TAX REMEDIES

FROM ATTY. RIZALINA V. LUMBERA’S LECTURES

NIRC
In Good Faith
TAX PAYER
Fraudulent

R
Doesn’t File

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I

Return
It is a verified statement prepared by the taxpayer for the material information relevant to the kind of tax you are computing for and paying for.

Types Tax Payer Where to File (If a Return is filed in a When to File
of wrong venue, it is as if you did not file any
Returns return at all)
:
Individual Place of Residence On or before April 15 of the ff. year. (15th day of the 4th Mo. Ff. the C.Y)
Person (1 Return only)
Person ETB Place of Residence or Place of Business 3 Quarterly
Returns: 60 days
NIT Corporation Principal Place of Business
from close of the
quarter 1, 2, 3, 4
Final
Consolidated
Return
Using Calendar Yr: On or before April 15 of thr ff.
yr. (15th day of the 4th Mo. Ff. the C.Y) Using Fiscal Yr
: On or before the 15th day of
th
the 4 mo. Ff. the close of the F.Y. Example: Fiscal
Yr:
Feb – March – April (1st Qtr)
June 30: Ito yung 60 days from close of
the (1st) quarter

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 May – June – July (2nd Qtr)
Sept 30: Ito yung 60 days from close of the (2nd) quarter
Aug – Sept – Oct (3rd Qtr)
Dec 30: Ito yung 60 days from close of the (3rd) quarter

Nov – Dec – Jan (4th Qtr)

Ito yung
close of the
F.Y.

May 15: Ito yung 15th day of the 4th month ff the close of the F.Y.
Real Property Where the property is located (CGT) Every 10th day of the Month

FW Shares of Stocks
Passive Income Place of the Witholding Agent (Ex. Bank:
T kung
nasaan yung bank)
CWT Witholding Residence of the Witholding Agent Every 10th day of the Month
Agent
Monthly Returns: 2oth day of the month
VAT Seller Side Place of business of the Seller
Quarterly Return: On or before the 25th day after close of the quarter
Monthly Returns: 2oth day of the month
% Tax Seller Side Place of business of the Seller
Quarterly Return: On or before the 25th day after close of the quarter
EXCISE Place of manufacture Upon departure of the product from the place of manufacture
RC/NRC/RA Place of residence of the deceased at the 6
time of death
ESTATE m
Non-Resident Office of the Commissioner o
Alien Reason: No place of Residence
n
t
h
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 Tawag dito ay DEFFICIENCY TAX

s from death of the deceased

Example: Date of Death: Feb. 14
Due Date: Aug. 15
DONOR RC/NRC/RA Residence of the Donor
’S 30 days from the giving of a gift
Non-Resident Office of the Commissioner
Alien Reason: No place of Residence

Notes: 1. Failure to file, the Tax payer is subjected to:

a. 25% Penalty;
b. 20% interest computed per annum daily;
c. If fraudulent return: 50% surcharge will be imposed

2. Disputable Presumption: All Returns are presumed prepared and filed by the Tax Payer in Good Faith.

DELINQUENCY
DEFFICIENCY INTEREST
INTEREST VS.
(20%)
(20%) -pinagbabayad ka ng BIR,
-Kulang ang binayaran mo based on the amount indicated,
nung nagfile ka ng Return but you did not pay so you
incurred Delinquency I.
amounting to 20% of the total
tax due.
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3. When the tax due for individual is more than 2K pesos, he/she may divide it into two. Pay by installment, but you still have to file a return on or before April 15:
a. 50% payable on or before April 15;
a. Another 50% payable on or before July 15 of the same year.

Q: Can you pay using your Credit Cards?

A: Yes, provided that:
1. The Banks are accredited to the BIR. There is an agreement between Bank and BIR (Local Banks lang);
2. When you swipe it, that is the date of payment of your tax;
3. Online Transaction: until 12 midnight. So pag 11:59pm ka nagkaskas, valid payment.

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 A
WAIVE Requisites of a Valid Waiver:
1. Since it is a contract bet. the BIR and TP, it must be in writing;
1. The contract is to extend the assessment period, therefore the W. should
be executed
BIR prior to this period;
· Pag in Good Faith: Tapos na! 2. The W. should indicate the signature of both the BIR and TP;
2. It should provide for the date of execution, so that the BIR will know that
· If Fraudulent; or LA - Letter of Authority [: to investigate: you will be given 15 days to reply and produce all the documents]
the same
· Did not file. Was entered into prior to the expiration of the period.
PAN – Preliminary Assessment Notice [W or w/o reply, 1. Itthe BIRbecan
must in 3issue PAN]
Copies (one copy goes to the BIR, TP and Docket File)
Note: W/o these requisites,
FAN – Final Assessment Notice [W/ or w/o reply w/in 15 days, the BIR will issue the W. will
FAN) not be valid.

Prescriptive period on the part of the BIR to issue FAN, if the Return is filed:
1. In Good Faith: 3 Yrs from Due Date
a. Filed before due date: 3 yrs from due date;
a. Filed on due date : 3 yrs from due date
a. Filed beyond due date: 3 yrs from the date of filing.
2. Fraudeulenty: 10 yrs from the BIR’s discovery of the fraudulent return.
-Kahit filed before, on or beyond due date pa: 10 yrs pa rin.
1. If the Tax Payer did not file a return. The BIR files a return on your behalf or to issue
the FAN w/in 10yrs.
Q: Can you amend the Return that you filed?
A: Yes, you call it Amended Return (AR). Provided that no notice of investigation is received. THE FAN MUST PROPERLY BE RECEIVED BY THE TAXPAPYER.
Q: Can you amend when there is already a Letter of Authority? · When the BIR violates the proper procedure, it was as if no FAN was
A: No, never. Because you already know that you are subject of investigation received by the TP, and therefore the Gov’t cannot collect.
Q: What happened to the Original Return and Amended Return? Q: HOW IS FAN RECEIVED?
A: Both are combined and the BIR will examine both of them. A: 1. When the TP is present: Personal Service;
Q: When you did not file any return? 2. When the TP is present but doesn’t want to receive it: Request for the presence
A: The BIR may file one on your behalf. This is one of the powers vested in the office of the BIR. of the Brgy. Capt and to be a witness as you tender the FAN;
1. When the TP is not present: Substituted Service: to a person of sufficient
POWERS OF THE BIR (Secs 5-15) discretion.
1. To issue subpoena to owners of similar businesses as yours; 1. When the person of sufficient discretion doesn’t want to receive the it:
2. To issue subpoena duces tecum as testificandum to you or your employees; Request for the presence of the Brgy. Capt and to be a witness as you tender
1. To provide for presumptive gross sales or gross receipts based on the best evidence the FAN;
obtainable under the circumstances. Q: If Corporation? A: Personal Service to:
2. To prescribe your gross receipts and gross sales based on the gross sales and gross receipts 1. President; 4. In house Counsel
of similar businesses. 1. Corporate Secretary; 5. General Manager
2. Managing Partner; 6. Treasurer
Patapos na si 3yrs di pa na-issue si FAN: - Substituted Service: To a Person of sufficient discretion.
Q: What will the BIR do? -If Substituted service is not possible: BY MAILING: (either by Registered Mail, Fast
A: The BIR will ask you to your right to be assessed. Courier or Regular Mail; there is no priority here)
Q: If the TP did not waive? -Failure on the part of the BIR to follow these procedures is a denial of due process.
A: The BIR will issue Jeopardy Assessment (JA)
An assessment w/c is in the nature of FAN given or issued by the BIR
w/o the benefit of the full audit of the financial obligations 6
 The protest may be in the nature
Motion for Reconsideration
of:

P
Motion for Recomputation The assumption is that
TAX PAYER (Pag natanggap mo si FAN, mag-file
Motion for Reinvestigation ka na ng Protest!)
the TX is supposed to attach
documents to the protest
Protest
The assumption is that the TX is
Not attaching or appending to
the Protest documents.

WHEN: 30 days from your receipt of the FAN;

The procedure of LA, PAN AND FAN must strictly be followed by -It should be in writing;
the BIR, otherwise the TX is denied of the due process. -filed with the RDO w/c issued the FAN;
-it should be filed w/in 30 days from your
Instances that the PAN is not required to be issued: Sec. 228 Receipt of the FAN.
When there is mathematical error in the computation as reflected in the
return;
When there is a discrepancy between the withholding tax as reflected in
your return and the withholding taxes as remitted to me;
When it involves excise taxes;
When there is importation.

WHEN IS A FAN A VALID FAN?

Requisites:
It must be in writing;
It is addressed to the tax payer;
It provides for the amount Tax due;
It provides for the basis in fact and in law of the tax due;
It provides for the due date;
It demands for payment;
Signed by the duly authorized BIR officer;
Send to and received by the tax payer;
Issued w/in the prescriptive periods of assessment.
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BIR: Once Protest is submitted, TAX PAYER
the BIR may: CTA DIVISION
1. Grant; or -----------------If Granted Masaya na si TP, The process is done. the CTA may:
1. Deny; or 1. Grant; or
----------- 2. Deny; or
------If Denied ---------------Malungkot si TP, w/c means the BIR doesn’t agree with the TP If 1. Partly G/D
denied, The TP Note: Here, no more
1. Partly non-action
G/D; or ---------------If Partly G/D------------Pareho masaya/malungkot si TP & BIR partly
G/D, must
1. Sits on
it for 180 days. ----Did not
act on it-------Galit si Tax
Payer or sits
on it go to
For 180 days CTA Div.

30 Days from your receipt

of the actual decision,
denying, or partly G/D,
or from the expiration
of the 180-day period.

Example:
FAN-------------------Protest

30 days

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Q: What if you filed your
th
Protest on the 18
day of the 30-day
period? Kelan mag-
sisimula ung 180-
day period?
th
A: On that 18 day of the
30-day period when you
filed your Protest begins
the 180-day period
Q: What if the 180-day period
Expires & the BIR didn’t act
on your Protest?
A: you MAY go up to the CTA
Division w/in 30 days.

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JURISDICTION OF THE CTA DIVISION The Prejudice Party, in the meantime, may file MR or Motion for New Trial for a period of 15 Days.
1. The CTA has an Exclusive Appellate Jurisdiction (EAJ) on decisions of the
BIR denying the claim for refund of excess input vat in Zero-Rated
transactions;
Q: When the Protest is pending, can the BIR collect?
2. Based on the non-action of BIR w/in 120 days in the case of claim for
A: Yes, because taxes are the lifeblood of the Government.
refund of excess input vat in Zero-rated transaction; Q: How and when the BIR may Collect?
3. The CTA has also an EAJ over actual decisions of the BIR denying the A: 1. Administrative Mode:
Protest; Lien, forfeiture warrant of Distraint & levy, garnishment,
1. The CTA has EAJ over non-action of the BIR in Protest Cases. Compromise, or suspension of Taxable period.
Judicial Mode:
CONCEPTS: File cases in court:
1. If you have a pending protest based on a FAN issued by the BIR & the BIR Civil;
subsequently issues another assessment involving substantially the same Criminal
tax covered by the previous FAN & for w/c a Protest is already filed, no
WHEN:
need to file a separate protest on that;
The BIR can collect w/in 5 yrs from receipt of FAN by the TP;
2. If the BIR issues a succeeding assessment w/c is not substantially the
When the TP filed a fraudulent return, the BIR may:
same as the one originally issued & for w/c you already filed a protest. For
a. issue an assessment 10 yrs from the BIR’s discovery; or b.
the succeeding assessment, you need to file another protest, otherwise, collect w/in 10 yrs from the discovery of the fraudulent return.
that becomes Final and Executory.
3. The CTA has the power to entertain:
a. Petition for Certiorari under R65; or
b. Issue TRO, or Injunction or Certiorari.
REASON: The SC states that when the law speaks of the Rules of Court
suppletorily applies to the Internal Rules and Procedure of the CTA, dapat
daw mag-apply din ang ating Rules of Court.
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ADMINISTRATIVE J
MODE U
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B
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 2 KIND OF CRIMINAL OFFENSES UNDER THE TAX CODE:
1. Which does not result in tax deficiency. Ex:
failure to obey subpoena is an offense in itself.
Where to file? The venue is based on the
h prescribed penalty;
e 1. One w/c results in tax deficiency.

c
o
u
r
t

When you receive the METC,

RTC CTA
notice of garnishment,
your pending protest is
C MC
TC,
deemed denied or denied I MT
RULES:
with actual decision. C
-ganyan effect ng V 1. The CTA has EAJ over Protest Cases;
Notice of 1M & above 2. The CTA has an Exclusive Original Jurisdiction
Garnishment. I With in Metro Manila More than 400K (exclusive of over tax cases involving 1 Million and above.
-this means, pupunta ka Penalties,
ng CTA w/in a period of
L Interest &
30 days from your Surcharges)
receipt of the N. of
Outside Metro More than
Garnishment or Warrant
Manila 300K
of Distraint or Levy.
W/O Tax More than 6
Cr Deficiency
(based on
Years NO JURSISDICTION

im the
prescribed
in penalty

al Results in W/
Tax in More than 400K 1M & above (exclusive
Deficiency M of Penalties, Interest &
M Surcharges)

O. More than 300K

MM

Example on CIVIL CASE: INTEREST: 70K PENALTY: 87,500 SURCHARGE: 175k

PARTIES: BIR VS DEFENDANT (W/IN MM) NOTE: YOU APPLY THE TOTALITY RULE HERE 1
CASE: FOR COLLECTION OF TAXES & INTEREST (The only time interest and damages are included 0
PRINCIPAL AMOUNT: 350k In the jurisdictional amount is when the main action is damages)
 Q: WHEN DO WE GO DIRECTLY TO CTA EN BANC?
A: 1. When the decision being appealed from is rendered in the
exercise of Appellate Jurisdiction like in this ex. case.
2. When it involves the decision of the Central Board of
Assessment Appeals.

MTC RTC CTA En Banc

)
(In

th
e
e
x
er
ci
se
of
it
s (w/in 30 days)

A
p
p
el
la
te
J.
[1
5
d
a
ys
]
Talo ka ulit)

RULE:
1. When you have a Pending Appeal both in the CTA
Division and CTA en banc, both will be consolidated and
there will be no instance that a conflicting decision
involving the FAN.
2. If the principal amount of tax due is 1Million and above, CTA
exercises Original Jurisdiction.
3. Pag sa RTC in its Original Jurisdiction, talo ka, sa CTA
Division ka akyat muna w/in 30 days, pag talo ka ulit,
you now proceed to CTA En Banc w/in 15 days. 1
1
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Q: CAN THE PERIOD OF COLLECTION BE
SUSPENDED AS WELL?
A: YES, if the period of assessment is suspended
based on any of the grounds listed under Sec.
223, the same grounds if they are existing at the
time of collection may also suspend the period of
collection. These periods are 10 and 5 yrs.
CTA EN BANC
CRIMINAL CASE W/C RESULTS IN TAX DEFICIENCY FISCAL LEVEL: When the Fiscal finds Probable Cause,
(kung sino matatalo SUPREME
Example: Failure to issue receipts (it means di mo files Info in court.
dito, punta na ng: COURT
dineclare as part of your gross income sigurado Q: Can you file a petition for review before the DOJ
W/in 15 DAYS W/in 15 DAYS
may tax deficiency parang estafa.) Secretary?
A: Yes, you have 10 days to file a Pet. For Review
Q: WHERE TO FILE? before the DOJ Secretary.
A: It depends on the Jurisdictional amount Q: is that allowed in Tax cases?
Q: Does the CTA have Exclusive Original A: Yes. When the DOJ Sec. resolves the Pet. Rev and
Jurisdiction over criminal cases w/c result in Tax denied, tuloy ang arraignment. If GRANTED, it is
Deficiency? discretionary upon the court to dismiss the case or
A: Yes, when the principal amount of tax due is 1M not. It doesn’t mean that once a pet rev is granted by
& above exclusive of interest, penalties & the DOJ Sec, the judge will dismiss the case. The
surcharges. The CTA exercises Exclusive Original court is not divested of jurisdiction. Once it acquires
Jurisdiction in Civil Cases & Criminal Cases when jurisdiction, it is forever holding jurisdiction over the
the tax due involved is 1M & above. criminal case.
But, if the criminal offense does not result in any Q: Does the CTA have jurisdiction over petitions for
tax deficiency, the Jurisdiction of the CTA is only Review decided by the Secretary of Justice on tax
appellate, never Original. That’s the rule. criminal cases?
A: PERSONAL OPINION: It does not have, it is still the
CA w/c has EOJ. But there is one pending case in SC
w/c one of the issues raised is: Yes, the CTA has
Jurisdiction over PET REV on tax criminal cases
decided by the DOJ Secretary.

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 Refund of Q: IF YOUR REFUND IS APPROVED, WHAT WILL YOU GET?
Refund of A: Tax Credit Certificate, HINDI SALAPI.
Excess Input
Exce
Vat in Zero
ssive
Rated
ly
Transaction
Asse
(2:120:30)
ssed
/Coll
ecte
d
and
Illega
lly
Asse
ssed
and
Colle
cted

There is element No
ASSUMP of illegality in element of
TION the collection & Bad Faith
assessment and Fraud
made by the BIR

1. The claim for Refund Must be filed

REQUIS
must be filed w/in 2 w/in 2 yrs from
ITES
yrs from payment; the close of the
2. The appeal to the quarter when
CTA must likewise be you had zero-
filed w/in the same rated
2-yr period. transaction.

Actual date of
Payment

0 2yrs

Possible scenarios: No decision

received paubos na si 2- yr period:
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 1. File ka na sa CTA;
1. W/ BIR Decision, file ka
na sa CTA bago maubos
si 2-yr. period;
2. Pag 40 days pa natitira,
hanggang 30 days lang
ng 40 days na yan ang
pagfile mo, di mo pwede
ubusin ang 40 days;
3. Paano pag natanggap
mo BIR decision 25
days n lang bago
maubos si 2-yr period?
Kahit originally, 30 days
ang pag-akyat,
hanggang 25 days na
lang, wala kang add’l 5
days, bawal.

NOTE: Pag nakatanggap ka ng

decision kulang na ang
30 days para umakyat
sa CTA, basta hanggang
2 years lang; Pag sobra
pa sa 30 days ang
Natitira, basta
hanggang 30 days ka
lang.

Refund of Excess
input vat in zero- 2 120 30
rated transaction YRS DAY days
S (MUS
T)

30 180 30
Protest Cases DA Days
YS (MAY
)
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Refund of Excessively
Assessed/Collected, 2 30 2
Illegally YRS DAYS YR
Assessed/Collected S

Pag: Pag:
Assessment ay Assessment ay
3 yrs Collection 10 yrs Collection
ay 5 yrs ay 5 Yrs

Refund of Excess Input Vat in Protest Cases:

Zero- Rated Transaction:
Refund: 2 Yrs Filing w/ the BIR : 30
Non-Action of BIR: 120 days The BIR does not act w/in:
days Akyat sa CTA : 30 180 days TP MAY go up to CTA
days : 30
days

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