Invocation

The Philippine
National Anthem
REMEDIES
in tax
COLLECTIOn
OFELIA MENDOZA OLIVA, LLB, CPA
Each local government unit shall have the power to
create its own sources of revenues and to levy
taxes, fees and charges subject to such guidelines
and limitations as the Congress may provide,
consistent with the basic policy of local autonomy
Power to Create Sources of Revenue. Each local
government unit shall exercise its power to create
its own sources of revenue and to levy taxes, fees,
and charges subject to the provisions herein,
consistent with the basic policy of local autonomy
 REVENUE
TRANSFER FROM
THE NATIONAL
GOVERNMENT TO
THE LGU
The power to
allocate their
resources in
accordance with
their own
PRIORITIES
budgeting
 LOCAL CHIEF EXECUTIVE
TAKES CARE THAT

RESOURCES
ARE

MANAGED SAFEGUARDED
(EXPENDED/USED ACCORDING TO) (FROM ILLEGAL OR IMPROPER)

LAW REGULATION LOSS WASTAGE

TO ENSURE

ECONOMY EFFICIENCY EFFECTIVENESS

IN THE
 Accounting
and

Accountability
TODAYS’
TAXES
TOMORROW’S COMMUNITY’S
PROGRESS.
REMEDIES
in tax
COLLECTIOn
OFELIA MENDOZA OLIVA, LLB, CPA
What Who When How
• JUDICIAL

• ADMINISTRATIVE
CIVIL REMEDIES FOR
COLLECTION OF REVENUES
 1
E n f o rc e d c o l l e c t i o n
 2
D e t e r re n t t o f u t u re
Ta x D e l i n q u e n c y
 3
I n c re a s e d c o l l e c t i o n
o f R eve n u e
 4
Compliance with the
L aw ( S e c t i o n 2 5 9 , R A 7 1 6 0 )
SEC. 259. Penalty for Failure to Issue and Execute
Warrant. - Without prejudice to criminal
prosecution under the Revised Penal Code
and other applicable laws, any local
treasurer or his deputy who fails to issue or
execute the warrant of levy within one (1)
year from the time the tax becomes
delinquent or within thirty (30) days from
the date of the issuance thereof, or who is
found guilty of abusing the exercise thereof
in an administrative or judicial proceeding
shall be dismissed from the service.
REAL PROPERTY TAXATION

Administrative Judicial
• DISTRAINT AND SALE • FILING OF CASE
OF PERSONAL AGAINST THE
PROPERTY TAXPAYER
DELINQUENT IN
• LEVY AND SALE OF PAYMENT OF REAL
REAL PROPERTY PROPERTY TAX
Administrative
 Requisites and Process

Certified List Warrant of Accounting of

Demand Notice of
of Distrait and Distrained
letters Delinquency
Delinquency Seizure Goods

Publication of
Properties Released of
Disposition of Procedure of Sale of
Exempt from Distrained
Proceeds Sale Distrained
Distraint property
goods
PROPERTIES EXEMPT FROM DISTRAINT

• Tools and implements necessarily used by the

delinquent taxpayer in his trade or business

• horse, cow, carabao, or other beast of burden,

such as the delinquent taxpayer may select,
and necessarily used by him in his ordinary
occupation
• Household furniture and utensils necessary
for housekeeping and used for that purpose
by the delinquent taxpayer, such as he may
select, of a value not exceeding Ten thousand
pesos (P10,000.)

• Provisions, including crops, actually provided

for individual or family use sufficient for four
(4) months
• The professional libraries of doctors, engineers,
lawyers and judges

• One (1) fishing boat and net, not exceeding the

total value of Ten thousand pesos (P10,000.), by
the lawful use of which a fisherman earns his
livelihood, and

• Any material or article forming part of a house or

improvement of any real property.
Administrative
( LEVY AND SALE OF REAL PROPERTY)
Certificate of
Certified List of Report of Sale
sale to
Delinquency to Sanggunian
Purchaser

Certificate of
Sale at Public
Demand letters Redemption to
Auction
Owner

Advertisement Final Bill of

Notice of
and Notice of Sale to
Delinquency
Sale Purchaser

Warrant of Report of Levy

Levy to Sanggunian
 Statutory
Procedure
in the
Civil Remedy of
DISTRAINT OF PERSONAL
PROPERTY
(per Section 175 RA 7160)
a
UPON FAILURE TO PAY ANY LOCAL
TAX, FEE, OR CHARGE AT THE TIME
REQUIRED

ISSUE AUTHENTICATED CERTIFICATE showing

fact of delinquency and amount of tax , fee, or
charge and penalty due and cost of seizure

Certificate serves as WARRANT FOR DISTRAINT

OF PERSONAL PROPERTY subject to taxpayer’s
right to claim exemption
b
UPON SIEZURE OF PERSONAL
PROPERTY

Warrant officer shall make an account of

goods, chattels or effects taken

Sign the account

Leave the account or list with owner or person
from whom possession of goods are taken or at
dwelling or place of business of that person and
with someone of suitable age and discretion

The list or account includes unpaid tax, fee, or

charges and a note of time and place of sale of
seized goods
c
NOT LESS THAN TWENTY ( 20) DAYS
AFTER NOTICE TO OWNER OR
POSSESSOR OF DISTRAINED
PROPERTY

Posting of NOTICE OF SALE:

 Three (3) public and conspicuous places
 Office of the Mayor/Governor

The Notice specifies time and place of sale and

articles distrained
d AS SPECIFIED IN THE NOTICE

Sale at place as specified in the NOTICE

Sale to highest bidder for cash

Return to owner of distrained good the

balance over and above what is required
to pay LGU claimed
Submit report of sale of distrained goods to
highest bidder

Submit report on good not sold within 120

days from date of distraint

*Unsold distrained goods are considered sold to LGU

for the amount of assessment made thereon by a
Committee on Appraisal
 Local Treasurer as chairman

Local Assessor as member

Representative of COA as member

e WITHIN 5 DAYS AFTER SALE

Submit Report of Sale to

Mayor/Governor
Requisites
 Certified List of Delinquency

 Demand letters

 Notice of Delinquency

 Certified Statement of Delinquency

 Filing of Case before the Prosecutor

( per Section 183 RA 7160)
ASSESSMENT

Assessed the taxpayer of local

taxes, fees, or charges due
ASSESSMENT
ASSESSMENT

ASSESSMENT

Furnish the
Provincial/City/Municipal Legal
Officer of:
 Certified Statement of Delinquency
 Exact address of defendant where
he may be served w/ summons
ASSESSMENT
ASSESSMENT

ASSESSMENT

Provincial/City/Municipal Legal
Officer files Civil Action against the
delinquent taxpayer
When the delinquent taxes due
does not exceed P 10,000

File the civil action before

Municipal/City Trial Court
When the delinquent taxes due
exceed P 10,000

File the civil action before

Regional Trial Court
Date

NOTICE OF DELINQUENCY
_____________
_____________

Sir / Madam:

This is to remind you that the realty taxes of the lot/s listed hereunder has become due and payable
on or before March 31, _____.

Lot. No. Location Assessed Value Annual Tax Due

_______ _______ ____________ ____________

The above lot/s may however be paid in four (4) Quarterly instalments, viz:
1st qtr On or before March 31
2nd qtr On or before June 30
3rd qtr On or before Sept. 30
4th qtr On or before Dec. 31

Please pay your realty taxes on or before the abovementioned due dates to avail of the ___%
discount.

May we hear from Soon? Thank you.

Very Truly yours,

MT
Post NOTICE OF DELINQUENCY in:
 Main entrance of Provincial Capitol,
 Main entrance of Municipal Hall
 Publicly accessible and conspicuous place in each
barangay of LGU concerned
 NOTICE OF DELINQUENCY IN THE PAYMENT OF REAL PROPERTY TAX
IN THE PROVINCE / CITY / MUNICIPALITY OF ________
To:__________
__________
___________
Sir/Madam:
NOTICE is Hereby served pursuant to the provisions of Section 254, Republic Act No. 7160 ( The
local Government Code 0f 1991) that the Real Property Tax due for Calendar Year 20__ and previous years, has
become delinquent with respect to the following:

Tax Property Total tax

Kind of Assessed Unpaid
Declaration Index Lot no. Location Year Penalties Delinque
property Value Taxes
no. No. ncies
•
•
 Classification Area (Sqm. / ha.) Market Value Assessment Level Assessed Value

Total

Taxes Duel Add: interest Due: Totals

Basic tax P P
SFF tax
TOTALS P P
 Issue WARRANT OF LEVY
which is to be Mailed or Served to:

Delinquent real property owner,

Person having legal interest therein

Occupant or administrator ( if owner

cannot be located)
COPY FURNISHED

Provincial /Municipal Assessor to

annotate levy on tax Declaration

Register of Deeds to annotate levy

on Transfer Certificate of Title (TCT)
Mr/Ms ______________________________
____________________________________

Sir/Madam:

Records in this Office show that in spite of our letter to you dated ______________, 20_________, the delinquent realty taxes
due on your property described hereunder have remained unpaid:
Lot No. ________________; Block No. _______________________:
TD No./ARPN ____________________________
Location ___________________________________________
Area __________________sq. m/ha.
Assessed Value
Land __________________________
Improvement ___________________________
Machinery ___________________________
Total ___________________________

COMPUTATION OF TAX DELINQUENCY:

Total Taxes _______________________
Penalties _______________________
Total Amount Due _______________________

Because of said tax delinquency, your property is now included in the list of delinquent real property which will be published in
the (name of newspaper) a newspaper of general circulation in the Prov/City/Municipality of _____________ pursuant to Sec. 260 of R.A. 7160
(Local Government Code of 1991), once a week for three (3) consecutive week on the dates of _____________, and _____________, after which
the property will be sold at public auction on _____________________, 20_______________; otherwise, we will proceed with the publication
preparatory to auction sale. Thereafter, you will be required to pay the costs thereof in the amount of P __________ in addition to the total
amount due as taxes and penalties.
It is therefore, urged that you pay the delinquent taxes and penalties as soon as possible but not later than __________, 20__ to
avoid the inclusion of your name in the publication and the additional charged for the costs, the eventual sale of your property at public auction.
In case payment/s for any of the above stated taxes has/have been made already, please furnish us with the number of the official
receipt and date of payment or Xerox copy thereof in order that the same could be reflected in your record, if omitted or neglected; otherwise
we shall consider you to have confirmed our statement of your tax liability.

Very truly yours

_____________________________
(PROVINCIAL/CITY/MUN. TREASURER
 POSTING OF
NOTICE OF SALE
o Main entrance of provincial capitol

o Main entrance of municipal/city hall

o Publicly accessible and conspicuous place in

barangay where property is located
Submit written Report of levy to:
• Sanggunian ten (10) days after receipt of
warrant by property owner or person having
legal interest in the property
 Publication of
NOTICE OF SALE

• Once a week for 2 weeks in a newspaper of

general circulation in a province, city or
municipality where property is located
• Specify amount of delinquent tax, interest due
and expenses of sale, date and place of sale,
name of owner/person having legal interest
therein , and description of property to be sold
As specified in the NOTICE OF SALE

Conduct Public Auction Sale at:

• Main entrance of provincial capitol
• Main entrance of municipal hall
• Other place as specified in the NOTICE OF
SALE
 Immediately after sale

• Issue CERTIFICATE OF SALE TO PURCHASER

• Purchaser shall Register Certificate of Sale

with Register of Deeds ( after one year from
date of registration, file in court to consolidate
ownership over the property)
• Note : under PD 464 , redemption by owner lapses only one (1) from
date of registration with RD while under RA 7160, one year from date of
sale
 Within 30 days after Public
Auction Sale

• Report of Sale to Sanggunian

Anytime after the Public Auction Sale
but before expiration of redemption
period
( one year after date of sale)

• If redemption fee is paid by owner, issue

CERTIFICATE OF REDEMPTION

• If the owner failed to pay the redemption fee,

issue FINAL DEED TO PURCHASER
 PROPERTIES ATTRACTING
PURCHASERS
• Titled Land
• Larger area
• Lower price
• Location of property
• Status of ownership and delinquency
 COMMON PROBLEMS

1. Preparation and submission of certified list

of Delinquency ( must be updated)
2. Monitoring tax payments ( Demand letter w/
notation to owner to report discrepancy in record of tax
payment; failure to do shall presume record correct)
3. Securing copy of Tax Declaration
4. Securing copy of Transfer Certificate of Title
(TCT)
5. Threat from affected taxpayers
6. Cost of sale
7. Transferring TCT of Forfeited property
8. Resale of forfeited Property
Thank You

©OMO2017