Professional Documents
Culture Documents
Tax Remedies
Tax Remedies
Tax Remedies
I. Administrative Level
A. Assessment –
Procedure:
Compromise Abatement
Nature
Involves a reduction of the Involves the cancellation of the
taxpayer’s liability entire tax liability of a taxpayer
Officer/s authorized
CIR and Regional Evaluation Board CIR
(P500,000 or less) (Sec. 7B, NIRC)
Grounds
1. Reasonable doubt as to validity 1. The tax or any portion thereof
of assessment; or appears to unjustly or
2. Financial incapacity of taxpayer excessively assessed; or
2. The administration and
collection costs involved do not
justify the collection of the
amount due.
Compromise – a contract whereby the parties, by
making reciprocal concessions, avoid litigation or
put an end to one already commenced. (Art.
2028, Civil Code)
Cases: Security Bank Corporation v. CIR, 22 August 2006 and Philippine National Oil
Company v. Court of Appeals, 26 April
2005
When payment of Internal revenue taxes may be
compromised (Sec. 204, NIRC)
CIVIL CASES
1. Doubtful validity
Minimum Compromise Rate: 40% of basic
tax assessed
2. Financial incapacity
Minimum Compromise Rate: 10%, 20% or
40% of basic tax assessed, depending upon
the condition of the taxpayer.
1. 25% surcharge
1. Deficiency interest
2. Delinquency interest
3. Interest on extended payment
A. Civil Action –
3. No subsidiary imprisonment
Before payment
I. Administrative Level
A. Protest