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REMEDIES OF THE TAXPAYER

A. AMEND TAX RETURN

Sec. 6(A), NIRC, last paragraph


Rev. Mem. Cir. No. 40-2003, July 3, 2003

B. PROTEST ASSESSMENT

1. Procedure

Sec. 3, Rev. Regs. No. 12-99, Sept. 6, 1999


Rev. Regs. No. 18-2013, Nov. 28, 2013

2. Notice of Informal Conference

Pilipinas Shell Petroleum Corp. v. CIR, 541 SCRA 316 (2007)

3. Preliminary Assessment Notice (PAN)

Sec. 228, NIRC


Rev. Mem. Cir. No. 11-2014, Feb. 18, 2014

a. Exceptions

Sec. 228(a) to (e), NIRC

b. Effect of Failure to Receive PAN

CIR V. Menguito, G.R. No. 167560, Sept. 17, 2008, 565 SCRA
461 (2008)
CIR v. Metro Star Superama, Inc., G.R. No. 185371, Dec. 8, 2010,
637 SCRA 633 (2010)
Pilipinas Shell Petroleum Corp. v. CIR, supra

4. Final Assessment Notice

Sec. 228, NIRC


Rev. Mem. Cir. No. 11-2014, Feb. 18, 2014

5. Requirement to Inform Taxpayer of Factual and Legal Basis of Assessment

Sec. 228, NIRC

CIR v. Reyes, 480 SCRA 382 (2006)


CIR v. Enron Subic Power Corp, 576 SCRA 212, 218 (2009)
CIR v. Bank of the Philippine Islands, 521 SCRA 373, 383-385 (2007)

6. Submission of Supporting Documents and Effect of Non-Compliance

Sec. 228, NIRC


2

Rev. Mem. Cir. No. 11-2014, Feb. 18, 2014

CIR v. First Express Pawnshop Company, Inc., G.R. No. 172045-06, June
16, 2009, 589 SCRA 253 (2009)

7. Effect of Failure to File Protest

Sec. 228, NIRC

Marcos II v. Court of Appeals, 273 SCRA 47 (1997)


Dayrit v. Cruz, 165 SCRA 571 (1988)

II. IN CASE OF DENIAL OF PROTEST OR INACTION, APPEAL TO CTA

A. What Constitutes Denial of Protest/Decision on Disputed Assessment

1. General Rule

2. Issuance of Revised Assessment Upon Reinvestigation

Rev. Mem. Cir. No. 11-2014, Feb. 18, 2014

3. Final Notice Before Seizure

Oceanic Wireless Network, Inc. v. CIR, 477 SCRA 205, 211-213 (2005)
CIR v. Isabela Cultural Corp., 361 SCRA 71 (2001)

4. Final Demand Letter

CIR v. Ayala Securities Corp., 70 SCRA 204 (1976)


Allied Banking Corp. v. CIR, G.R. No. 175097, Feb. 5, 2010

5. Filing of Collection Suit

CIR v. Union Shipping Corp., 185 SCRA 547 (1990)


Cf. San Juan v. Vasquez, 3 SCRA 92 (1961)

6. Referral to Solicitor General for Collection

Republic v. Lim Tian Teng Sons & Co., Inc., 16 SCRA 584 (1966)

7. Issuance of Warrant of Distraint and Levy

Phil. Planters Investment Co., Inc. v. Acting CIR, CTA Case No. 1266,
Nov. 11, 1962
Hilado v. CIR, CTA Case No. 1256, Oct. 22, 1962
Central Cement Corporation v. CIR, CTA Case No. 4312, Sept. 1, 1993
Cf.
CIR v. Algue, Inc., 158 SCRA 9 (1988)
Advertising Associates, Inc. v. CA, 133 SCRA 765 (1984)
3

8. Effect of MR of Denial of Protest

Fishwealth Canning Corporation v. CIR, 610 SCRA 524 (2010)


CIR v. Bank of the Philippine Islands, 521 SCRA 373, 377-388 (2007)
Oceanic Wireless Network, Inc. v. CIR, 477 SCRA 205, 211-212 (2005)
Surigao Electric Co., Inc. v. CTA, 57 SCRA 523

B. Scope of Jurisdiction of CTA/What is Appealable to CTA

Sec. 4, 2nd par., NIRC


Sec. 228, NIRC
Sec. 7, Rep. Act No. 1125, as amended by Rep. Act No. 9282

CIR v. Villa, 22 SCRA 4 (1968)


Meralco Securities Corp. v. Savellano, 117 SCRA 804 (1982)
CIR v. COA, G.R. No. 101976, Jan. 29, 1993, 218 SCRA 203 (1993)
Savellano v. COA, G.R. No. 102258, Jan. 29, 1993, 218 SCRA 203 (1993)
PNOC v. Court of Appeals, 457 SCRA 32, 76-77 (2005)
Secretary of Finance v. Agana, 62 SCRA 689
CIR v. Josefina Leal, 392 SCRA 9 (2002)
Asia International Auctioneers, Inc. v. Parayno, Jr., 540 SCRA 536 (2007)
British American Tobacco v. Camacho, et. al., G.R. No. 163583, Aug. 20, 2008,
562 SCRA 511 (2008)
Philippine American Life and General Insurance Company v. Secretary of
Finance, G.R. No. 210987, November 24, 2014
Tan Tiong Bio et. al. v. BIR, 100 Phil. 86 (1956)
Acting Collector of Customs v. CTA, 102 Phil. 244
Southern Cross Cement Corporation v. Cement Manufacturers Association of
the Philippines, 465 SCRA 532, 571-582 (2005)

C. Matters Not Appealable to CTA

1. Tax Rulings

2. Unfair Competition

Ollada v. CTA, 99 Phil. 604

3. Declaratory Relief

D. Application of 180-day Rule

Sec. 3(a)(2), Rule 4 and Sec. 3(a), Rule 8, Revised Rules of the CTA (S.C. A.M.
No. 05-11-07-CTA, Nov. 22, 2005)

Lascona Land Co., Inc. v. CIR et. al., CTA Case No. 5777, Jan. 4, 2000
Rizal Commercial Banking Corp. v. CIR, 522 SCRA 144 (2007)

E. Mode of Appeal and Effect of Appeal

Collector v. Yuseco and CTA, 3 SCRA 313


4

Collector v. Batangas Trans. Co. et. al, 102 Phil. 822 (1958)

1. Appeal to a Division of the CTA

Sec. 11, Rep. Act No. 1125, as amended by Rep. Act No. 9282
Commissioner of Customs v. Gelmart Industries Philippines, Inc., 579 SCRA 272,
284-285 (2009)

2. Appeal to CTA En Banc

Sec. 18, Rep. Act No. 1125, as amended by Rep. Act No. 9282

Commissioner of Customs v. Marina Sales, Inc., G.R. No. 183868, Nov. 22, 2010,
635 SCRA 606, 613-614 (2010)
Judy Anne L. Santos v. People and BIR, G.R. No. 173176, Aug. 26, 2008

F. Period to Appeal

Sec. 228, last par., NIRC


Sec. 11, Rep. Act No. 1125, as amended by Rep. Act No. 9282

St. Stephen’s ‘Association v. Collector of Internal Revenue, 104 Phil. 314, 317-
318 (1958)
Baguio Country Club v. Collector, 105 Phil. 1269 (1959)
Roman Catholic Archbishop of Cebu v. Collector, 4 SCRA 279 (1962)
Pantranco v. Blaquera, 107 Phil. 975 (1960)
Basa v. Republic, 138 SCRA 34 (1985)
Mambulao Lumber Co. v. CIR, 132 SCRA 1 (1984)
Republic v. Court of Appeals, 149 SCRA 351, 357 (1987)
Collector v. CTA, 109 Phil. 1027 (1960)
CIR v. Union Shipping Corp., supra
Advertising Associates, Inc. v. CA, supra
CIR v. Algue, Inc., supra
Lascona Land Co., Inc. v. CIR et. al., CTA Case No. 5777, Jan. 4, 2000
Rizal Commercial Banking Corp. v. CIR, 522 SCRA 144 (2007)

III. APPEAL TO SUPREME COURT

Sec. 19, Rep. Act No. 1125, as amended by Rep. Act No. 9282

A. Mode of Appeal

B. Effect of Appeal to Supreme Court

IV. REFUND AND/OR TAX CREDIT OF ERRONEOUSLY PAID TAX

A. What Constitutes Erroneous Payment

CIR v. Central Azucarera Don Pedro, 49 SCRA 474


CIR v. PNB, 474 SCRA 303, 315 (2005)
5

B. Requirement of Filing Administrative Claim

Sec. 229, NIRC


Sec. 204(C), NIRC

Santiago Bermejo v. Collector, 87 Phil. 96 (1950)


Andrea Vda. De Aguinaldo v. CIR, 13 SCRA 269 (1965)
CIR v. Acosta, 529 SCRA 177 (2007)

C. Exception to Requirement of Filing Administrative Claim

Sec. 204(C), NIRC


Sec. 229, NIRC, proviso, last paragraph

D. Effect of Supervening Event

Sec. 229, NIRC

Manila Electric Co. v. CIR, CTA Case No. 7107, Oct. 16, 2006
CIR v. Central Azucarera Don Pedro, supra

E. Payment Under Protest Not Needed

Ramie Textiles, Inc. v. Mathay, 89 SCRA 586

F. Utilization of Tax Credit Certificate; Meaning of Tax Debit Memo

Sec. 204(C), NIRC, 2nd paragraph

Pilipinas Shell Petroleum Corp. v. CIR, 541 SCRA 316 (2007)

Rev. Mem. Order No. 86-98, Nov. 10, 1998 (check new issuance)
Rev. Regs. No. 5-2000, July 19, 2000

BIR Rul. No. 164-98, Nov. 23, 1998


BIR Rul. No. 165-98, Nov. 23, 1998
BIR Rul. No. 113-99, July 29, 1999
BIR Rul. No. 192-99, Dec. 6, 1999

G. Forfeiture of Refund or Tax Credit

Sec. 230, NIRC

H. Offsetting Against Deficiency Tax Assessments

CIR v. Cebu Portland Cement Co., 156 SCRA 535, 541 (1987)
BPI Securities Corp. v. CIR, CTA Case No. 6089, Aug. 22, 2002
A. Soriano Corp. v. CIR, CTA Case No. 5351, Oct. 27, 1998
Republic v. Mambulao Lumber Co., 6 SCRA 858
Domingo v. Garlitos, 8 SCRA 443
FNCB Finance v. CIR, CTA Case No. 3717, May 10, 1993
6

BIR Rul. No. 359-93, August 26, 1993

I. Whether Government is Liable for Interest, Attorney’s Fees, Etc.

Philex Mining Corp. v. CIR, et. al., G.R. No. 120324, April 21, 1999
Collector v. Sweeney, 106 Phil. 59 (1959)
Victorias Milling Co., Inc. v. Commissioner, 19 SCRA 430 (1967)

J. Proper Party to File a Claim for Refund or Tax Credit

K. Taxes Not Subject of Set-Off

L. Solutio Indebiti as Basis of Tax Refund/Credit

CIR v. Acesite (Philippines) Hotel Corporation, 516 SCRA 93, 102-103


(2007)
CIR v. Tokyo Shipping Co., Ltd., 244 SCRA 332 (1995)
AB Leasing and Finance Corporation v. CIR, 405 SCRA 380 (2003)
CIR v. Meralco, 535 SCRA 399 (2007)
Philam Asset Management, Inc. v. CIR, 477 SCRA 761, 776 (2005)
Republic v. Team (Phils.) Energy Corporation (formerly Mirant (Phils.)
Energy Corporation, G.R. No. 188016, Jan. 14, 2015, 746 SCRA 41
Winebrenner & Iñigo Insurance Brokers, Inc. v. Commissioner of Internal
Revenue, G.R. No. 206526, Jan. 28, 2015, 748 SCRA 591
Commissioner of Internal Revenue v. Bank of the Philippine Islands, G.R.
No. 178490, July 7, 2009, 592 SCRA 219

M. Substantiation Requirements for Refund Claims: Withholding Tax Certificates,


etc.

Citibank N.A. v. CA and CIR, 280 SCRA 459


Far East Bank and Trust Co. v. CA, 477 SCRA 49, 54 (2005)
Banco Filipino Savings and Mortgage Bank v. CA, 519 SCRA 93, 99
(2007)
PLDT v. CIR, 543 SCRA 329 (2008)
CIR v. A. Soriano Corporation, 267 SCRA 313 (1997)
Filinvest Development Corporation v. CIR, 529 SCRA 605 (2007)
BPI Family Savings Bank v. CA, 330 SCRA 507 (2000)
CIR v. Meralco, supra
State Land Investment Corp. v. CIR, 542 SCRA 114 (2008)
CIR v. Far East Bank & Trust Co., G.R. No. 173854, March 16, 2010

V. APPEAL IN CASE OF DENIAL OF REFUND/TAX CREDIT CLAIM

A. CTA (Division and En Banc)

Sec. 7(a)(1), (2), Rep. Act No. 1125, as amended by Rep. Act No. 9282
Sec. 11, Rep. Act No. 1125, as amended by Rep. Act No. 9282
Sec. 18, Rep. Act No. 1125, as amended by Rep. Act No. 9282
7

CTA Circular No. 1-95


Rev. Mem. Circular No. 49-2003, Aug. 15, 2003

B. Supreme Court

Sec. 19, Rep. Act No. 1125, as amended by Rep. Act No. 9282

VI. STATUTE OF LIMITATIONS

A. Period to File Protest

Sec. 228 , NIRC

Pantranco v. Blaquera, 107 Phil. 975


Dy Pac & Co., Inc. v. CTA, 78 SCRA 442
Commissioner v. Concepcion, 22 SCRA 1058
Basilan Estates, Inc. v. CIR, 21 SCRA 17
Republic v. CA, 149 SCRA 351 (1987)

B. Period to File Refund or Tax Credit Claim

Sec. 204(C), NIRC


Sec. 229, NIRC

Trans-Philippines Investment Corp. v. CIR, CTA Case No. 4889,


Sept. 11, 1995
Collector v. Sweeney, 106 Phil. 59 (1959)
Gibbs v. CIR, 107 Phil. 232 (1960)
CIR v. CA, et. al. , 301 SCRA 435 (1999)
ACCRA Investments Corp. v. CA, G.R. No. 96322, Dec. 20, 1991
BPI v. CIR, 363 SCRA 840, 844-846 (2001)
CIR v. TMX Sales, Inc., G.R. No. 83736, Jan. 15, 1992
CIR v. Primetown Property Group, 531 SCRA 436 (2007)
CIR v. PL Management International Philippines, Inc., 647 SCRA 72 (2011)
College of Oral & Dental Surgery v. CTA, 102 Phil. 912 (1958)
CIR v. Philippine American Life Insurance Co., 244 SCRA 446
Far East Bank and Trust Company v. CIR, 488 SCRA 473, 484-486 (2006)

VII. REQUEST FOR RULING

Rev. Mem. Order No. 45-99

A. Procedure

Sec. 4, NIRC

B. Appeal Procedure

Sec. 4, NIRC
Rev. Administrative Order No. 3-2001, Oct. 22, 2001
Rev. Mem. Circular No. 40-A-2002, May 7, 2002
8

Philippine American Life and General Insurance Company v. Secretary of


Finance, G.R. No. 210987, November 24, 2014

C. Non-Retroactivity of Revocation of Rulings or Regulations

Sec. 246, NIRC

D. Weight of BIR Rulings

PBCom v. CIR, 302 SCRA 241 (1999), cited in


Nippon Life Insurance Company of the Phils., Inc. v. CIR, CTA Case
No. 6142, Feb. 4, 2002 and Malayan Zurich Insurance Co. v. CIR, CTA Case
No. 6251, Sept. 30, 2002

E. Reliance on Ruling Issued to Third Party

Saniwares v. CIR, CTA Case No. 4150 (Aug. 21, 1992)

F. Authority of Regional Directors to Issue Certain Rulings

Rev. Mem. Circular No. 3-2001, Jan. 31, 2001


See also more recent issuance/s on the matter

VIII. AMNESTY, ABATEMENT AND COMPROMISE

Rev. Regs. No. 30-2002 (Compromise)


Rev. Regs. No. 9-2013, May 10, 2013 (Compromise)
Rev. Mem. Order No. 7-2015 (Revised Schedule of Compromise Penalties)
Rev. Regs. No. 7-2013, April 29, 2013 (Abatement)
Rev. Regs. No. 8-2013, May 10, 2013 (Abatement)
Rev. Regs. No. 4-2016, Jan. 25, 2016 (Simplification of Processing of Applications
for Compromise and Abatement)
Rev. Mem. Cir. No. 61-2014, July 28, 2014 (Amnesty)

LG Electronics Philippines, Inc. v. Commissioner of Internal Revenue, G.R. No.


165451, Decc. 3, 2014, 743 SCRA 511
CIR v. CA, et. al., G.R. NO. 108576, Jan. 20, 1999, 301 SCRA 152 (1999)
PNOC v. Court of Appeals, 457 SCRA 32, 90. 100 (2005)
People v. Sandiganbayan, 467 SCRA 137, 162-163 (2005)
Security Bank Corporation v. CIR, 499 SCRA 453 (2006)
Philippine Banking Corporation (now Global Business Bank, Inc.) v. CIR, 577
SCRA 366, 392 (2009)
Bañas, Jr. v. CA, G.R. No. 102967, Feb. 10, 2000, 325 SCRA 259 (2000)
Republic v. CA, et. al., G.R. No. 109193, Feb. 1, 2000, 324 SCRA 237 (2000)
CIR v. Ariete, 610 SCRA 464 (2010)
CIR v. Philex Mining Corporation, CTA EB No. 578 (CTA Case No. 6780), June
28, 2010
CS Garment, Inc. v. CIR, G.R. No. 182399, March 12, 2014, 718 SCRA 614
Philippine Banking Corporation (Now: Global Business Bank, Inc. v.
Commissioner of Internal Revenue, G.R. No. 170574, January 30, 2009,
577 SCRA 366
9

IX. DECLARATORY RELIEF, CERTIORARI, PROHIBITION AND MANDAMUS

British American Tobacco v. Camacho, et. al., G.R. No. 163583, Aug. 20. 2008
Philippine American Life and General Insurance Company v. Secretary of
Finance, G.R. No. 210987, November 24, 2014
See the Petroleum Dealers case.
See the PEACe Bonds case.
CJH Development Corporation v. BIR, et. al., G.R. No. 172457, Dec. 24, 2008,
575 SCRA 467 (2008)

REMEDIES OF THE GOVERNMENT

I. Examination and Audit of Returns

A. Statutory Basis

Secs. 5 and 6, NIRC

B. Selection of Returns for Audit

Read MAMALATEO, TAX RIGHTS AND REMEDIES 356-380


(2005)

II. BIR’s Investigative/Enforcement Authority

Rev. Mem. Order No. 36-99, Feb. 9, 1999

A. Statutory Basis

1. Administrative Summons to Taxpayer

Sec. 5(C), (D), NIRC


Sec. 6(C), NIRC

2. Third-Party Summons

Sec. 5(B), (C), NIRC

3. Conduct Inventory-Taking, Surveillance

Sec. 6(C), NIRC

4. Prescribe Zonal Value for Real Properties

Sec. 6(E), NIRC

Republic v. Aquafresh Seafoods, Inc., G.R. No. 170389, Oct. 20, 2010,
634 SCRA 82 (2010)
10

5. Inquire into Bank Deposits of Decedent or Person Applying for Compromise due
to Financial Incapacity

Sec. 6(F), NIRC

6. Accreditation of Tax Agents/Practitioners

Sec. 6(G), NIRC


Rev. Regs. No. 4-2010, Feb. 24, 2010
Rev. Regs No. 14-2010, Nov. 25, 2010

1. Rule-Making Authority

See VII, below.

B. Informer’s Reward

Sec. 282, NIRC


BIR Rul. No. 071-00, Dec. 18, 2000

CIR v. COA, G.R. No. 101976, Jan. 29, 1993


Savellano v. COA, G.R. No. 102258, Jan. 29, 1993
Fitness By Design, Inc. v. CIR, 569 SCRA 788, 798 (2008)
Rev. Mem. Circular No. 86-2010, Nov. 15, 2010

III. BIR’s Power to Make Assessments

A. Upon Examination of Returns Filed

Sec. 6(A), NIRC

B. In Case of Failure to Submit Required Reports

Sec. 6(B), NIRC

Sy Po v. CTA, 164 SCRA 524, 527-528 (1988)

C. After Inventory Taking or Surveillance

Sec. 6(C), NIRC

D. Where CIR Terminates Taxpayer’s Taxable Period

Sec. 6(D), NIRC

E. Issuance of Pre-Assessment Notice

Sec. 228, NIRC


Sec. 3, Rev. Regs. No. 12-99, Sept. 6, 1999
Rev. Regs. No. 18-2013, Nov. 28, 2013
Rev. Mem. Cir. No. 11-2014, Feb. 18, 2014
11

Pilipinas Shell Petroleum Corp. v. CIR, 541 SCRA 316 (2007)


CIR v. Menguito, G.R. No. 16750, Sept. 17, 2008, 565 SCRA 461
(2008)

F. Issuance of Final Assessment Notice

Sec. 228, NIRC


Rev. Mem. Cir. No. 11-2014, Feb. 18, 2014

CIR v. Reyes, 480 SCRA 382, 396 (2006)


CIR v. Enron Subic Power Corp., 576 SCRA 212, 218 (2009)

Sec. 3, Rev. Regs. No. 12-99, Sept. 6, 1999

1. What Constitutes an Assessment?

CIR v. Pascor Realty and Dev. Corp., 309 SCRA 402 (1999)
Republic v. Court of Appeals, 149 SCRA 351 (1987)
Basilan Estates, Inc. v. CIR, 21 SCRA 17 (1967)
China Banking Corporation v. Commissioner of Internal Revenue, G.R.
No. 172509, Feb. 4, 2015, 749 SCRA 525, 531
Nava v. CIR, 13 SCRA 104 (1965)
Barcelon, Roxas Securities, Inc. v. CIR, 498 SCRA 126, 136 (2006)
Collector v. Bautista, 105 Phil. 1326, 1327 (1959)
Adamson v. Court of Appeals, G.R. Nos. 120935 and 124557, May 21,
2009, 588 SCRA 27 (2009)
CIR v. Menguito, supra

2. Presumption of Correctness of Assessment

Sy Po v. CTA, supra

3. Assessment Must be Based on Actual Facts

Collector v. Benipayo, 4 SCRA 182 (1962)


CIR v. Hantex Trading Co., Inc., 454 SCRA 301, 329 (2005)

G. Issuance of Tax Verification Notices and Letter Notices

Rev. Mem. Order No. 46-2004, Sept. 2, 2004


Rev. Mem. Order No. 7-2010, Jan. 25, 2010

1. Capital Gains Tax Returns

2. Expanded Withholding Tax Returns

3. Estate and Donor’s Tax Returns

IV. Collection of Unpaid Taxes


12

A. Distraint, Garnishment, Levy and Seizure

Secs. 205-217, 224-225 NIRC


Sec. 202, NIRC
Sec. 11, Rep. Act No. 1125, as amended by Rep. Act No. 9282
Rev. Memorandum Order No. 39-2007, Dec. 12, 2007

People v. Sandiganbayan, 467 SCRA 137, 153 (2005)

B. Civil Action

Sec. 205, NIRC


Sec. 220, NIRC
Sec. 7(b)(2)(c), Rep. Act No. 1125, as amended by Rep. Act No. 9282

Republic v. Lim Tian Teng Sons & Co., 16 SCRA 584 (1966)
San Juan v. Vasquez, 3 SCRA 92 (1961)
Yabes v. Flojo, L-46954, July 20, 1982, 115 SCRA 278 (1982)
Lim, Sr. v. CA, 190 SCRA 616
Republic v. Patanao, 20 SCRA 712 (1967)

C. Criminal Action

Sec. 220, NIRC


Sec. 7(b)(1), Rep. Act No. 1125, as amended by Rep. Act No. 9282

CIR v. Pascor Realty and Dev. Corp, supra


Ungab v. Cusi, Jr., G.R. No. L-41919-24, May 30, 1980, 97 SCRA 877
(1980)
Adamson v. Court of Appeals, supra
Bureau of Internal Revenue v. Court of Appeals, G.R. No. 197590, Nov.
24, 2014

D. Anti-Injunction Rule

1. General Rule

Sec. 218, NIRC

CIR v. Cebu Portland Cement Co., 156 SCRA 535, 541 (1987)
Churchill and Tait v. Rafferty, 32 Phil. 580 (1915)
Collector v. Reyes and CTA, 100 Phil. 822 (1957)
Collector v. Avelino, 100 Phil. 327 (1956)

2. Exception

Sec. 11, Rep. Act No. 1125, as amended by Rep. Act No. 9282
Rule 10, Revised Rules of the CTA (S.C. A.M. No. 05-11-07-CTA, Nov.
22, 2005
13

Pacquiao v. Court of Tax Appeals, First Division, and the Commissioner


of Internal Revenue, G.R. No. 213394, April 6, 2016
Tridharma Marketing Corporation v. CTA, Second Division, and the
Commissioner of Internal Revenue, G.R. No. 215950, June 20, 2016

E. Nature and Extent of Tax Lien

Sec. 219, NIRC

F. Compromise and Abatement

Sec. 204 (A) and (B), NIRC


Rev. Regs. No. 30-2002, Dec. 16, 2002

Security Bank Corporation v. CIR, 499 SCRA 453 (2006)


People v. Sandiganbayan, supra
PNOC v. Court of Appeals, 457 SCRA 32, 90 (2005)

BIR Rul. No. 111-99, July 22, 1999


BIR Rul. No. 059-01, Dec. 20, 2001

G. Liability of Corporate Officers and Stockholders

Proton Pilipinas Corporation v. Republic, 504 SCRA 528, 546 (2006)

V. Imposition of Surcharge, Interest, and Compromise Penalty

A. Civil Penalties

Sec. 248, NIRC


Secs. 250-252, NIRC
Secs. 4 & 5, Rev. Regs. No. 12-99, Sept. 6, 1999

Philippine Refining Company v. CA, 256 SCRA 667, 678 (1996)


BPI v. CIR, 496 SCRA 601, 619-620 (2006)
Tambunting Pawnshop, Inc. v. CIR, 610 SCRA 514 (2010)
Michel J. Lhuillier Pawnshop, Inc. v. CIR, 501 SCRA 450, 453-454
(2006)
Connel Bros. Co. (Phil.) v. CIR, 9 SCRA 735, 740 (1963)
Tuason, Jr. v. Lingad, 58 SCRA 170, 178-179 (1974)
CIR v. Republic Cement Corporation, 124 SCRA 46, 62-63 (1983)
Antam Pawnshop Corp. v. CIR, 566 SCRA 57, 74-75 (2008)
CIR v. Javier, Jr., 199 SCRA 824, 831 (1991)
CIR v. Japan Air Lines, 202 SCRA 450, 458 (1991)
Insular Lumber Co. v. CIR, L-7190, April 28, 1956

BIR Rul. No. 002-95, Jan. 6, 1995


BIR Rul. No. 48-99, April 13, 1999
BIR Rul. No. 205-99, Dec. 28, 1999
BIR Rul. No. 059-01, Dec. 20, 2001
14

B. Interest

Sec. 249, NIRC


Sec. 5. Rev. Regs. No. 12-99, Sept. 6, 1999

Cagayan Electric v. CIR, 138 SCRA 629 (1985)


Cf: Republic v. Heras, 32 SCRA 507, 513-514 (1970)

C. Compromise Penalty

Sec. 6, Rev. Regs. No. 12-99, Sept. 6, 1999


Rev. Mem. Order No. 1-90, Nov. 28, 1989

CIR v. Lianga Bay Logging Co., Inc., 193 SCRA 86, 92-93 (1991)
CIR v. Japan Air Lines, Inc., 202 SCRA 450, 459 (1991)
Philippine Int’l Fair, Inc. v. Collector, 4 SCRA 774 (1962)

VI. Statute of Limitations

A. Period to Assess

Sections 203, 222, 223, NIRC

i. When is an Assessment Deemed Made?

Basilan Estates, Inc. v. CIR, 21 SCRA 17 (1967)


Republic v. Court of Appeals, 149 SCRA 351 (1987)
Barcelon, Roxas Securities, Inc. v. CIR, 498 SCRA 126, 136 (2006)
CIR v. Bautista, 105 Phil. 1326, 1327 (1959)

ii. Effect of Filing an Amended Return

CIR v. Phoenix Assurance Co., Ltd., L-19127, May 20, 1965, 14 SCRA
52, 58-59 (1965)

iii. Effect of Filing a Wrong Return

CIR v. Cebu Portland Cement Company, supra


Butuan Sawmill, Inc. v. CTA, L-20601, Feb. 28, 1966, 16 SCRA 277
(1966)

iv. How Prescriptive Period Counted

CIR v. Primetown Property Group, Inc., G.R. No. 162155, Aug. 28, 2007,
531 SCRA 436 (2007)

v. Ordinary Prescription

Sec. 203, NIRC

vi. Extraordinary Prescription


15

a. False/Fraudulent Return or No Return

Sec. 222(a), NIRC

Butuan Sawmill, Inc. v. CTA, 16 SCRA 277 (1966)


CIR v. Engineering Equipment & Supply Co., 64 SCRA 590
Taligaman Lumber Co. Inc. v. CIR, 4 SCRA 842, 847 (1962)
Aznar v. CTA, 58 SCRA 519 (1974)
CIR v. BF Goodrich Phil. Inc., 303 SCRA 546 (1999)
CIR v. Ayala Hotels, CA-G.R. SP No. 70025, April 19, 2004
Siao Tiao Hong v. CIR, 213 SCRA 164, 169 (1992)
Pilipinas Shell Petroleum Corp. v. CIR, 541 SCRA 316 (2007)
CIR v. Tulio, 474 SCRA 147 (2005)

b. Waiver of Prescriptive Period

Sec. 222 (b), NIRC


Rev. Mem. Order No. 20-90
Rev. Delegation Authority Order No. 05-01

Republic v. Acebedo, 22 SCRA 1356 (1968)


CIR v. CA, et. al., 303 SCRA 614 (1999)
Philippine Journalists, Inc. v. CIR, 447 SCRA 214 (2004)
CIR v. FMF Development Corporation, 556 SCRA 698 (2008)
CIR v. Kudos Metal Corporation, G.R. No. 178087, May 5, 2010
RCBC v. CIR, G.R. No. 170257, Sept. 7, 2011
CIR v. Next Mobile, Inc., G.R. No. 212825, Dec. 7, 2015
Avon Products Mfg., Inc v. CIR, CTA Case No. 7038, May 13, 2010

c. Suspension of Prescriptive Period

Afisco Insurance Corporation v. Court of Appeals, 302 SCRA 1, 19-20


(1999)
Commissioner of Internal Revenue v BASF Coatings + Inks Phils., Inc.,
G.R. No. 198677, Nov. 26, 2014, 743 SCRA 113

B. Period to Collect

Secs. 203, 222, 223, NIRC

CIR v. Hambrecht and Quist Philippines, Inc., G.R. No. 169225, Nov. 17, 2010,
635 SCRA 162, 170-172 (2010)
Republic v. Ablaza, 108 Phil. 1105 (1960)
Mambulao Lumber Co. v. Republic, 132 SCRA 1
Palanca v. CIR, 4 SCRA 263 (1962)
Republic v. Ker & Co. Ltd., 18 SCRA 208 (1966)
Republic v. Hizon, 320 SCRA 574 (1999)
Collector v. Clement and Hooker, 105 Phil. 51 (1959)
Collector v. De los Angeles and CTA, 101 Phil. 1066 (1959)
CIR v. Wyeth Suaco Laboratories, Inc. and CTA, 202 SCRA 125, 131 (1991)
16

Collector v. Suyoc Consolidated Mining Company, et. al., 104 Phil. 819 (1958)
CIR v. Consolidated Mining Co., (Nov. 29, 1968)
Cordero v. Gonda, 18 SCRA 331
Bank of the Phil. Islands v. CIR, 473 SCRA 205 (2005)
Bank of the Phil. Islands v. CIR, 548 SCRA 105, 112-116 (2008)
CIR v. Philippine Global Communications, Inc., 506 SCRA 427, 438-450
(2006)
PNOC v. Court of Appeals, 457 SCRA 32, 110 (2005)

C. Period to Prosecute Violations of NIRC

Sec. 281, NIRC

Lim v. CA, 190 SCRA 616 (1990)

VII. BIR’s Rule-Making Authority

Sec. 4, NIRC
Sec. 7, NIRC

A. Must be Consistent with Statute

Fort Bonifacio Development Corporation v. CIR, 583 SCRA 168, 195-


196 (2009)
Republic v. CA, et. al., G.R. No. 109193, Feb. 1, 2000
M.E. Holding Corporation v. Court of Appeals, 547 SCRA 389 (2008)
CIR v. Bicolandia Drug Corporation, 496 SCRA 176
CIR v. Fortune Tobacco Corp., 559 SCRA 160 (2008)
Atlas Consolidated Mining & Development Corp. v. CIR, 318 SCRA
386 (1999)

B. Effect of Absence of IRR

CIR v. Reyes, 480 SCRA 382 (2006)

C. Requirement of Publication

CIR v. Trustworthy Pawnshop, Inc., 488 SCRA 538, 544 (2006)


CIR v. Michael J. Lhuillier Pawnshop, 406 SCRA 178 (2003)