GOUT/ MAXPAYER

BR REMEDIES ↓ S
> O
CORRECT

6
ASSESSMENT
COLLECTION OF BIR

I
A
~REMEDIES OF THE STATE -
~REMEDIES OF THE TAXPAYER
&
& TAX REFUND
Administrave Administrave S Basis of the

discrepancies
-

- 1. Assessment ② TAX CREDIT 1. Assessment ~ BIR

-  Reconsideraon – Queson of Law -
 Preliminary Assessment Noce -

u
,
 Final Assessment Noce ~  Reinvesgaon – Queson of Law -
- 2. Collecon and Facts Y Reprocess OF
~  Distraint ~ on ~2. Refund everything
3 - corruption
collect
way to
uses
~  Levy ~ S

~  Lien taxes and

Co
O
 Garnishment defiency/delinquency graft casel
-
Judicial Remedy
~ 1. Appeal to Court of Tax Appeals
2. Temporary Restraining Order (TRO)

E LI) OMBUBSMAN - Temporary stoppage

of collection
Judicial Remedy or Injuncon
v1. Civil Suit to collect proceeding
z 3. Criminal Suit Against Erring BIR
-2. Criminal Suit TaX
An Officials
intention
more
↓ TP AITR X
COLLECTION COMMON REMEDIES
-
wrong
> >

Y
AITR
TAX
MORE assessment
~1. COMPROMISE – Reducon of Tax ↓
FUNDS

↓
1 Payable Baric Tax
FOR THE -2. ABATEMENT – Forgiveness of Tax corruption
GOUT Payable Basically O
MENT
Kunl Intro
TAMA -

BA
 ↑

Pole
Hangang Relan
# PRESCRIPTIVE PERIOD (RECKONING POINT)
O
PP INTERRUPTED/ STOP

~ IPABSONI
~ T Interruption
ACTUAL FILING
NOT FRAUDULENT 3 YEARS FROM DATE OF WHICHEVER IS LATER
visit Law on Sales /
-4 PROPERN CANNOT BE LOCATED
- > Stoppage -
Credit
.

DEADLINE FOR FILING (04/15/XX)

Law on Transaction
ASSESSMENT of ITR -

↓
AITR G
DISTRAINT ACTUAL –
~1. Physical Seizure of
FRAUDULENT OR NOT FILED 10 YEARS FROM DATE OF

8
(30% OVER/UNDER DECLARED) DISCOVERY  RIGHT OF PREEMPTION Property
BIR  SIEZURE OF PERSONAL ~2. Public Aucon
I

PROPERTIES - ~3. Proceeds

-4. Collecon
ADMINISTRATIVE REMEDIES
5 YEARS FROM ISSUANCE OF
FAN
O
LEVY
W/ PRIOR ASSESSMENT CONSTRUCTIVE – Agreement
 REAL PROPERY Sorry -

not to dispose
 RIGHT OF REDEMPTION -

1 YEAR ~1. Rering from Business

COLLECTION METHODS
2. Intends to leave the
-

Philippines
G
-

CIVIL CASE 3. Removes his property

W/O PRIOR ASSESSMENT SAME RULES WITH ASSESSMENT -
therefrom
JUDICIAL REMEDIES  PRINCIPAL + DAMAGES -

4. Acts of Obstrucon
Final Tax deve
> computation of Crim
cre

G
the proceedings to

*
collect the tax
CIVIL CASE
 TAX EVASION

c
 IMPRISONMENT

CIVIL PENALTIES
Remedies
O
SIMPLE NEGLECT 25%

Filed W/O Noce from BIR

-1.
2.
-3.
~4.
Failure to File & Pay return on me
Wrong Venue Filing (Removed – EOPT)
Failure to Comply with FAN
Failure to pay in whole or in part tax shown on the return or the full
amount of tax due from which no return is required to be filed.
6 PAMATAY
of the
state
SURCHARGE

FRAUDULENT NEGLECT 50% UNDERSTATEMENT of

GROSS INOME THRESHOLD:
Filed AFTER NOTICE from
-
-
At leastO
30%
BIR OVERSTATEMENT of
DEDUCTIONS

DEFICIENCY
Inferent on Deficiency (202)
It is imposed
Payment < Required Cannot be
PRIOR TRAIN LAW S & simultaneously
INTEREST imposed
Simultaneously Inferent on )
Delinquency (20 %
(12%)
1 2022
DELINQUENCY
200 , 000 Reg'd payment date or deadline April ,

(100, 000
Required Payment
made (150 000) Payment date April 2 2022
,

Late Payment Payment

,

50 000 100 000 x 12 % 12 000 inferent on

delinquency
Deficiency
=
late payment
,
,
,

12 2
X
inferent on Def .
6 000 ,
-
-
 ~
Remedy
~
* Usual of The Taxpayer *

> Refers to Excess payments over

> Tax Credit or Cash Refund> mandatory when :

Tax due

REFUND OF TAXES Remember :

choice & If the tax was

G
You cannot directly Payment made 100 , 000

deduct excess
payments TaxPayable (80 000)
,
erroneously paid
For Future Tax
Payables V

CLAIM FOR REFUND OR AVAILMENT OF TAX CREDIT unless it is approved Excess Tax Payment 20 , 000
7 Payment made 100 , 000

credit Centificate (80 000)

Process F ax duction
allowe
not
Tax Payable ,

Excess Tax Payment 20 , 000 *

special
-

O
-

The
Following year
↑
:
30 Days: File MFR issued
courtthat
(Within 2 Year Period) - Tax due 10 000 , validly C
caters takes
S
COURT OF TAX Tax credit (20 000),

APPEALS cares cash Refund *

Date of crucial Denied by
Tax
Payable /10 000), oreredit
> (credit)
,

law
I
special
Payment data CIR
Sec 230
castate oand
.

w
Forfeited
Further Allowed to claim
* [
( Final syears > syears

Q2 Years from Date of Payment: File a Refund or Credit Denial

tdies
common
Ted

unu,a
~

unive
Utilization Period but Revalidated

& TAX REDUCTION

syears

COMPROMISE case I Case 2

Reasonable Doubt as to the ADDITIONAL INFO.

Validity of Claims IF:
1. Amount of Compromise > 1M
GROUNDS 40% of Basic Tax Due Excepon: Criminal Case
2. Se<lement Offered < Minimum
FOR 1. Already Filed in Court
THEN:
COMPROMISE 2. Involving Fraud
Seek Approval of Evaluaon Board –
Composion: CIR & 4 Deputy Commissioner
Financial Incapacity
10% of Basic Tax Due

↓ABATEMENT & TAX FORGIVENESS

↳
Tax appears to be unjustly or
excessively assessed S
TAX ASSESSED > TAX REQUIRED

GROUNDS
FOR
ABATEMENT

impr
Impraccal to Collect
>
Collecon Proceedings > Collecon

cost) sales
100 > 5
 > COURSES OF ACTION AVAILABLE TO BIR AND TAXPAYER

TAX AUDIT PROCESS S > REMEMBER:

Point of view of BIR - TP Payment < Required
Point of view of TAXPAYER - Assessment > Payment
> Kasunduan

-
RR
ADMINISTRATIVE
REMEDIES
PAN
30 DAYS 10 DAYS
LETTER OF NOTICE OF DISCUSSION OF PRELIMINARY > Contains information
about unresolved
AUTHORITY DISCREPANCY
epig
DISCREPANCY ASSESSMENT
day e
descrepancies

Authorization to
Audit
> INITIAL FINDINGS
(FILLED ≠ RESULTS)
> Meeting with the BIR NOTICE
perform audit or RO about the NOD
assessment > BASIS FOR
DISCREPANCIES

PP
180 day 60 days IS DAYS
Date of Payment End OF
Submit Additional Documents 'S
TO REPLY
REPLY
REINVESTIGATION NOT

Date of
Payment Eline Late Payment
> REPROCESSING
> CHALLENGE OF FACTS Law
NECESSARY

pp/Fraudulent lOyrs
not Fraudulent 3yrs 50 day
N
PROTEST FINAL ASSESSMENT NOTICE
B > NOTE:
S

FAILURE to file protest & FINAL LETTER OF DEMAND

FINAL within the prescribed
> Contains the ff. info: > NOTE:

APPROVED DECISION ON 180 days period makes FAN & FLD

FINAL & EXECUTORY 1. Demand for Payment If the BIR failed to comply to
- 2. Facts the 15-day prescriptive period
DISPUTED 3. Laws and Regulation (before or beyond) it is
RECONSIDERATION Silence means
4. Amount to be paid considered a technical ground
ASSESSMENTS because it violates the due
> POINT OUT DISCREPANCIES yes 5. Deadline of payment
process theory therefore the
> CHALLENGE OF LAW
FINAL & EXECUTORY assessment shall be considered

JUDICIAL void

REMEDIES
> COURT OF > DENIED > SUPREME > DENIED
> COURT OF > DENIED 15
30 days 15
TAX APPEALS COURT
TAX APPEALS
MFR days EN BANC
days DIVISION 15
DIVISION
days
Not acted upon within
SUPREME
180 days from date of
submission COURT
DENIED INDIRECT / DIVISION
composition
INACTION
1 PRESIDING 1 CHIEF
CTA EN BANC SC EN BANC
JUSTICE JUSTICE
DIVISION 1 (3) DIVISION 1 (5) FINAL,
COURT OF SUPREME
DIVISION 2 (3) DIVISION 2 (5) EXECUTORY
TAX APPEALS COURT
-

DIRECT -
DIVISION 3 (3) DIVISION 3 (5) &
8 ASSOCIATE 14 ASSOCIATE
(EXPLICIT) DEMANDABLE
JUSTICES JUSTICES