Service, Large Taxpayer

Service, Collection Service,

Enforcement Service,
Enforcement Service and other
Offices in the National Office;

TAXATION 2 FINALS 3. Civil tax cases filed in courts;

4. Collection cases filed in courts;

COMPROMISE- A contract whereby the 5. Criminal violations other than

parties, by reciprocal concessions, avoid those cases already filed in
litigation or put an end to one already court or those violations
commenced. involving criminal tax fraud.

• Courts may reject a compromise or

settlement when it is contrary to law,
morals, good customs, public order, or
public policy.

• The CTA may issue an injunction to

prevent the Government from collecting
taxes under a compromise agreement
especially when the agreement is
prejudicial to the government.

Requisites: Compromise in Criminal Violations

1. The taxpayer has a liability
2. That there must be an offer by the
taxpayer of an amount to be paid by the
taxpayer
3. That there must be acceptance by
the commissioner
Cases not subject to compromise:
1. Withholding tax cases
2. Criminal tax fraud cases
3. Criminal violations already filed in
court
4. Delinquent accounts with duly
approved schedule of installment
payments
5. Cases where the final reports of
reinvestigation or reconsideration
have been issued resulting to
reduction in the original
assessment and the taxpayer is
agreeable to such decision
6. Cases which become final and
executor after final judgement of a
court.
Cases that may be Compromised
(RR. 6,200 and 7-2C01 and RMO
22-01)
1. Delinquent accounts;
2. Cases under administrative
protest after issuance of the
final assessment notice to the
taxpayer which are still pending
in the Regional Offices,
Revenue District Offices, Legal
General Rule: Criminal violations may
be compromised
Exceptions:
1. Those already filed in court.
2. Those involving fraud.
Remedy in case the taxpayer refuses
or fails to abide the tax compromise:
1. Enforce the compromise
2. Regard it as rescinded and insist
upon original demand
PRESCRIPTIVE PERIOD IN MAKING AN
ASSESSMENT: At anytime within three
(3) years:
a. After the last day prescribed by law
for the filing of the return; or
b. Where a return is filed beyond the
period prescribed by law, the three
year period shall be counted from
the day the return was filed; or
c. Where the return was filed before
the last day prescribed by law for
the filing thereof, it shall be
considered as filed on such last
day.
GROUNDS FOR SUSPENSION OF THE present his books of accounts
RUNNING OF THE STATUTE OF and/or pertinent records, or
LIMITATIONS ( PRA PO)
b. Substantiate all or any of the
1. When the commissioner is deductions, exemptions or
Prohibited from making the credits claimed in his return.
assessment or beginning the
distraint or levy or a proceeding in
court, AND for sixty (60) days
DISTINCTION BETWEEN
thereafter;
REMEDIES IN THE COLLECTION
OF DELINQUENCY AND
2. When the taxpayer requests for a
DEFICIENCY TAX
Reinvestigation which is granted;

3. Taxpayer cannot be located in the

Address given in the return filed, DELINQUENCY DEFICIENCY
except if the taxpayer informs the TAX TAX
commissioner of a change in the
address the prescriptive period will COLLECTION
not be suspended
Delinquent tax Deficiency tax
4. When the warrant is duly served can be can be
upon the taxpayer and no Property immediately collected also
could be located collected through
administratively administrative
5. When the taxpayer is Out of the through the and/or judicial
country issuance of a remedies but
warrant of has to go
distraint and levy, through the
and/or judicial process of
KINDS OF ASSESSMENT (SIDE-J)
action filing the
protest by the
1. Self- Assessment – one in which
taxpayer
the tax is assessed by the taxpayer
against the
himself.
Assessment
2. Illegal And Void Assessment – and the denial
tax assessor has no power to of such protest
assess at all. by the BIR

CIVIL ACTION
3. Deficiency Assessment – made
by the tax assessor himself The filing of a The filing of a
whereby the correct amount of the civil action For civil action at
tax is determined after an the collection of the ordinary
examination or investigation is the delinquent court for the
conducted. tax in the collection of a
ordinary court is deficiency tax
4. Erroneous Assessment –
a proper remedy during the
assessor has power to assess but
to toll period. pendency of
errs in the exercise thereof.
protestmay be
the subject of a
5. Jeopardy Assessment – is a tax
motion to
assessment made by an authorized
dismiss. In
Revenue Officer without the benefit
addition to a
of complete or partial audit, in light
motion dismiss,
of the RO’s belief that the
the taxpayer
assessment and collection of a
must file a
deficiency tax will be jeopardized
petition for
by delay caused by the Taxpayer’s
review with the
failure to:
CTA to the
a. Comply with audit and running of the
investigation requirements to
 prescriptive property to sign a receipt
covering the property
PENALTIES distrained and obligate himself
A delinquent tax A deficiency to preserve the same intact and
is subject to tax is generally unaltered and not to dispose of
administrative not the same in any manner
penalties such as subject to the whatever without the express
25% surcharge, 25% surcharge authority of the Commissioner.
interest, and although
b. In case the person refuses of
compromise subject to
fails to sign the receipt, the
penalty. interest an
revenue officer effecting the
compromise
constructive distraint shall
penalty
prepare a list of the property
and in the presence of two (2)
witnesses, leave a copy thereof
DISTRAINT– remedy whereby the in the premises where the
collection of delinquent taxes property distrained is located.
enforced on the goods, chattels or (Sec. 206, NIRC)
effects and other personal property
of whatever character of the
taxpayer, including stocks and
other securities, debts, credits, 2. ACTUAL DISTRAINT –
bank accounts and interests in and resorted to when at the time
rights to personal property. required for payment, a person
fails to pay his delinquent tax
obligation. (Sec. 207 (A),
NIRC). Distraint consists in the
1. CONSTRUCTIVE DISTRAINT – actual seizure and taking
issued where no actual tax possession of personal property
delinquency of the taxpayer is of the taxpayer.
necessary before the same is
resorted to by the government.
It is issued in the following
cases:

a. When the taxpayer is

retiring from any business
subject to tax;

b. When the taxpayer is

intending to leave the
Philippines;

c. When the taxpayer is

intending to remove his
property from the
Philippines or to conceal the
same;

d. When the taxpayer is PROCEDURE FOR ACTUAL DISTRAINT

intending to perform any
act tending to obstruct the A. Commencement of Distraint
proceedings for collecting Proceedings
the tax due or which may be
due from him.

HOW IS CONSTRUCTIVE DISTRAINT Who can commence distraint

EFFECTED? proceedings?

a. It is effected by requiring the 1. Commissioner or his duly

taxpayer or any person having authorized representatives –
possession or control of such
 where the amount involved is in
excess of P1 million.
2. Revenue District Officer – where
amount involved is less than P1
million.
B. Service of Warrant of Distraint
How is actual distraint
effected?
The personal property of the
taxpayer is physically taken by the
distraining officer.
C. Report on the distraint
• Shall be submitted by the
distraining officer to the
Revenue Regional Director
within 10 days from receipt
of warrant.
• The Commissioner or his
duly authorized
representative has the
power to lift the order of
distraint.
D. Notice of Sale of Distrained
Properties
Requirement of Notice:
1. Notice shall specify the time
and place of sale and the
articles distrained;
2. The time of sale shall not be
less than 20 days after notice
to the owner or possessor of
the property AND publication or
posting of such notice; and
3. The posting shall be made in
not less than two (2) public
places in the city or
municipality where the distraint
is made. One place for posting
of such notice is at the Office of
the Mayor of such city or
municipality on which the
property is distrained (Sec. 209,
NIRC).
E. Sale at Public Auction
Rules Governing Sale
1. Sale must be held at the time
and place stated in the notice.
2. It may be conducted by the
Revenue Officer (RO) OR
through a licensed commodity
or stock exchange.
3. If the sale is conducted by
Revenue Officer, it must be
held at a public auction and the
property shall be sold to the
highest bidder for CASH.
4. If sale is through a licensed
commodity or stock exchange,
it must be with the approval of
the CIR.
5. In case of stocks and other
securities, the officer making
the sale shall execute a BILL of
SALE, which shall be delivered
to the buyer and to the
corporation, company or
association (CCA) which issued
the stocks or other securities.
Upon receipt of the copy of the
bill of sale, an entry of transfer
should be made in the CCA’s
book and a corresponding
certificate of stock shall be
issued if required.
6. Any RESIDUE over and above
what is required to pay the
entire claim including expenses
shall be RETURNED to the
owner of the property sold.
Expenses chargeable upon
seizure shall include only those
actual expenses of seizure and
preservation of the property
pending the sale and does not
include services of the RO.
7. The officer making the sale
shall make a written report of
the proceedings to the CIR
within 2 days after the sale
(Sec. 211, NIRC).
Right of Pre-emption - if at any time
prior to the consummation of the sale, ALL
proper charges are paid to the officer
conducting the sale, all the distrained
Procedure for Levy
properties shall be restored to the owner

(Sec. 210, NIRC).

A. Issuance of Warrant of Levy

Purchase by the government at sale

upon distraint (Sec.212, NIRC) Preparation of a duly
authenticated certificate
The Commissioner or his deputies may
containing: (DNA)
purchase in behalf of the National
Government for the amount of taxes, 1. Description of the property
penalties and cost due thereon when the levied;
amount bid for the distrained property is:
2. Name of the taxpayer, and
a. NOT equal to the amount of tax or
3. Amount of tax and penalty due
b. VERY much LESS than the actual
from him.
market value of the property
offered for sale.

This certificate shall operate with the force

of a legal execution throughout the
Property so purchased may be resold
Philippines (Sec. 207 (B), NIRC).
by the CIR or his deputy; the net
proceeds shall be remitted to the
National Treasury and accounted as
internal revenue. B. Service of the Warrant

LEVY OF REAL PROPERTY How is levy effected?

Levy shall be effected by writing

LEVY – remedy whereby the collection of
delinquent taxes is enforced on the real
property belonging to the delinquent
taxpayer.
upon the certificate, a description
of the property upon which levy is
made. At the same time, written
notice of the levy shall be mailed or
served upon:

1. The Register of deeds of the

province or city where the
When may levy be effected?
property is located; and
Real property may be levied upon before,
2. Upon the delinquent
simultaneously, or after the distraint of
taxpayer, or if he is absent
personal property belonging to the
from the Philippines, to his
delinquent taxpayer (Sec.207, (B), NIRC);
agent or the manager of the
and the remedy by distraint and levy may
business in respect to which
be repeated if necessary until the full
the liability arose, or if there
amount, including all expenses, is
be none, or the occupant of
collected (Sec. 217, NIRC).
the property in question.

Note: in case the warrant of

levy is NOT issued before or
simultaneously with the warrant
of distraint AND the personal
property of the TP is NOT
 sufficient to satisfy his tax
delinquency, the CIR or his
authorized representative shall,
within 30 days after the
execution of the distraint,
PROCEED with the levy on TP’s
real property (Sec.207 (B),
NIRC).
C. Advertisement of the Sale
The advertisement shall
contain:
1. Amount of tax and penalties
due
2. Time and place of sale
3. Name of the taxpayer against
whom taxes are levied; and
4. Short description of the
property to be sold.
Note: the advertisement shall be
made within 20 days after the levy,
and the same3 shall be for a period
of at least 30 days.
E. Redemption of Property
Advertisement shall
effectuated by: (P2)
1. Posting a notice at the main
entrance of the municipal
building or city hall and in a
public and conspicuous place in
the barrio or district in which
the real property lies; and
2. Publication once a week for 3
weeks in a newspaper of
general circulation in the
municipality or city where the
property is located (Sec.213,
NIRC)
D. Public Sale of Property under
Levy
• if taxpayer does not pay his
taxes, penalties and interest
before the day fixed for the
sale, the sale shall proceed
and shall be held either at
the main entrance of the
municipal building or city
hall, or on the premises to
be sold, as the officer
conducting the proceedings
shall determine and as the
notice of sale shall specify.
• Right of Pre-emption –
the taxpayer may
discontinue all the
proceedings by paying the
taxes, penalties and
interest.
• A CERTIFICATE OF SALE
shall be delivered to the
purchaser.
• If the proceeds of the sale
exceed the claim an cost of
sale, the excess shall be
turned over to the owner of
the property.
• Period- within 1 year from
the date of sale.
• Who may redeem- the
delinquent taxpayer or
anyone for him.
• To whom made- to the
Revenue District Officer.
• How made- upon payment
of the taxes, penalties and
interest thereon from the
date of delinquency to the
date of sale, together with
interest on purchase price
at 15% per annum from the
date of sale to the date of
redemption. (Sec. 214,
NIRC).
Note: The owner shall not be
deprived of the possession of said
property and shall be entitled to
the rents and other income thereof
 until the expiration of the time
allowed for its redemption.
Effects of redemption of
property sold
1. Such payment shall entitle
taxpayer the delivery of the
certificate issued to the
purchaser and a certificate from
RDO that he has redeemed the
property.
2. The RDO shall pay the
purchaser the amount by which
such property has been
redeemed and said property
shall be free from lien of such
taxes and penalties (Sec. 214,
NIRC).
F. Further Distraint and Levy
The remedy of distraint and levy may
be repeated if necessary until the full
amount of the tax delinquency due
including all expenses is collected from
the taxpayer. Otherwise, a clever
taxpayer who is able to conceal most
of the valuable part of his property
would escape payment of his tax
liability by sacrificing an insignificant
portion of his holdings. (Sec. 217,
NIRC).
Forfeiture to the Government for
want of Bidder
When would property be forfeited in
favor of the Government?
1. No bidder for real property;
2. The highest bid is for an amount
insufficient to pay the taxes,
penalties and costs.
• The Register of Deeds shall
transfer title to the Government
upon registration with his office
of the DECLARATION OF
FORFEITURE.
• One year from forfeiture the
taxpayer may redeem the
property.
• The Commissioner may sell the
forfeited real estate in a public
or private sale.
Resale of Real Estate taken for
Taxes
The CIR shall have charge of any real
estate obtained by the Government in
payment of taxes, penalties or costs
arising under this Code or in
compromise or adjustment of any
claim.
JUDICIAL REMEDIES OF THE
GOVERNMENT
A. Civil Action: For tax remedy
purposes, these are actions
instituted by the government to
COLLECT internal revenue taxes
including the filing by the
government of claims against the
deceased taxpayer with the
probate court.
Two ways to enforce civil liability
through civil actions:
1. By filing a civil case for
collection of a sum of
money with proper regular
court; or
2. By filing an answer to the
petition for review filed by
TP with CTA.
Form and Mode of proceeding
(section 220, NIRC)
1. Civil actions shall be brought in the
name of the Government of the
Philippines.
2. It shall be conducted by legal
officers of the BIR.
3. No civil or criminal action for
the recovery of taxes shall be
filed in court without the
approval of the Commissioner.
However, under Sec. 7, 1997
NIRC, the Commissioner may
delegate such power to a
Regional Director.
4. The approval by the Solicitor
General for civil actions for
collection of delinquent taxes is
required before they are filed.
Two Common Crimes Punishable
under the Tax Code
1. Attempt to evade or defeat tax;
(Sec. 254, NIRC) and
2. Failure to file return, supply
correct and accurate
information, pay tax and refund
excess taxes withheld on
compensation (Sec. 255, NIRC)
Note: The judgment in the criminal
cases shall not only impose the
penalty but shall also order the
payment of taxes subject of the
criminal case as finally decided by the
Commissioner (Sec. 205, NIRC).
JURISDICTION
1. Court of tax Appeals – on
criminal offenses arising from
violations of the NIRC or TCC and
other laws administered by the BIR
and the BOC where the principal
amount of taxes and fees exclusive
of charges and penalties claimed is
One million pesos and above.
2. Regional Trial Court, Municipal
Trial Court, Metropolitan Trial
Court- on criminal offenses arising
from violations of the NIRC or TCC
and other laws administered by the
BIR and the BOC, where the
principal amount of taxes and fees,
exclusive of charges and penalties
claimed is less than One million
pesos or where there is no
specified amount claimed (Sec. 7,
RA No. 9282)
ASSESSMENT
PRE-ASSESSMENT STAGE
STEP 1: Notice of informal conference
• a written notice informing a
taxpayer that the findings of the
audit conducted on his books of
accounts and accounting records
indicate that additional taxes or
deficiency assessments have to be
paid;
• if, after the culmination of an audit,
a Revenue Officer recommends the
imposition of deficiency tax
assessments, this recommendation
is communicated by the bureau to
the taxpayer concerned during an
informal conference called for this
purpose, the taxpayer shall have
15 days from receipt of the notice
of informal conference to explain
his side.
STEP 2: Informal Conference
Matters taken up
• Discussion on the merits of the
assessment
• Attempt of taxpayer to convince
the examiner to conduct a re-
investigation and or re-examination
• Evaluate if the submission of the
waiver of the SOL is necessary-
evaluation may extend beyond 3
years
STEP 3: Issuance of Pre-Assessment
Notice ( PAN)
• Communication issued by the
Regional Assessment Division or
any other concerned BIR office,
informing a taxpayer who has been
 audited of the findings of the
Revenue Officer, following the
review of these findings. The
assessment shall be in writing, and
should inform the taxpayer of the
law and the facts on which the FILING OF CLAIM FOR TAX
assessment is made; otherwise,
REFUND OR
the assessment is void
TAX CREDIT
• If the taxpayer disagrees with the
findings in the PAN, he has 15 days
to file a written reply contesting
the proposed assessment GR: The person entitled to ask for a
refund is the taxpayer who paid the
same
NOTICE OF ASSESSMENT- is a formal
letter of demand where a declaration of
deficiency taxes is issued to a taxpayer
What is the nature of as a claim
who fails to respond to a pre-assessment
notice within the prescribed period of for refund?
time, or whose reply to the PAN was found
If partakes of the nature of an
to be without merit. This is commonly
known as the FORMAL ASSESSMENT
exemption and is strictly constructed
NOTICE. against the claimant. His burden of
proof is on the taxpayer claiming the
refund that he is entitled to the same
(CIR v. Tokyo).
Notes: the state cannot be estopped by
the neglect of its agents and officers. The
rule of estoppels by the neglect cannot be
invoked by the taxpayer in order to When are there erroneously paid,
preclude the collection of taxes that is or illegally assessed or collected
rightfully due the government.
taxes?

Taxes are erroneously paid

GENERAL RULE: taxes are self assessing
and do not require the issuance of an
assessment notice in order to establish
the tax liability of a taxpayer.
EXCEPTION:
when a taxpayer pays under a mistake
of fact, such as, he is not aware of an
existing exemption in his favor at the
time that payment is made. Taxes are
illegally collected when payments are
made under duress.

1. Tax period of a taxpayer is

terminated When may taxes be refunded or
credited?
2. Deficiency tax liability arising from
a tax audit conducted by the a BIR 1. Grounds for Tax refunded or
credited:
3. Tax Lien
[EPWroSUn]
4. Dissolving Corporation
a. Taxes erroneously or
illegal received
REQUISITE OF A VALID ASSESSMENT
b. Penalties imposed
1. In writing without authority
2. Must state the fact and the law c. Any sum alleged to have
upon which it is based been excessively or in
 any manner wrongfully
collected
d. Refund the value of
internal revenue stamps
when returned in good
condition by the
purchaser
e. Redeem or change
unused stamps rendered
unfit for use and refund
their value upon proof of
destruction, in the
discretion of the
Commissioner.
2. Procedure for credit/refund
a. Taxpayer files in writing
with the Commissioner a
claim for credit or refund
b. Filed within 2 years after
the payment of the tax or
penalty
No suit or proceeding shall begun after
the expiration of the said 2 years
regardless of any supervening cause
that may arise after the payment
c. A return filed showing an
overpayment shall be
considered a written
claim for credit or refund
3. Suit or proceeding for refund
a. A claim for refund or
credit has been filed with
the Commissioner
b. The suit may be
maintained whether or
not such tax/penalty/sum
has been paid under
protest
c. In any case, suit may be
filed within 2 years from
the date of payment of
the tax/penalty
regardless of any
supervening cause that
may arise after payment
d. The Commissioner may,
even without a written
claim, refund or credit a
tax,
e. Where on the face of the
return upon which
payment was made,
payment appears to be
erroneous. (Sec. 204 C,
229)
4. Tax Credit Certificate
a. May be applied against
any internal revenue tax,
EXCEPT withholding taxes
b. Original copy is
surrendered to the
revenue officer
c. No tax refund will be
given resulting from
availment of incentives
granted by law where no
actual payment was
made (Sec. 204 C)
5. Forfeiture of cash refund/tax
credit
a. Forfeiture of refund in
favor of the government
when a refund check or
warrant remains
unclaimed or uncashed
within 5 years form date
of mailing or delivery.
b. Forfeiture of Tax Credit-a
tax credit certificate
which remains unutilized
after 5 years form date of
issue, shall be invalid,
UNLESS revalidated (Sec.
230)
 provisions. (CIR v. Victoria
Milling, L-19667, Nov. 29, 1966)

2. Under Sec. 79 (c) (2) with

Payment Under Protest is NOT
Necessary under NIRC
• A suit or proceedings for
tax refund may be
maintained whether or
not such tax, penalty or
sum has been paid under
protest or duress (Sec.
229)
• Similarly, payment under
protest is not necessary
in refund for local taxes.
(Sec. 196 LGC), however,
under protest is
necessary to claim for
a. Real property taxes
(Sec. 252 LGC)
b. Custom duties (Sec.
2380 TCC)
Suspension on the 2 yrs.
Prescriptive Period
1. There is a pending litigation
between the gov’t & taxpayer
2. CIR in that litigated case agreed
to abide by the decision of the
SC as to the collection of taxes
relative thereto (Panay Electric
Co. v. Collector, May 28, 1858)
respect to income taxes
withheld on the wages of the
EEs
3. In case of the CIRs final denial
of the claim for refund, the 30
days period to appeal with the
CTA must be within the 2 yr
preemptory
POWER OF CTA
1. To administer oath
2. To receive evidence
3. To summon witness by
subpoena
4. To require production of paper (
subpoena doces tecum)
5. To punish contempt
6. To promulgate rules and
regulations for the conduct of
its business
7. To assess damage against
appellate if appeal to CTA is
found to be dilatory
8. To suspend the collection of tax
pending appeal

9. To render decisions on case

brought before it
Interest on Tax Refunds
10.To issue order authorizing
General Rule distraint of personal property
and levy real property
1. Government cannot be required
to pay interest on taxes
refunded to the taxpayer in the
absence of a statutory provision
clearly or expressly directing or
COMPOSITION AND APPOINTMENT
authorizing such payment.
OF MEMBERS
(CIV v. Sweeny, 106 Phil 59)

Exemption

1. When the CIR acted with patent • Consist of a presiding justice

arbitrariness. Arbitrariness and eight associate justices
presupposes inexcusable or appointed by the president
obstinate disregard of legal
 upon nomination by the Judicial
and Bar Council

• It may sit en banc or in three

division, each division of three
justices each, including the
presiding justice, who shall be
the chairperson of the first
divisioin and two most senior
justices shall be served as
chairpersons of the second and
third divisions respectively.

QUORUM

Session: Decision:
presence of affirmative
votes of

En banc 5 justices 5 justices

division 2 justices 2 justices

Provided: where the necessary

majority vote cannot be had, the
petition shall be dismissed; in appeal
cases, the judgment or order appealed
from shall stand affirmed; and on all
incident6al matters, the petition or
motion shall be denied.
DISTINCTION BETWEEN DISTRAINT AND LEVY
 Distraint Levy

As to the properties Personal property Real property

Covered

How it is effected Distraint is effected by The Levy shall be effected by

seizure of the goods, writing upon the duly
Chattels or effects. authenticated certificate
the description of the
property upon which levy
is made and AT THE
SAME TIME, written notice
of the levy shall be mailed
to or served upon the
register of Deeds and upon
the taxpayer.
 Notice of Sale The notice of the sale shall
be exhibited in not less
than 2 public places in the
municipality or city where
the distraint was made.
(One place of Posting is
the Office of the Mayor).
Acquisition by the Purchase by the
Government Commissioner or his
deputy in behalf of the
National Government
under Section 212 Of
the NIRC
Right of Redemption The taxpayer is not given
the right of redemption
with Respect to distrained
to Personal property.
Right of emption with right of pre-emption
Within 20 days after the
levy, the real property will
be advertised for sale for
a period of at least 30
days. The advertisement
shall be effected by
posting a notice at the
main entrance of the
municipal Building or city
hall and in a public and
conspicuous place in the
barrio or district in which
the real estate lies AND
publication once every
week for 3 consecutive
weeks in a newspaper of
general circulation.
The Infernal Revenue
Officer conducting the sale
shall declare the property
forfeited in favor of the
Government under Section
215 of the NIRC
The right of redemption is
granted in case of real
property levied Upon and
sold, or forfeited to the
government
with right of pre- Pre-
emption
 REGLEMENTARY PERIODS IN INCOME TAX

IMPOSED BY LAW UPON THE TAXPAYER

(Pursuant to RR 12-99, Sec 228 and Rules of Court)

BIR makes tax

assessment

If taxpayer is not satisfied with the

assessment file a protest within 30
days from the receipt thereof

Submit supporting documents within

60 days from the date of the filling
of the protest

If the protest is denied, elevate the

matter to the CIR within 30 days
from the receipt of the decision of
the CIRs duly authorized
representative

Appeal to the Division of CTA within 30

days from the receipt of the final decision
of the CIR or his duly authorized
representative (taxpayer has the option to
appeal straight to CTA upon receipt of the
decision of CIR (Lascona Doctrine)

If the CIR or his rep. fails to act on the

protest within 180 days from date of
submission by taxpayer, the later may

Appeal to the CTA en banc from the

receipt of the decision of the CTA
division (after denial by CTA division of