5.
FORMS
RECONSIDERATION – plea for reevaluation of an assessment on the basis of
existing records.
Note:
- No submission of supporting documents.
- 180 days to wait for the decision of BIR reckons from date of submission of protest.
REINVESTIGATION - plea for the reevaluation of the assessment on the basis of
the newly discovered evidence or additional evidence.
Note:
- Supporting documents should be submitted.
- 60 days period to sumbit.
- 180 days to wait for the decision of BIR reckons from date of submission of
supporting documents.
I. SUBMISSION OF SUPPORTING DOCUMENTS – SEC. 228
SEC. 228. Protesting of Assessment. - When the Commissioner or his duly authorized
representative finds that proper taxes should be assessed, he shall first notify the taxpayer of
his findings: Provided, however, that a pre-assessment notice shall not be required in the
following cases:
(a) When the finding for any deficiency tax is the result of mathematical error in the
computation of the tax as appearing on the face of the return; or
(b) When a discrepancy has been determined between the tax withheld and the amount
actually remitted by the withholding agent; or
(c) When a taxpayer who opted to claim a refund or tax credit of excess creditable withholding
tax for a taxable period was determined to have carried over and automatically applied the
same amount claimed against the estimated tax liabilities for the taxable quarter or quarters
of the succeeding taxable year; or
(d) When the excise tax due on excisable articles has not been paid; or
(e) When the article locally purchased or imported by an exempt person, such as, but not
limited to, vehicles, capital equipment, machineries and spare parts, has been sold, traded or
transferred to non-exempt persons.
The taxpayers shall be informed in writing of the law and the facts on which the assessment
is made; otherwise, the assessment shall be void.
Within a period to be prescribed by implementing rules and regulations, the taxpayer shall be
required to respond to said notice. If the taxpayer fails to respond, the Commissioner or his
duly authorized representative shall issue an assessment based on his findings.
Such assessment may be protested administratively by filing a request for reconsideration or
reinvestigation within thirty (30) days from receipt of the assessment in such form and manner
as may be prescribed by implementing rules and regulations. Within sixty (60) days from filing
of the protest, all relevant supporting documents shall have been submitted; otherwise, the
assessment shall become final.
If the protest is denied in whole or in part, or is not acted upon within one hundred eighty (180)
days from submission of documents, the taxpayer adversely affected by the decision or
inaction may appeal to the Court of Tax Appeals within thirty (30) days from receipt of the said
decision, or from the lapse of one hundred eighty (180)-day period; otherwise, the decision
shall become final, executory and demandable.
Summary of Section 228. Protesting of Assessment.
- Commissioner/duly authorized representative shall notify the taxpayer of the
findings of the assessment.
Pre-assessment notice shall not be required in the following cases:
1. Mathematical error appears on the face of the return;
2. Discrepancy between tax withheld and tax remitted exists;
3. Double availment of Tax Credit/Refund and Carry Over;
4. Excise Tax on excisable goods has not been paid; and
5. Article purchased by exempt person is transferred to non-exempt person.
-The taxpayers shall be informed in writing of the law and the facts on which the
assessment is made; otherwise, the assessment shall be void.
- 15 days to respond from receipt of PAN. (RR 18 – 2013)
- If taxpayer fails to respond, Commissioner/duly authorized representative shall
issue assessment based on his findings.
- Assessment maybe protested: reconsideration or reinvestigation 30 days from the
receipt of PAN. 60 days from filing a protest/submission of relevant documents, the
assessment shall become final.
- Denial/Inaction on protest within 180 days from submission of documents,
taxpayer may appeal to CTA within 30 days from receipt of the decision or lapse of 180
days, otherwise, decision shall become final.
6. PERIOD TO ACT UPON PROTEST
GRANT – No issue.
DENIAL – Denial on protest within 180 days from submission of documents, taxpayer
may appeal to CTA within 30 days from receipt of the decision or lapse of 180 days,
otherwise, decision shall become final.
- May appeal for reconsideration to CIR 30 days after denial.
INACTION – Inaction on protest within 180 days from submission of documents, taxpayer
may appeal to CTA within 30 days from receipt of the decision or lapse of 180 days,
otherwise, decision shall become final.
- Or await for the final decision of CIR.
7. PAYMENT UNDER PROTEST (RR 12-99 SEC. 3.1.4 AS AMENDED BY RR 18- 2013)
SUMMARY OF RR 12-99 SEC. 3.1.4 AS AMENDED BY RR 18- 2013.
Due process requirement in the issuance of a deficiency tax assessment.
Taxpayer Letter of Authority (LOA)
If after review of Commissioner, there exists sufficient basis to assess the taxpayer,
issuance of Preliminary Assessment Notice (PAN).
PAN and FAN shall contain:
facts and law, rules and Taxpayer has 15 days to
regulations and jurisprudence
on which proposed assessment respond from receipt.
is based.
Formal Letter Demand/Final Assessment Notice (FLD/FAN)
Formal Letter Demand/Final
Assessment Notice (FLD/FAN)
– call for payment of taxpayer’s
deficiency tax liability, inclusive
Favorable Adverse
of applicable penalties.
When PAN not If No Protest within 30 days Protest (30 days from receipt of FAN)
required/Outright issuance of after receipt of FAN,
FAN (Sec.228) assessment shall become final. Reconsideration (180 days)
Either
1. Mathematical error appears Protest CONTENT: Reinvestigation (60 + 180 days)
on the face of the return;
1. Nature of Protest –
2. Discrepancy between tax Reconsideration or
withheld and tax remitted exists; Reinvestigation (specify newly
discovered/additional evidence);
3. Double availment of Tax Inaction Denied
Credit/Refund and Carry Over; 2. Date of assessment notice;
4. Excise Tax on excisable 3. Applicable laws, rules and
goods has not been paid; and regulations and jurisprudence
on which protest is based, CTA CTA CTA
5. Article purchased by exempt
otherwise void.
person is transferred to non- 30 30 days File within
exempt person. days after 30 days
Undisputed issues on FAN from waiting after
shall become final, collection lapse BIR’s denial.
letter will follow. of 180 decision
day (Rule 43)
Disputed issues yet taxpayer
period
failed to state basis (facts, laws),
it shall be considered
undisputed. Collection will
follow.
SC SC SC
Final Decision CONTENT:
File File File
1. Facts and law, rules and
within 15 within 15 within 15
regulations and jurisprudence
days days days
on which decision is based,
otherwise void. (Rule 45) (Rule 45) (Rule 45)
2. Final decision.
8. APPEAL – COURT OF TAX APPEALS
INACTION – Inaction on protest within 180 days from submission of documents, taxpayer
may appeal to CTA within 30 days from receipt of the decision or lapse of 180 days,
otherwise, decision shall become final.
DENIAL – Denial on protest within 180 days from submission of documents, taxpayer
may appeal to CTA within 30 days from receipt of the decision or lapse of 180 days,
otherwise, decision shall become final.
RR 12-99 SEC. 3.1.4 AS AMENDED BY RR 18- 2013.
Due process requirement in the issuance of a deficiency tax assessment.
1. Personal Service – is manifested by delivering a personal copy of the document at the
taxpayer’s registered address or known address or wherever he may be found.
*Known address shall mean a place other than registered address where business
activities of the party are conducted or his place of residence.
*Shall be effected by the RO assigned to the case or by any duly authorized BIR
employee as the case may be.
2. Substituted Service – may be left at the taxpayer’s registered address, with his clerk or
with a person having charge thereof.
*In case no person is found in the party’s registered address or known address,
the ROs concerned shall bring a barangay official and two (2) disinterested
witnesses (i.e. persons of legal age other than employees of the BIR) to the
address so that they may personally observe and attest to such absence.
In a like manner, the ROs concerned shall also bring a barangay official and 2
disinterested witnesses so that they may personally observe and attest should the
party be found at his registered or known address or any other place but refuses
to receive the eLA. Moreover, the original copy of the eLA shall be given to said
barangay official under both instances.
3. Service by Mail - can be done by sending a copy of the document through a registered
mail with an instruction to the Postmaster to return the mail to the sender after 10 days, if
undelivered; or through a reputable professional courier service; or through ordinary mail, if
no registry or reputable courier is available in the locality of the taxpayer.
EFFECT OF FAILURE TO FILE PROTEST AND/OR APPEAL TO THE CTA
If No Protest within 30 days after receipt of FAN, assessment shall become final.
