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TITLE V OTHER PERCENTAGE TAXES 1. On Persons Exempt from Value-added Tax (VAT)-- 3% of gross quarterly sales or receipts, except cooperatives (Sec. 116) 2. On Domestic Carriers and Keepers of Garages -- 3% of quarterly gross receipts except: owners of animal drawn 2 wheeled vehicles and bancas (Sec. 117) In computing the percentage tax, the following shall be considered the minimum quarterly gross receipts in each particular case: Jeepney for hire Manila and other cities P2,400 Provincial 1,200 Public utility bus Not exceeding 30 passengers P3,600 >30 but < 50 passengers 6,000 Exceeding 50 passengers 7,200 Taxis Manila and other cities P3,600 Provincial 2,400 Car for hire (with chauffeur) P3,000 Car for hire (without chauffeur) P1,800 3. On International Carriers a) International air carriers doing business in the Phils. -- 3% of quarterly gross receipts. b) International shipping carriers doing business in the Phils. -- 3%) of quarterly gross receipts. (Sec. 118) 4. Franchises a) on radio and/or television broadcasting companies whose annual gross receipts of the preceding year does not exceed P10M --3% b) on electric, gas and water utilities -- 2% (Sec. 119) 5. Overseas Dispatch, Message or Conversation Originating from the Phils. a) by telephone, telegraph, telewriter, exchange-- 10% b) wireless and other communication equipment services-10% payable by the person paying for the services rendered paid to the person rendering the services who is required to collect and pay the tax within twenty (20) days after the end of each quarter Exemptions: a) Messages transmitted by the government b) Diplomatic services c) Public International Organizations c) News Services (Sec. 120)
6. Banks and Non-bank Financial Intermediaries on gross receipts derived from sources within the Phils.: (Sec. 121) on interest, commissions and discounts from lending activities as well as income from financial leasing, on the basis of remaining maturities Short-term maturity (not in excess of 2 years) 5% Medium-term maturity (over 2 years but not more than 4) 3% Long-term maturity Over 4 years but not exceeding 7 1% Over 7 years 0% On dividends 0% On royalties, rentals of property, real or personal, profits from exchange and all other items treated as gross income 5% 7. Finance Companies (Sec. 122) a) gross receipts derived by all finance companies, as well as by other financial intermediaries not performing quasi-banking functions doing business in the Philippines, from interest, discounts and all other items treated as gross income -5% b) interests, commissions and discounts from lending activities, as well as income from financial leasing, shall be taxed on the basis of the remaining maturities Short-term maturity (not in excess of 2 years) 5% Medium-term maturity (over 2 years but not exceeding 4) 3% Long-term maturity -- Over 4 years but not exceeding 7 1% Over 7 years 0% 8. Life Insurance Premiums -- 5% of total premium collected (Sec. 123) except purely cooperative associations/ premiums refunded within 6 months 9. Agents of Foreign Insurance Companies -- 10% of total premiums (Sec. 124) 10. Amusement Taxes (% of gross receipts) (Sec.125) a) Cockpits --18% b) cabarets, night or day clubs -- 18 % c) boxing exhibitions -- 10% except boxing exhibitions wherein World or Oriental Championships in any division is at stake provided at least one of the contenders for World or Oriental Championship is a citizen of the Philippines and the exhibitions are promoted by a citizen/s of the Philippines or by a corporation or association at least sixty percent (60%) of the capital of which is owned by such citizens; d) professional basketball --15% e) Jai-Alai and racetracks irrespective of whether or not any amount is charged for admission -- 30% “gross receipts”-embraces all the receipts of the proprietor/operator/lessee of the amusement place 11. Tax on Winnings (Sec. 126) a) horse races -- 10% of winnings based on the actual amount paid to him for every winning ticket after deducting the cost of the ticket b) winnings from double, forecast/quinella and trifecta bets-- 4% b owners of winning race horses -- 10%
12. Tax on Sale, Barter or Exchange of Shares of Stock A. Listed and Traded through the Local Stock Exchange -- 1/2 of 1% of the gross selling price B. Initial Public Offering of closely held corp. of the shares of stock sold, bartered, exchanged or otherwise disposed in accordance with the proportion of shares of stock sold, bartered, exchanged or otherwise disposed to the total outstanding shares of stock after the listing in the local stock exchange: (% of gross selling price/ gross value in money) Up to 25% ……………………………….4% Over 25% but not over 33 1/3% ………2% Over 33 1/3% ……………………………1% --- tax imposed shall be paid by the issuing corporation in primary offering or by the seller in secondary offering 'CLOSELY HELD CORPORATION' -- any corporation at least 50% in value of the outstanding capital stock or at least 50% of the total combined voting power of all classes of stock entitled to vote is owned directly or indirectly by or for not more than 20 individuals Rules in determining whether a corporation is closely held: 1. Stock owned directly or indirectly by or for a corporation, partnership, estate or trust -- considered as being owned proportionately by its shareholders, partners or beneficiaries 2. Family and Partnership Ownerships -- An individual shall be considered as owning the stock owned, directly or indirectly, by or for his family, or by or for his partner (''family of an individual' only his brothers and sisters (whole or half-blood), spouse, ancestors and lineal descendants) 3. An option to acquire stock shall be considered as ownership of such stock 4. Constructive Ownership as Actual Ownership C. Return on Capital Gains Realized from Sale of Shares of Stocks. 1. Return on Capital Gains Realized from Sale of Shares of Stock Listed and Traded in the Local Stock Exchange a) duty of every stock broker who effected the sale subject to the tax imposed herein to collect the tax and remit the same to the Bureau of Internal Revenue within five (5) banking days from the date of collection and to submit to the secretary of the stock exchange, of which he is a member, a true and complete return 2. Return on Public Offerings of Shares of Stock a) primary offering -- the corporate issuer shall file the return and pay the corresponding tax within 30 days from the date of listing of the shares of stock in the local stock exchange b) secondary offering - 5 banking days from the date of collection (Sec. 127) PROCEDURE: (Sec. 128) I. Filing of returns and payment of percentage taxes A Persons Liable to Pay Percentage Taxes shall: 1) file a quarterly return of the amount of his gross sales, receipts or earnings 2) pay the tax due within 25 days after the end of each taxable quarter
B. Person Retiring from Business subject to percentage tax shall: 1) notify the nearest internal revenue officer 2) file his return and 3) pay the tax due within 20 days after closing his business C.Exceptions -- Commissioner may prescribe: 1) time for filing the return at intervals other than the time prescribed considering: a) volume of sales b) financial condition c) adequate measures of security d) such other relevant information required 2) manner and time of payment of percentage taxes including a scheme of tax prepayment. II. Where to File -- Except as the Commissioner otherwise permits, a) with the authorized agent bank b) Revenue District Officer c) Collection Agent or d) duly authorized Treasurer of the city or municipality where said business or principal place of business is located TITLE VI EXCISE TAXES ON CERTAIN GOODS Goods subject to excise tax: (Sec. 129) 1. goods manufactured or produced in the Philippines for domestic sale or consumption or for any other disposition and to things imported 2. imposed in addition to the value-added tax 2 Kinds of excise tax 1. SPECIFIC TAX ( taxes imposed based on weight or volume capacity or any other physical unit of measurement 2. AD VALOREM TAX ( tax imposed based on selling price or other specified value of the good Filing of Return and Payment of Excise Tax on DOMESTIC Products (Sec. 130) Persons Liable --file a separate return for each place of production setting forth: 1. the description of products 2. quantity or volume of products to be removed 3. tax base 4. tax due TAXABLE ARTICLE indigenous petroleum, natural gas or liquefied natural gas exported products PERSONS LIABLE first buyer, purchaser or transferee for local sale/transfer/barter owner/lessee/concessionaire/ operator of the mining claim domestic products removed owner or person having possession from place of production w/o thereof
payment of tax Time for Filing of Return and Payment of the Tax TAXABLE ARTICLE WHEN PAYMENT MADE locally manuf. petroleum W/in 10 days from date of removal of products and indigenous such prods. from 1/1/98 to June 30’ petroleum 98 w/in 5 days from date of removal of such products for the period of July 1, ’98 to Dec. 31 ’98 before removal from place of production from Jan 1 ’99 and thereafter Nonmetallic mineral, mineral upon removal of such products from products, quarry resources locality where mined or extracted locally produced or extracted file a return and pay the tax within 15 metallic mineral or mineral days after the end of the calendar products quarter when such products were removed for imported mineral or mineral paid before their removal from products, whether metallic or customs custody nonmetallic Place for Filing of the Return and Payment of the Tax a) any authorized agent bank b) Revenue Collection Officer c) duly authorized City or Municipal Treasurer in the Philippines. Determination of gross selling price for goods subject to Ad Valorem tax: the price, excluding VAT, at which goods are sold at wholesale in the place of production or through sales agents to the public Payment of Excise Taxes on IMPORTED Articles Persons Liable: 1) owner or importer to the Customs Officers before the release of such articles from the customs house, or 2) by the person who is found in possession of articles which are exempt from excise taxes other than those legally entitled to exemption -- tax-free articles brought or imported into the Philippines by persons, entities, or agencies exempt from tax which are subsequently sold, transferred or exchanged in the Philippines to non-exempt persons or entities -- the purchasers or recipients shall be considered the importers, and shall be liable for the duty and internal revenue tax due on such importation (Sec. 131) IMPORTATION OF CIGARS, CIGARETTES, DISTILLED SPIRITS Gen. Rule: even if destined for tax and duty free shops ( shall be subject to all applicable taxes, duties, charges, including excise taxes due Except: cigars and cigarettes, distilled spirits and wines brought directly into the duly chartered or legislated freeports of the a) Subic Special Economic and Freeport Zone, created under RA No. 7227; b) Cagayan Special Economic Zone and Freeport, created under RA No. 7922;
distilled spirits form the chief ingredient II. 2000) (Sec. ingredient except toilet preparations. conventions and other international agreements for their use or consumption b Entities which are by law exempt from direct and indirect taxes (Sec.00 per proof liter Distilled Spirits produced in a pot still or P4.P300 per bottle (excluding the excise tax and the value-added tax) . any alcohol.P300/proof liter medicinal preparations. 135) EXCISE TAX ON ALCOHOL PRODUCTS (*rates to be increased by 12% on Jan. dilution. containing not more than 50% of alcohol by volume distilled spirits produced from raw taxed in accordance with the materials other than those in (a) net retail price per bottle 750 ml. 134) 2) Petroleum Products sold to the following are exempt from excise tax: a) International carriers of Philippine or foreign registry on their use or consumption outside the Philippines b) Exempt entities or agencies covered by tax treaties. 141-143) TAXABLE ARTICLE TAX RATE I. or mixture-taxable (excise tax on alcohol products)(Sec. 7903. if it is to be used for motive power-taxable (excise tax on petroleum products) 2. of which. and are not transshipped to any other port in the Philippines EXEMPTION OR CONDITIONAL TAX-FREE REMOVAL OF CERTAIN ARTICLES 1) Domestic Denatured Alcohol a) not less than 180º proof b) suitably denatured and rendered unfit for oral intake exempt from excise tax on alcohol products but taxable under Section 106(A)/ VAT Except: 1. if the net retail price P500-.P675 --P150/proof liter More than P675 -. purification. volume capacity (excluding excise tax and VAT) as follows: less than P250 -P75/proof liter P250 . flavoring same tax as such chief extracts. and all other preparations.1. previously rendered unfit for oral intake after denaturing but subsequently rendered fit for oral intake after undergoing fermentation.00 per proof liter other similar primary distilling apparatus by a distiller producing not more than 100 liters/day. (a) Distilled Spirits P8.TAX REVIEWER c) Zamboanga City Special Economic Zone. Wines Sparkling wines/champagnes P500 or less --P100 More than regardless of proof. excluding water. created under RA No.
00/pack -. net retail price is below P5. lager beer.00/pack 4. net retail price per liter of volume capacity is less than P14. tapuy and similar domestic fermented liquors P12. porter and other fermented liquors except tuba. basi. clippings.40/pack 1. net retail price is more than P22.P6. stems and sweepings of tobacco tobacco specially prepared for chewing so as to be unsuitable for use in any other manner II.15/ liter 2.75/kilogram P0.50 .00 --P9.15/liter TAXABLE ARTICLE I.P8.00 P24.00/pack .00/pack 2.60/kilogram P1.00 -P12. cuttings. Cigars Cigarettes Packed by Hand Cigarettes Packed by Machine (excluding the excise tax and the value-added tax) TAX RATE P0.00/pack -. net retail price is over P10. net retail price P5.50 -. net retail price exceeds P6.P22.50 but does not exceed P10.TAX REVIEWER Still wines containing 14% of alcohol by volume or less Still wines containing more than 14% but not more than 25% of alcohol by volume Fortified wines containing more than 25% of alcohol by volume III. Tobacco Products: a) twisted by hand or reduced into a condition to be consumed in any manner other than the ordinary mode of drying and curing b) prepared or partially prepared with or without the use of any machine or instruments or without being pressed or sweetened c) fine-cut shorts and refuse.00/cigar P0.00/pack -P1.P12. net retail price P14.00 but does not exceed P6. ale.50/pack -P5.15/liter 3. Fermented Liquor on beer.00/pack 3. scraps.00 same as distilled spirits 1.
10/thousand cigarettes or fraction thereof P0.) Gasoline Diesel Up to 1600 Up to 1800 1601 .56/kilogram P0.05/ liter of volume capacity P3.TAX REVIEWER Inspection Fee 1 paid by the wholesaler. regular gasoline and other similar products of distillation Leaded premium gasoline Unleaded premium gasoline Aviation turbo jet fuel Kerosene Kerosene.50/liter and kg of vol capacity or wt P0. owner or operator of redrying plant immediately before removal from the establishment 2 in case of imported leaf tobacco and its products. manufacturer.2000 1801 – 2300 2001 . when used as aviation fuel. to be paid by the importer before removal from customs' custody P0.63/liter of volume capacity P0. and on similar fuel oils having more or less the same generating power Liquefied petroleum gas Liquefied petroleum gas used for motive power Asphalts Bunker fuel oil. producer.30/liter of volume capacity EXCISE TAX ON MISCELLANEOUS ARTICLES 1. of scrap and other manufactured tobacco EXCISE TAX ON PETROLEUM PRODUCTS TAXABLE ARTICLE Lubricating oils and greases Processed gas Waxes and petrolatum Denatured alcohol to be used for motive power Naphtha.03/kilogram or fraction thereof.2700 2301 – 3000 2701 or over 3001 or over Tax Rate 15% 35% 50% 100% .02/kilogram of leaf tobacco or fraction thereof P0.00/liter equivalent rate as the excise tax on diesel fuel oil P0.60/liter of volume capacity same tax on aviation turbo jet fuel P1.05/liter of volume capacity P4. Diesel fuel oil.35/liter of volume capacity P3.50/kilogram P0. and on similar fuel oils having more or less the same generating power TAX RATE P4.35/liter of volume capacity P4.50/thousand cigars or fraction thereof P0.80/ per liter of volume capacity P5.67/liter of volume capacity P0. Automobiles Engine Displacement (in cc.
20% based on the wholesale price or the value of importation used by the Bureau of Customs 1) All goods commonly or commercially known as --jewelry (real or imitation) --pearls --precious and semi-precious stones and imitations --goods made of. that utility vehicles of registered zone enterprises. further. and Trade and Industry.exempt 1) Provided.00/metric ton b) On all nonmetallic minerals and quarry resources -. frames or mountings for spectacles or eyeglasses. ---use of such vehicles outside of the freeport zone --shall be deemed an introduction into the Philippine customs territory --such introduction shall be deemed an importation into the Philippines --shall subject such vehicles to customs duties. mounted or fitted with. mounting or fitting of the teeth) --opera glasses and lorgnettes 2) Perfumes and toilet waters 3) Yachts and other vessels intended for pleasure or sports EXCISE TAX ON MINERAL PRODUCTS 1. such as delivery trucks and cargo vans with gross vehicle weight above three (3) metric tons may be allowed unrestricted use outside the freeport zone 2) Provided. and dental gold or gold alloys and other precious metals used in filling. Mineral Products a) On coal and coke -. net of excise tax and value-added tax ( in the case of importation) c) c) locally extracted natural gas and liquefied natural gas 2% . including leaseholders of residences inside the freeport zone. precious metals or imitations thereof --ivory (not including surgical and dental instruments. taxes and charges.2% based on the actual market value of the gross output thereof at the time of removal (if locally extracted or produced) or the value used by the Bureau of Customs in determining tariff and customs duties. taxes and charges 4) personally-owned vehicles of residents. and service vehicles of freeport registered enterprises and executives. such as company service cars and expatriates' and investors' automobiles brought in the name of such enterprises. which are indispensable in the conduct and operations of their business. including excise tax due on such vehicle b) Non-essential Goods -. silver-plated wares. vehicles owned by tourist-oriented enterprises utilized exclusively for the purpose of transporting tourists in tourism-related activities.P10. which in no case shall exceed 14 days/ month 3) tourist buses and cars. or ornamented. may be used outside the freeport zone for such periods as may be prescribed by the Departments of Finance. service vehicles of registered freeport enterprises and company service cars used for more than an aggregate period of 14 days/month outside of the freeport zone ( the owner or importer shall pay the corresponding customs duties. the Bureau of Customs and the Freeport authorities concerned.TAX REVIEWER a) Automobiles acquired for use by persons or entities operating within the freeport zone -.
sale or transfer of an obligation. . or property incident thereto. right. It is paid only once.TAX REVIEWER d) On all metallic minerals --Copper and other metallic minerals On the 1st 3 years upon the effectivity of RA 7729 1% On the 4th and 5th years 1½% On the 6th year and thereafter 2% --Gold and chromite 2% e) On indigenous petroleum -.3% of the fair international market price TITLE VII DOCUMENTARY STAMP TAX A. WHAT is a DST? • It is a tax on documents. NATURE of DST • It is an excise tax because it is really imposed on the transaction than on the document. I. The liability to the tax and the amount thereof are determined from the face of the document itself. assignment. instruments & paper evidencing the acceptance.
70 SCRA 22 • Certificates of stock temporarily subject to suspensive conditions shall only be liable for DST only when released from said conditions. charitable or literary purposes. no additional stamp tax is due in such increase. (c) Phil. For then and only then shall they truly acquire any practical value for their owners. Therefor.TAX REVIEWER II. 2) On proxies (s192) • Basis: each proxy document • Exemption: proxies issued at affecting the affairs of association. Consolidated Coconut Industries v CIR. CORPORATE DOCUMENTS 1) Original issue of shares of stock (s175) (a) Cost of imposition is borne by the corporation originally issuing the stock certificate (b) Revenue Memorandum Circular #47-97 • The documentary stamp tax on original issues of certificates of stock as provided under Section 175 of the Tax Code attaches upon acceptance of the stockholder’s subscription in the capital stock of a corporation regardless of the physical issuance and delivery to the stockholder of the certificate of stock evidencing his stockholding. or corporation organized for religious.point at which the stockholder acquires and may exercise attributes of ownership over the stocks. . 10 SCRA 37 • A mere transfer of surplus to capital and an increase in stated value of the outstanding no par value shares does not constitute and issuance of share and consequently. WHO are the persons liable: (M I S A T) • The ones 1) M aking 2) I ssuing 3) S igning 4) A ccepting 5) T ransfering the document. • • • • • DOCUMENTS SUBJECT TO TAX Corporate documents • Insurance policies • Special contracts • Certificates • Other assignments and renewals Commercial documents Deeds of sale Maritime documents Luxuries A. (d) CIR v Heald Lumber Company. • Meaning of the term “original issue” is . taxes accrue at the time the shares are issued. instrument or paper III.
drafts. or certificates of deposit not drawing interest 5) All bonds. instruments and securities issued by the government or any of its instrumentalities. lot. freight tickets covering goods. sold or transferred in the Philippines. • Tax on renewal shall be at the same rate as the tax on the original document. vehicle. • Basis: Face value 7) Foreign bills of exchange and letters of credit (s182) • Document taxable: all foreign bills of exchange and letters of credit drawn in but made payable outside the Philippines. COMMERCIAL DOCUMENTS 1) Debentures and Certificates of indebtedness (S174) • Basis: face value of document 2) Bonds. merchandise or effects carried as accompanied baggage of passengers on land and water carriers primarily engaged in the transportation of passengers. of a house. certificates of deposit not bearing interest. and other instruments (S179) • Basis: fixed on each instrument • the tax applies only to inland bank checks. loan agreements. deposit substitute debt instruments. • Issued in any foreign country but sold or transferred in the Philippines 3) Certificates of profits or interest in property or accumulations (S178) • Basis: face value 4) Bank Checks. certificates of stock or indebtedness issued in foreign countries (S177) • Basis: fixed tax as required by law on similar instruments when issued.TAX REVIEWER B. an extension of the time in which that obligation may be discharged. appliance or furniture. 6) Upon acceptance of bills of exchange and others (s181) • Document taxable: any bill or exchange or order for the payment of money purporting to be drawn in the foreign country but payable in the Philippines. on installment.00 executed by an individual for his purchase. .) bank notes issued for circulation b. certificates of deposits bearing interest and others not payable on sight or demand (s180) • Basis: Face value • Exemptions: a. debentures.) loan agreements and promissory notes that aggregate of which does not exceed P250. • Basis: face value 8) Warehouse Receipts (s189) • Basis: each warehouse receipt • Exemption: warehouse receipt issued to any one person in any one calendar month covering property the value of which does not exceed P200. bills of exchange. 9) Bills of lading or receipts (s191) • Basis: Value of the goods • Exemptions: charter party. motor. promissory notes. for his personal use or that of his family • Renewal is also subject to dst • “renewal” postponement of the maturity of the obligation dealth with. drafts. drafts.
TAX REVIEWER C. (S43. taxable E. 2) Leases and other hiring agreement (s194) • Basis: Fixed tax rate 3) Mortgages. • Basis: each document D.Basis: Value or amount of the plan 5) Indemnity Bonds (s 187) • Basis: Premium charged • Exemption: such as may be required in legal proceedings (eg. • If the policy is cancelled. company to persons in other countries. or shares or certificates of stock (s176). certificates of obligation.RR26) • The tax is imposed upon issuance of the policy even if at that time premium had not yet been paid. deliveries or transfer of due-bills. city or municipality. no refund of the tax shall be made. Injunction. DEEDS OF SALES 1) Sales. memoranda of sales. agreements to sell.Basis: Capital of the annuity • Pre-need plans . pledges and deeds of trust (s195) • Basis: Tax rate based on amount • transactions must be effected and consummated within the Philippines • tax is based on the amount secured and not on the value of property mortgaged . certificate of obligation or stock 2) Deeds of sale and conveyances of real property (s196) • Basis: Tax rate based on amount • Property must be located in the Philippines • Deeds of partition & deeds of redemption. INSURANCE POLICIES 1) Life insurance policies (s183) • Basis: Amount insured by an such policy • The tax is collectible not only on the original policy but also upon renewals • No DST is due on insurance policies issued by a Phil. 2) Property insurance policies (s184) • Basis: Premium charged 3) Fidelity bonds and other insurance policies (s185) • Basis: Premium charged 4) Policies of annuities and pre-need plans (s186) • Annuity . • Basis: Par value of due-bill. attachment) 6) Certificates (s188) • certificate of damage or otherwise issued by any public official in public capacity for the purpose of giving info or establishing proof of fact. SPECIAL CONTRACTS 1) Powers of attorney (s193) • Basis: Fixed tax rate • Exemption: Collection of claims due from or accruing to the government of the Philippines or the government of any province.
5. and papers by the national.Certificates of the administration of oaths to a person as to the authenticity of a paper required to be filed in court by any person. 4.Policies of insurance of annuities made by a fraternal or beneficiary society. furnished by the provincial. V.TAX REVIEWER • there must be an existing debt 4) Jai-alai. provincial. MARITIME DOCUMENTS • Charter parties and similar instrument (s197) 1.Certificates of the assessed value of lands not exceeding P200 in value assessed. whether the proceedings be civil or criminal WRITTEN APPEARANCES . CERTIFICATES OF THE ADMINISTRATION OF OATHS FOR PAPER AUTHENTICITY . city or municipal governments. 6. city or municipal governments GOVERNMENT & INDIGENT DOCUMENTS FILED IN COURT . association or cooperative company. CERTIFICATES OF OATHS ADMINISTERED TO ANY GOVERNMENT OFFICIAL IN HIS OFFICIAL CAPACITY . instruments. provincial. city or municipal governments made in the instance and for the sole use of some other branch of the national.Papers and documents filed in courts by or for the national.Certified copies and other certificates placed upon documents. horse race tickets. operated on the lodge system or local cooperation plan and organized and conducted solely by the members thereof for the exclusive benefit of each member and not for profit CERTIFICATES OF THE ASSESSED VALUE OF LANDS NOT EXCEEDING P200 .Statements and other compulsory information required of persons or corporations by the rules and regulations of the national. 7. and not at the instance or for the use or benefit of the person filing them FRATERNAL/BENEFICIARY ORGANIZATION INSURANCE POLICIES OF ANNUITIES . order.Written appearances in any court by any government official in his official capacity 2. duly authorized to sell loose dst’s 3) Any person authorized to use DST Metering Machine B. 2) Any Revenue Collection Officer. written appearance in any court by any government official in his official capacity. EXEMPTIONS: (SICFAGOW) SOLE USE . city or municipal treasure to applicants for registration of the title to land.Certificates of oaths administered to any government official in his official capacity or of acknowledgment by any government official in the performance of his official duties. 3. PAYMENT OF DOCUMENTARY STAMP TAX A. VI. provincial city or municipality government exclusively for statistical purposes and which are wholly for the use of the bureau in which they are filed. provincial. lotto or other authorized numbers games (s190) • Basis: each ticket F. affidavits of poor persons for the purpose of proving poverty COMPULSORY INFORMATION FOR STATISTICAL PURPOSES . 8. WHO are required to accomplish and file a dst DECLARATION under BIR Form 2000 1) Any person liable to pay dst on a taxable document/transaction when tax due is >P200. WHEN to file RETURN .
par value or book value of the shares? Held: There is no basis to treat stock dividends as a distinct class from ordinary shares of stock since §224 of the NIRC merely distinguishes certificates of stock & not the shares themselves as one with par value and one without. . F. it issued 50. C. with par value of P100 or a total of P5M. Lincoln paid DST on each certificate based on its par value. G. for dst metering machine authorized persons WHEN to PAY 1) general rule: simultaneous with filing of return 2) exception: purchase and actual affixture Actual Stamping System: loose documentary stamps Constructive Stamping System: constructive affixture printing through a DS metering machine WHERE to FILE/PAY 1) authorized agent bank within the jurisdiction of the revenue district office having jurisdiction over the residence or principal place of business of the taxpayer 2) revenue district officer.TAX REVIEWER 1) within 10 days after close of month when taxable document was (misat. LINCOLN PHILIPPINE LIFE vs CA (GR 118043. In 1984. engaged in life insurance business.000 shares as dividends. July 23. collection agent or his duly authorized treasurer of the city or municipality in which the taxpayer has his legal residence or principal place of business AFFIXTURE 1) In general: DS is affixed on the original copy of the document 2) Exception: duplicate copy when the same has been substituted and used in place of the original FAILURE TO STAMP TAXABLE DOCUMENT 1) will not render the document void 2) but document cannot be: 3) recorded in government offices 4) cannot be accepted in evidence in court PENALTY • 25% surcharge plus 20% interest per annum DUTY OF NOTARY PUBLIC • Not to add his jurat or acknowledgment to any document subject to documentary stamp tax unless the proper documentary stamps are affixed thereto and cancelled. see III) 2) within 5 days after close of each week for Revenue Collection Officers 3) each time ds are purchased for reloading. D. E. Issue: What is the proper basis of DST. H. There is therefore no reason for determining the actual value of such dividends for purposes of DST if the certificates indicate a par value. 1998) Facts: Lincoln is a domestic corp. The tax is levied upon the specific transactions which gives rise to the original issuance but on the privilege of issuing certificates of stock.
Civil or criminal action • One or all of the remedies may be pursued simultaneously in the discretion of revenue authorities • Distraint or levy NOT availed of where the amount of tax involved is NOT MORE than P100 Prescriptive Periods: 1) Assessment of Tax Liability (a) 3 years from the last day prescribed by law for filing when return is filed: 1. no DST were due thereon. before the last day prescribed by law or 2. and must be paid upon the issuance of the instruments. voidable or unenforceable. 203) (c) 10 years after the discovery of the falsity. Levy upon real property and interest therein 3. on the last day prescribed by law (b) 3 years from filing of return when the return is filed beyond the period prescribed by law (Sec. They maintain that since the premiums on the policies were not paid. Distraint of goods. Such period agreed upon . HOME ASSURANCE vs CA (GR 119446. 205) 1. 1999) Facts: Petitioners are domestic corps. 222 a) The following are covered by the general rule (Sec. fraud or omission in case of: 1. 203 for the assessment of tax. when before the expiration of the period in Sec. TITLE VIII REMEDIES I. both the Commissioner and the taxpayer have agreed in writing to its assessment after such time. false or fraudulent return with intent to evade tax. failure to file a return (Sec. Jan 21. 203): • false return-filed with no intent to evade tax • fraudulent return-filed with intent to evade tax (d) within the period agreed upon. without regard to whether the contracts which gave rise to them are rescissible. Issue: Was DST properly levied? Held: YES. engaged in the insurance business. void. DST is levied on the exercise of the privilege executing specific instruments. They claim a refund on the DST they paid for insurance policies they issued.TAX REVIEWER PHIL. or 2. chattels or effects 2. they are considered as never to have taken effect pursuant to the Insurance Code & therefore. Civil Remedies for Collection by the Government: (Sec.
000 or b) where the settlement offered is less than the prescribed minimum rates When may taxes be abated or cancelled? [ UJ ] 1. 204 A) 3. Bañez) 5 years from assessment (according to Abella/Abiog/Sarmiento book) (b) 5 yrs from assessment in case of a false or fraudulent return or failure to file a return (c) in case of an agreed pd. Minimum compromise rate: a) In case of financial incapacity. 40% of basic assessed tax 2. collection shall be within the pd. Pd.TAX REVIEWER may be extended by written agreement before the expiration of the previous period.d) Suspension of Prescriptive Periods: (Sec.222 b) 2) Collection of Tax Liability (a) 3 years from assessment (according to Atty. 204 A) 1. When may taxes be compromised? [ VIC ] 1. Subject to approval of Evaluation Board (composed of Commissioner and 4 Deputy Commissioners): a) when basic tax involved exceeds P1. (Sec. A reasonable doubt as to the Validity of the claim against the taxpayer exists. 222 c. (Sec. The financial position of the taxpayer demonstrates a clear Inability to pay the assessed tax. or 2.000. or 2. The tax or any portion thereof appears to be Unjustly or excessively assessed. (Sec. 10% of basic assessed tax b) In other cases. 223) 1) Periods suspended: (a) periods for assessment in Sec. agreed upon in writing before the expiration of the 5 yr. 203 and 222 (b) beginning of distraint or levy (c) proceeding in court for collection 2) Grounds for suspension of prescriptive periods [ R LOP2 ] a) Commissioner is Prohibited from making the assessment or beginning distraint or levy or a proceeding in court and for 60 days thereafter b) Taxpayer requests for Reinvestigation which is granted c) Taxpayer cannot be Located in the address given in the return filed. The administration and collection costs involved do not Justify the collection of the . but if the taxpayer informs the Commissioner of a change in address the prescriptive period will not be suspended d) When the warrant is served upon the taxpayer and no Property could be located e) When the taxpayer is Out of the Phils. Criminal violations EXCEPT: a) those already filed in court b) those involving fraud (Sec 204 B) Limitations for compromise of tax liability: (Sec. for assessment.
or to Remove his property therefrom c) taxpayer Hides or conceals his property d) taxpayer performs any act tending to Obstruct the proceedings for collection of any tax due 2) Procedure (a) Require the taxpayer or any person having control of the property to 1. chattels and other personal property 1.000. submitted within 10 days from receipt of the warrant 2. statement of the sum demanded . 206) Distraint of Personal Property WHO MAY EFFECT DISTRAINT AMOUNT INVOLVED Commissioner or his duly authorized In excess of representative P1. without the authority of the Commissioner (b) Where taxpayer or person in possession refuses to sign: 1. as may be required by the Commissioner 3) The order of Distraint may be lifted by the Commissioner or his representative (Sec. 204 B) Constructive Distraint (only for personal property): 1) When may this occur? (RIRHO) a) taxpayer is Retiring from any business subject to tax b) taxpayer is Intending to leave the Phil. shall be left either from the owner or the person from whom the property was taken or at the dwelling or place of business of such person and with someone of suitable age and discretion 2. 207 A) 4) Procedure (a) Goods. sign a receipt covering property distrained 2.000 or less 1) Property Siezed or Distrained a) goods. interests in and rights to personal property 2) Report on the Distraint a) by the distraining officer 1. signed by the officer.000. leave a copy in the premises where the property is located (Sec. chattels.000 Revenue District Officer P1. submitted to the Revenue District Officer and to the Revenue Regional Director b) by the Revenue Regional Director-consolidated report. credits. in the presence of 2 witnesses. not to dispose of the property in any manner. effects and other personal property b) including stocks and other securities. obligate himself to preserve the same intact and unaltered 3. debts. bank accounts. distraining officer shall prepare a list of the property distrained 2.TAX REVIEWER amount due (Sec. effects. a copy of an account of the property distrained.
warrant shall be sufficient authority to pay the Commissioner the amount of such debts or credits (d) Bank accounts (garnishment) 1. Duration-lien exists from the time assessment is made by the Commissioner until . Nature-. leaving a copy of the warrant with the person owing the debts or having in his possession such credits or his agent 2. levy on real property shall proceed within 30 days after distraint (e) Report on levy 1. serve a warrant of garnishment upon the taxpayer AND upon the president. treasurer or other responsible officer of the issuing corporation.a lien in favor of the Government of the Philippines when a person liable to pay a tax neglects or fails to do so upon demand 2. the Register of Deeds where the property is located and 2. submitted to the Commissioner or his representative 2. by levying officer i. submitted within 10 days from receipt of warrant ii. by the Revenue Regional Director-.TAX REVIEWER 3. amounts of tax and penalty due. treasurer or other responsible officer of the bank 2. bank shall turn over to the Commissioner so much of the bank accounts as may be sufficient (Sec. When exercised: before. association (c) Debts and Credits 1. time and place of sale (b) Stocks and other Securities 1. as may be required by the Commissioner (f) The warrant may be lifted by the Commissioner or his representative Tax Lien: • superior to judgment claim of private property • attaches not only from the time the warrabt was served BUT from the time tax was due and demandable 1. company. 208) Levy on Real Property 1.consolidated report. simultaneously or after the distraint of personal property belonging to the taxpayer 2. Enforceable throughout the Philippines (b) officer shall write upon the certificate a description of the property upon which levy is made (c) written notice of levy shall be mailed or served upon 1. manger. the taxpayer or agent/manager of the business in respect to the tax liability or to the occupant of the property (d) If personal property of taxpayer is not sufficient to satisfy the tax due. Procedure: (a) internal revenue officer shall prepare a duly authenticated certificate showing the name of taxpayer. manager. serving a copy of the warrant upon the taxpayer AND upon the president.
Post Reporting notice-Initial findings are presented and discussed with the taxpayer. Brought in the name of the Government of the Philippines 2. with interests. . Or removed in violation of this Code. penalties and costs that may accrue in addition thereto 3. Conducted by legal officers of the BIR 3. cigarettes manuf. liquors. 228) Kinds of Assessment: 1. Judicial Relief Requisites of a valid assessment: 1. must be filed with the approval of the Commissioner (Sec. Extent-upon all property and rights to property belonging to the taxpayer 4. dies for printing or making fake revenue stamps and labels be destroyed by Commissioner where injurious to public to law enforcement II. must state the facts and law upon which it is based (Sec. 219) Civil and Criminal Actions: 1. In case of actions for recovery of taxes or enforcement of a fine. Remedies of a Taxpayer 1. penalty or forfeiture. civil or criminal Distilled Spirits.TAX REVIEWER paid. Products of tobacco and apparatus used for their production Other articles subject to excise tax which have been manuf. Administrative a) protest of assessment b) claim for refund 2. Effectivity against third persons-only when notice of such lien is filed by the Commissioner in the Register of Deeds in the province/city where the property is situated (Sec. in writing 2. sale or Removable fixtures destruction of specific forfeited property Real Property In the same manner and under the same conditions as sales of personal property distrained Upon forfeiture. may order of the the sale may be health or prejudicial Upon forfeiture may be sold or destroyed at the discretion of the Commissioner *forfeited property shall not be destroyed until at least 20 days from seizure Sale Judgment of condemnation and sale in a legal action. cigars. 224-225) How enforced Chattels and Seizure. 220) Forfeiture: (Sec.
12-85) 2. Pre-assessment Notice Instances where a pre-assessment notice NEED NOT be given: (MET DC) a) when the finding for deficiency tax is a result of Mathematical error in the computation of tax appearing on the face of the return. or b) Discrepancy is determined between the tax withheld and the amount actually remitted by the withholding agent c) a taxpayer who opted to claim a refund or tax credit was determined to have Carried over and applied the amount against succeeding tax liabilities d) Excise tax has not been paid e) an article locally purchased or imported by an exempt person has been sold. (Revenue Regulation No. Exceptions: Case Who is entitled to ask Notes for refund .TAX REVIEWER informal conference can be held 2. 12-85 and Sec. read Revenue Regulation No. Appellate Court: Court of Tax Appeals 3. Grounds: a) if the protest is denied in whole or in part or b) is not acted upon within 180 days from submission of documents 2. 12-85 for the procedure of assessment Protest of Assessment: 1. (Sec. the assessment shall become FINAL (cannot be appealed). Within 60 days from filing of protest. 228) *pls. all relevant supporting documents should have been submitted. 228) 1. otherwise. Period to appeal: a) within 30 days from receipt of decision denying the protest or b) 30 days from the lapse of 180 day period 4. Involves a question of fact or law or both. Involves a question of fact or law or both. Effect of failure to appeal: the decision shall be final. Final Assessment (Revenue Regulation No. • request for reconsideration-a plea for re-evaluation of the assessment on the basis of existing records without need of additional evidence. 228) Appeal of Protest to the CTA (Judicial Relief): (Sec. traded or Transferred to non-exempt persons 1. executory and demandable Parties Entitled to Refund General Rule: The person entitled to ask for a refund is the taxpayer who paid the same. File a request for reinvestigation or reconsideration within 30 days from receipt of the assessment • request for reinvestigation-a plea for re-evaluation of an assessment on the basis of newly discovered or additional evidence that a taxpayer intends to present in the reinvestigation.
The withholding agent is directly and independently liable for the correct amount of tax that should be withheld. Procedure for credit/refund a) taxpayer files in writing with the Commissioner a claim for credit or refund b) filed within 2 yrs after the payment of the tax or penalty c) a return filed showing an overpayment shall be considered a written claim for credit or refund 3.TAX REVIEWER Where tax has The taxpayer (even if been shifted tax has been actually shifted by the taxpayer to his customers as in sales tax an even if the tax has been billed as a separate item in the invoice (CIR vs American Rubber) Where payer is not the taxpayer (e. in the discretion of the Commissioner 2. the seller must hold the refunded taxes in trust for the individual purchasers who advanced payment thereof and whose name must appear on his records Withholding agent "Taxpayer" is any person (CIR vs Procter & subject to tax imposed by this Gamble) title (income tax). theater owners who paid illegal municipal taxes billed to and collected from theater goers) Where payer is withholding agent Theater goers are not entitled to claim refund of such taxes (Medina vs City of Baguio) Because the sales tax is imposed directly on the seller as an occupation tax for selling Once recovered.g. Taxes refunded or credited: (EPWroSUn) a) Taxes erroneously or illegally received b) Penalties imposed without authority c) Any sum alleged to have 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. surcharges and penalties Where donor's Donee is the proper tax was assumed party to claim refund of by donee the donor's tax (even if the tax was advanced by the donor) When may taxes be refunded or credited? 1. Suit or proceeding for refund a) a claim for refund or credit has been filed with the Commissioner . and of deficiency assessments.
Corporate At the earliest. 204 C) 5. payment appears to be erroneous. (Sec. Tax Credit Certificate a) may be applied against any internal revenue tax. UNLESS revalidated. on the date It is only then that the taxpayer of the filing of the adjusted corporation can final return (ACCPA ascertain whether it Investment vs CA) The 2-yr made profits or . 204(3) and 229 Case 2-year period starts from Notes If the tax sought From date tax was paid to be refunded is (CIR v Victorias Milling) illegally or erroneously collected If the tax is paid From date of the last or final There is no payment in installment or installment or payment (CIR until the whole/entire only in part vs Prieto. shall be invalid. 229) 4. 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. (Sec. from date of mailing or delivery b) Forfeiture of Tax Credit-a tax credit certificate which remains unutilized after 5 yrs. he is paying his tax liabilities for that year. 204 C . where on the face of the return upon which payment was made. even without a written claim. from date of payment of the tax/penalty regardless of any supervening cause that may arise after payment d) the Commissioner may. from date of issue. refund or credit a tax. 230) Commencement of 2-year period under Sec . 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 yrs. CIR v Palanca) tax liability is fully paid If the taxpayer From conversion of the Merely making a merely made a deposit to payment (Union deposit is not deposit Garment v Coll) equivalent to payment until the amount is actually applied to the specific purpose for which it was deposited If tax has been From date it falls de at the A taxpayer who withheld from end of the taxable year contributes to the source (through (Gibbs vs CIR) He is withholding tax system the withholding deemed to have paid his tax performs and tax system) liability when the same falls extinguishes his tax due at the end of the obligation for the year taxable year (Aguilar vs concerned. suit must be filed within 2 yrs. In other CA) words.TAX REVIEWER b) the suit may be maintained whether or not such tax/penalty/sum has been paid under protest c) in any case.
detention of release of property affected. fees or other money charges. fines.231) BEFORE THE SALE AFTER THE SALE Period to file anytime before sale or Within 6 months from the destruction of property sale Party against the person seizing the the person seizing the whom the property or having property or having action is filed possession thereof possession thereof Cause of Enjoin the sale Recover net proceeds Action realized at the sale Add’l. forfeitures or other penalties imposed in relation thereto. Decisions of the Commissioner of Customs in cases involving liability for customs duties. refunds of internal revenue taxes. Decisions of the Commissioner of Internal Revenue in cases involving disputed assessments. File a bond Jurisdiction of the Court of Tax Appeals: 1. or other matters arising under the NIRC or any law administered by the BIR 2. seizure. or other matters arising under the Customs Law or other law administered by the Bureau of Customs (RA 1125 as amended by RA 3457) Sale of Personal Property Distrained and of Real Property Levied upon (Sections 209--216) DISTRAINT OF PERSONAL PROPERTY I. fees or other charges/penalties imposed. there is absolutely no basis to file a claim with the CIR or commence a suit in court Action to Contest Forfeiture of Chattel: (Sec. Advertisement/Notice When made Advertisement period: 20 days How made LEVY OF PROPERTY REAL within 20 days after the levy advertisement period shall be at least 30 days A notice shall be exhibited posting a notice at the main in not less than 2 public entrance of the .TAX REVIEWER period provided in Sec 229 should be computed from the time of filing of the Adjusted Return or Annual ITR and final payment of income tax (CIR vs TMX Sales) From the date the taxpayer becomes entitled to refund and not from the date of payment (CIR vs Don Pedro Central Azucarera) incurred losses in its business operations If tax was not erroneously or illegally paid but the taxpayer became entitled to refund because of supervening circumstances Before the right to refund or credit arises. Reqt.
the excess shall be turned over to the owner of the property . once a week for 3 weeks in a newspaper of general circulation in the municipality/city where the property is located a)amount of tax and penalties due b) name of taxpayer against whom taxes are levied c) short description of the property to be sold After the periods for posting and publication have been complied with at the main entrance of the municipal building or city hall or on the premises to be sold as the notice of sale shall specify Contents time and place of sale articles distrained II.TAX REVIEWER places in the municipality/city where distraint is made. b)Expenses chargeable In case the proceeds of the sale exceeds the claim and cost of sale. with the approval of the Commissioner. one place shall be at the office of the Mayor municipal/city building AND in a public/conspicuous place in the district where the property is located b) publication. the officer shall execute a bill of sale which he shall deliver to the buyer and a copy furnished to the issuing corporation. The issuing corporation shall make a corresponding entry in its books and if required to do so. Sale Time of Sale Where made shall not be less than 20 days after notice to the owner or possessor of the property AND publication or posting of notice At the place fixed in the notice How made a) officer shall sell the property at a public auction to the highest bidder for cash or. issue new certificates of stock Excess/Residu a)Residue over and above e of property what is required to be paid sold (tax due and expenses) shall be turned over to the owner of the property sold. through duly licensed commodity or stock exchanges b) In case of stocks and other securities.
restored to the owner. officer shall make a return of the proceedings c) Register of Deeds. upon registration of declaration of forfeiture shall transfer title of the property to the government Redemption within 1 year from date of forfeiture redeemed by the taxpayer or anyone in his behalf effected by paying to the Commissioner or . Reg. the sold officer conducting the sale. submitted to the Commissioner. Director b) Revenue Collection Officer shall deliver to the purchaser a certificate from his records showing: i. penalties and interest III. penalties and interest due IV. a return made by the officer making the sale shall be entered in the records of the Revenue Collection Officer. by the officer making the sale. name of purchaser iv. amount of taxes. Report of Sale a) within 5 days after the sale.TAX REVIEWER shall include actual expanses of seizure and preservation of property pending sale. taxpayer may discontinue the property shall be the sale by paying taxes. Forfeiture/Purchase by government When made a)when the bid for the no bidder or highest bid is property during the sale is insufficient to pay the not equal to the amount of amount due tax or b)the bid is less than the actual market value of the goods offered for sale How made Commissioner or his a) revenue officer representative may conducting sale shall purchase the property in declare the property behalf of he National forfeited to the government Government for the amount in satisfaction of the claim due thereon b) within 2 days from forfeiture. made in writing within 2 days. Revenue District Officer and Rev. Release of If prior to the sale. description of property sold iii. all proper At any time before the day Property to be charges are paid to the fixed for the sale. proceedings of sale ii.
1988. Paramount filed its Annual ITR. The amount paid was greater than the income tax due on the return. It previously paid an amount representing its quarterly income tax. . form date of purchase to date of redemption a) delivery of the certificate issued to the purchaser b) certificate of redemption from the Revenue District Officer c) property redeemed shall be free from lien of such taxes and penalties Resale a)May be resold by the Commissioner or his deputy and b) proceeds remitted to the National Treasury and accounted for as internal revenue V. filed a letter claiming refund. Redemption of Property Sold Period of redemption Who may redeem Procedure Rights of Person redeeming the property CIR vs CA. as Paramount's Liquidator. Of Finance c)In either case. CTA & BIR (GR 117254. penalties and interest thereon from date of delinquency to date of sale b) pay also interest on purchase price at the rate of 15% p. 1999) Facts: On April 2. forfeiture is absolute a)Public Auction--notice given of sale for not less than 20 days b)Private sale can be made with prior approval from the Sec. On April 14.TAX REVIEWER Revenue Collection Officer the full amount of taxes. Jan 21. proceeds of sale shall be deposited with the National Treasury One year from date of sale * owner shall not be deprived of possession of property sold and shall be entitled to income thereof until the expiration of the period for redemption Delinquent taxpayer or anyone for him a) pay to the Revenue District Officer the amount of taxes. Thus Paramount's return showed a refundable amount. 1986. penalties plus interest and costs of sale if no redemption made.a. BPI.
On July 1988. Held: YES. Feb. Being a remedial measure. claims for refund should be exercised within the time fixed by law in order not to unduly delay the BIR in its collection functions. our tax laws provides a statute of limitation in the collection of taxes. On Aug 1987. PBCom vs CIR (GR 112024. of 1985. the 2-yr period should be reckoned from the actual filing of the Adjustment Return or Annual ITR. 1986. the claim for refund has already prescribed. it requested for a tax credit representing tax overpayments in the 1st & 2nd qtrs of 1985. Goodrich claims that the BIR's right to collect has prescribed. Thus. Issue: WoN PBCom. 1999) Facts: PBCom filed its quarterly ITR for the 1 st & 2nd qtrs. Issue: WoN CIR's right to collect has prescribed? Held: It is clear that the assessments were issued beyond the 5-year prescriptive period. relying on RMC #7-85 changing the prescriptive period for tax refunds from 2 to 10 yrs. is barred by prescription. Civil Penalties a) 25% of the amount due for RIDT. b) 50% of the tax or the deficiency tax for willful neglect to file or false or fraudulent return willfully made.ADDITIONS TO THE TAX Additions to the tax are: 1. it can be determined whether there has been an overpayment of tax. For the purpose of safeguarding taxpayers from any unreasonable examination. was beyond the provisions of the law. Thus PBCom was already barred from filing its claim. Taxes are the lifeblood of the nation. TITLE X STATUTORY OFFENSES AND PENALTIES Chapter I . investigation or assessment. 24. Thus. However. c) Interest . §229 of the NIRC provides for a 2-yr prescriptive pd. Jan 28. From the same perspective.20% per annum on any unpaid amount of tax or such higher rate as . from April 2. it earned rent for which taxes were previously withheld by their lessees. earlier. having gone beyond the 5-yr period prescribed by §331 of the NIRC. because at this point. The revenue regulation on the other hand. An erroneous interpretation of the law does not vest a taxpayer with a shield against judicial action. the law on prescription should be liberally construed in order to afford such protection. 1986 when the Annual ITR was filed or April 15. Later. it suffered losses and reported a net loss for 1985 & 1986. when the Adjustment Return could still be filed without incurring delay in under §70 (b) of the NIRC? Held: §230 of the NIRC provides for a 2-yr prescriptive period to be counted " from the date of payment of tax" for actions for refund of corporate income tax.TAX REVIEWER Issue: When will be the 2-yr prescriptive period refund claims commence. thus the modes to enforce collection should be summary & rarely interfered with. 1999) Facts: The BIR assessed a deficiency donor's tax against BF Goodrich for a sale of land it concluded more than 6 yrs. CIR vs BF GOODRICH (GR 104171. it also claimed refund of the creditable taxes withheld from the 1985 & 1986 rentals.
the full amount of tax due for which no return is required to be filed. 4) The term ‘person’. c) Failure of withholding agent to Refund excess withholding tax. of tax not withheld. 2) The amount so added to the tax shall be collected at the same time.000 for each failure but not exceeding P 25. • Penalty: Amount of refund which was not refunded to the employee resulting from the any excess of the amount withheld over the tax actually due on their return. b) Failure of withholding agent to Collect and Remit tax. Civil Penalties (Sec. in case any payment has been made on the basis of a return before the discovery of the falsity or fraud. 2. a) Failure to file certain Information Returns • P 1. • Penalty: Amt. or b) Filing a return with an Internal revenue officer other than those with whom the return is required to be filed. or d) Failure to pay on or before the date prescribed for its payment: 1. From the date prescribed for payment until the amount is fully paid. or a government-owned or -controlled corporation. Date of notice and demand until it is paid. in addition to the tax required to be paid. in the same manner and as part of the tax. employee or member is under a duty to perform the act in respect of which the violation occurs. B) Penalty: 50% of the tax or of the deficiency tax. • In case of the following: (RIDT) (lets get RID of Tax) a) Failure to file any Return and pay the tax on the date prescribed. political subdivisions or instrumentalities. includes an officer or employee of a corporation who as such officer. General Provisions 1) The additions to the tax or deficiency tax apply to all taxes. .000 during a calendar yr. the full or part of the amount of Tax shown on any return required to be filed. or not accounted for and remitted plus other penalties. unless otherwise authorized by the Commissioner. 3) If the withholding agent is the Government or any of its agencies. 2. in case any payment has been made on the basis of such return before the discovery of the falsity or fraud. the employee responsible for the withholding and remittance of the tax shall be personally liable for the additions to the tax. a) Deficiency Interest b) Delinquency Interest c) Interest on Extended Payment 3. or b) False or fraudulent return is willfully made. fees and charges imposed in this Code.TAX REVIEWER may be prescribed by the rules and regulations. • In case of: (FiFa) a) Willful neglect to File the return within the period prescribed. or c) Failure to pay the Deficiency tax within the time prescribed for its payment in the notice of assessment. 1. 248) A) Penalty: 25% of the amount due.
Interest (Sec.claim of deductions in an amount exceeding 30% of actual deductions 2. receipts or income . 249) A) There shall be assessed and collected an Interest at 20% per annum on any unpaid amount of tax B) or higher rate prescribed by rules and regulations from the date prescribed for payment until the amount is fully paid. and remit any tax.In case of failure to pay: 1.000 during a calendar year C) Upon notice and demand by the Commissioner D) Unless it is shown that such failure is due to reasonable cause and not to willful neglect. In the case of each failure to file: 1) information return. B) Liable only upon conviction • In case of the following: 1. 3. C) from the date prescribed for its payment until the full payment. account for. or 3. of Finance: 1. tax due for which no return is required. receipts or income in an amount exceeding 30% of that declared per return 2. Failure of a Withholding Agent to Collect and Remit Tax (Sec. 2) statement or list. or any surcharge or interest thereon on the due date appearing in the notice and demand of the Commissioner. substantial overstatement of deductions . or 2. 3) keep any record. Interest on Extended Payment. or not accounted for and remitted plus other penalties. A deficiency tax. or any part on or before the date prescribed. substantial underdeclaration of taxable sales. . tax due on any return required to be filed. 4) supply any information E) required by this Code or by the Commissioner on the date prescribed thereof. 250) A) Penalty: P 1. 4. D) interest shall form part of the tax.000 for each failure B) The aggregate amount for all such failure shall not exceed P 25.failure to report sales. Failure to File Certain Information Returns (Sec. or 2) where the Commissioner has authorized an extension of time within which to pay a tax or a deficiency tax or any part thereof.TAX REVIEWER • Prima facie evidence of a false or fraudulent return as determined by the Commissioner pursuant to the rules and regulations promulgated by the Sec. 1) any person who is qualified and elects to pay the tax on installment but fails to pay the tax. 251) A) Penalty: Amount of the tax not withheld. (a) Deficiency Interest in the tax due (b) Delinquency Interest. Any person required to withhold. or . 3) from the date of notice and demand until it is paid. or any installment.
etc. 3. 13.252) A) Penalty: Amount of refund which was not refunded to the employee resulting from any excess of the amount withheld over the tax actually due on their return plus other penalties. 2. Attempt to evade or defeat tax. Aids or abets in any manner to evade any such tax or the payment thereof. 9. 8. records. Penal liability of corporation. Unlawful possession of cigarette paper in bobbins or rolls. 10. etc. Other crimes and offenses: 1. Penal liability for making false entries. 4.TAX REVIEWER 2. pay tax. Misdeclaration or misrepresentation of manufacturers subject to excise tax. Any person convicted of a crime under this Code is liable for the payment of the tax and is subject to the penalties imposed herein. 2. Unlawful pursuit of business. 3. 3. Failure to file return. or reports. General Provisions (Sec. Unlawful use of denatured alcohol. Shipment or removal of liquor or tobacco products under false name or brand or as an imitation of any existing or otherwise known product name or brand. or 3. OTHER OFFENSES AND FORFEITURES Crimes: 1. Illegal collection of foreign payments.CRIMES. 14. withhold and remit tax and refund excess taxes withheld on compensation. supply correct and accurate information. Offenses relating to stamps. Failure or refusal to issue receipts or sales or commercial invoices. Forfeiture of goods illegally stored or removed. 5. or account for and remit such tax. Who willfully fails to withhold such tax. Failure of a Withholding Agent to Refund Excess Withholding Tax. Failure to obey summons. 11. 5. Declarations under penalties of perjury. Payment of the tax due after apprehension is not a valid defense in any prosecution for violation of any provision of this Code or in any action for the forfeiture of untaxed articles. or using falsified or fake accountable forms. • In case: Any employer/withholding agent fails or refuses to refund excess withholding tax. Forfeiture of property used in unlicensed business or dies used for printing false stamps. 253) 1. 7. violations related to the printing of such receipts or invoices and other violations. CHAPTER II . 2. 12. (Sec. A person is liable in the same manner as the principal when he: a) willfully aids or abets in the commission of a crime penalized herein or . 6. Unlawful possession or removal of articles subject to excise tax without payment of the tax.
his certificate as a Certified Public Accountant shall. branch manager. 5. upon conviction: Fine . 5.000 or more. keep the record. 2. 6. and employees responsible for the violation. In the case of associations. Failure to File Return. Penalty. interests and surcharges due from the taxpayer. The fines to be imposed for any violation of the provisions of this Code shall: a) not be lower than the fines imposed herein or b) twice the amount of taxes. refund taxes withheld on compensation. keep any record. • Offense: willfully fails to 1. 4. treasurer. and Imprisonment . upon conviction: Fine . Plus other penalties • Who is liable: Any person who willfully attempts in any manner to evade or defeat any tax or the payment thereof. Penalty. partnerships or corporations. 2. A. withhold or remit taxes withheld. If he is a public officer or employee: a) the maximum penalty prescribed for the offense shall be imposed. supply correct and accurate information. officer-in-charge. and b) he shall be dismissed from the public service and perpetually disqualified from holding any public office. If the offender is a Certified Public Accountant. 4. (Sec.000 .P10. supply such correct and accurate information. upon conviction: Fine . upon conviction. B. to pay any tax. The conviction or aquittal obtained under this Section shall not be a bar to the filing of a civil suit for the collection of taxes. president. If the offender is not a citizen of the Philippines: a) he shall serve the sentence. 3. and Imprisonment . (Sec. attempts to make it appear for any reason that he or another has in fact filed a return . and b) deported immediately after serving the sentence without further proceedings for deportation. Withhold and Remit Tax and Refund Excess Taxes Withheld on Compensation. the penalty shall be imposed on the partner. 254) A. Plus other penalties • Person liable: Any person required: 1.000.P10.1 to 10 years.TAX REVIEWER b) causes the commission of any such offense by another. 7.P30.000 or 100. pay tax. be automatically revoked or cancelled.2 to 4 years. Penalty.000. and Imprisonment . Attempt to Evade or Defeat Tax. 8. 6. Pay Tax. or 4. 264) A. general manager. to vote to participate in any election.20. make a return. at the time or times required.1 to 3 years. whichever is higher. make a return. 3. Plus other penalties Person liable: Any person who: 1. Supply Correct and Accurate Information.
without further proceedings for deportation. Penalty. in violation of the provisions of this Section. 2. association or 3. 232 (B). 7) Fails to keep the books of accounts or records mentioned in Section 232 in a Native language.000 . or 2) Offers to sign and certify financial statements without audit. including exhibits. or to make a true and complete translation as required in Section 234 of this Code. schedules or other forms of accountancy work which has not been Verified by him personally or under his supervision or by a member of his firm or by a member of his staff in accordance with sound auditing practices.100.2 to 6 years. or 4) Knowingly makes any False entry or enters any false or fictitious name in the books of accounts or records mentioned in the preceding paragraphs. or B. general co-partnerships liable for any of the acts or omissions penalized under this Code. upon conviction for each act or omission: Fine . taxable income.P50. Any corporation. Castro thus FVC) 1) Willfully Falsifies any report or statement bearing on any examination or audit 2) Renders a report. partners. or 3) Certifies financial statements of a business enterprise containing an essential misstatement of facts or ommission in respect of the transactions. Records or Reports. Penal Liability for Making False Entries. or 5) Keeps Two (2) or more sets of such records or books of accounts. or Using Falsified or Fake Accountable Forms (Sec. Who is liable: 1. 1) Offender is a Certified Public Accountant.000 . Offense: (FVC) (combine Fidel V. statements. or employees.P50. upon conviction: Fine . and Imprisonment . or 3) Offers any taxpayer the use of accounting bookkeeping records for internal revenue purposes not in conformity with the requirements prescribed. actually files a return or statement and subsequently withdraws the same return or statement after securing the official receiving seal or stamp of receipt of an internal revenue office wherein the same was actually filed. Penalty. or 2.TAX REVIEWER or statement. Ramos with Fidel Castro equals Fidel V. deduction and exemption of his client.000. his certificate shall be automatically revoked or cancelled upon conviction. 257) A. Who is liable: 1) Any financial officer or 2) Independent Certified Public Accountant engaged to examine and audit books of accounts of taxpayers under Sec.100.232 (A)and 3) Any person under his direction. In addition to the penalties imposed upon the responsible corporate officers. 2) In the case of foreigners. Any person who (NOOFTANMER) rearranged to (FOOTMAN REN) 1) Not an independent Certified Public Accountant or a financial officer according to Sec. examines and audits books of accounts of taxpayers. Penal Liability of Corporations (Sec 256) A. or 6) Commits an Act or omission. English or Spanish. or whose books of accounts or records . conviction under this Code shall result in his immediate deportation after serving sentence.000.
261) Penalty. Who is liable: 1. Withdrawn under bond for industrial uses or alcohol knowingly misrepresented to be denatured to be unfit for oral intake or 3. (Sec.000. (Sec. Any person 2. compounding or manufacturing any article subject to excise tax. A person engaged in the business of distilling. Who is liable and offense: Any person who: 1) Knowingly undertakes the collection of foreign payments under Sec.P5. upon conviction for each act or omission: Fine .P20. who knowingly sells or offers for sale such preparations containing as an ingredient such alcohol. 258) Who is liable: 1. Importer 3. and Imprisonment . 259) Penalty. 2. upon conviction for each act or omission: Fine .100. • Penalty. manufacturer of cigar or cigarettes Offense: Possession without the corresponding authority issued by the Commissioner of: 1.000 . 2. upon conviction for each act or omission: Fine . upon conviction for each act or omission: Fine . certificates authorizing registration.1 to 2 years. Who is liable: Any person who: 1. upon conviction for each act or omission: Fine . Tax Credit Certificates. or knowingly uses fake or falsified Revenue official receipts. • Penalty. Any person who carries on any business for which in annual registration fee is imposed without paying the tax as required by law. and Imprisonment . 67 without a license or 2) Without complying with the implementing rules and regulations. and Imprisonment . conceals or otherwise disposes of alcohol .1 to 2 years.P20.000 20. cigarette paper in bobbins or rolls. Etc.6 years 1 day to 12 years.6 years 1 day to 12 years.000. cigarette tipping paper or cigarette filter tips. Unlawful Use of Denatured Alcohol. Unlawful Possession of Cigarette Paper in Bobbins or Rolls.P30.100. and Imprisonment .000 50. For the purpose of manufacturing any beverage. or 8) Willfully attempts in any manner to Evade or defeat any tax imposed under this Code. 260) Penalty. Unlawfully recover or attempt to recover by distillation or other process any denatured alcohol or 5.000.50. and Imprisonment . and found to be at Material variance with books or records kept by him in another language.000 .6 months to 2 years. repacking.P20.000.000 . Unlawful Pursuit of Business. English or Spanish. use denatured alcohol or alcohol specially denatured to be used for motive power or 2. rectifying. 4.000. (Sec. Who knowingly sells or offers for sale. Illegal Collection of Foreign Payments (Sec.TAX REVIEWER kept in a native language. Tax Credit Memoranda and other accountable form. Letters of Authority.
000 P 50. (Sec. (determined in accordance with the Tariff and Custom Code) P1. 263) Who is liable: Any person who: owns and/or found in possession. compounded or fermented liquors. Tax-exempt articles other than those to whom they are legally issued.or 3.000 .TAX REVIEWER as recovered or redistilled. Shipment or Removal of Liquor or Tobacco Products under False Name or Brand or as an Imitation of any Existing or Otherwise Known Product Name or Brand. removes Offense: shipment.000 . and Imprisonment . 2. Articles subject to excise tax that has not been paid or 2. owner or 3.000 . 4. Any manufacturer. Imprisonment .100.20. person in charge of any article subject to excise tax.126.96.36.199 to 4 years. transports 3.000 More than 50. spirituous.000 and less More than 1.000 . any manufactured products of tobacco • under any other than the proper name or brand known to the trade as designating the kind and quality of the contents of the cask.100 days 2 .000.000 More than 150. transportation or removal of: 1. Who is liable: Any person who: 1. bottle or package containing the same or • as an imitation of any existing or otherwise known product name or brand or causes such act to be done. Who is liable: 1. any person who knowingly aids or abets in the removal or 5. Offense: ownership and/or possession of: 1.000 P 10. (Sec. any person who conceals the article after illegal removal Offense: . ships 2. Unlawful Possession or Removal of Articles Subject to Excise Tax Without Payment of the Tax.000 60 . upon conviction for each act or omission: Fine .6 years 10 .P20. A1.000 Fine And Imprisonment P 1. including duties and taxes.2.000 .000 . 262) Penalty. wines.Not less than 10 times the amount of excise tax due but less than P500.6 years 1 day to 12 years.50.4 years 4 . Imported Articles Penalty: Appraised value of the article.12 years A2.000 P 30. 2. Locally Manufactured Articles Penalty: Fine .000 .
Offenses Relating to Stamps. allows or 3. counterfeit. 264) Penalty. and Imprisonment . buying or using Containers on which the stamps are not completely destroyed. Making. 6. or altering the written figures or letters or cancellation marks on internal revenue stamps.000 . or selling. package or container as aforementioned.4 to 8 yrs. 5. Who is liable/Offenses: Any person who commits any of the acts enumerated (BCCDF) 1. and Imprisonment . (Sec. selling.TAX REVIEWER 1.P 20. Printing of Unnumbered receipts or sales or commercial invoices. 4. using or possessing without express authority from the Commissioner. Any person who commits any of the acts enumerated hereunder: Printing – (WUM) 1.000 or more. conceals the same after illegal removal Penalty: for the first offense. Possessing False. importing.000 . 265) Penalty. issue receipts or invoices that do not truly Reflect and/or contain all the information required to be shown therein. Giving away or accepting from another.1to 2 years. causes the unlawful removal of any article from the place of production or bonded warehouse. knowingly aids or abets in the removal of such articles or 2. not bearing: 4. the name. business style. the tax on which has not been paid in accordance with law. upon conviction: Fine .P 1.P 1.50. and the excise tax has not been paid at the time and in the manner required. 3. Erasing the Cancellation marks of any stamp previously used. labels. use Multiple or double receipts or invoices. tags or playing cards. or 2. or 3. labels or tags or causing the commission of any such offense by another. Failure or Refusal to Issue Receipts or Sales or Commercial Invoices. spurious or counterfeit stamps or labels or selling from any such fraudulent box.50. and Imprisonment . Selling or offering for sale any Box or package containing articles subject to excise tax with false. . and 1. Receipts (RFM) 1. or 2. Printing of receipts or sales commercial invoices Without authority from the Bureau of Internal Revenue. being required under Section 237 to issue receipts or sales or commercial invoices. any Die for printing or making stamps. 2. Who is liable. The mere unexplained possession of articles subject to excise tax. Taxpayer Identification Number. 4. Printing of double or Multiple sets of invoices or receipts. or 3. or 5.000. shall be punishable under this Section. Any person who. Fails or refuses to issue such receipts or invoices. business address of the person or entity. Violations Related to the Printing of Such Receipts or Invoices and Other Violations. restored or altered stamps. and 7. upon conviction for each act or omission: Fine .000. removes or 2.2 to 4 years. (Sec. Fine . Offenses: A.
(Sec. to appear to testify. Violations Committed by Government Enforcement Officers. machinery. 267) Penalty.PENALTIES IMPOSED ON PUBLIC OFFICERS 1. bonded warehouse or other place where made.10. 269) .000 . records. 4. Penalty: Forfeiture Offense: 1. Violation of withholding tax provisions. 268) A. contain a written statement that they are made under the penalties of perjury. All chattels. as required under the pertinent provisions of this Code. or to furnish such information. 3. any pertinent data or information. Who is liable: Any person who being duly summoned 1. Unlawful interest of revenue law enforcers in business. shall. Who is liable: Any person who willfully files a declaration. Etc.TAX REVIEWER Failure to Obey Summons. Forfeiture of Goods Illegally Stored or Removed. 266) Penalty. Offense: neglects to appear or to produce such books or accounts. or 3. (Sec. 2. memoranda or other papers. memoranda or other papers. (Sec. (Sec. or 2. records. return and other statements required under this Code. Declaration under Penalties of Perjury. Forfeiture of Property Used in Unlicensed Business or Dies Used for Printing False Stamps. upon conviction: Perjury under the Revised Penal Code. Unlawful divulgence of trade secrets. Violations committed by government enforcement officers. Penalty: Summary cancellation or withdrawal of the permit to engage in business as a manufacturer of articles subject to excise tax. 5. label or tag. Penalty for failure to issue and execute warrant. distillery warehouse. return or statement containing information which is not true and correct as to every material matter. CHAPTER III . and removable fixtures of any sort used in the unlicensed production of articles subject to excise tax. Who is liable: Any manufacturer Offense: Misdeclares in the sworn statement or in the sales invoice. to appear and produce books of accounts. Articles withdrawn from any such place or from customs custody or imported into the country without the payment of the required tax. B. Dies and other equipment used for the printing or making of any internal revenue stamp. Any declaration.P 5. 1.1 to 2 yrs. and Imprisonment . label or tag which is in imitation of or purports to be a lawful stamp. Penalty: Forfeiture 1. upon conviction: Fine . after the tax thereon has been paid. to furnish info. 2. Other Crimes and Offenses. 2. All articles subject to excise tax should not be stored or allowed to remain in a distillery. in lieu of an oath. C.000. Misdeclaration or Misrepresentation of Manufacturers Subject to Excise Tax.
adjustment or settlement of any charge or complaint for any violation or alleged violation of this Code. or employees of the Bureau of Internal Revenue or 2) Any other agency of the Government charged with the enforcement of the provisions of this Code. as Payment or otherwise any sum of money or other thing of value for the compromise. 2) forgery of signature. as by law required. Unlawful Divulgence of Trade Secrets. Who is liable: 1) Every official. or 6) Conspiring or colluding with another or others to defraud the revenues or otherwise violate the provisions of this Code. and to participate in any public election Any internal revenue officer for which a prima facie case of grave misconduct has been established shall. 2) Knowingly demanding or receiving any Fee. or failure to report as otherwise required by law.10 to 15 years. statement or declaration after the same has been officially received by the Bureau of Internal Revenue.000 . declined.defined in the Civil Service Law.TAX REVIEWER Penalty. 3) usurpation of authority and 4) habitual issuance of unreasonable assessments. failure to report such knowledge or information to their superior officer. who is guilty of any of the offenses enumerated. file or submit a report or assessment on a taxpayer without the appropriate Examination of the books of accounts or tax liability..000. 10) Having knowledge or Information of any violation of this Code or of any fraud committed on the revenues collectible by the Bureau of Internal Revenue. and 11) Without the authority of law. turned down or rejected any of his offers specified in paragraph (d) thereof. withdrawal or recall of any return. or 5) Offering or undertaking to submit a Report or assessment less than the amount due the Government for any consideration or compensation. after due notice and hearing of the administrative case and subject to Civil Service Laws. Grave misconduct. 270) . Offense: Memory Aid: EFRERCVFRIP or [VIP C FR FERER] (vip si father ferrer) 1) Extortion or willfull oppression through the use of his office or willful oppression and harassment of a taxpayer who refused. Additional penalty: Perpetual disqualification to hold public office.P 50. 9) Allowing or conspiring or colluding with another to allow the unauthorized Retrieval. 4) Offering or undertaking to accomplish. demanding or accepting or attempting to collect. 7) Neglecting or by design permitting the Violation of the law by any other person. other or greater sums than are authorized by law or receiving any fee. compensation or reward. 2. for any sum collected in the performance of duty or willfully neglecting to perform any other duties enjoined by law. to vote. 3) Willfully neglecting to give Receipts. 8) Making or signing any False entry or entries in any book. includes the: 1) issuance of fake letters of authority and receipts. and Imprisonment .100. except as by law prescribed. agent. directly or indirectly. (Sec. for the performance of any duty. be Dismissed from the revenue service. upon conviction: Fine . or making or signing any false certificate or return.
10. file return or statement within the time prescribed.50. 4.2 years 1 day to 4 years or both. or Imprisonment .OTHER PENAL PROVISIONS 1. directly or indirectly: 1. government-owned or -controlled corporations. income. its political subdivisions.000. any of its agencies and instrumentalities. 5. remit taxes deducted and withheld within the time prescribed. sale or importation of any article subject to excise tax or 2.100. knowledge of which was acquired by him in the discharge of his official duties.000. Unlawful Interest of Revenue Law Enforcers in Business. In the manufacture. regarding the: 1) business. Violations of other provisions of this code or rules and regulations in general. upon conviction for each act or omission: Fine . Failure to surrender property placed under distraint and levy. or Imprisonment . Penalty for selling.000. operation. of: 1. 2. 2) the secrets. Offense: Failing or causing the failure to 1. upon conviction: Fine . CHAPTER IV . 3.000 . Penalty for second and subsequent offenses 2. deduct and withhold any internal revenue tax. 4. Who is liable/Offense: Any official who 1. or apparatus of any manufacturer or producer.P 5. Who is liable: Every officer or employee who is charged with the duty to deduct and withhold with any internal revenue tax and remit the same. or estate of any taxpayer. (Sec. 6388. Offense: who is or shall become interested. or Imprisonment . encumbering or in any way disposing of property placed under constructive distraint. Fails to issue or execute the warrant of distraint or levy within thirty (30) days after the expiration of the time prescribed in Section 207 or 2.000 .TAX REVIEWER Penalty.P 50. of any die for printing. (Sec.000 . • Except as provided in Section 71 of this Code and Section 26 of Republic Act No. or 3) confidential information regarding the business of any taxpayer. upon conviction for each act or omission: Fine . . and 3.6 months 1 day to 2 years or both. Offense: Divulges to any person or makes known in any other than may be provided by law information. 271) Penalty. (Sec. transferring. 272) Penalty. 3. Penalty for Failure to Issue and Execute Warrant.2 to 5 years or both. Who is liable: Any internal revenue officer. Violation of Withholding Tax Provision. In the manufacture or repair or sale. 273) Penalty: Automatic dismissal from the service after due notice of hearing. 4. Who is liable: any officer or employee of the Bureau of Internal Revenue. Is found guilty of abusing the exercise thereof by competent authority. style or work.P 5. 3. the Government or 2. or rendering or furnishing a false fraudulent return or statement required. including the BSP. or making stamps. or labels shall.
upon which a warrant of constructive distraint or actual distraint and levy has been issued. Failure to Surrender Property Placed under Distraint and Levy. Offense: Without the consent of the Commissioner: 1. Who is liable: Any person having in his possession or under his control any property or rights to property. 4. (Sec. at the time of such demand. 278) .000 or more or Imprisonment: 6 months 1 day . Procuring Unlawful Divulgence of Trade Secrets. Penalty for Second and Subsequent Offenses. 2.4 yrs or both Who is liable: Any taxpayer. who sells. 3. Offense: Failure or refusal to surrender any of such property or rights upon demand by the Commissioner or any of his deputies executing such warrant. 2.000 or Imprisonment: not more than 6 months. or both • Also liable in his own person and estate: sum equal to the value of the property or rights not surrendered but not exceeding the amount of the taxes (including penalties and interest) together with costs and interest . (Sec. (Sec. Transferring.TAX REVIEWER 5. 6. any rule or regulation promulgated by the Department of Finance. whose property has been placed under constructive distraint. Prescription for violations of any provision of this code. Confication and forfeiture of proceeds or instruments of crime. 277) Penalty: upon conviction for each act or omission: Fine: P 5. Violation of Other Provisions of this Code or Rules or Regulations in General. Subsidiary penalty. 3. (Sec. or both Who is liable/Offense: Any person who violates: 1. Penalty for Selling. 5. in any way disposes of said property. • Unless such property or right is. from the date of such warrant. transfers. 8. any provision of this Code or 2. 275) Penalty: upon conviction for each act or omission: Fine: not more than P 1. Encumbering or in any way disposing of property Placed under Constructive Distraint. (Sec. 1. 7. 274) Offense: Reincidence Penalty: Maximum of the penalty prescribed for the offense. or any part thereof. encumbers or 4. • for which no specific penalty is provided by law. Informer’s reward to persons instrumental in the discovery of violations of the NIRC and in the discovery and seizure of smuggled goods. subject to an attachment or execution under any judicial process. 9. Procuring unlawful divulgence of trade secrets. 276) Penalty: upon conviction for each act or omission: Fine: not less than twice the value of the property but not less than P 5.2 years.000 or Imprisonment: 2 yrs 1 day .
280) Penalty: subsidiary personal liability: 1 day for each P 8. Confiscation & Forfeiture of the Proceeds or Instruments of Crime.000 or Imprisonment: 6 months .50 subject to the rules established in Article 39 of the Revised Penal Code. chartered or otherwise entrusted the same to the offender. (Sec. let. or 3. loss or expenditure appearing in any income tax return. and 3. • It shall begin to run again if the proceedings are dismissed for reasons not constituting jeopardy. 8. Who is liable: 1. or trustee allowed to use of the instruments or tools to the offender. Property of common carriers shall be subject to forfeiture when the owner or operator of said common carrier was. and which it is unlawful for him to reveal. Articles which are not subject of lawful commerce shall be destroyed. . after due notice and hearing in a separate proceeding if such third person leased. at the time of the illegal act.5 years. Is unable to pay such fine. Any person who publishes or prints in any manner whatever. value of the goods. Prescription for Violations of any Provisions of this Code. the proceeds of the crime or 2. 7. Person convicted for violation of this Code 2. or the borrower. and 2. 281) Period: 5 years. 3. • Period begins to run: 1. Subsidiary Penalty. income or inheritance of any taxpayer. a consenting party or privy thereto. The following will also be confiscated and forfeited: 1. 6. not provided by law. If the same be not known at the time: from the discovery and the institution of judicial proceedings for its investigation and punishment. Any person who causes or procures an officer or employee of the Bureau of Internal Revenue to divulge any confidential information regarding the business. 279) In addition to the penalty imposed in Title X: the same shall carry with it the confiscation and forfeiture in favor of the Government of: 1. • It is interrupted when proceedings are instituted against the guilty person. the instruments or tools with which the crime was committed. any income. profit. Has no property to meet the fine imposed upon him by the court. 2. Instruments or tools used in the illicit act belong to a third person. (Sec. (Sec.TAX REVIEWER Penalty: upon conviction for each act or omission: Fine: not more than P 2. On the day of the commission of the violation of the law and 2. In case the lessee subleased. charterer. • knowledge of which was acquired by him in the discharge of his official duties. • Unless such property is used in the transaction of their business as such common carrier • Without prejudice to the owner's right of recovery against the offender in a civil or criminal action. or both Who is liable: 1.
except an internal revenue official or employee. and . Who may avail: Persons instrumental in the discovery and seizure of smuggled goods. • Where the offender has offered to compromise and his offer has been accepted: Same amount of reward shall be given to the informer. 282) A. agents or examiners or the Secretary of Finance or any of his deputies or agents. leading to the discovery of frauds upon the internal revenue laws and violations of any of the provisions thereof. surcharges or fees recovered and/or fine or penalty imposed and collected or P1. at the rate of 10%.000. Informer's Reward to Persons Instrumental in the Discovery of Violations of the National Internal Revenue Code and the Discovery and Seizure of Smuggled Goods. 9. Information shall not refer to a case already pending or previously investigated or examined by the Commissioner or any of his deputies. whichever is lower. Acts necessary: 1. Reward: Cash reward 10% of the fair market value of the smuggled and confiscated goods or P1. surcharges or fees actually recovered or collected . b) failure to file a value-added tax return. 3. whichever is lower. voluntarily gives definite and sworn information. or his relative within the sixth degree of consanguinity. For Violations of the National Internal Revenue Code. • Who may avail: Any person.000 per case. who acquired the information in the course of the performance of their duties 3.000 per case. 57-2000 Grounds for the suspension or temporary closure of business: a) failure to issue receipt or invoices by a VAT-registered or registrable taxpayer. • No revenue. collected as a final withholding tax. c) understatement of taxable sales or receipts by 30% or more of the correct amount in the case of a VAT-registered or registrable taxpayer. • The cash rewards of informers subject to income tax.000. • Prohibited from claiming informer's reward: 1. 2.No reward. • Reward: 10% of the revenues. not yet in the possession of the Bureau of Internal Revenue. 2.TAX REVIEWER • The term of prescription shall not run when the offender is absent from the Philippines. whether incumbent or retired. surcharges and fees and/or the conviction of the guilty party and/or the imposition of any fine or penalty. thereby resulting in the recovery of revenues. REVENUE MEMORANDUM ORDER NO. For Discovery and Seizure of Smuggled Goods. 4. all public officials. during the incumbency Purpose: To encourage the public to extend full cooperation in eradicating smuggling. (Sec.
except on banks and other financial institutions. (b) Taxes. and all other kinds of customs fees. legacies and other acquisitions mortis causa. registration fees of vessel and wharfage on wharves. except as otherwise provided. 3) not be unJust. fees. charge or other imposition unless otherwise specifically provided herein. evolve a Progressive system of taxation. create its own sources of revenue and 2. (b) Documentary stamp tax. • The recommendation for the suspension or temporary closure of business will have to be supported with documentary proof specified in the Order. The fundamental principles governing the exercise of the taxing and other revenueraising powers of LGUs are (U(EPuJul)LIP): (a) Taxation shall be Uniform in each local government unit. excessive. and charges shall accrue exclusively to the local government units. 130) Local Taxing Authority. (d) Customs duties. (c) The collection of local taxes. (Sec. or in the restraint of trade. charges and dues. The power to tax is exercised by the sanggunian of the LGU concerned through an appropriate ordinance. oppressive.GENERAL PROVISIONS Power to Create Sources of Revenue Each local government unit has the power to: 1. fees. fee. fees. LOCAL GOVERNMENT TAXATION CHAPTER 1 . (e) Each local government unit shall. tonnage dues. or confiscatory. and charges subject to the provisions herein. (d) The revenue collected shall Inure solely to the benefit of the local government unit levying the tax. 2) be levied and collected only for Public purposes. and. as far as practicable. consistent with the basic policy of local autonomy. (Sec. inheritance. fees. 132) Common Limitations on the Taxing Powers of LGUs LGUs cannot levy: [ IDECTA_BEV_TRELEBI ] or (CADET-VIBE-LIBERTE) (a) Income tax. Fundamental Principles. charges and other impositions shall (EPuJuL): 1) be Equitable and based as far as practicable on the taxpayer's ability to pay. gifts. national economic policy. charges and other impositions shall in no case be Let to any private person. 129) Such taxes. except wharfage on wharves . levy taxes. public policy.TAX REVIEWER d) failure to register. 4) not be contrary to Law. (Sec. (c) Estate Tax.
whichever is higher Not exceeding 50% of 1% of the gross annual receipts for the preceding calendar year. transfer or oth of real property pur No. fees or charges for the registration of motor vehicles and for the issuance of all kinds of Licenses or permits for the driving thereof. 6938 (Cooperative Code of the Philippines). within its territorial jurisdiction. on Countryside and Barangay Business Enterprises and cooperatives duly registered under R. or passing through. Provisions on Tax) SPECIFIC PROVISIONS ON THE TAXING AND OTHER REVENUE-RAISING POWERS OF LOCAL GOVERNMENT UNITS Provinces Type of Tax Tax on Transfer of Real Property Ownership. S references. fees or charges of any kind on the National Government. (m) Taxes. Not exceeding 50% of 1% of the gross annual receipts for the preceding calendar year. barters or exchanges or similar transactions on goods or services except as otherwise provided. its agencies and Instrumentalities. fees. The province may impose a tax on the sale . (j) Taxes on the gross receipts of Transportation contractors and persons engaged in the transportation of passengers or freight by hire and common carriers by air. Rate Not more than 50% of the 1% of the total consideration or of the fair market value. fees or charges on petroleum products. and charges and other impositions upon goods carried into or out of. (g) Taxes on business enterprises certified to by the Board of Investments as pioneer or non-pioneer for a period of 6 and 4 years. Newly started busin shall not exceed 1/2 capital investment. Exceptions Sale. barter. except as provided in the Code. Tax on Business of Printing and Publication. respectively from the date of registration. The province may impose a tax on the business of persons engaged in the printing and/or publication of books. Newly started busin shall not exceed 1/2 capital investment. (f) Taxes. 6810 and R. (i) Percentage or VAT on sales. fees. (l) Taxes. Provinces (see chart) Provinces (refers to Local Govt. (h) Excise taxes on articles enumerated under the national Internal Revenue Code. Notwithstanding any exemption granted by any law or other special law. Franchise Tax. and others of similar nature. the province may impose a tax on businesses enjoying a franchise. leaflets. as amended. handbills. or other charges on Philippine products actually Exported. fees or charges on agricultural and aquatic products when sold by marginal farmers or fishermen. cards.TAX REVIEWER constructed and maintained by the local government unit concerned. and (o) Taxes. or on any other mode of transferring ownership or title of real property. fees.A. posters. donation. receipts. certificates. except tricycles. and local government units.A. tolls for bridges or otherwise. or charges. and taxes. prescri DECS shall be exe tax. 6657 (CARL). the territorial jurisdictions of local government units in the guise of charges for wharfage. except as otherwise provided. . (e) Taxes. (n) Taxes. (k) Taxes on premiums paid by way or Reinsurance or retrocession. pamphlets. land or water.
Amusement Tax. cinemas. excep similar concerts shal Annual Fixed Tax For Every Delivery Truck or Van Amount of Manufacturers or Producers. pay the full tax before engaging therein. circuses. processors. and wines or manufacturers of any article of commerce of whatever kind or nature. The province may levy and collect taxes on ordinary stones. Certain Products. however. not exceeding Municipalities Tax on Business The municipality may impose taxes on the following: a. sand. cigars and cigarettes. boxing stadia. rivers. rectifiers.00. Not more than 10% of fair market value in the locality Professional Tax. distilled spirits. or operators of theaters. Gravel and Other Quarry Resources. producers. repackers. gravel. streams. and other public waters within its territorial jurisdiction. flower s programs. and compounders of liquors. P500. within the province. brewers. whether directly or indirectly. proprietors.TAX REVIEWER Tax on Sand. and other quarry resources extracted from public lands or from the beds of seas. concert halls. soft drinks. Dealers. At such amount and reasonable classification as the sangguniang panlalawigan may determine but shall in no case exceed P300. Wholesalers of. Any person first beginning to practice a profession after the month of January must. On manufacturers. and other products as may be determined by the sanggunian. recitals. Professionals employed in the gov be exempt from th this tax. The province may levy an Not more than 30% of the gross amusement tax to be collected from the receipts from admission fees. lakes. to sales outlets. dealers or retailers in the delivery of distilled spirits. or consumers. To be paid on or before the 31st day of January. or Retailers in.00. The province may levy an annual professional tax on each person engaged in the exercise or practice of his profession requiring government examination. earth. creeks. The province may levy an annual fixed tax for every truck or any vehicle used by manufacturers. pa exhibitions. wholesalers. . assemblers. and other places of amusement The holding of ope dramas. distillers. lessees. literary a presentations.
7. prawn fry or fry of other species and fish from the municipal waters by nets or other fishing gears to marginal fishermen free of rental or fee c. For businesses subject to the excise. Issue licenses for the operation of fishing vessels of three (3) tons or less. fertilizers. and 8. 6. 144) The tax is payable for every separate or distinct establishment or place where business is conducted. On banks and other financial institutions. whether in their original state or not. distributors. wholesalers. Rice and corn. distributors. (Sec. 5. millers. value-added or percentage tax. Absent of such orgs. Cooking oil and cooking gas. and fresh water products. The sanggunian may: a. locally manufactured. 4. The sanggunian may require a public bidding pursuant to an ordinance for the grant of such privilege. On any business. c. which the sanggunian concerned may deem proper to tax. (Sec. d. and the tax thereon shall accrue .TAX REVIEWER b. 2. 3. Grant the privilege to gather. 146) The municipality may impose and collect such reasonable fees and charges on business and occupation except professional taxes reserved for provinces. oysters. (Sec. and coops or their failure to exercise their preferential right. Rates of Tax within the Metropolitan Manila Area shall not exceed by 50% the maximum rates prescribed for a-h. Grant fishery privileges to erect fish corrals. the tax rate shall not exceed 2% of gross sales of the preceding calendar year. dealers or retailers of the following essential commodities (RW CLAPS C): 1. or dealers in any article of commerce of whatever kind or nature. producers. and on manufacturers. On wholesalers. businesses maintaining or operating branch or sales outlet elsewhere shall record the sale in the branch or sales outlet making the sale or transaction. Duly registered organizations and cooperatives of marginal fishermen shall have the preferential right. meat. On exporters. 3. equipment and post-harvest facilities. Cement. g. (Sec 147) Municipalities shall have the exclusive authority to grant fishery privileges in the municipal waters. 149) Situs of the Tax. 2. or other aquatic beds or bangus fry areas 1. take or catch bangus fry. processed or preserved food. marine. pesticides and other farm inputs. and medicine. On retailers e. Laundry soap. dairy products. detergents. School supplies. Agricultural implements. On peddlers engaged in the sale of any merchandise or article of commerce h. sugar. Wheat or cassava flour. On contractors and other independent contractors f. Poultry feeds and other animal feeds. other parties may participate in the public bidding b. For purposes of collection of the taxes under Section 143 (tax on business). salt and other agricultural.
fees.000. and plantations are located in proportion to their respective volumes of production during the period for which the tax is due.TAX REVIEWER and shall be paid to the municipality where such branch or sales outlet is located. On commercial breeding of fighting Cocks and cockpits. . project offices.000. the above mentioned 70% shall be shall be prorated among the localities where the factories. (Sec. and charges which the province or municipality may impose. project office. 152) Common Revenue-Raising Powers of LGUs (Secs. the sale shall be recorded in the principal office and the taxes due shall accrue and be paid to such city or municipality. On Billboards. and 70% of all sales recorded in the principal office shall be taxable by the city or municipality where the factory. 2.No city or municipality may issue any license or permit for any business or activity unless a clearance is first obtained from the barangay where such business or activity is located or conducted. signboards.On stores or retailers with fixed business establishments with gross sales of receipts of the preceding calendar year of P50. project offices. which shall exclusively accrue to them: (TOBS) (a) Taxes . in the case of municipalities. copra. or plantations located in different localities. The tax rates that the city may levy may exceed the maximum rates allowed for the province or municipality by not more than 50% except the rates of professional and amusement taxes.00 or less. (c) Barangay Clearance. 150) Cities The city may levy the taxes. (d) Other fees and Charges. plants. project offices. neon signs. 151) Barangays Scope of Taxing Powers. the above mentioned 70% shall be divided as follows: 60% to the city or municipality where the factory is located. (b) Service Fees or Charges for services rendered in connection with the regulations or the use of barangay-owned properties or service facilities such as palay. or tobacco dryers. plant. On places of Recreation which charge admission fees.The barangays may levy the following taxes and charges. . 153-155) (SPT) . or plantation is located. and outdoor ads. . and plantations: 30% of all sales recorded in the principal office shall be taxable by the city or municipality where the principal office is located. (Sec. • Where there are 2 or more factories. (Sec. plants. and 3. rate = not exceeding 1% on gross sales or receipts. In case there is no branch or sales outlet in the city or municipality where the sale made. The following sales allocation for sales recorded in the principal office of businesses with factories.The barangay may levy reasonable fees and charges: (CRB) 1. plants. • Where the plantation located at a place other than the place where the factory is located.00 or less for cities and P30. and 40% to the city or municipality where the plantation is located.
post office personnel delivering mail. no matter how created or organized.00.00 or more.00 in accordance with the following schedule: a.[ IER ] a. whether domestic or resident foreign. For every P5.accrues on the 1 st day of Jan. Diplomatic and consular representatives. physically-handicapped. or wharf. Place of Payment .00 of income regardless of whether from business.P2. 158) Corporations. Regularly employed on a wage or salary basis for at least 30 consecutive working days during any calendar year.place of residence of the individual. of each year which shall be paid not . 2. or in the place where the principal office of the juridical entity is located. Service Fees and Charges for services rendered b. (Sec. In the case of husband and wife.000. c. bridge. (Sec.00 and an annual additional tax.TAX REVIEWER a.000. 157) Juridical Personalities (Sec. and disabled citizens who are sixty-five (65) years or older. which shall exceed P10. 156) Individuals Liable to Community Tax. and 2.00 of gross receipts derived by it from its business in the Philippines during the preceding year .00. or who is required by law to file an income tax return Rate = P5. exercise of profession or from property which in no case shall exceed P5. Those exempt from the community tax are: 1. Toll Fees or Charges for the use of any public road.00. Pubic Utility Charges for the operation of public utilities owned. engaged in or doing business in the Philippines are also liable to pay an annual community tax.00 worth of real property in the Philippines owned by it during the preceding year based on the valuation used for the payment of real property tax P2. For every P5. 160) Time for Payment . Exceptions: 1. waterway. ferry or telecommunication system funded and constructed by the LGU concerned. .000. Rate = P500. Community Tax Cities or municipalities may levy a community tax (Sec.00 and an annual additional tax of P1. pier. Eighteen years of age or over c. operated and maintained by LGUs within their jurisdiction.000. the tax imposed shall be based upon the total property owned by them and the total gross receipts or earnings derived by them. or who is engaged in business or occupation. or who owns real property with an aggregate assessed value of P1. Transient visitors when their stay does not exceed 3 months.000.000. and b.00 for every P1. Inhabitant of the Philippines b. officers and enlisted men of the AFP and PNP on mission. 3.
receives any license. The Provincial Treasurer levied upon Republic Cement P2. certificate or permit from any public authority. The community tax certificate shall not be required in the registration of a voter.TAX REVIEWER later than the last day of Feb. Proceeds of the community tax collected through the barangay treasurers shall be apportioned as follows: (Sec. d. sand and other quarry resources from public lands. . A community tax certificate may also be issued to any person or corporation not subject to the community tax upon payment of P1. certificate. b.An interest of 24% per annum from the due date until it is paid shall be added on the amount due. Issue: Does the province have authority to levy the tax? . The proceeds of the community tax actually and directly collected by the city or municipal treasurer shall accrue entirely to the general fund of the city or municipality concerned. Presentation of Community Tax Certificate On Certain Occasions. PROVINCE OF BULACAN vs CA (299 SCRA 442) Facts: The Province passed an Ordinance imposing a 10% tax on the value of stones. takes the oath of office upon election or appointment to any position in the government service. c.5M for its extraction of resources from private land.00. Individual a. receives money from public funds. b. c. 164) 50% accrues to the general fund of the city or municipality concerned. and 50% accrues to the barangay where the tax is collected. of each year Penalties for Delinquency. receives any salary or wage from any person or corporation. 162) Sec. When an individual subject to the community tax acknowledges any document before a notary public. transacts other official business. receives any license. pays any tax or fee. 163. (Sec. receives any money from any public fund. e. transacts other official business. or f. The city or municipal treasurer deputizes the barangay treasurer to collect the community tax in their respective jurisdictions. or d. pays any tax or fee. or permit from any public authority. Corporation a.
v Board of Assessment Appeals. Real Property liable for Real Prop tax are: 1. CLASSIFICATION OF LAND for purposes of assessment Sec 218 (a) [CARMITS] 1. 6 SCRA `97. REAL PROPERTY TAXATION I. 234) [RC WEC] 1. CULTURAL and SCIENTIFIC purposes 3. Manila Electric Co. owned by the REPUBLIC of the PHILS or its political subdivisions except: when beneficial use has been granted to a taxable person . Indivisible single obligation 5. Although §186 of the LGC authorizes municipal corps. to levy taxes other than those specifically enumerated therein. 2. Other improvements not otherwise exempted under said code (Sec 232. early decisions of the Supreme Court in Mindanao Bus Co. owned and used by LOCAL WATER DISTRICTS 4. the subject ordinance was quite specific about the fact that the taxable articles must come from public land. Residential 4.the tax is calculated on the basis of a certain percentage of the assessed 4. Buildings 3. The value is based on the tax base 3. hence. Industrial 6. v City Assessor of Cagayan de Oro. Mineral 5. Land. Moreover. a province may not levy excise taxes on articles already taxed by the NIRC. Special IV. LGC) [HCS LG] 1. regardless of origin. Machinery and 4. III. the Province may no longer impose any additional amounts from Republic Cement. SPECIAL CLASSES OF REAL PROPERTY (sec 216. 119 PHIL 328. Local Tax value II. Ad Valorem tax. V. Agricultural 3. LGC) Note: Although the term real property has not been expressly defined in the LGC. 10 SCRA 68) seem to suggest that Art 415 of the Civil Code could also be controlling. GOCCs rendering essential public services in the supply and distribution of water and/or generation or transmission of electric power. Direct tax on the ownership of real property 2. PROPERTIES LIABLE UNDER REAL PROPERTY TAX According to the Local Government Code. Commercial 2.TAX REVIEWER Held: NO. Timberland 7. CHARACTERISTIC OF REAL PROPERTY TAX: [ DAPIL ] 1. The current tax code already imposes a tax on ALL quarry resources. HOSPITALS 2. PROPERTIES EXEMPT from real property tax (Sec. Board of Assessment Appeals v Meralco. Proportion .
appraisal. 3. buildings and improvements actually directly and exclusively used for religious. and exclusively used by local Water districts and GOCCs engaged in the supply and distribution of water and/or generation and transmission of electric power 4. SWORN statement containing FMV and description of property 2.TAX REVIEWER 2. (not falling within the above enumeration) are withdrawn. VI. UNIFORMITY in classification in each local gov’t unit should be observed 3. parsonages. Real property owned by duly registered Cooperatives under RA 6938 5. Machinery and Equipment actually. taxes shall be computed on the basis of applicable schedule of values in force during the corresponding periods STEP 2: LISTING OF REAL PROPERTY IN THE ASSESSMENTROLLS . SWORN statement containing FMV and description of property IF improvement on real property a. FUNDAMENTAL PRINCIPLES IN Assessment REAL PROP TAXES (Art 198) [CUANE] 1. mosques. the property will be listed as taxable in the roll IF proven to be tax-exempt.DECLARATION OF REAL PROPERTY 1. Declared by Owner or Administrator (Sec 202-203) IF newly acquired property a. real property shall be assessed for back taxes a. assessment. charitable or educational purposes. CURRENT and fair market value is the basis of appraisal 2. Machinery & equipment for pollution control and Environment protection Exemptions previously granted. nonprofit or religious cemeteries. property will be dropped from the roll • NOTE: IF PROPERTY DECLARED FOR THE FIRST TIME (Sec. directly. levy and collection should NOT BE LET to any private person. convents thereto. Declared by Provincial / City / Municipal Assessor (Sec 204) WHEN only when the person under Sec 202 refuses or fails to make the declaration within the prescribed time No oath is required • NOTE: IF FILING FOR EXEMPTION (Sec 206) WHAT person claiming exemptions must file with assessor sufficient documentary evidence to support claim WHEN within 30 days from the date of DECLARATION of property IF required evidence is not submitted within 30 days. Charitable institutions. 222) If declared for 1st time. EQUITABLE appraisal and assessment STEP 1 . ACTUAL USE of the property should be the basis of classification 4. files with assessor within 60 DAYS from date of transfer a b. file w/in 60 DAYS upon completion or occupation (whichever is earlier) b. 5. for not more than 10 yrs prior to the date of initial assessment b. churches.
the owner of the prop is out of the country or cannot be located REMEDIES IN REAL PROPERTY TAXATION . Dec 31) b.provided in no case shall the total interest exceed thirty-six (36) months NOTE: FOR ADVANCE and PROMPT PAYMENT a) advance payment -discount not exceeding 20% of annual tax (Sec 251. basic real prop tax in 4 equal installments (Mar 31. In all other cases: FMV = Remaining eco. within five (5) yrs from the date they become due within ten (10) yrs. take the schedule of FMV 2.Jun 30. Tax = Assessed value X Tax rate STEP 5: PAYMENT AND COLLECTION OF TAX WHEN January 1 of every year (Sec 246) tax shall constitute as superior lien (Sec 246) HOW a. 224-225) How to determine Fair Market Value. from discovery of fraud. 207) STEP 3: APPRAISAL AND VALUATION OF REAL PROPERY (Sec 212-214.Sep 30. in case there is fraud or intent to evade Period of prescription shall be SUSPENDED when : (Sec 270. life X Replacement cost Estimated eco. municipal or barangay treasurer PERIOD WITHIN WHICH TO COLLECT (Sec 270). city. life STEP 4: DETERMINE ASSESSED VALUE (Sec 218) Procedure 1. Sanggunian enacts an ordinance 4.two percent (2%) each month on unpaid amt. the schedule of FMV is published or posted FOR MACHINERY 1. .TAX REVIEWER (Sec 205. until the delinquent amt is paid. LGC) b) prompt payment -discount not exceeding 10% of annual tax due(Art 342 IRR) • WHO COLLECTS The provincial. the owner of prop requests for reinvestigation and writes a waiver before expiration of period to collect 1.governed by ordinance • NOTE: INTEREST for LATE PAYMENT . Assessor prepares a schedule of FMV for different classes of properties 3. local treasurer is legally prevented to collect tax 2. Assessor of the prov/ city /mun gives summons to owners of affected properties 2. FOR LAND 1. LGC) 1. special levy . Assessed value = FMV X Assessment level 3. For Brand New machinery : FMV is acquisition cost 2.
Use or non-use of one remedy shall not be a bar against the other (Sec 258) 1. REFUND IN CASE OF EXCESSIVE COLLECTION (Sec 253) File a written claim for refund within two (2) years from date taxpayer is entitled thereto B. alternative or simultaneously.Within 30 days. refunded or c. REMEDIES OF GOVERNMENT Remedies may be enforced either through administrative or judicial action or both.indicate amount contested . JUDICIAL (Sec 266)-civil action filed by the local treasurer within 5 yrs. calamity (Sec 276) by an ordinance . treasurer concerned . avail of remedies under Ch 3 title 2 Book II (Local Board of Assessment Appeals and Central Board of Assessment Appeals) 2.file protest with prov. CONDONATION and REMISSION • The PRESIDENT may remit or reduce real prop tax in any prov/ city/ mun if he deems that PUBLIC INTEREST so requires (Sec 277) • THE SANGGUNIAN concerned may CONDONE or REDUCE the tax in cases where a. Written Petition under Oath 2.annotate on tax receipt “paid under protest” . applied as tax credit IF DENIED or NOT DECIDED WITHIN 60 DAYS BY TREASURER. substantial decrease in the price of products c. With Supporting Documents . amount may either be a. REMEDIES OF TAXPAYER 1. a.treasurer shall decide protest within 60 days DONT FORGET!: No protest shall be entertained unless THE TAX IS FIRST PAID!!!! IF PROTEST DECIDED IN FAVOR of taxpayer. Levy on Real property (Sec 258 and 259) B. confirm protest in writing stating grounds therefor . there is a general failure of crops b. Local Government’s Lien (Sec 256) D.passed before Jan 1 of any year and .upon recommendation of the Local Disaster Coordinating Council APPEALS IN REAL PROPERTY TAXATION OWNER OR PERSON WITH LEGAL INTEREST Files within 60 days 1. PAYMENT UNDER PROTEST (Sec 252) .TAX REVIEWER A. from due date C. or mun. taxpayer may appeal to board of assessment appeal or b. ADMINISTRATIVE A. Further Distraint or Levy (Sec 265) 2. city. Sale of Real Property (Sec 260) C.
TAX REVIEWER Within 60 days LOCAL BOARD OF ASSESSMENT APPEALS (LBAA Should decide win 120 DAYS from receipt of petition) Within 30 days CENTRAL BOARD OF ASSESSMENT APPEALS Within 15 days SUPREME COURT .
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