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Module Outline 3- Tax Remedies-Part I

Government’s Remedies

Reference:

Title VIII, Sections 205-227, NIRC

Chapter 16, Tax Rights and Remedies, Mamalateo

A. Remedies Available to the Government for the Enforcement and Collection of

taxes

1. Judicial Remedies (Sections 205, 220, 221, 281)

a. Civil (See also 247-252)
b. Criminal (See also 253-280)
Cases:
Ungab vs. Cusi, 97 SCRA 877
Commissioner vs. Pascor Realty, GR No. 128315, June 29, 1999

2. Administrative Remedies
a. Distraint on personal property (Sections 206 and 207(A))
b. Levy on real property (Section 224)
c. Forfeiture of property (Section 224)
d. Entering into compromise (Section 204)
e. Requiring bonds to assure compliance (Secs 91, 101, 137, 158,
159, 160)
f. Requiring proof of filing of income tax return and payment of tax
due thereon before license to engage in business/profession is
granted ( see RA 1538)
g. Giving rewards to informers (Sec 282)
h. Imposition of surcharge and interest (Sections 248 and 249)
i. Making arrest, search and seizure in certain cases (Sec 15)
j. Deportation of aliens who violate tax laws (see RA 1093)
k. Inspection and Examination of Books of Accounts (Section 5)
l. Use of national register (See RA 2070, as amended)
m. Obtaining information on potential taxpayers and examination of
any person regarding his tax liability (Sections 5 and 7, NIRC)
n. Inventory-taking, surveillance, etc (Section 6(C))
o. Termination of the tax period (Section 6(D))
p. Inquiring into bank deposit accounts of a decedent (Section 6(F))
B. Estoppel
Case: CIR vs. CA, GR No. 117982, Feb 6, 1997

C. Nature and Extent of a Tax Lien

 Sections 219, 203, 222,
Cases:
Hong Kong and Shanghai Banking Corporation vs. Rafferty, 39 Phil 105
Republic vs. Enriquez, 166 SCRA 608
Rizal Surety vs. Dela Paz, 95 Phil 90
Bank of P.I. vs. Trinidad, 42 Phil 220
Development Bank of the Phils vs. Sec of Labor, 179 SCRA 630

D. Form and mode of proceeding in actions arising under the Tax Code
Section 220

E. Remedy for enforcement of statutory penal provisions

Section 221

F. Disposition of funds recovered in legal proceedings or obtained from forfeitures

Section 226

G. Satisfaction of judgment recovered against any internal revenue officer

Section 227