ANNEX A: COMPARATIVE TABLE OF TAX REMEDIES NIRC

I. Government: A. To Effect Collection of Tax: 1. Tax Lien (Sec. 219) 2. Compromise (Sec. 204) 3. A.) Distraint actual or constructive (Sec. 205-208) B.) Levy (Sec. 207 B) 4. Civil Action (Sec. 220) 5. Criminal Action (Sec. 220, 221, 229) 6. Forfeiture of Property (Sec. 215) 7. Suspension of Business Operations in Violation of Vat. 8. Enforcement of Administrative Fine. I. Government: A. To Effect Collection of Tax: 1. Tax Lien (Sec. 1204 TCC) 2. Reduction of customs duties/compromise subject to approval of Sec. of Finance (Sec. 709, 2316 TCC) 3. Civil Action (Sec. 1204 TCC) 4. Criminal Action 5. Seizure, Search, Arrest (Sec. 2205, 2210, 2211 TCC)/ forfeiture (Sec. 2530 TCC)

TCC
I. Government:

LOCAL TAX

REAL PROPERTY TAX

I. Government: A. To Effect Collection of Tax: 1. Tax Lien (Sec. 246, 251 LGC) 2. A.) Distraint (Sec. 254 LGC) B.) Levy (Sec. 254 LGC) 3. Civil action formal demand not required (Sec. 266 LGC) 4. Purchase of property by local treasurer for want of bidder (Sec. 263 LGC)

A. To Effect Collection of Tax: 1. Tax Lien (Sec. 173 LGC) 2. A.) Distraint (Sec 175 LGC) 3. 4. B.) Levy (Sec. 175 LGC) Civil action (Sec. 183 LGC) Purchase of property by local government units for want of bidder (Sec. 181 LGC) Property distrained not disposed within 120 days from date of distraint-considered sold to the local government (Sec. 175 LGC)

B. To Cancel Tax Liability: 1. Abatement (Sec. 204)

B. To Cancel Tax Liability 1. Abatement reduction or nonimposition of customs duties on certain imported materials. (Sec. 1701-1708 TCC)

B. To Cancel Tax Liability May grant tax exemptions but may not condone or remit taxes (Sec. 192, 193 LGC)

B. To Cancel Tax Liability. Condonation or reduction of tax by President or remission of tax by the Sanggunian (Sec. 277, 276 LGC)

C. Prescription of Right to Assess and Collect Taxes: Assessment of the Tax: With Commissioner of Internal Revenue. a.) 3 yrs. from filing of return or date prescribed by law, whichever is the later date (Sec. 203) b.) 10 yrs. when 1.) no return is filed 2.) the return is false or fraudulent with intent to evade the tax. (from discovery) (Sec. 222) Page A-1 1.

C. Power/Authority to assess and collect all lawful revenue from imported articles and all other duties, fees, charges, fines and penalties accruing under TCC is with Commissioner of Customs. (SEC 602 TCC) * Note: Automatic appeal if the collector renders decision adverse to the government, it will be automatically elevated to the Commissioner. If affirmed by the latter, decision shall be reviewed automatically by the Secretary of Finance. If within 30 days from

C. Prescriptive Period of Assessment and Collection 1.Assessment: a.) 5 years from the day they become due (Sec. 194 LGC) b.) 10 yrs. in case of fraud or intent to evade payment of taxes from discovery of fraud or intent to evade payment (Sec. 194 LGC)

C. Prescriptive Period of Collection 1. Collection: a.) 5 yrs. from the date they become due (Sec. 270 LGC) b.) 10 yrs. in case of fraud or with intent to evade payment from the discovery of fraud or intent to evade payment (Sec. 270 LGC)

NIRC
2. Collection of Tax: a.) 5 yrs. from assessment or within period for collection agreed upon in writing before expiration of the 5 yr. Period (Sec. 222) b.) 10 yrs. without assessment in case of false or fraudulent return with intent to evade tax or failure to file return (Se. 222) 3. a.) Criminal Liability:

TCC
receipt of decision by the Commissioner or Secretary of Finance, no decision is rendered, decision under 2351 TCC)

LOCAL TAX
2. Collection a.) 5 yrs. from day of assessment by administrative or judicial action (Sec. 194 LGC) Note the suspension of prescriptive period of assessment and collection (Sec. 194 D LGC) local government may appeal to courts from adverse decision of sangunian on purely legal issue.

REAL PROPERTY TAX

* Note the suspension of prescriptive period (Sec. 270 LGC)

5 yrs. from commission or discovery of violation, whichever is later (Sec. 281) Note: The suspension of prescriptive period under Sec. 223. II. Taxpayer: 1. Administrative A.) Before Payment: 1. Protest filing a petition for reconsideration or reinvestigation within 30 days from receipt of assessment (Sec. 228). Entering into a compromise (Sec. 204) 1. Protest a. Any importer or interested party if dissatisfied with published value within 15 days from date of publication b. Taxpayer within 15 days from assessment. Payment under protest is necessary (Sec. 2308, 2210 TCC) 2. Refund abatement or drawback (Sec. 1701-1708 TCC) 1.Protest within 60 days from receipt of assessment (Sec. 195 LGC) - payment under protest not necessary 1. Protest payment under protest is required - within 30 days to provincial, city, or municipal treasurer II. Taxpayer II. Taxpayer 1. Administrative II. Taxpayer 1. Administrative

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B.) After Payment: 1. Filing claim for refund or tax credit within 2 years from date of payment regardless of any supervening cause (Sec. 229) Note the suspension of the 2 years period (Panay Electric Co. vs Collector May 28, Page A-2

2.Payment & subsequent refund or tax credit within 2 yrs. from payment of tax to local treasurer (Sec. 196 LGC)

2. Refund or tax credit within 2 years from the date the tax payer is entitled thereto (Sec. 253 LGC)

NIRC
1958) Note that payment under protest is not necessary Note that the taxpayer is given the right of redemption within 1 year from the date of sale or forfeiture (Sec. 215 NIRC)

TCC

LOCAL TAX

REAL PROPERTY TAX

* Settlement of any seizure by payment of fine or redemption shall not be allowed in any case where importation is absolutely prohibited or the release would be contrary to law (Sec. 2307 TCC)

* Right of redemption 1 yr. From the date of sale or from the date of forfeiture (Sec. 181 LGC)

Redemption of real property (Sec. 261 LGC)

2. Judicial A.) Civil Action 1. Appeal within 30 days from receipt of decision on the protest or from the lapse of 180 days inaction of the Commissioner to the CTA. (Sec. 228) 2. Action to contest forfeiture of chattel (Sec. 231) 2. Action for damages. (Sec. 227) B.) Criminal Action 1. 2. Against erring BIR Officials and employees. Injunction when the CTA in its opinion the collection by BIR may jeopardize taxpayer. Court may require deposit of an amount or surety bond for not more than double the amount. (Sec. 1 RA 1125) 3. Appeal within 15 days to Commissioner after notification by collector of his decision (Sec. 2313 TCC) - Within 30 days from receipt of decision of the Commissioner or Secretary of Finance to the CTA (Sec. 2403 TCC, Sec. 7 RA 1125) 4. Action to question the legality of seizure 5. Abandonment (Sec. 1801 TCC) 1. Appeal any question on constitutionality or legality of tax ordinance within 30 days from effectivity thereof to Secretary of Justice (Sec. 187 LGC) 2. Court action within 30 days after receipt of decision of lapse of 60 days of Secretary of Justices inaction (Sec. 187 LGC) - within 30 days from receipt when protest of assessment is denied (Sec. 195 LGC) - if no action is taken by the treasurer in refund cases and the two year period is about to lapse (Sec. 195 LGC) - if remedies available does not provide plain, speedy and adequate remedy. 3. Action for declaratory relief 4. Injunction if irreparable damage would be caused to the taxpayer and no adequate remedy is available.

2. Judicial

1. Appeal within 60 days from assessment of provincial, city or municipal assessor to LBAA (Sec. 226 LGC) - within 30 days from receipt of decision of LBAA to CBAA (Sec. 230 LGC) - in case of denial of refund or credit, appeal to BAA as in protest case (Sec. 253 LGC) 2. Court Action appeal of CBAAs decision to Supreme Court by certiorari. 3. Suit assailing validity of tax; recovery of refund of taxes paid (Sec. 64 PD 464). 4. Suit to declare invalidity of tax due to irregularity in assessment and collection (Sec. 64 PD 464). 5. Suit assailing the validity of tax sale (Sec. 83 PD 464)

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