Professional Documents
Culture Documents
1. Remedies in General
2. Remedies of the government; and
3. Remedies of the Taxpayer.
I. REMEDIES IN GENERAL
(30 days)
PROTEST
(30 days)
(15 days)
MR to CTA Division
(15 days)
(15 days)
The taxpayer shall submit all relevant supporting The Court of Tax Appeals was created under RA If the CTA En Banc renders unfavorable decision
documents in support of his protest within sixty 1125. It is a special court of limited jurisdiction or denied the appeal to en banc, the taxpayer
(60) days from date of filing of his letter of protest, particularly in the field of tax collection cases. RA adversely affected by the decision may file with
otherwise, the assessment shall become final. 9282 expanded the jurisdiction of the CTA, the Supreme Court a petition for certiorari under
elevating it rank to the level of a collegiate court Rule 45.
If the protest or administrative appeal, as the case (CA) with special jurisdiction and likewise
may be, is denied, in whole or in part, by the expanding its membership. The Court recognizes that the CTA, which by its
Commissioner, the taxpayer may appeal to the very nature of its function is dedicated exclusively
CTA within thirty (30) days from date of receipt of Failure of a taxpayer to appeal from an to the consideration of tax problems, has
the said decision. Otherwise, the assessment assessment on time rendered the assessment necessarily developed an expertise on the
shall become final, executory and demandable. A final, executory and demandable. Consequently, subject, and its conclusion will not be overturned
motion for reconsideration of the petitioner is precluded from disputing the unless there has been an abuse or improvident
Commissioner’s denial of the protest or correctness of the assessment. exercise of authority. Such findings can only be
administrative appeal, as the case may be, disturbed on appeal if they are not supported by
shall not toll the thirty (30)-day period to In Ker and Company, ltd. V. Court of Tax Appeals, substantial evidence or there is a showing of
appeal to the CTA. the Court held that while the right to appeal a gross error or abuse on the part of the tax court.
decision of the Commissioner to the CTA is In the absence of any clear and convincing proof
If the protest or administrative appeal is not acted merely a statutory remedy, nevertheless the to the contrary, the Court must presume that the
upon by the Commissioner within one hundred requirements that it must be brought within 30 CTA rendered a decision which is valid in every
eighty (180) days counted from the date of filing days is jurisdictional. If a statutory remedy respect. (Barcelon Roxas Sec. v. CIR)
of the protest, the taxpayer may either: (i) appeal provides a condition precedent that the action to
to the CTA within thirty (30) days from after the enforce it must be commenced within a
expiration of the one hundred eighty (180)-day prescribed time, such a requirement is
period; or (ii) await the final decision of the jurisdictional and failure to comply therewith
Commissioner on the disputed assessment and may be raised in a motion to dismiss.
appeal such final decision to the CTA within thirty
(30) days after the receipt of a copy of such The failure to comply with the 30-day statutory
decision. period would bar the appeal and deprive the
Court of Tax Appeals its jurisdiction to entertain
It must be emphasized, however, that in case of and determine the correctness of the
inaction on protested assessment within the 180- assessment.
day period, the option of the taxpayer to either: (1)
file a petition for review with the CTA within 30 A party adversely affected by a resolution of a
days after the expiration of the 180-day period; or Division of the CTA on a motion for
(2) await the final decision of the Commissioner reconsideration or new trial, may file a petition for
or his duly review with the CTA En Banc.
INCOME TAX REFUND (Sec 229 NIRC) INPUT TAX REFUND FOR UNUTILIZED INPUT TAX CREDIT
ON ZERO-RATED TRANSACTIONS
"In any case, no such suit or 2: 90 : 30 (NEW RULE: TRAIN LAW)
proceeding shall be filed
after the expiration of two • Administrative claim for refund of Input VAT on zero rated
(2) years from the date of transactions must be filed two (2) years from close of taxable quarter
payment of the tax or when sale is made;
penalty regardless of any
supervening cause that may • Period of granting OR denying the refund reduced from 120 days to
90 days from date of submission of complete documents in support
arise after payment:
of application for refund of excess input VAT in zero rated
transactions;
Provided, however, That the
Commissioner may, even • Should the CIR find that the grant of refund is not proper, the
without a written claim Commissioner must state in writing the legal and factual basis of
therefor, refund or credit any denial;
tax, where on the face of the
• The “deemed denial” within the then 120 day period for failure of BIR
return upon which payment
to act on application for refund is REMOVED;
was made, such payment
appears clearly to have been • Additional proviso: Failure on the part of any official, agent, or
erroneously paid. employee of the BIR to act on the application within the ninety (90)-
day period shall be punishable under Section 269 of the Tax Code
ILLUSTRATION: (administrative fine and imprisonment).
ABC Corporation files Income • 90 day period is counted from filing of application up to release
tax Return on 4/15/2015, the of payment of VAT Refund; RR 26-2018 ( 27 Dec 2018);
last day to file Tax Refund
shall be 4/15/2017. • Application considered filed only upon submission of the ORs,
invoices, and other supporting documents;
1. If ABC Corp. files a tax refund on 4/10/2016 and an adverse
decision was received on 3/1/2017, he may appeal within 30 • After receipt of decision issued by the BIR denying the claim for
days. refund, the TX MUST, within THIRTY (30) DAYS from receipt of the
2. If ABC Corp. files a tax refund on 4/10/2016 and received an actual decision, go to CTA Division for appeal;
adverse decision only on 4/10/2017, he has only 5 days to file
appeal with the CTA division as the action will prescribe on The 30-day period provided for under Section 112 (C) of the National Internal
4/15/2017. The filing of refund does not toll the 2-year Revenue Code (NIRC) within which to appeal the decision of the
prescriptive period for filing tax refund. Commissioner of Internal Revenue (CIR) to the Court of Tax Appeals (CTA)
3. If ABC Corp. filed a tax refund on 4/10/2016 and the decision need not necessarily fall within the two-year prescriptive period;
has not been rendered a day or days before 4/15/2017. It may
be considered as implied denial and Appeal may be made on or
before 4/15/2017.
INCOME TAX REFUND (Sec. 229 NIRC)
SECTION 229. Recovery of Tax Erroneously or Illegally Collected. - No suit or proceeding shall be maintained in
any court for the recovery of any national internal revenue tax hereafter alleged to have been erroneously or illegally
assessed or collected, or of any penalty claimed to have been collected without authority, or of any sum alleged to
have been excessively or in any manner wrongfully collected, until a claim for refund or credit has been duly filed
with the Commissioner; but such suit or proceeding may be maintained, whether or not such tax, penalty, or sum
has been paid under protest or duress.
"In any case, no such suit or proceeding shall be filed after the expiration of two (2) years from the date of payment
of the tax or penalty regardless of any supervening cause that may arise after payment: Provided, however, That
the Commissioner may, even without a written claim therefor, refund or credit any tax, where on the face of the
return upon which payment was made, such payment appears clearly to have been erroneously paid.
National Internal Revenue Code; income tax; creditable withholding tax; refund; requisites. There are three
essential conditions for the grant of a claim for refund of creditable withholding income tax, to wit: (1) the claim is
filed with the Commissioner of Internal Revenue within the two-year period from the date of payment of the tax; (2)
it is shown on the return of the recipient that the income payment received was declared as part of the gross income;
and (3) the fact of withholding is established by a copy of a statement duly issued by the payor to the payee showing
the amount paid and the amount of the tax withheld therefrom. Commissioner of Internal Revenue v. Team
(Philippines) Operations Corporation (formerly Mirant Phils., Operation Corporation), G.R. No. 179260, April 2,
2014.
National Internal Revenue Code; income tax; tax credit or refund; corporations; irrevocability rule. In case
the corporation is entitled to a tax credit or refund of the excess estimated quarterly income taxes paid, the excess
amount shown on its final adjustment return may be carried over and credited against the estimated quarterly
income tax liabilities for the taxable quarters of the succeeding taxable years. Once the option to carry-over and
apply the excess quarterly income tax against income tax due for the taxable quarters of the succeeding taxable
years has been made, such option shall be considered irrevocable for that taxable period and no application for
cash refund or issuance of a tax credit certificate shall be allowed therefor. Commissioner of Internal Revenue v.
Team (Philippines) Operations Corporation (formerly Mirant Phils., Operation Corporation), G.R. No. 179260, April
2, 2014.
Court of Tax Appeals; findings and conclusions of the CTA are accorded highest respect. The findings and
conclusions of the Court of Tax Appeals (CTA) are accorded the highest respect and will not be lightly set aside.
The CTA, by the very nature of its functions, is dedicated exclusively to the resolution of tax problems and has
accordingly developed an expertise on the subject unless there has been an abusive or improvident exercise of
authority. Consequently, its conclusions will not be overturned unless there has been an abuse or improvident
exercise of authority. Its findings can only be disturbed on appeal if they are not supported by substantial evidence
or there is a showing of gross error or abuse on the part of the Tax Court. In the absence of any clear and convincing
proof to the contrary, the Court must presume that the CTA rendered a decision which is valid in every
respect. Commissioner of Internal Revenue v. Team (Philippines) Operations Corporation (formerly Mirant Phils.,
Operation Corporation), G.R. No. 179260, April 2, 2014.