Lecture On Remedies

Lecture notes on
Remedies (part 1)
Lecture notes Tax 1 (2015-16) Associate Dean L.K. GRUBA
Remedies of the Taxpayer

Before Payment of Tax ( but after payment under selfassesment)
Administrative remedies
Protest against assessment
Compromise
Redemption of property after sale at public auction
Judicial Remedies
Ordinary Civil action
Filing of Petition before the CTA
After payment of Tax

Administrative Remedies
Claim for refund or tax credit
Judicial Remedies
Filing of Petition before the CTA
Remedies of the
government
Administrative Remedies
To make deficiency assessments within 3 or 10 years

To enforce deficiency assessments and collect taxes within 5 years
To effect distraint of personal property
To effect levy on real property
To pursue judicial proceeding to collect
To compromise abate or cancel taxes
To enforce tax liens
To enforce statutory penal provisions
To enforce forfeiture or property
Judicial Remedies
File civil or criminal case
Assessment
An assessment contains not only a computation of
tax liabilities but also a demand for payment within a

prescribed period
Kinds of assessments
Self assessment
Deficiency assessment
Jeopardy assessment
Disputed assessment
Difference between Tax

delinquency and tax deficiency
Tax Deficiency
Refers to the amount by which the tax imposed or required
to be paid exceeds the amount shown in the taxpayers
return and/or paid by him.
Tax Delinquency
failure to pay the tax due on any return required to be
filed, or tax due for which no return is required

Subject to administrative penalties such as 25%
surcharge, interest anad compromise penalty,
Can be immediately collected thru administrative action,
like, issuance of distraint and levy and or thru judicial filing
of action to colelct
When is an assessment
made
Section 203 and Section 222 of the NIRC
Provide for a statute of limitation on the assessment
and collection of internal revenue taxes in order to
safe guard the interest of the taxpayer against
unreasonable investigation
Meaning of unreasonable investigation
Law on prescription a remedial measure
The law on prescription being a remedial measure
should be interpreted in a way conducive to bringing

about the beneficent purpose of affording protection to
the taxpayer ( Phil Journalsits, Inc. vs CIR 447 SCRA
214, 2004)
Rule on Prescription
When the tax law itself is silent on prescription or
when return is not required to be filed the tax is
imprescriptible
In computing the legal periods, the administrative
Code of 1987 is followed and not the civil code, /

this is according to the case of CIR vs Primetown ,
531 SCRA 436, 2007 . A year is composed of 12
months;the number of days is irrelevant.
Reckoning period
The 3 year period shall be counted after the last day
prescribed by law for the filing of the return, and no
proceeding in court without assessment for the
collection of such taxes shall be begun after the
expiration of such period
a return is filed beyond the period prescribed by law,
the three (3)-year period shall be counted from the day

the return was filed.
a return filed before the last day prescribed by law for

the filing thereof shall be considered as filed on such
last day.
Effect of Filing an Amended

Return
The reckoning shall be from the time the amended
return is filed.
Extension of Period to
Assess
Only upon written agreement between the CIR and
the taxpayer executed before the expiration of the 3

year period (Section 222(b), NIRC)
Waiver must be signed by the taxpayer himself or his

duly authorized representative. In case of corp. By
responsible officials, duly authorized and notarized
authority.
Suspension of Running of
Statute of Limitations
1. When the CIR is prohibited from making the
assessment or beginning the distraint or levy or a

proceeding in court during such period and for 60 days
thereafter
2. When taxpayer request for reinvestigation which is

granted by the CIR
3. When taxpayer can not be located in the address given

by him in the return
4. When the warrant of distraint or levy is duly served

and no property is located
5. when taxpayer is out of the country
Principle of the application of

the Statute of Limitations
benefit both the Government and the taxpayer. it
intends to afford protection to the taxpayer against

unreasonable investigation. [CIR v. Philippine
Global Communication, Inc., GR No. 167146, 31
Oct. 2006.]
Requisites for a
Assessment
the taxpayer shall be informed in writing of the law
and the facts on which the assessment is made
There is a demand for payment
Ungab vs Cusi
In Ungab v. Cusi, the Supreme Court held that an
assessment of a deficiency is not necessary to a
criminal prosecution for willful attempt to defeat
and evade the income tax.
Fortune Tobacco case

Fortunes situation is factually different, since the
registered wholesale price of the goods, approved

by the BIR, is presumed to be the actual wholesale
price, therefore, not fraudulent and unless and until
the BIR has made a final determination of what is
supposed to be the correct taxes, the taxpayer
should not be placed in the crucible of criminal
prosecution. [CIR v. Court of Appeals, GR No.
119322, 4 June 1996.]
Adamson Case v. Court of

Appeals
The issue was whether the filing of the criminal complaints by
the DOJ was premature for lack of a formal assessment. The
Supreme Court held that when fraudulent tax returns are
involved, Section 222(a) of the 1997 Tax Code says that a
proceeding in court for the collection of such tax may be filed
without assessment, at any time within ten (10) years from
discovery of the falsity, fraud or omission.
An assessment of a deficiency is not necessary to a criminal
prosecution for willful attempt to defeat and evade the tax.

Here, the Supreme Court said, [a]rguably, the gross disparity
in the taxes due and the amounts actually declared by the
private respondents constitutes badges of fraud. The
Supreme Court likewise confirmed the applicability of and
upheld the decision in Ungab v. Cusi. [Adamson v. Court of
Appeals, GR No. 120935, 21 May 2009.]
Ungab case vs Adamson case

vs Fortune Tobacco Case
Reconciling these three cases together, it appears
that the general rule still is that a gross disparity in

the taxes due and the amounts actually declared by
the taxpayer gives cause for the CIR to pursue his/
its criminal prosecution for filing a fraudulent tax
return, regardless of whether a deficiency
assessment has been made.
What are the instances when an assessment may

be required?
(1) when the taxable period of a taxpayer is
terminated by the CIR for reasons such as when the

taxpayer is retiring his/her business subject to tax
[Section 6(D) of the 1997 Tax Code];
(2) when a tax deficiency is found by the CIR after the
taxpayer files his/her return [Section 56(B) of the
1997 Tax Code]; and
(3) when a corporation contemplates dissolution or
reorganization [Section 52(C) of the 1997 Tax Code].
Meaning of Best Evidence

Obtainable
The CIR may use the best evidence obtainable to
issue an assessment under the following
circumstances (Section 6 (B), NIRC)
The records requested from the taxpayer are not
forthcoming either because the records are lost or the

taxpayer refuses to submit such records
The records submitted are false, incomplete or
erroneous (RMC 23-00)
Rule on Receipt of
Assessment
an assessment is deemed to have been made within the threeyear prescriptive period if notice to that effect was released,
mailed, or sent by the CIR to the taxpayer within said period.
Receipt by the taxpayer within the prescriptive period is not
necessary. The taxpayer should actually receive, even beyond

the prescriptive period, the assessment notice which was
timely released, mailed, or sent.
While a mailed letter is deemed received by the addressee in

the ordinary course of mail, this is still merely a disputable
presumption subject to controversion,
a direct denial of the receipt thereof shifts the burden upon
the party favored by the presumption to prove that the mailed

letter was indeed received by the addressee. In Barcelon,
Roxas Securities, Inc. v. CIR,
Extension of Period to
Assess
Only upon written agreement between the CIR and
the taxpayer executed before the expiration of the 3

year period (Section 222(b), NIRC)
Waiver must be signed by the taxpayer himself or his

duly authorized representative. In case of corp. By
responsible officials, duly authorized and notarized
authority.
Rule in case of amended

return
If the amended return is substantially different
from the original return, the prescriptive period

shall be counted from the filing of the amended
return ( CIR vs Phoenix Assurance 14 SCRA 52,
1965)
Suspension of Running of
Statute of Limitations
1. When the CIR is prohibited from making the assessment or
beginning the distraint or levy or a proceeding in court during

such period and for 60 days thereafter
2. When taxpayer request for reinvestigation which is granted

by the CIR
3. When taxpayer can not be located in the address given by

him in the return
4. When the warrant of distraint or levy is duly served and no

property is located
5. when taxpayer is out of the country
Requisites for Valid

Assessment
the taxpayer shall be informed in writing of the law
and the facts on which the assessment is made
There is a demand to pay
Meaning of Best Evidence

Obtainable
The CIR may use the best evidence obtainable to
issue an assessment under the following
circumstances (Section 6 (B), NIRC)
The records requested from the taxpayer are not
forthcoming either because the records are lost or the

taxpayer refuses to submit such records
The records submitted are false, incomplete or
erroneous (RMC 23-00)
Prima Facie Evidence of a False

or Fraudulent Return
1. Substantial understatement of taxable sales,
income etc. by 30%
2. Substantial overstatement of deductions by

more than 30%
Assessment Process
Tax Audit
In a tax audit , revenue officers examine the books of account
and other accounting records of the taxpayers to determine the

correct tax liability , on the strength of a Letter of Authority
A letter of Authority (LOA) is an official document that
empowers a revenue officer to examine and scrutinize a
taxpayers books of accounts and other accounting records
in order to determine the taxpayers correct internal revenue
tax liabilities.. valid for 120 days but can be extended LOA
should cover a taxable period not exceeding one taxable year.
A letter Notice (LN) is a discrepancy notice issued by the CIR
after conducting data matching processes, informing the
taxpayer of findings of discrepancy,e.g. undeclared sales or
overclaimed purchases.
Notice the findings of the audit and the taxpayer is given 15
days to explain his side ( RR 18-13 has since removed this as
part of the process
Preliminary assessment notice

(PAN)
A PAN is the communication issued by the BIR
informing a taxpayer of its findings after audit. The

PAN shall be in writing and shall show in detail the
facts and the law, rules and regulations or
jurisprudence on which the assessment is based.
Instances when PAN is not

necessary
Finding of deficiency tax is a result of mathematical
error in the computation of tax appearing on the face of

the return
Discrepancy is determined between tax withheld and the

amount actually remitted by the withholding agent
A taxpayer who opted to claim a refund was determined

to have carried over the succeeding tax liabilities
Excise tax has not been paid

An article locally purchased or imported by an exempt
person has been sold, traded or transferred to non
exempt person
Formal letter of Demand (FLD)

and/or Final Assessment
Notice (FAN)
A FLD/FAN is a formal letter of demand where a
declaration of deficiency taxes is issued to a

taxpayer who fails to respond to a PAN within 15
days from receipt of the PAN, or whose reply to the
PAN is found to be without merit.
The FLD/FAN shall be issued by the CIR or his duly

authorized rep. and shall state the facts and the
law, the rules and regulations or jurisprudence on
which the assessment is based , Otherwise the
assessment is void (RMC 18-13)
BIRs action on the protest to the FAN

The CIR either:
Denies the protest to the FAN,
The nomenclature of the BIRs denial of the protest to
the FAN could vary. It may be called a Final Decision on

a Disputed Assessment (FDDA) ( RMC 18-13)
A final demand letter for payment of delinquent taxes
may be considered a decision on a disputed assessment
Does not act on such protest
BIRs action on the protest to the FAN

The CIR either:
Denies the protest to the FAN,
The nomenclature of the BIRs denial of the protest to
the FAN could vary. It may be called a Final Decision on

a Disputed Assessment (FDDA) ( RMC 18-13)
A final demand letter for payment of delinquent taxes
may be considered a decision on a disputed assessment
Does not act on such protest
REMEDIES UNDER THE NIRC

A. Assessment and Collection: The Return was not false or fraudulent
Date return was filed, or last day required by law
for filing, if filed before the last day
* (NIRC, Section 203)
3 years
Last day to collect (By Judicial proceeding

only)
*(NIRC, Section 222 (d) & CIR v. Phil. Global
Communications, inc., GR No. 167146, Oct
31, 2006)
Date return was filed, or last day required by

law
for filing, if filed before the last day
*(NIRC, Section 203)
3 years
Last day to assess
5 years
Last day to collect either by:
[a] Summary proceedings; or
[b] Judicial proceedings
* (NIRC Section 222 (d))
Assessment and Collection: The return was

false or fraudulent
Date of discovery of the falsity, fraud or
omission
*(NIRC, Section 222 (a))
10 years
Date of discovery of the falsity, fraud or omission

* (NIRC, Section 222 (a))
10 years
Last day to collect (By judicial proceedings

only)
*(NIRC, Section 222 (a) & CIR v. Phil. Global C
Communications, Inc., GR No. 167146, Oct. 31,
2006
Last day to
assess
5 years
Last day to collect either by:
[a] Summary proceedings; or
[b] Judicial procedings
* (NIRC, Section 222 (c))
Remedy against an assessment where the BIR did

not decide within 180 days
Receipt of Letter of Authority
Assessment and demand
Pre-assessment notice
(Tax Audit starts)
*(NIRC, Section 228(e) & RR 18-*(NIRC, Section 228 (e) & RR 18-2013 Submit Support Docs if
(No more need for notice of informal
Section 2))
2013 Section 2))
request for
conference )
reinvestigation
* (RR 18-2013)
* (NIRC, Section 228(e)
Protest
Respond
&RR
*(NIRC, Sec 228 (e) &
*(NIRC, Sec. 228(e) &
18-2013
Section 2))
RR 18-2013 Sec. 2))
RR 18-2013 Sec. 2))
15 days
Appeal to CTA
60 days
30 days
Decision of CTA
Div.
No decision by the BIR

*(NIRC, Section 228 (e) &
RR 18-2-13 Section 2))
Decision of CTA
Div.
Decision of en banc
Appeal to
SC
Appeal to
CTA
en banc
Motion for
Recon.
A
180 days
30 days
*(NIRC,
*(NIRC,
Section 228 (e) Section 228 (e)
& RR 18-2013 & RR 18-2013
Section 2))
Section 2))
15 days
*(A.M.
No. 05-1107-CTA,
Rule 8, Sec.
3 (b))
15 days
*(A.M.
No. 05-1107-CTA,
Rule 8,
Sec. 3 (c))
15 days
*Rules of
Court,
Rule 45)
Remedy against an assessment where the BIR

decide within 180 days
Receipt of Letter of Authority (
Assessment and demand
Pre-assessment notice
Tax audit starts)No more need for *(NIRC, Section 228(e) & RR 18-*(NIRC, Section 228 (e) & RR 18-2013 Submit Support Docs if
notice of informal Conference
Section 2))
2013 Section 2))
request for
* (RR 18-2013)
reinvestigation
*
(NIRC,
Section 228(e)
Protest
Respond
&RR
*(NIRC, Sec 228 (e) &
*(NIRC, Sec. 228(e) &
18-2013 Section 2))
RR 18-2013 Sec. 2))
RR 18-2013 Sec. 2))
A
15 days
Decision of the BIR
60 days
30 days
Decision of CTA
Div.
Decision of CTA
Div.
Decision of en banc
Appeal to
SC
Appeal to
CTA
en banc
Motion for
Recon.
A
Appeal to CTA
15 days
*(A.M.
No. 05-1107-CTA,
Rule 8, Sec.
3 (b))
30 days
*(NIRC,
Section 228 (e)
& RR 18-2013
Section 2))
15 days
*(A.M.
No. 05-1107-CTA,
Rule 8,
Sec. 3 (c))
15 days
*Rules of
Court,
Rule 45)
Additions to Basic Tax

Civil Penalties
Penalty : 25%
Failure to file any return and pay tax on the date prescribed
Wrong filing of the return
Failure to pay deficiency tax with in the time prescribed for the payment in the notice
of assessment
Penalty 50%
Willful neglect to file the return within the period prescribed
False or fraudulent return is willfully made,
Interest
Deficiency interest 20% per annum

Delinquency interest 20% per annum
Compromise penalties
Tax delinquency vs tax

deficiency
Tax Delinquency when (a) the self assessed tax per return
filed by the taxpayer on the prescribed date was not paid at all
or was only partially paid, or (b) the deficiency taxes assessed
by the BIR become final and executory.- can be collected
immediately by issuance of a warrant; collection by
administrative remedy or through the regular court.
Tax deficiency on the other hand means : (a) the amount by
which the tax imposed by law as determined by the

Commissioner exceeds the amount as shown as the tax by the
taxpayer upon his return, or (b) if no amount is shown as the
tax by the taxpayer upon his return , or if no return is made,
then the amount by which the tax as determined by the
Commissioner exceeds the amount previously assessed as
deficiency. Has to go through the process of protest. Judicial
Remedy is through the CTA.
Tax delinquency vs tax

deficiency
Delinquent tax subject to administrative penalties,
such as 25% surcharge, interest and compromise
penalty.
Deficiency tax is not subject to 25% surcharge,

although subject to interest and compromise
penalty
Compromise
Cases which maybe compromised
Delinquent accounts
Cases under Administrative protest after issuance of
the FAN
Civil tax cases being disputed before the courts
Collection cases filed in courts; and
Criminal violations, other than those already filed in
court or those involving tax fraud.
EXCEPTIONS:
1. Withholding tax cases, unless the applicant-taxpayer invokes provisions of law that
cast doubt on the taxpayers obligation to withhold;
2. Criminal tax fraud cases confirmed as such by the Commissioner of Internal Revenue
or his duly authorized representative;
3. Criminal violations already filed in court;
4. Delinquent accounts with duly approved schedule of installment payments;
Cases where final reports of reinvestigation or reconsideration have been issued
resulting to reduction in the original assessment and the taxpayer is agreeable to such
decision by signing the required agreement form for the purpose. On the other hand,
other protested cases shall be handled by the Regional Evaluation Board (REB) or the
National Evaluation Board (NEB) on a case to case basis;
6. Cases which become final and executory after final judgment of a court, where
compromise is requested on the ground of doubtful validity of the assessment; and
7. Estate tax cases where compromise is requested on the ground of financial incapacity
of the taxpayer.
Instances when the CIR may

compromise taxes
Doubtful validity of the assessment
Financial incapacity
1. Doubtful validity of the assessment. - The offer to compromise a delinquent account or disputed
assessment under these Regulations on the ground of reasonable doubt as to the validity of the
assessment may be accepted when it is shown that:
(a) The delinquent account or disputed
assessment is one resulting from a jeopardy assessment (For this purpose, jeopardy assessment
shall refer to a tax assessment which was assessed without the benefit of complete or partial audit by
an authorized revenue officer, who has reason to believe that the assessment and collection of a
deficiency tax will be jeopardized by delay because of the taxpayers failure to comply with the audit
and investigation requirements to present his books of accounts and/or pertinent records, or to
substantiate all or any of the deductions, exemptions, or credits claimed in his return); or
(b) The assessment seems to be arbitrary in nature, appearing to be based on presumptions and there
is reason to believe that it is lacking in legal and/or factual basis; or
(c) The taxpayer failed to file an administrative protest on account of the alleged failure to receive
notice of assessment and there is reason to believe that the assessment is lacking in legal and/or
factual basis; or
(d) The taxpayer failed to file a request for reinvestigation/reconsideration within 30 days from receipt
of final assessment notice and there is reason to believe that the assessment is lacking in legal and/or
factual basis; or
The taxpayer failed to elevate to the Court of Tax Appeals (CTA) an adverse decision of
the Commissioner, or his authorized representative, in some cases, within 30 days from
receipt thereof and there is reason to believe that the assessment is lacking in legal and/
or factual basis; or
(f) The assessments were issued on or after January 1, 1998, where the demand notice
allegedly failed to comply with the formalities prescribed under Sec. 228 of the National
Internal Revenue Code of 1997; or (g) Assessments made based on the Best Evidence
Obtainable Rule and there is reason to believe that the same can be disputed by
sufficient and competent evidence; or
(h) The assessment was issued within the prescriptive period for assessment as
extended by the taxpayers execution of Waiver of the Statute of Limitations the validity
or authenticity of which is being questioned or at issue and there is strong reason to
believe and evidence to prove that it is not authentic; or
(i) The assessment is based on an issue where a court of competent jurisdiction made an
adverse decision against the Bureau, but for which the Supreme Court has not decided
upon with finality.
Financial incapacity. - The offer to compromise based on financial incapacity may be

accepted upon showing that:
(a) The corporation ceased operation or is already dissolved.
Provided, that tax liabilities corresponding to the Subscription Receivable or Assets
distributed/distributable to the stockholders representing return of capital at the time of

cessation of operation or dissolution of business shall not be considered for compromise;
or
(b) The taxpayer, as reflected in its latest Balance Sheet supposed to be filed with the
Bureau of Internal Revenue, is suffering from surplus or earnings deficit resulting to

impairment in the original capital by at least 50%, provided that amounts payable or due
to stockholders other than business-related transactions which are properly includible in
the regular accounts payable are by fiction of law considered as part of capital and not
liability, and provided further that the taxpayer has no sufficient liquid asset to satisfy the
tax liability; or
(c) The taxpayer is suffering from a networth deficit (total liabilities exceed total assets)
computed by deducting total liabilities (net of deferred credits and amounts payable to
stockholders/owners reflected as liabilities, except business- related transactions) from
total assets (net
prepaid expenses, deferred charges, pre- operating expenses, as

well as appraisal increases in fixed assets), taken from the latest
audited financial statements, provided that in the case of an
individual taxpayer, he has no other leviable properties under the
law other than his family home; or
(d) The taxpayer is a compensation income earner with no other

source of income and the familys gross monthly compensation
income does not exceed the levels of compensation income
provided for under Sec. 4.1.1 of these Regulations,
and it appears that the taxpayer possesses no other leviable or
distrainable assets, other than his family home; or

(e) The taxpayer has been declared by any competent tribunal/
authority/body/government agency as bankrupt or insolvent.
The compromise settlement of any tax liability shall be
subject to the following minimum amounts:

For cases of financial incapacity, a minimum compromise
rate equivalent to ten percent (10%) of the basic assessed
tax; and
For other cases, a minimum compromise rate equivalent to

forty percent (40%) of the basic assessed tax.
Where the basic tax involved exceeds One million pesos
(P1,000.000) or where the settlement offered is less than
the prescribed minimum rates, the compromise shall be
subject to the approval of the Evaluation Board which shall
be composed of the Commissioner and the four (4) Deputy
Commissioners.
Cases that may NOT be subject

of Compromise
Withholding tax cases, unless applicant taxpayer invokes provisions of
law that cast doubt on the taxpayers obligation to withhold;
Criminal tax fraud cases

Criminal violations already filed in court
Delinquent accounts with duly approved schedule of isntallments
payments
Cases where final reports of reinvestigation or reconsideration have been

issued resulting to reduction in the original assessment and the taxpayer
is agreeable to such decision
Cases which become final and executoty after final judgment

Estate tax cases where compromise is requested on the ground of
financial incapacity of the taxpayer
Abatement
The diminution or decrease in the amount of tax
imposed , such that to abate is to nullify or reduce

in value or amount.
I
Instances when the CIR may
abate or cancel tax liability
The tax or any portion thereof appears to be
unjustly or excessively assessed; or
The administration and collection costs involved do

not justify the collection of the amount due
Reinvestigation vs
Reconsideration
Reinvestigation a plea for re-evaluation of an
assessment on the basis of newly discovered or

additional evidence that the taxpayers intends to
present in the reinvestigation; involves a question of
fact or law or both
Reconsideration a plea for re evaluation of the
assessment on the basis of existing records without
need of additional evidence; involves a question of
fact or law or both
Reinvestigation vs
Reconsideration
The main difference is in the records or evidence to
be examined by internal revenue officers, whether
there are existing records or newly discovered or
additional evidence.
A re evaluation of existing records which results
from a request for reconsideration does not toll the

running of the prescriptive period for the collection
of an assessed tax; reinvestigation however
suspend the running of the statute of limitation

Lecture On Remedies

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Lecture On Remedies

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Lecture notes on

Lecture notes Tax 1 (2015-16) Associate Dean L.K. GRUBA

Remedies of the Taxpayer

After payment of Tax

To make deficiency assessments within 3 or 10 years

Lecture notes Tax 1 (2015-16) Associate Dean L.K. GRUBA

tax liabilities but also a demand for payment within a

Lecture notes Tax 1 (2015-16) Associate Dean L.K. GRUBA

Lecture notes Tax 1 (2015-16) Associate Dean L.K. GRUBA

Difference between Tax

filed, or tax due for which no return is required

Lecture notes Tax 1 (2015-16) Associate Dean L.K. GRUBA

should be interpreted in a way conducive to bringing

Lecture notes Tax 1 (2015-16) Associate Dean L.K. GRUBA

In computing the legal periods, the administrative

Code of 1987 is followed and not the civil code, /

Lecture notes Tax 1 (2015-16) Associate Dean L.K. GRUBA

a return is filed beyond the period prescribed by law,

the three (3)-year period shall be counted from the day

a return filed before the last day prescribed by law for

Lecture notes Tax 1 (2015-16) Associate Dean L.K. GRUBA

Effect of Filing an Amended

Lecture notes Tax 1 (2015-16) Associate Dean L.K. GRUBA

the taxpayer executed before the expiration of the 3

Waiver must be signed by the taxpayer himself or his

Lecture notes Tax 1 (2015-16) Associate Dean L.K. GRUBA

assessment or beginning the distraint or levy or a

2. When taxpayer request for reinvestigation which is

3. When taxpayer can not be located in the address given

4. When the warrant of distraint or levy is duly served

5. when taxpayer is out of the country

Lecture notes Tax 1 (2015-16) Associate Dean L.K. GRUBA

Principle of the application of

intends to afford protection to the taxpayer against

Lecture notes Tax 1 (2015-16) Associate Dean L.K. GRUBA

There is a demand for payment

Lecture notes Tax 1 (2015-16) Associate Dean L.K. GRUBA

Lecture notes Tax 1 (2015-16) Associate Dean L.K. GRUBA

Fortune Tobacco case

registered wholesale price of the goods, approved

Lecture notes Tax 1 (2015-16) Associate Dean L.K. GRUBA

Adamson Case v. Court of

An assessment of a deficiency is not necessary to a criminal

prosecution for willful attempt to defeat and evade the tax.

Lecture notes Tax 1 (2015-16) Associate Dean L.K. GRUBA

Ungab case vs Adamson case

that the general rule still is that a gross disparity in

Lecture notes Tax 1 (2015-16) Associate Dean L.K. GRUBA

What are the instances when an assessment may

terminated by the CIR for reasons such as when the

Lecture notes Tax 1 (2015-16) Associate Dean L.K. GRUBA

Meaning of Best Evidence

forthcoming either because the records are lost or the

Lecture notes Tax 1 (2015-16) Associate Dean L.K. GRUBA

Receipt by the taxpayer within the prescriptive period is not

necessary. The taxpayer should actually receive, even beyond

While a mailed letter is deemed received by the addressee in

a direct denial of the receipt thereof shifts the burden upon

the party favored by the presumption to prove that the mailed

Lecture notes Tax 1 (2015-16) Associate Dean L.K. GRUBA

the taxpayer executed before the expiration of the 3

Waiver must be signed by the taxpayer himself or his

Lecture notes Tax 1 (2015-16) Associate Dean L.K. GRUBA