‘TAX REMEDIES ATTY. PERCY VALSAN JUN P. DONALYO, CPA + ORGANIZATION AND FUNCTION a. Secretary of Finance — Sec. 2, Sec. 4 b. Powers and Duties of BIR — Sec. 2 i. Assessment and Collection fi, Enforcement of forfeitures, penalties, and fines ilk Execution of judgments c. BIR Officers in General i. Chief officials ~ See. 3, NIRC ii, Other officers ~ Sec. 10, Sec. 11 4. Powers ofthe CIR ir Interpret and Decide Tax Case ~ See. 4 1. Definitions: Revenue Regulations BIR Rulings Revenue Memorandum Circulars Revenue Memorandum Orders Revenue Audit Memorandum Orders Revenue Memorandum Rulings Revenue Bulletins = Power Sector Assets v. CIR, GR 198146, 8 Aug 2017 + CARY. Fortune Tobacco, GR 167274, 21 July 2008 + Misamis Oriental Association v. Dept. of Finance, 238 SCRA 63, 2, Non-etroactivity of Rulings ~ Sec. 246 ii, Obtain Information, to Summon, Take Testimony, ete. ~ Sec. 5, Section 3, TRAIN, + CIR v. Gonzales, GR 177279, 13 Oct 2010 Fitness by Design, Inc. v. CIR, GR 177982, 17 Oct 2008 iii. Power to make Assessments, Ete. ~ Sec. 6; Section 4, TRAIN. 1. Examination of Returns and Determination of the Tax Due 2) Best Evidence Obtainable = CIRy. Hantex Trading, GR 136975, 31 Mar 2005 3. Authority to Terminate Taxable Period 4. Prescribed Real Property Values 5. Inquire Bank Deposits iv. Delegation of Power, exception ~ Section 7 Other Powers 1. Power to Assign Intemal Revenue Officers and Employees ~ Sec. 16, Sec. 17 2. Power to Suspend Business Operations of a Taxpayer for Violation Of VAT nules~ Sec. 115 + TAXREMEDIES a. Definition b. Importance Who may avail i. Taxpayer it, Government 4. Classification i Administrative fi, Judicial ‘Scanned with CamScanner . Outline i. BIR Audit fi, Assessment Division 1. Issuance of PAN<.CamScanner «1 W4 < . Outline i, BIR Audit ii, Assessment Division 1. Issuance of PAN 2. Issuance of FAN ‘Taxpayer 1. Administrative Remedies ‘a. Reinvestigation 1b. Reconsideration iv. CIR 1. Grant 2 Deny 3. Inaction v. CTA vii CTAentanc vii, Supreme Court + TAXPAYER'S REMEDIES UNDER NIRC a. Assessment - RR No, 12-99, RR No. 18-2013, RR No. 7-2018 {Definition fi, Kinds of Assessment 1, Selfassessment 2. Jeopardy assessment 3. Deficiency astessment Purpose Requisites of a Valid Assessment Who issues assestment? ~ Sec. 228 ‘When assessment is made? ~ See 222 ‘Prescriptive period of Assessment 1. General Rule - Sec. 203, ‘a. Rational + BPI. CIR, GR 139736, 17 Oct 2005, Interpretation +. BPLy. CIR, GR 139736, 17 Oct 2005 ¢, Computation ofthe period 4. CIRY. La Flor Dela Isabela, Inc. GR 211289, 14 Jan 2019 2 Exception - See. 222 Beet b ‘Failure to File Return False or Fraudulent Return ‘Prima Facie evidence ~ Sec. 228 (B) + CIRy. Asalus Corporation, GR 221590, 22 Feb 2017 ce. Extended assessment is Requisite for Validity ‘© CIR V. La Flor Dela Isabela, Inc. GR 211289, 14 Jan 2019 + CIR v. Systems Technology, GR 220835, 26 Jul 2017 + CARY. Next Mobile, Ine., GR 212825, 7 Dec 2015. CIR v. Standard Chartered Bank, GR. No. 192173, 29 July 2015, * CIR v. The Stanley Works Sales, GR 187589, 3 Dec 2014 + RBC v. CIR, GR 170257, 7 Sept. 2011 4i,” Who are authorized to sign ~ RMO No. 20-90; RMO 14.2016 3. Amended Return ~ Sec. 6 (A) ‘Scanned with Cam: r 4, Suspension of Prescriptive Period ~ Sec. 223 b. AncumentPeces era(OE Scanned with CamScanner 4. Suspension of Prescriptive Period ~ Sec b. Assessment Boats, on Of Prserpis Peso See. 229 i "Ten ual 1 Leter of Authority *) Clit. Sony, GR 178697, 17 Sep. 2010 + Mealcard Philippines v. CIR, GR 222743, 5 April2017 Who may issue 8. Whento seve © Revalidation @. Notcovered 2, Frequency of Audit Examination ~ Sec. 235 a. General Rule 8, Exceptions ii. Preliminary Assesement Notice (PAN) -RR 12.99, RR 18-2013, RMC 1 2014 1. Definition 2, Purpose and Nature 3. Response) 4, Brexpons ~ See, ii, Final Asccoment Nowcd(@AN) / Formal Leter of Demana(@EDI b 3 Mince iee i aoe 5: ily tu. Pacor Rest Development, GR 2895, 29 Jun 1999 + CARY. Hantex Trading, GR. No. 136975, 31 Mar 2005 + CUR v gag) OR 215534, 18 Apr 2016 ¢. Taxpayer's AGERE: Remedies f Protest Definition ‘To Whom Filed Distinguished from Protest from other tax laws ‘a. Aso payment under protest B. As to period of filing, 4. When to file a protest $ Yorn Reconsideration be - BBE on re wm 1.00 Tein of suppor a) cin ; 346, foun ik Payment under protest General Rate 2 Exception 6 Pesioden Ace Upon Prom "Grant & Bem : ¥- CIR, GR175087, 5 Fed 2010 : city GR 148340, 9 Dee 2005 GR 135210, Tha Inaction + GROEORMEBR. cr 208731, 27 January 2016 Scanned with Cam: 7. Payment Under Protest (RR 12-99 Sec. 3.1.4 as amended by RR 18-‘Scanned with CamScanner 7. Payment Under Protest 99 Sec. 3.1.4 as amen 3. bol) (RR 12.99 See. 3.1.4 \ded by RR 18. & Genera Rule Exceptions : pt ‘Court of Tax Appeals jingo Jewellers, Inc., GR 221780, 25 Mar 2019 CIR, GR 198146, 8 Aug 2017. 'JELD, FDDA (RR 12-99, Sec. 3.1.64 a8 4, Remedies ~ Collection Requisites Prescriptive period 1. Ordinary (Sec. 203) Civ. La Flor Dela Isabela, Inc., GR 211289, 14 Jan 2019 2. Extraordinary (Sec. 222) MEER LEIA 0 205 Fae 1125 as amended by RA 9282 -v. CTA, GR 215950, 20 Jun 2016 Civil Remedie 1. Distaint 2) Ley 3. Civil Action 4. Criminal Action Summary Remedies 1. Distraine a. Constructive ~ Sec. ‘Grounds Release prior fo sale ~ Sec we by the Governmel 2 5. Civiland Criming a.” People v: Scanned with Catomit Scanned with CamScanner €. Compromise and Abate 1 Compromise 1. Defiicome wit Code 2) Can be compromise edad, 3. Cannot be compromise: 4. Grounds for compromise “a. ‘Reasonable doubt as to claim validity ~ Sec. 204 (A) (i RR 30-2002, Sec. 3,1 b, Financial incapacity ~ See. 204 (A) (2); RR 30-2002, Sec. 3.2, See. 4.1 5. Approval of NEB — RR 30-2002 ma. Payment of compromise offer ~ RR 30-2002 as amended by RR9-2013, 6. Approval of REB — RR 30-2002 7, ‘Minimum amounts for Compromise ~ Sec. 204 (A), 2" par. ii, Abatement ~ Sec. 204 B) 1. Definition. + pe aESRIERBDRFARY SP 152522, 16 Aug 2005 2. Grounds 2. Unjustly and excessively assessed B. Collection costs £ Tax Refunds and Credits G2a0aC SEZ i Definition i =a 2. Taw fi, Nature and Bi : "Phppne Phosphate Festizer Com» TBs GRATES + Ry. GR 167274, 21 July 2008 ith claims for rel faim for refund 2 Conditions f ocine ) om 163345, 4 July 2008 + CBBpeay Sain SPP wi. Comparison with SEED a ae ‘ vation Motors, GR 231581, 10 Apr 2019 2 CGR OR 15772 6 Jun 2017 ‘Scanned with Ca