Presented by:

AMEGO & ASSOCIATES LAW OFFICE

Ground Floor CIT Bldg., L!son"
Lu#ur$g Sts.
B!olod C$ty
TAXPAYERS REMEDIES
in
Tax Assessment
A. %ETE&MI'I'G( E'FO&CI'G
TA) LIABILIT*
Audit Process/Tax Assessment
.
O+ln ,nddo suspension or
temporary closure of business
operations of a VAT- registered/
registrable taxpayer for
*.
failure to issue receipts or invoices
*.
failure to file a VAT return
*. understatement of taxable sales or
receipts by 30 or more of t!e
correct amount t!ereof or
*.failure to register.
.
Estbl$s-.ent sur/e$lln!e
.
&ATE +rogr.(Cr$.$nl A!t$on" to
investigate" prosecute and convict
tax evaders and ot!er criminal
violators of t!e #$$% &'()
A. A%MI'IST&ATI0E
Before Payment

Protest 1 tax assessment contest

Co.+ro.$se 1 reduction of tax

liability

Abte.ent " cancellation of t!e

entire tax liability
After Payment

T2 &e3und" restitution of t!e money

paid as tax

T2 Cred$t" money so paid be

applied to existing tax liability
B. 45%ICIAL
Civil Action

A++el to t-e Court o3 T2 A++els

" tax assessment contest
Taxpayer
(emedies
*ovt.
(emedies
V
+
B. COLLECTIO' OF TA)ES

Co.+ro.$se

Abte.ent

%$str$nt - sei,ure by t!e govt. of

tangible/ intangible personal
property follo-ed by t!e public sale
of suc! property

Le/y " sei,ure of real property" and

interest in or rig!ts to suc! property

T2 L$en - t!e tax" toget!er -it!

interests" penalties" and costs t!at
may accrue in addition t!ereto is a
lien upon all property and rig!ts to
property belonging to t!e taxpayer

C$/$l !t$on 3or !olle!t$on o3 t2es

B. 45%ICIAL
Civil Action (cont.)

Action to contest forfeiture of

chattel, at any time before the sale or
destruction thereof, to recover the
same, and upon giving proper bond,
enjoin the sale; or after the sale and
within 6 months, an action to recover
the net proceeds realized at the sale

Action for damages against a revenue

officer by reason of any act done in the
performance of official duty
Criminal Action

Filing of criminal complaint against

erring BIR officials and employees.

Injunction when the CTA in its

opinion, the collection by the B! may
jeopardize ta"payer#
Taxpayer
(emedies
*ovt.
(emedies
V
+
Tax
Assessment
Pre"Assess.ent 'ot$!e
6PA'7
F$nl Assess.ent 'ot$!e
6FA'7
Protest
A++el to CTA %$/$s$on
M& to CTA %$/$s$on
A++el to CTA En
Banc
Pet$t$on 3or &e/$e8 to SC
9: dys
;< dys
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9: dys
9: dys
Letter o3 Aut-or$ty
Letter o3 Aut-or$ty( Letter 'ot$!e
A tax investigation starts -it! t!e issuance by t!e .'( of
a -ritten aut!ori,ation -!ic! is usually a

Letter o3 Aut-or$ty for tax audits or

Letter 'ot$!e for t!e (elief/+/+0 program

0reliminary Assessment &otice
10A&2
Time for taxpayer to reply:
#3 days from date of receipt of
0A&
Effect of failure to reply:
-Taxpayer s!all be considered in
default
-a formal letter of demand and
assessment notice s!all be
issued calling for t!e payment of
t!e taxpayer4s deficiency tax
liability" inclusive of all t!e
applicable penalties.
5 &otifies t!e taxpayer of t!e
findings made by t!e examiner
and t!e deficiency taxes
assessed
5
s!o-s in detail" t!e facts and
t!e la-" rules and regulations"
or 6urisprudence on -!ic! t!e
proposed assessment is
based.
Issun!e o3 FA' $s su33$!$ent 8(o need o3
'ot$!e o3 In3or.l Con3eren!e & PA':
#. 7eficiency tax is t!e result of mat!ematical
error in t!e tax computation appearing on t!e
face of t!e tax return filed by t!e taxpayer8
9. 7iscrepancy bet-een t!e tax -it!!eld and
t!e amount actually remitted by t!e
-it!!olding agent8
3. A taxpayer -!o opted to claim a refund or tax
credit also carried over and automatically
applied t!e same amount claimed against
t!e estimated tax liabilities for t!e taxable
:uarter/s of t!e succeeding taxable year8
;. <xcise tax due on excisable articles not paid8
3. Article purc!ased locally or imported by an
exempt person" suc! as" but not limited to"
ve!icles" capital e:uipment" mac!ineries =
spare parts" !as been sold" traded or
transferred to non-exempt persons.
+A>0/< 0A&
PA'
T2+yer
sub.$ts
re+ly 8$t-$n
9: dys=
NO
YE
S
Issun!e o3
FA'
&
LETTE& o3
%EMA'%
Co..$ss$on
er !!e+ts
t-e
e2+lnt$ons
.
Co..$ss$oner
does not !!e+t
t-e
e2+lnt$ons.
Assessment ends.
?inal Assessment &otice 1?A&2

?A& and letter of demand s!ould al-ays go toget!er.

T!e letter of demand explains to t!e taxpayer !o- t!e deficiency

assessment -as arrived at" including t!e reasons and legal bases for t!e
assessment.

+ent to t!e taxpayer only by registered mail or by personal delivery.

'f sent by personal delivery" ac@no-ledge receipt t!ereof in t!e duplicate

copy of t!e letter of demand by s!o-ing t!e follo-ingA 1a2 !is name8 1b2
signature8 1c2 designation and aut!ority to act for and in be!alf of t!e
taxpayer" if received by a person ot!er t!an t!e taxpayer !imself8 and 1d2
date of receipt t!ereof.
> Ty+es o3 Ad.$n$strt$/e Protest Ag$nst t-e FA':
Request for reconsideration a plea of reevaluation of t!e
assessment on t!e basis of existing records -it!out need of
additional evidence.
Request for reinvestigation a plea of reevaluation of an
assessment on t!e basis of ne-ly discovered or additional
evidence t!at a taxpayer intends to present in t!e reinvestigation.
T!e 0rotest may involve a :uestion of fact or la-" or bot!.
Remedy of the taxpayer against the
A! : F$le Ad.$n$strt$/e P&OTEST
Time for taxpayer to su"mit
Protest:
;< dys 3ro. dte o3 re!e$+t o3
FA'
Effect of failure to Protest:
-0ayment by t!e T0 of t!e amount due
+A>0/<
?A&
FA'
&
LETTE& o3
%EMA'%
T2+yer
sub.$ts
P&OTEST
8$t-$n ;<
dys=
NO
YE
S
Ad.$n$strt$/e Protest
MOTIO' 3or
&ECO'SI%E&ATIO' or
MOTIO' 3or
&EI'0ESTIGATIO'
Assessment ends.
Assessment becomes final, executory,
and demandable.
The government may exercise it
remedies for collection.
The case may not be appealed to the
CTA.
Complete submission
of documentary
evidence within 60
days from the filin of
the protest
Non!submission
of documents
Co.+lete
sub.$ss$on o3
do!u.ents
Co..$ss$one
r?s !t$on:
&esolut$on of t!e assessment
based on t!e documentsA
- )ancellation of entire assessment/
- 'ssuance of a (evised
Assessment
In!t$on on t!e protest
-/in #B0 days from
t!e time of receipt
of t!e relevant documents
"enial of the
administrative protest
within 180 days from the
receipt of the relevant
supporting documents
F$le M& to t-e
Co..$ss$oner
or
A++el to t-e
CTA %$/$s$on
PETITIO' FO& &E0IEW
to t-e SC
T2+yer FAILS
to ++el.
ASSESS#EN$
EN"S.
Mot$on 3or
&e!on
to t-e
CTA %$/$s$on
A++el to t-e
CTA E' BA'C
%nfavorable Action
of the Commissioner
A++el to t-e
CTA %$/$s$on
PETITIO' FO& &E0IEW
to t-e SC
Mot$on 3or &e!on
to t-e
CTA %$/$s$on
A++el to t-e
CTA E' BA'C

Denial A -/in 30 days from receipt of notice of t!e

denial or

Inaction A -/in 30 days from t!e lapse of t!e #B0 days

from date of submission by t!e taxpayer of t!e re:uired
documents in support of !is protest
%E'IAL
I'ACTIO'
9: dys
9: dys
9: dys
CTA appeal from the decision of the CIR A
S@ALL 'OT S5SPE'% t-e +y.ent, le/y, d$str$nt,
nd(or sle o3 ny +ro+erty o3 t-e t2+yer for t!e
satisfaction of !is tax liability.
If in the opinion of the Court the collection by BIR may
jeopardize the interest of the Government andor the
ta!payer:

t!e )ourt any stage of t!e proceeding .y sus+end

t!e
collection and

re:uire t!e taxpayer eit!er

5to deposit t!e amount claimed or
5to file a surety bond for not more t!an double t!e
amount
-it! t!e )ourt

;< dys
or
'ot$!e o3 In3or.l
Con3eren!e
Pre"Assess.ent 'ot$!e
6PA'7
F$nl Assess.ent 'ot$!e
6FA'7
Protest
A++el to CTA %$/$s$on
M& to CTA %$/$s$on
A++el to CTA En
Banc
Pet$t$on 3or &e/$e8 to SC
9: dys
9: dys
;< dys
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;< dys
9: dys
9: dys
Thank you.
- THE END -
0resented byA
A><*C = A++C)'AT<+ /AD C??')<
*round ?loor )'T .ldg." /acson-/u,uriaga +ts.
.acolod )ity