WHEN PAN IS NOT REQUIRED:

1. finding for any deficiency tax is the result of mathematical error in computation of tax as appearing on face of return
2. a discrepancy has been determined between the tax withheld and the amount actually remitted
3. taxpayer who opted to claim a refund or credit of excess creditable withholding tax for at taxable period was determined to have carried
over and automatically applied the same amount claimed against the estimated tax liabilities for the taxable quarter/s for the succeeding
taxable year/s
4. excise tax due on excisable articles have not been paid
5. article locally purchased or imported by an exempt person

2. Request for Reconsideration – a plea for re-evaluation of an assessment on the basis of EXISTING RECORDS without need of additional
evidence (question of law or fact or both)

3. Request for Reinvestigation – a plea for reinvestigation of an assessment on the basis of NEWLY-DISCOVERED EVIDENCE that a taxpayer
intends to present in the reinvestigation (question of law or fact or both)

- in either case, the request must be accompanied by a WAIVER of the statute of limitations in favor of the government

4. Judicial Protest

PROCEDURE

1. within 30 days from denial of protest by CIR or from lapse of 180-day period, appeal to CTA division
2. if CTA division denies, motion for reconsideration within 15 days from receipt
3. within 15 days from denial of motion, appeal to CTA en banc
4. appeal to SC within 15 days by petition for review (Rule 45)

5. Refund/Credit
- based on the legal principle of quasi-contract or solutio indebiti
- in the nature of an exemption, which cannot be allowed unless granted in the most explicit and categorical language
- strictly construed against the claimant (proof of claim must be established)
- partial payment of a tax cannot be the basis for a tax refund
- interest on taxes refunded may not be paid by the Government to the taxpayer, UNLESS: (a) the CIR acted with patent arbitrariness (inexcusable
or obstinate disregard for legal provision); and (b) in the case of income taxes withheld on the wages of employees, which must be refunded within 3
mos from April 15

Tax Refund vs. Tax Credit

 R: takes place when there is actually a reimbursement of the tax

 C: the Government issues a tax certificate or tax credit memo covering the amount determined to be reimbursable, which can be applied
after proper verification against any sum that may be due and collectible from the taxpayer

Requisites for Recovery

1. there was an actual collection and receipt by the Government of the tax sought to be recovered (factual proof)
2. legal basis for the granting of refund or credit, including verification of compliance with the statutory requirements relative to the filing of
claims within the reglementary 2-yr period
3. in case of corporations, must signify whether to avail of tax refund or tax credit in the corporate income tax return

Q: Are income tax returns actionable documents which must be specifically denied by the Government, otherwise it would constitute an
admission to the allegation that payment has in fact already been made and therefore the taxpayer no longer has to submit proof of claim