Professional Documents
Culture Documents
2.025 Trillion
21% increase
Compared to the collection goal of 2015
1.674 Trillion
Collection goal for Iloilo City this 2016
amounts to
40+ Billion
What is taxation?
It
It
Taxes
GOVERNMENT REMEDIES
TAXPAYER REMEDIES
GOVERNMENT REMEDIES
Powers of the BIR (Sec. 2)
To assess and collect all national
internal revenue taxes, fees and
charges
To enforce forfeitures, fines and
penalties
To execute judgments in all cases
decided in its favor by the tax court
and ordinary courts
To administer supervisory and police
powers conferred upon it by law
(Sec. 3, NIRC)
REGIONAL OFFICES
Regional Directors
Assistant Regional Directors
Division Chiefs (Assessment, Collection, and Legal)
Revenue District Officers, LTDO, and Special
Investigation Division
Reconciliation
of
Listing
for
Enforcement System Summary List
of Sales and Purchases (TRS-RELIEF)
RMO No. 30-2003
Bureau of Customs Data Program
(TRS-BOC) RMO 34-2004
Tax Reconciliation System (TRS-LN)
RMO 28-2007, as further amended by
RMO No. 7-2010
only in the
his
gross
filed an
based on
convention
Philippines
TAX ASSESSMENT
It is an official action by an administrative
officer to determine the tax due of the
taxpayer
It consists of:
Computation of the amount of tax that
must be paid by the taxpayer
Coupled with a demand to pay the tax
within a specified period of time
KINDS OF ASSESSMENT:
1. Self-assessment when taxpayer
computes his own liability, files his
return, and pay the tax based on his
computation (Sec. 56[a])
2. Deficiency assessment occurs
upon discovery of the BIR that the selfassessment was either deficient, or
when no return was made by the
taxpayer (Sec. 56[b])
Exceptions:
1. False or fraudulent return with intent to
evade taxes within 10 years from
DISCOVERY of falsity or fraud
2. Failure or omission to file a return
within 10 years after discovery of failure
or omission to file the return
3. Waiver of statute of limitations in
writing, which must be made before the
expiration of the three-year period of
assessment of taxes: period agreed
upon
Claiming
fictitious
expenses
as
deductions is a proof of falsity or fraud in
the income tax return.
Tan Guan v. CTA
Gr. No. L-23676, April 27, 1967)
SURCHARGE
25%
50%
Penalties:
20% general interest from due date up to
time paid
Amount to be paid:
TAX DUES + 20% interest
Criminal action
No criminal action for the recovery of
taxes shall be filed without the
approval of the CIR
Acquittal of taxpayer in a criminal case
does not exonerate him from tax
liability
The crime is complete when the
violator has knowingly and willfully
filed a fraudulent return or neglected
to file a return with intent to evade the
Criminal action
No criminal action for the recovery of
taxes shall be filed without the
approval of the CIR
Acquittal of taxpayer in a criminal case
does not exonerate him from tax
liability
The crime is complete when the
violator has knowingly and willfuly filed
a fraudulent return or neglected to file
a return with intent to evade the tax
CRIMINAL CASES
Payment of tax due after apprehension
shall not constitute a valid defense in
any prosecution
Sec. 254 to Sec. 268 violations by
taxpayers
Sec. 269 to Sec. 273 violations by
government officers
Sec. 274 to 280 other penal
provisions
COLLECTION
2. Judicial Remedies
(a)Ordinary civil action
(b)Criminal action
Distraint seizure by the government of
personal property, tangible or intangible,
to enforce the payment of taxes to be
followed by its public sale if the taxes are
not voluntarily paid
Commissioner more than 1 million
RDO 1 million or less
Kinds of distraint:
1. Actual distraint actual delinquency in tax
payment is necessary
2. Constructive distraint no actual
delinquency is necessary, resorted to when
tax payer is
(a) Retiring from any business subject to tax;
(b)Intends to leave the Philippines
(c) Intends to remove his property from the
Philippines
(d)Intends to hide or conceal this property
(e) Performs any act tending to obstruct the
proceedings from collecting the tax due
COMPROMISE
Grounds
Minimum Compromise
Rate
Financial incapacity of
the taxpayer
Gen. Rule:
All criminal violations may be
compromised
Exception:
1) Those already filed in court;
2) Those involving fraud.
Exceptions:
1. False and fraudulent return with
intent to evade taxes 10 years from
discovery without need for prior
assessment
2. Failure or omission to file a return
10 years from discovery without need
for assessment
3. Waiver in writing executed before
the 5-year period expires
PRESCRIPTIVE PERIOD
ASSESSMENT VS. COLLECTION
Regular Return
was made
Assessment
3 years
Collection
5 years from
assessment
False,
Fraudulent, or
Failure to File a
Return
10 years from
discovery
5 years from
assessment
If govt does not
make
assessment 10
years from
discovery
REINVESTIGATION RECONSIDERATIO
N
Plea for re-evaluation
on the basis of newlydiscovered or additional
evidence
that
a
taxpayer intends to
present
of
TP files a
PROTEST
LETTER
TP has
30days to
protest
ISSUANCE OF
FLD/FAN
TP has 15
days to
respond
ISSUANCE OF
PAN
BIR finds
deficiency
FILING OF
TAX RETURN
TP has 60 days
from protest
letter to
submit
supporting
documents
(reinvestigatio
n
30 days from
the denial or
after 180
days of
inaction
CTA
BIR Denial
(representative
)
appeal
CIR
Remedies of the
TAXPAYER
PROTEST
OR DISPUTE THE
ASSESSMENT
REFUND OR RECOVERY OF
ERRONEOUSLY OR ILLEGALLY
COLLECTED TAXES
4. Pre-assessment
notice
a
communication issued by the Regional
Assessment Division, or any concerned
BIR office informing a taxpayer who has
been audited of the findings of the
Revenue Officer following a review of
these findings
5. Final assessment notice a notice
given to the taxpayer by the BIR
informing him of the amount of deficiency
tax for which the taxpayer
is being
assessed on the findings of the BIR upon
failure of the taxpayer to respond to a
PAN or after an examination has been
DELINQUENT
DEFICIENT
DELINQUENCY
DEFICIENCY
Can be immediately
collected administratively
through the issuance of a
warrant of distraint and levy
or judicial action
Subject to administrative
penalties such as 25%
surcharge, interest and
compromise penalty
PROTESTING AN ASSESSMENT
(REMEDY BEFORE PAYMENT)
Step one: Issuance of the Preliminary
Assessment Notice (PAN)
PRE-ASSESSMENT NOTICE
5-Day
Letter
Signed
15-Day
Signed
Letter
REPLY TO PAN
ESSENTIAL REQUIREMENTS
FAN (BIR FORM 17.08) contains name, address,
and TIN; kind of tax; period covered; basic tax
and penalties; date tax must be paid
FAN and demand letter must state facts, law or
jurisprudence; otherwise, assessment is void
(CIR v. Enron Subic Power Corporation, G.R. No.
166387, Jan. 19, 2009)
Taxpayer was fairly informed since it was able
to categorically explain how assessment came
about (Toledo Power Co. vs. CIR)
PAN has audit sheet but did not explain how
assessment was arrived. Demand letter did
not contain the information on law and facts
(HPCO Agridev Corp vs. CIR)
Signed
by Commissioner or his authorized
representative
Issued within the prescriptive period under the
law or the extended period agreed upon
between the parties
Served by personal delivery or by registered
mail
How to file:
written request
reconsideration or reinvestigation
for
with
first
requirement,
TAX REFUND
There is ACTUAL
reimbursement
TAX CREDIT
This can be applied
against any sum
that may be due
and collectible from
the taxpayer, except
withholding taxes
Not transferrable
(RR 14-2011)
General Rule:
Two-year prescriptive
period runs from the payment of the
tax
Exception:
1. Overpaid
quarterly
corporate
income tax after a final adjustment
return is accomplished
2. Overpaid withholding taxes end of
the taxable year
3. Creditable withholding taxes
filing of taxpayers final adjustment
return
4. Tax paid in installments date of
REFUND
OR
CREDIT
CORPORATIONS
(Sec.
76Adjustment Return)
FOR
Final
How to choose:
by marking the
corresponding option box provided in the
Final Adjustment Return(FAR)
Failure to signify ones intention in the
FAR does not mean outright barring of
a valid request for a refund
Carry-over option if chosen, choice
is considered IRREVOCABLE for the
taxable period
HAVE A GREAT
DAY!!
AT TY. BRIANNA KAY A.
TENEFRANCIADE LOS SANTOS, REB