAPACITY
The corp ceased operation or is alreadydissolved
Taxpayer has asurplus deficit resulting to capital impairment by atleast
50%
Taxpayer is suffering from anet worth deficit
taxpayer is a compensationincome earner with no other source of
income
The taxpayer has been declared bankrupt or insolvent by competent
tribunal
51. 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 finaland executoty after final judgment
Estate tax cases where compromise is requested on the ground of financial
incapacity of the taxpayer
52. ABATEMENT
The diminution or decrease in the amount of tax imposed ,such that to
abateis to nullify or reduce in value or amount.
53. INSTANCES WHEN THE CIR MAY ABATE OR
CANCELTAX LIABILITY
The tax or anyportion thereof appears to be unjustly or excessively
assessed;or
The administration and collection costs involved do not justify the
collection of the amount due
54. REFUNDS- GROUNDS AND REQUISITES
FOR CLAIMS FOR TAX REFUND
Tax erroneously or illegallyreceived
Penalties imposed withoutauthority
Any sum allegedto havebeen excessively or in anymanner wrongfully
collected
Value of internal revenue stamps when returned in good condition by
the purchaser
Value of unused stamps rendered unfiitfor use upon proof of
destruction, in the discretion of the CIR
55. PRESCRIPTIVE PERIOD
Application must be filed within 2 years afterthe payment of the tax or
penalty; no suit or proceeding shall be commenced after the expiration
of the said 2 years regardless of anysupervising cause that mayarise
afterthe payment
A return filed showing anoverpayment shall be considered awritten
claimfor tax refund
56. REQUIREMENTS FOR CLAIMS FOR TAX REFUND
AS LAID DOWN BY JURISPRUDENCE
Necessity of written claimfor refund
Claim must contain acategorical demand forreimbursement
Filing of administrative claim for refund and the suit/proceeding before the
CTA both within 2 years from date of payment regardless of anysupervising
cause
57. STATUTORY BASES FOR TAX REFUNDS
Scope ofclaims
Taxes erroneously or illegallyreceived
Penalties imposed withoutauthority
Any sum alleged to havebeen 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.
58. 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 claimof refund
Nature of erroneously paidtax/illegallyassessed collected
Taxes are erroneously paid when ataxpayer pays under amistake of tact,such as
when he is not aware of an existing exemption in his favor atthe time that payment
is made
Taxes are illegallycollected when payments are made under duress
Refunds for input VAT are NOT in the nature of erroneously paid tax/illegally
assessed/collected
59. STATUTORY BASES OF REFUND
Who mayclaim/applyfor tax refund/taxcredit
Taxpayer
Statutory taxpayer
Withholding agent
Corporate taxpayer – ifthe sum of quarterly tax payments exceeds the total tax due
on the entire taxable income fo that year the corp shall either 1)file aclaim for
refund,2) avail atax credit 3) carry over the excess credit in the succeeding taxable
periods-which is irrevocable
60. REMEDIES OFTHE GOVERNMENT
AdministrativeRemedies
To make deficiency assessments within 3 or 10 years
To enforce deficiency assessments and collect taxes within 5 years
To effectdistraint of personal property
To effectlevy on real property
To pursue judicial proceeding to collect
To compromise abateor canceltaxes
To enforce taxliens
To enforce statutory penalprovisions
To enforce forfeiture or property
JudicialRemedies
File civil or criminal case
61. 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 failureto to register as required under Section 236
Duration of temporary closure shall be for aperiod of not less than 5 days
Closure shall be liftedupon compliance with the requirements in the closure order
62. NON AVAILABILITY OF INJUNCTION TO
RESTRAIN COLLECTION OF TAX
General Rule – no court can issue aninjunction to restrain collectionof
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
maysuspend said collection and require the taxpayer to deposit the
amount claimed or fileasuretybond
