REMEDIES IN TAXATION

Remedies of the
Government
1. Governments Lien

Local Taxation

Real Property
Taxation

Tariff and Customs

Code

- superior to all liens,

charges or encumbrances

- lien on the property subject

to tax superior to all liens,
charges or encumbrances

-extinguished
upon
full
payment of delinquent local
taxes, fees, and charges
plus surcharge and interest
(Section 173, LGC)

- extinguished upon payment

of the tax and the related
interests
and
expenses
(Section 257, LGC)

- attaches on the goods

regardless of the ownership
while the goods are still in the
custody or control of the
government
- applicable only when the
importation
is
neither
prohibited
nor
improperly
made
- the proceeds are applied to
the tax liability, surcharges and
costs of the sale. The excess
goes to the taxpayer. Taxpayer
is required to make good any
deficiency.
General Rule: the lien is
beyond the reach of the
regular courts.
Exception: when the goods
are released and the tax lien is
lost, in which case, a judicial
action against the importer
may be instituted.

2. Distraint

- of goods, chattels, or
effects, and other personal
property including stocks
and other securities, debts,
credits, bank accounts, and
interest in and rights to

- the notice of delinquency

shall specify the date upon
which the tax became
delinquent and shall state
that personal property may
be distrained to effect

National Internal
Revenue Code

personal property (Section

174, LGC)
Procedure (Section 175, LGC)
1) Seizure

the
local
treasurer or his deputy
may, upon written notice,
seize or confiscate any
personal
property
belonging to the delinquent
taxpayer
sufficient
in
quantity to satisfy the tax,
fee, or charge
2)

Accounting of distrained
goods

3)

Publication- the officer

executing the distraint shall
cause a notification to be
exhibited in not less than
three (3) conspicuous
places in the territory of
the LGU where distraint
is made. The time of sale
shall not be less than
twenty (20) days after the
notice to the owner and the
publication and posting of
the notice

4)

Release of distrained
property upon payment
prior to sale

5)

Sale- If no payment has

been made as mentioned in
the preceding number, the
officer conducting the sale
shall
sell
the
goods
distrained at public auction
to the highest bidder for
cash. Within five (5) days
after the sale, the local

payment
LGC)

(Section

254[b],

treasurer shall make report

of the proceedings in
writing to the local chief
executive
concerned.
Should the said property be
not disposed of within 120
days from the date of
distraint, the same shall be
considered as sold to the
LGU concerned
6)

3. Levy

Disposition of proceedsthe proceeds shall be

applied to the to satisfy the
tax plus the surcharges,
interest and other penalties
incident to the delinquency
and the expenses of the
distraint and sale. The
excess shall be returned to
the owner of the property
sold

- real property and interest in

and rights to real property
(Section 174, LGC)

Procedure (Sections 176-180,

LGC)
1) Provincial, city or municipal
treasurer shall prepare a
duly
authenticated

- after the expiration of the

time required to pay the
basic real property tax or
any other tax, real property
subject to such tax may be
levied upon through the
issuance of a warrant on or
before, or simultaneously
with, the institution of the
civil action for the collection
of
the
delinquent
tax
(Section 258, LGC)
Procedure (Sections 258-265,
LGC)
1) Warrant of Levy shall be
issued
by
the
Local
Treasurer which has the
force of legal execution in

certificate
showing
the
name of the taxpayer, the
tax, fee, or charge due. It
shall operate with force
throughout the Philippines.
Written notice of the levy
shall be mailed to or served
upon the assessor AND the
Register of Deeds of the
province or city where the
property is located, and to
the delinquent taxpayer
Note:
a) if delinquent taxpayer is
absent
from
the
Philippines, to his agent
or the manager of the
business in respect to
which the liability arose;
b) if no agent or manager,
to the occupant of the
property in question.

the LGU concerned

2)

Warrant shall be mailed to

or
served
upon
the
delinquent owner. Written
notice and warrant of the
levy is mailed/served upon
the assessor and the
Register of Deeds.

3)

Thirty (30) days from the

service of the warrant, the
local
treasurer
shall
advertise sale of the
property by posting a notice
at main entrance of the
LGU hall/ building and in a
conspicuous place in the
barangay
where
the
property is located AND
publication once a week for
two
weeks
in
the
newspaper
of
general
circulation in the said
province or city where the
property is located.

4)

Owner may stay the

proceedings of the sale by
paying
the
delinquent
taxes,
interests
and
expenses.

5)

If payment was not made

as mentioned in the
preceding number, sale
shall be held at the main
entrance of the LGU
building/hall or on the
property to be sold or any
other place specified in the
notice.

6)

If there is a bidder and the

bid is sufficient to cover the

2)

3)

4)

If the levy was not issued

before or simultaneously
with the warrant of distraint
of the personal property
and the personal property
is not sufficient to cover the
delinquency, the provincial,
city or municipal treasurer
shall proceed with the levy
within
30
days
after
execution of the distraint.
Publication- Within 30
days after the levy, the local
treasurer shall publicly
advertise for sale or auction
the property to satisfy the
claim and the cost of sale.
Such advertisement shall
cover 30 days. The notice
of advertisement shall be

posted
at
the
main
entrance of the municipal
building or city hall AND
in
a
public
and
conspicuous place in the
barangay where the real
property is located, and
by publication once a
week for three weeks in a
newspaper
of
general
circulation in the province,
city or municipality where
the property is located
5)

Sale- held at the main

entrance of the of the
provincial, city or municipal
building, or on the property
to be sold, or at any place
as determined by the local
treasurer conducting the
sale

6)

Report of the sale- within

30 days after the sale to the
sanggunian concerned

7)

Delivery of the certificate

of sale- local treasurer
shall make and deliver the
certificate of sale to the
purchaser

8)

Redemption of property
sold- within 1 year from the
date of sale, the delinquent
taxpayer
or
his
representative shall have
the right to redeem the
property upon payment of
the taxes, fees, and
charges

9)

In case of failure to redeem

as mentioned in the

delinquent taxes, interests

and costs, the bidder pays
and the local treasurer shall
report the sale to the
sanggunian within 30 days
after the sale. The local
treasurer shall deliver the
certificate of sale to the
purchaser. Excess of the
proceeds is given back to
the owner.
NOTE:
Within 1 year from the
sale, the owner may
redeem
the
property
upon payment of the
delinquent tax, interest
due, and expenses of
sale, and additional of
interest of 2% per month
7)

If there is no bidder or the

bid is insufficient to cover
the
delinquent
taxes,
interests, and costs, the
local
treasurer
shall
purchase the property in
behalf of the LGU.
NOTE:
Within 1 year from
forfeiture, the owner may
redeem the property by
paying to the treasurer
full
amount
of
tax,
interests, cost of sale

8)

Levy may be repeated until

full amount due, including
all expenses, is collected

preceding number, the local

treasurer shall execute a
deed conveying to the
purchaser

NOTE:
*Either remedy, distraint or
levy,
may
be
used
concurrently
or
simultaneously
at
the
discretion of the LGU
(Section 174, LGC)
*The taxpayer may stay the
proceedings of sale by
paying the taxes, fees,
charges, penalties and
interests
ANY
TIME
BEFORE the date fixed for
the sale. (Section 178,
LGC)
*The owner shall not be
deprived
of
the
possession of the property
and shall be entitled to the
rentals and other income
until the expiration of the
time
allowed
for
redemption (Section 179,
LGC)
*The remedies by distraint
and levy may be repeated
if necessary until the full
amount due, including all
expenses, is collected
(Section 184, LGC)
4. Judicial Action

Local taxes, fees, or charges

may be collected within five

The LGU concerned may

enforce the collection of the

Judicial action (civil and

criminal) is normally availed of

(5) years from the date of

assessment
by
administrative or judicial
action (Section 194[c], LGC)

basic real property tax by

civil action in any court of
competent jurisdiction. The
civil action shall be filed in
accordance with Section 270
of the LGC (Section 266,
LGC)

when the tax lien is lost

through the release of the
goods.
Judicial
action
and
proceedings
instituted
in
behalf of the Government shall
be subject to the supervision
and
control
of
the
Commissioner.
Civil and criminal actions are
instituted in the name of the
government and shall be
conducted by customs officers.
No civil or criminal action for
recovery of duties nor the
enforcement of any fine,
penalty or forfeiture shall be
filed in court without the
Commissioners
approval
(Sec.
2410,
TCCP,
as
amended by RA 9135).

5. Other Remedies

a. Administrative Fines
-applied when the importation
is unlawful or involves articles
which are prohibited from
being imported, including the
vessel
General Rule: It may be
exercised even when the
articles articles are not or no
longer in the custody of the
customs
Exception:
When
the
importation
is
merely
attempted, in which case, it

may be effected only while the

goods are within the customs
jurisdiction or in the hands of a
person who is aware thereof
(Secs. 2531 & 2530, TCCP).
b. Seizure, Search, Arrest
(Secs. 2205, 2210, 2211,
TCCP).
c. Surcharges (Secs. 25022504, TCCP)
d. Fines (Secs. 2505-2529,
TCCP).
d. Forfeitures
Jurisdiction:
Bureau
of
Customs
(exclusive
and
original), from the moment the
goods are actually in the
possession or control, even as
no warrant of seizure or
detention had previously been
issued by the Collector of
Customs in connection with
the seizure and forfeiture
proceedings (Republic v. CFI,
GR No. L-43747).
Note: RTCs are devoid of any
competence to pass upon the
validity or regularity of seizure
and forfeiture proceedings
conducted by the BOC and to
enjoin or otherwise interfere
with
these
proceedings
(SBMA v. Merlino Rodriguez
and
WIRA
International
Trading
Corp.,
GR
No.

160270, April 23, 2010).

Nature: Administrative and
civil, directed against the thing
itself. In this proceeding, it is in
legal contemplation the
property itself which commits
the violation and is treated as
the offender, without reference
whatsoever to the character or
conduct of the owner
(Transglobe International Inc.
v. Court of Appeals, G.R. No.
126634, January 25, 1999).
Forfeiture is in rem, whereas a
criminal action is in personam.
Conviction in the criminal
action is not a bar on
forfeiture. Results of a criminal
proceeding on the evidence
therein will not necessarily
render judgment in forfeiture
proceedings (Commissioner of
Customs v. CTA, GR No. L31733, September 20, 1985).

Remedies of the
Taxpayer
1.
Protest
newly
ordinance

against
enacted

Local Taxation

Real Property
Taxation

To the Secretary of Justice,

within 30 days from the
effectivity;

To the Secretary of Justice,

within 30 days from the
effectivity;

Decision of the Secretary of

Justice must be rendered
within 60 days from the date
of the receipt of the appeal;

Decision of the Secretary of

Justice must be rendered
within 60 days from the date
of the receipt of the appeal;

Taxpayer must file an

appropriate action with the
Regional Trial Court within

Taxpayer must file an

appropriate action with the
Regional Trial Court within

Tariff and Customs

Code
-

National Internal
Revenue Code

2. Declaratory Relief
3.
Protest
assessment

against

30 days from the receipt of

the decision of the Secretary
of Justice OR after the lapse
of the 60-day period to
decide

30 days from the receipt of

the decision of the Secretary
of Justice OR after the lapse
of the 60-day period to
decide

NOTE:
*The
appeal
to
the
Secretary of Justice shall
not suspend the effectivity
of the ordinance
Whenever applicable

NOTE:
*The
appeal
to
the
Secretary of Justice shall
not suspend the effectivity
of the ordinance
-

Within 60 days from receipt

of the notice of assessment,
the taxpayer may file a
written protest with the local
treasurer; otherwise, the
assessment shall be final
and executor

Appeal to the Local Board

of Assessment Appeals:
Any owner or person
having legal interest in the
property who is not satisfied
with the assessment of the
provincial, city, or municipal
assessor may, within 60
days from the date of the
receipt of the written notice,
appeal to the Board of
Assessment Appeals of the
province or city by filing a
petition under oath together
with the copies of tax
declarations
and
such
affidavits to support the
appeal (Section 226, LGC)

If the local treasurer finds

the protest to be wholly or
partially meritorious, he shall
issue a notice cancelling,
wholly or partially, the
assessment.
If the local treasurer finds
the assessment to be wholly
or partially correct, he shall
deny the protest wholly or
partially with notice to
taxpayer.
The taxpayer shall have 30
days from the receipt of the
denial of the protest OR from
the lapse of the 60-day
period prescribed within

Appeal to the Central

Board
of
Assessment
Appeals:
The owner of the property
or the person having legal
interest therein who is not
satisfied with the decision of
the LBAA may, within 30

Availed of when the legality or

correctness of the assessment
or appraisal is questioned by
the importer.
Payment under protest, as well
as the payment of the
corresponding docket fees is
required (Sec. 2308, TCCP).
General Rule: Any importer or
interested party, if dissatisfied
with the published value, may
within 15 days from the date of
publication or within 15 days
from the date the importer is
entitled to refund if payment is
rendered erroneous or illegal
by events occurring after the
payment may file a protest.
Effect of non-filing of protest:
The action of the collector
shall be final and conclusive
against him, except as to
matters collectible for manifest
clerical error.

which to appeal with the

Regional
Trial
Court
(Section 195, LGC)

days after receipt of the

decision of LBAA, appeal to
the CBAA.

Exception: No protest is
required in seizure cases.

Appeal to the Court of

Appeals
The party adversely
affected by the decision of
the CBAA may appeal such
decision to the Court of
Appeals within 15 from
receipt of the CBAAs
decision (Rule 43, Rules of
Court)
4. Tax Refund or Tax
Credit

A written claim for refund or

credit shall be filed with the
local treasurer within two (2)
years from the date of the
payment of the tax, fee, or
charge OR from the date the
taxpayer is entitled to a
refund or credit (Section
196, LGC)

When an assessment is
found to be illegal or
erroneous and the tax is
accordingly
reduced
or
adjusted, the taxpayer may
file a written claim for the
refund or credit for taxes and
interest with the provincial or
city treasurer within two (2)
years from the date the
taxpayer is entitled to such
reduction or adjustment.
The
provincial or
city
treasurer is required to
decide within 60 days from
the receipt thereof. If the
claim is denied or not acted
upon within 60 days, the
taxpayer may appeal with
the regular courts and NOT
Court of Tax Appeals
(Section 253, LGC)

Drawback (Secs. 1701-1708,

TCCP)
An allowance made by the
government upon the duties
due
on
the
imported
merchandise
when
the
importer, instead of selling it
here, re-exports it or refunding
of such duties if already paid.
This allowance amounts, in
some cases, to the whole of
the original duties; in others, to
a part only (Blacks Law
Dictionary).

5. Right of Redemption

The owner/taxpayer has one

The owner of the delinquent

6. Abatement

(1) year from the date of the

sale or from the date of the
forfeiture to redeem

real property or person

having legal interest therein,
or his representative, shall
have the right to redeem the
property within one (1) year
from the date of the sale
upon payment to the local
treasurer of the amount of
the delinquent tax including
interest due thereon, and the
expenses of the sale, plus
interest of not more than 2%
per month on the purchase
price (Section 261, LGC)

General Rule: No abatement

of duties made on account of
damage
incurred
or
deterioration suffered during
the voyage of importation and
duties will be assessed on the
actual quantity imported (Sec.
1701, TCCP).
Exceptions:
1. When any package or
packages appearing
on the manifest or bill
of lading are missing,
a remission or refund
of the duty thereon
shall be made if it is
shown
by
proof
satisfactory to the
Collector
that
the
package or packages
in question have not
been imported into the
Philippines
(Sec.
1702, TCCP).

2. If, upon opening any

package, a deficiency
or absence of any
article, or of part of the
contents thereof, as
called for by the
invoice shall be found
to
exist,
such
deficiency shall be
certified
to
the
Collector
by
the
appraiser; and upon
the production of proof
satisfactory to the
Collector showing that
the shortage occurred
before the arrival of
the article in the
Philippines, the proper
abatement or refund of
the duty shall be made
(Sec. 1703, TCCP).
3. Upon
satisfactory
proof of the injury,
destruction, or loss by
theft, fire or other
causes of any article
as follows:
a. While within the
limits of any port
of entry prior to
unlading
under
customs
supervision
b. While remaining in
customs custody
after unlading
c. While in transit
under bond from
the port of entry to

6. Compromise

7. Other Remedies

any port in the

Philippines.
While released under bond to
export, except in case of loss
by theft (Sec. 1704, TCCP).
Subject to the approval of the
Secretary of Finance, the
Commissioner of Customs
may
compromise
cases
involving the imposition of
fines,
surcharges,
and
forfeitures unless otherwise
specified by law (Sec. 2316,
TCCP).
a. Settlement of any
Seizure by Payment
of Fine or Redemption
(Sec. 2307, TCCP).
b. Abandonment
The
renunciation by an
importer of all his
interests and property
rights
in
imported
articles (Sec. 180,
TCCP). It can be
express
(Sec.
1801[a]) or implied
(Sec. 1801[b]).
c. Appeal Within 30
days from the receipt
of the decision of the
Commissioner or the
Secretary of Finance
to the division of the
Court of Tax Appeals
(Sec. 2403, TCCP;
Sec. 7, RA 1125 as
amended by Sec. 9,

RA 9282).

Authorized to
impose taxes
Manner and Time
of Payment

Provinces,
municipalities,
barangays

cities,
and

Taxes, fees, and charges

may be paid in quarterly
installments (Section 165,
LGC)
General Rule: paid within
the first twenty (20) days of
January
or
of
each
subsequent quarter, as the
case may be.
Exception: unless otherwise
provided in the Local
Government Code

Provinces,
cities,
and
municipalities (Metro Manila
only)
In
four
(4)
installments:

equal

- first installment, to be due

and payable on or before
March Thirty-first (31st);
- second installment, on or
before June Thirty (30);
- third installment, on or
before September Thirty
(30); and
- last installment on or
before December Thirty-first
(31st) (Section 250, LGC)

The sanggunian concerned

may, for a justifiable reason
or cause, extend the time for
payment of such taxes, fees,
or
charges
without
surcharges or penalties, but
only for a period not
exceeding six (6) months
(Section 167, LGC)

Accrual of Tax

General Rule: first (1st) day

of January of each year
Exceptions:
1) unless otherwise provided
in the Local Government
Code
2)

new

taxes,

fees

or

The real property tax for any

year shall accrue on the first
(1st) day of January (Section
246, LGC)

charges, or changes in the

rates thereof, shall accrue
on the first (1st) day of the
quarter next following the
effectivity of the ordinance
imposing such new levies
or rates (Section 166, LGC)

Statute of
Limitations:
1) Assessment

General Rule: within five

(5) years from the date they
became
due
(Section
194[a], LGC)

No express provision in the

Local Government Code
regarding the prescriptive
period to assess

Exceptions:
1) within three (3) years
from the date they became
due those taxes, fees or
charges which have accrued
before the effectivity of this
Code (Section 194[a], LGC)
2) in case of fraud or intent
to evade payment, within
ten (10) years from the
discovery of the fraud
(Section 194[b], LGC)

2) Collection

General Rule: within five

(5) years from the date of
assessment
by
administrative or judicial
action (Section 194[c], LGC)

General Rule: within five

(5) years from the date they
become due

Exception: within three (3)

Exception: within ten (10)

Grounds for the

suspension of the
periods of
prescription

years from the date of

assessment for taxes, fees
or charges assessed before
the effectivity of this Code
(Section 194[c], LGC)

years in case of fraud or

intent to evade payment
(Section 270, LGC)

1) The treasurer is
legally
prevented
from making the
assessment
or
collection;
2) The
taxpayer
requests
for
a
reinvestigation and
executes a waiver in
writing
before
expiration of the
period within which
to assess or collect;
3) The taxpayer is out
of the country or
otherwise cannot be
located
(Section
194[d], LGC)

1) The local treasurer

is legally prevented
from collecting tax;
2) The owner of the
property
or
the
person having legal
interest
therein
requests
for
reinvestigation and
executes a waiver in
writing before the
expiration of the
period within which
to collect;
3) The owner of the
property
or
the
person having legal
interest therein is
out of the country or
otherwise cannot be
located
(Section
270, LGC)

Local Taxation and Real Property Taxation- Pat

Tariff and Customs Code- Jm
National Internal Revenue Code- Louise