BA 127

TAXPAYER REMEDIES
ALARDE | DE SANTOS | HERRERA
LAHOZ | LIM
 TAX REMEDIES

• Procedures/actions available both to the government to

collect taxes and to the taxpayer to avoid abuses in the
payment of taxes
• Taxpayer may dispute/protest the validity of an assessment
which may involve the question of fact/law/both by the
following written motions or requests:

1. Motion for reconsideration

2. Motion for reinvestigation

3. Motion for withdrawal

4. Motion for cancellation 


 REMEDIES OF TAXPAYER

1. Protest on assessment

2. Claim for refund

3. Elevation of tax case to the Court of

Tax Appeals

4. Penalties imposed on public officers

 ADMINISTRATIVE REMEDIES

Protest on Assessment
Sec. 228, NIRC. Protesting of Assessment

Before payment, taxpayer can contest the assessment

within 30 days from the receipt of the notice of
assessment. This is made by filing a petition for
reconsideration or reinvestigation of the tax assessment
against him.
 ADMINISTRATIVE REMEDIES

Protest on Assessment
Sec. 228, NIRC. Protesting of Assessment

Exceptions to the pre-assessment notice

1. mathematical error in the computation of the tax
2. discrepancy has been determined
3. taxpayer was determined to have carried over and
applied claims against tax liabilities
4. excise tax not been paid
5. article locally purchased by exempt person has sold the
item to non-exempt persons
 ADMINISTRATIVE REMEDIES

Claim for Refund

Sec. 229, NIRC. Recovery of Tax Erroneously or Illegally Collected

• 2 years
• in writing
• to the Commissioner
 ADMINISTRATIVE REMEDIES

Claim for Refund

Sec. 230, NIRC. Forfeiture of Cash Refund and of Tax Credit

Unclaimed or uncashed refund check after 5 years after

delivery forfeits the refund and goes to general fund of the
government.
 JUDICIAL REMEDIES

Appeal to the Court of Tax Appeals

If protest is denied in whole or in part, or is not acted upon

within 180 days from submission of documents, taxpayer
adversely affected by the decision/inaction may appeal to
the CTA within 30 days from receipt of the said decision, or
from the lapse of the 180-day period; otherwise, decision
shall become final, executory and demandable.
 JUDICIAL REMEDIES

Penalties imposed on Public Officers

Sec. 227, NIRC. Satisfaction of Judgment Recovered Against
any Internal Revenue Officer

Action for damages against revenue officers - action may

be brought against any internal revenue officer to recover
damages by reason of any act done in the performance of
official duty.
 JUDICIAL REMEDIES

Penalties imposed on Public Officers

Sec. 269, NIRC. Violations Committed by Government
Enforcement Officers

Punishment of: 50T-100T fine, 10-15 years imprisonment,

perpetual disqualification to hold office, to vote, and to
participate in any public election.
 JUDICIAL REMEDIES

Penalties imposed on Public Officers

Sec. 269, NIRC. Violations Committed by Government
Enforcement Officers

(a) Extortion or willful oppression through the use of his

office or willful oppression and harassment of a taxpayer
who refused, declined, turned down or rejected any of his
offers specified in paragraph (d) hereof;
 JUDICIAL REMEDIES

Penalties imposed on Public Officers

Sec. 269, NIRC. Violations Committed by Government
Enforcement Officers

(b) Knowingly demanding or receiving any fee, other or

greater sums than are authorized by law or receiving any
fee, compensation or reward, except as by law prescribed,
for the performance of any duty;
 JUDICIAL REMEDIES

Penalties imposed on Public Officers

Sec. 269, NIRC. Violations Committed by Government
Enforcement Officers

(c) Willfully neglecting to give receipts, as by law

required, for any sum collected in the performance of
duty or willfully neglecting to perform any other duties
enjoined by law;
 JUDICIAL REMEDIES

Penalties imposed on Public Officers

Sec. 269, NIRC. Violations Committed by Government
Enforcement Officers

(d) Offering to Assess

1. without appropriate examination
2. less than amount actually due for compensation

(e) Neglecting or by design permitting the violation of the

law by any other person;
 JUDICIAL REMEDIES

Penalties imposed on Public Officers

Sec. 269, NIRC. Violations Committed by Government
Enforcement Officers

(f) Making or signing any false entry or entries in

any book, or making or signing any false
certificate or return;
 JUDICIAL REMEDIES

Penalties imposed on Public Officers

Sec. 269, NIRC. Violations Committed by Government
Enforcement Officers

(g) Unauthorized retrieval, withdrawal or recall of return,

statement or declaration after it has been filed.
 JUDICIAL REMEDIES

Penalties imposed on Public Officers

Sec. 269, NIRC. Violations Committed by Government
Enforcement Officers

(h) Failure to report any violation of the Tax Code or fraud.

 JUDICIAL REMEDIES

Penalties imposed on Public Officers

Sec. 269, NIRC. Violations Committed by Government
Enforcement Officers

(i) Accepting any payment for the compromise, adjustment

or settlement of any charge or complaint.
 JUDICIAL REMEDIES

Penalties imposed on Public Officers

Sec. 269, NIRC. Violations Committed by Government
Enforcement Officers

Amended by TRAIN Law:

Deliberate failure to act on an application for refund
QUIZ BEE
 QUIZ BEE

1. This
is not an administrative remedy available to a
taxpayer in connection with collection of taxes.

A. Filing a petition for reconsideration or reinvestigation
B. Filing a claim for tax refund or credit
C. Entering into a compromise
D. Filing a criminal complaint against erring BIR officials or
employees.
 QUIZ BEE

2. An
assessment shall become final if not protested
administratively, if such protest is not filed with the BIR,
from receipt of the assessment within

A. 30 days
B. 60 days
C. 90 days
D. 180 days
 QUIZ BEE

3. Using the preceding number, relevant supporting

documents must also be presented to the BIR, from
filing the protest on the assessment within

A. 30 days
B. 60 days
C. 90 days
D. 180 days
 QUIZ BEE

4. An appeal on an assessment may be made to the CTA

if the BIR does not act on the protest within, how many
days from the taxpayer’s submission of documents
supporting his protest?

A. 30 days
B. 60 days
C. 90 days
D. 180 days
 QUIZ BEE
5.
I - The taxpayer shall respond to a pre-assessment
notice, and if he fails to respond, an assessment shall
be issued.

II - An assessment issued may be questioned

administratively with the BIR.

A. True, True
B. True, False
C. False, True
D. False, False
 QUIZ BEE

6. Whereany national internal revenue tax is alleged to

have been erroneously or illegally collected. As a
remedy, the taxpayer should first file an action for
refund with the

A. RTC
B. CTA
C. BIR
D. CA
 QUIZ BEE

7. In case of an assessment of a tax


A. The assessment should be made within 3 years from date of
filing of the return.
B. The assessment should be made within 3 years from date of the
return is due.
C. A protest should be made on time, otherwise the assessment
becomes final and executory.
D. A protest may be filed anytime before the BIR collects the tax.
 QUIZ BEE

8. Date
of payment of tax erroneously paid 4/15/09
Date of claim for refund was filed 01/15/10
Date decision of denial by the BIR was received 09/15/10

Last day to appeal to the CTA is


A. April 15, 2011
B. January 15, 2011
C. November 15, 2010
D. October 15, 2010
 QUIZ BEE

9. Date
of payment of tax erroneously paid 4/15/09
Date of claim for refund was filed 01/15/10
Date decision of denial by the BIR was received 03/31/11

Last day to appeal to the CTA is


A. April 30, 2011
B. April 15, 2011
C. March 31, 2012
D. May 30, 2011
 QUIZ BEE

10. Dateassessment was received 03/08/10

Date petition for reconsideration was filed with the BIR 03/18/10
Date of filing of documents to support the petition 05/08/10
Date of decision of denial of the petition was received 09/28/10

The last day to appeal to the CTA is


A. April 15, 2011
B. November 8, 2010
C. December 8, 2010
D. October 28, 2010
 QUIZ BEE

11. Date
assessment was received 03/08/10
Date petition for reconsideration was filed with the BIR 03/18/10
Date of filing of documents to support the petition 05/08/10
No decision on the protest is received as of 10/30/10

The last day to appeal to the CTA is


A. April 15, 2011
B. November 8, 2010
C. December 4, 2010
D. November 30, 2010
 QUIZ BEE

12. Which of the following statement is correct?


A. A protest should be filed by a taxpayer, otherwise the
assessment becomes final and can no longer be questioned in
court.
B. A protest may be filed by the taxpayer anytime before the BIR
collects the tax.
C. The assessment should be made by the BIR within five years
from the filing of the return.
D. The assessment shall include only tax proper.
 QUIZ BEE
13. Which of the following statements is incorrect?

A. A pre-assessment notice shall be required before an assessment
may be made.
B. The taxpayer shall be informed of the law and the facts on which
the assessment is made, otherwise the assessment shall be
void.
C. The Commissioner may refund a tax even without a claim refund
from the taxpayer where on the face of the return upon which the
payment was made, such a payment clearly appears to have
been erroneously made.
D. A suit may be brought even after the lapse of two years from the
date of payment, if any supervening cause arises after payment.
THANK YOU
 BA 127
TAXPAYER REMEDIES
ALARDE | DE SANTOS | HERRERA
LAHOZ | LIM
 DEFINITION OF TERMS

Letter of Authority
- authorizes a particular Revenue Enforcement Officer (REO) to go over, verify and
scrutinize a taxpayer’s books and records

Notice of Informal Conference

- a written notice informing a Taxpayer that the findings of the audit conducted on his
books of accounts and accounting records indicate that additional taxes or deficiency
assessments have to be paid
 DEFINITION OF TERMS

Preliminary Assessment Notice (PAN)

- shows in detail the facts and the law, rules and regulations, or jurisprudence on
which the proposed assessment is based

Formal Letter of Demand (FLD) &

Final Assessment Notice (FAN)
- issued by BIR calling for payment of deficiency tax liability and applicable
penalties when:
1. Taxpayer fails to respond within 15 days from date of receipt of PAN
(in default), or

2. He disagrees with findings of deficiency tax