Tax II

Seatwork

Name: Eisley Sarzadilla-Garcia

Date: April 23, 2022

1) Discuss the impact/effect of non-affixture of stamp and the responsibility of the notary public
in relation to stamp.

The effects of non-affixture of documentary stamp when required are: (a) the
document, instrument or paper shall not be registered; (b) it shall not be admitted as
evidence in court; (c) it shall not be notarized by a notary public; (d) fine of not less than
Php 20.00 or more than Php 300.00.

An instrument or document required by law to be stamped and which has been

signed, issued, accepted or transferred without being duly stamped, shall not be
recorded, nor shall it or any copy thereof or any record of transfer of the same be
admitted or used in evidence in any court until requisite stamp is affixed thereto and
cancelled.

Under the NIRC, no notary public or other officer authorized to administer oaths
shall add his jurat or acknowledgement to any document subject to documentary stamp
tax unless the proper documentary stamps are affixed thereto and cancelled.

2) What is the imposable penalty/penalties for an alien offender or an individual not a citizen of
the Philippines for violation of the excise tax provision. Discuss your answer.

As briefly stated under the NIRC, any person liable for any of the acts or
omissions prohibited under the excise tax provisions shall be criminally liable and
penalized, such as willfully evading or defeating any tax imposed. Any person
who willfully aids or abets in the commission of any such act or omission shall be
criminally liable in the same manner as the principal.

Specifically so, an alien offender or an individual not a citizen of the

Philippines, shall be deported immediately after serving the sentence
abovementioned, without further proceedings for deportation.

3) Differentiate Compromise from Abatement including jurisdiction for approval.

Enshrined under the NIRC, the Commissioner has the authority to compromise,
abate and refund or credit taxes.
 Compromise involves a reduction of the taxpayer’s liability while abatement of
tax means that the entire tax liability of the taxpayer is cancelled.

Compromise the payment of any internal revenue tax when: (1) A reasonable
doubt as to the validity of the claim against the taxpayer exists; or (2) The financial
position of the taxpayer demonstrates a clear inability to pay the assessed tax.

The recommendation/final report on the application for compromise shall be

signed/approved as herein stated: (1) Concerned Regional Evaluation Board (REB) on
cases amounting to P500,000 or less; (2) CIR on other cases which where not delegated
and cases which, by law, have been entrusted to the CIR; (3) National Evaluation Board
on cases where the basic tax exceeds P1,000,000.

Abate or cancel a tax liability when: (1) The tax or any portion thereof appears
to be unjustly or excessively assessed; or (2) The administration and collection costs
involved do not justify the collection of the amount due.

The recommendation/final report on the application for compromise shall be

signed/approved only by the CIR.

4) Is forfeiture of property by Government an outright remedy for unpaid tax by the taxpayer?
Discuss your answer.

No. The forfeiture of property by Government is not an outright remedy

for unpaid tax by the taxpayer.

Under the Tax Code, the forfeiture of chattels and removable fixtures of
any sort shall be enforced by the seizure and sale, or destruction, of the specific
forfeited property. The forfeiture of real property shall be enforced by a
judgment of condemnation and sale in a legal action or proceeding, civil or
criminal, as the case may require.

In such cases, civil action of collection can be resorted to by filing a

collection case in the regular court where the assessment is already final and
demandable. No civil action for the recovery of taxes should begin without the
approval of the CIR.