Assessment

Flowchart
Taxpayer files
a return

Tax Audit by
virtue of LoA

Examine
r is
Yes
End
satisfied
?

No
Notice of Informal
Conference is
issued inviting the
taxpayer to
explain

Examine
r is Yes
satisfied End
?

No

notice to the requires the

taxpayer of the taxpayer to
findings in the form explain within
of a pre-assessment fifteen (15) days
notice (PAN) from receipt

Commission Yes
er is End
?satisfied

The notice of assessment must be issued by the

Commissioner to the taxpayer within a period of
three (3) years from the time the tax return was
filed or should have been filed whichever is the
later of the two events.
No
Where the taxpayer did not file a tax return or
where the tax return filed is false or fraudulent,
then the Commissioner has a period of ten (10)
years from discovery of the failure to file a tax
notice of assessment
return or from discovery of the fraud within which
and a letter of to issue an assessment notice.
demand is issued The running of the above prescriptive periods
(FAN) may however be suspended under certain
instances.

The notice of assessment must be issued within

the prescriptive period and must contain the
facts, law and jurisprudence relied upon by the
Commissioner. Otherwise it would not be valid.
 Protest by
Reconsideration or
Reinvestigation

Is there an
administrative Assessment becomes
protest filed
No
within 30 days
final, executory and
from receipt of demandable
?FAN

No
Yes

Submission of
supporting Supporting
documents within 60 documents
days from the filing ?submitted
of the protest

Yes

Protest granted
Decision or Assessment is
Action of
?CIR dismissed

Protest denied or not acted upon within

180 days from submission of
supporting documents

Appeal to CTA is
filed within 30 days
from receipt of No Assessment
the adverse becomes final,
decision, or from executory and
the lapse of the demandable
?180- day period

Yes

CTA division
decides
 Appeal by way
No Assessment
of Petition for
becomes final,
Review is filed
executory and
within 15 days demandable
?to CTA en banc

Yes

CTA en banc
decides

Appeal by way
of filing petition No Assessment
for review on becomes final,
certiorari (Rule executory and
45) within 15 demandable
days to SC

Yes

SC decides

End of
Controvers
y
Alternative: instead of appeal, file MR of the denial of the administrative protest
with the Commissioner. However, the MR will not toll the 30-day period to appeal
to the CTA. (Fishwealth Cannine Corp. v. CIR 21 January 2010)

different rule if the protest was decided by CIR's duly authorized representative
TP may elevate the denial to the Commissioner and the 30-day period to appela does
not begin to run.