Assessment Process with Government and Taxpayers Remedies

Government will:

1. issue Letter of Authority

2. conduct Tax Audit/ Investigation by the Revenue Officer (RO)
3. issue PAN, except as those provided under SEC228 of the NIRC, if there is sufficient basis to
assess deficiency tax

Taxpayer may:

1. pay amount
2. ignore the PAN
3. file a reply to the PAN within 15 days

Government will:

1. dismiss assessment if reply is meritorious

2. issue FLD/FAN if Taxpayer is in default or unable to refute findings in PAN

Taxpayer may:

1. pay the FAN/FLD

2. fail to file a protest, hence assessment becomes final
3. protest the FAN within 30 days from receipt of assessment
If request for reconsideration, documents must be submitted within 60 days from filing of protest

Government may:

1. dismiss assessment if decision is in favor of the taxpayer

2. deny protest by duly authorized representative (FDDA)
3. deny protest by CIR (FDDA)
4. inaction by CIR or authorized representative within 180 days

Taxpayer may:

1. if denied by representative, file administrative appeal to CIR or appeal to the CTA within 30 days
2. if denied by CIR, file a Motion for Reconsideration with CIR or appeal to the CTA within 30 days
3. if inaction by CIR or after the expiration of the 180 day period, appeal to the CTA within 30 days