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Has a
return
been filed?

No

Yes
1

Yes
1

No

Is the return
filed beyond
the period
prescribed
by law?

Yes
1

No

Is it a false
or
fraudulent
return with
intent to
evade tax?

Three-year period shall be


counted from the day the
return was filed.

Distraining officer shall cause a notification to


be exhibited in not less than two public places
in the municipality or city where the distraint is
made (one at the mayors office), specifying;
the time and place of sale and the articles
distrained

Any internal revenue tax


hereof may be collected
by distraint or levy or by a
proceeding in court within
five years following the
assessment of the tax.

Yes
1

Is the amount
of bid less
than the
amount of tax
OR actual
market value
of the goods
distrained?

The CIR or his deputy may purchase the same in


behalf of the national Government for the amount
of taxes, penalties and costs due thereon.

The period so agreed upon may be


extended by subsequent written
agreement made before the
expiration of the period previously
agreed upon.

If taxpayer neglects or
refuses to pay the same
after demand, the amount
shall be a lien in favor of the
Government of the
Philippines from the time
when the assessment was
made by the Commissioner
until paid, with interests,
penalties, and costs that
mayAaccrue
reportinonaddition
the distraint
theretoshall,
uponwithin
all property
ten (10)
anddays
rights
to property
from
receipt of the
belonging
to thebetaxpayer
warrant,
submitted
by the distraining officer
to the RDO, and to the
RRD.

Copy of the distraint


warrant, signed by the
officer, must be served
with the appropriate
person, with the details of
sale and sum demanded.

Yes
The tax may be assessed, or a preceeding in
court for the collection of such tax may be
filed without assessment, at any time within
ten (10) years after the discovery of the
falsity, fraud or omission: Provided, That in a
fraud assessment which has become final
and executory, the fact of fraud shall be
judicially taken cognizance of in the civil or
criminal action for the collection thereof.

If before the expiration of the time


prescribed for the assessment of the tax,
both the Commissioner and the taxpayer
have agreed in writing to its assessment
after such time, the tax may be assessed
within the period agreed upon.

Taxes shall be assessed


within three years after the
last day prescribed by law
for the filing of the return,
and no proceeding in court
without assessment for the
collection of such taxes shall
be begun after the
expiration of such period.

Any internal revenue tax


may be collected by
distraint or levy or by a
proceeding in court
within the period
agreed upon in writing
before the expiration of
the five-year period.

Lien shall not be valid against


any mortgagee purchaser or
judgment creditor until
notice of such lien shall be
filed by the Commissioner in
the office of the Register of
Deeds of the province or city
where the property of the
taxpayer is situated or
located.

The period so agreed


upon may be extended
by subsequent written
agreements made
before the expiration of
the period previously
agreed upon.

Taxpayer owing
delinquent tax
failed to pay within
the required time.

If at any time prior to


the consummation of
the sale all proper
charges are paid to the
officer conducting the
sale, the goods or
effects distrained shall
be restored to the
owner.

At the time and place fixed in such notice,


the Distraining officer shall sell the
personal properties, so distrained, at
public auction. The time of sale shall not
be less than 20 days after notice.
Properties to be sold to highest bidder for cash, or
with the approval of the Commissioner, through duly
licensed commodity or stock exchanges.

CIR seizes sufficient


personal property to
satisfy the tax, charge
and expenses of seizure.

Yes
1

Is the amount
involved in
excess of
P1,000,000.00?
RDO seizes sufficient
personal property to
satisfy the tax, charge
and expenses of seizure.
Any residue over and
above what is required
to pay the entire claim,
including expenses,
shall be returned to
the owner of the
property sold.

No

Within five days after the


sale, a return by the
distraining officer of the
proceedings shall be entered
upon the records of the
RCO, the RDO and the RRD.
The RCO, in consultation
with the RDO, shall then
make out and deliver to the
purchaser a certificate.

No
Property so purchased may be resold by the CIR or his deputy, the net proceeds therefrom shall be remitted to the National
Treasury and accounted for as internal revenue.

Within two days after the sale, the officer making the same shall make a
report of his proceedings in writing to the CIR and shall himself preserve a
copy of such report as an official record.