TAX REMEDIES

Tax Remedies of Government- These are courses of action provided by law to implement tax laws.

Tax Remedies of Taxpayer- These are legal actions which taxpayer can avail to seek relief from
undue burden or oppressive effect of tax laws.

TAX REMEDIES OF GOVERNMENT

(1) Administrative Remedies

a. Distraint- It is the seizure of the government of the personal property, tangible or intangible, to
enforce the payment of taxes.
b. Levy- It refers to the act of seizure of real property in order to enforce the payment of taxes.

(2) Judicial Actions

a. Civil Actions for government- It is the actions instituted by the government to collect internal
revenue taxes.
b. Criminal Actions for government- The CIR may file a criminal complaint about a delinquent
taxpayer.

TAX REMEDIES OF TAXPAYER

(1) Administrative Remedies

a. Protest- It is a challenge against an assessment.
b. Refund- It is a remedy in case of excessive or erroneous payment of a tax with the BIR.

(2) Judicial Actions

a. Civil Actions for taxpayer – Appeal to Court of Tax Appeals and action for damages.
b. Criminal Actions for taxpayer- Includes filing of the criminal complaint against BIR officials and
employees and injunction.

Penalties

a. Surcharge- 25% charge imposed if the taxpayer fails to file or pay a tax.
b. Interest- 20% cumulative per year of any unpaid tax liability running from the date of the
prescribed payment until the amount is fully paid.
c. Compromise Penalty- This is the amount of money which the taxpayer pays to compromise tax
violation. This is paid in lieu of criminal prosecution.

Assessment- This is a preliminary investigation and notice to the taxpayer of the tax liability based
on facts and evidence.

Collection- It is after the assessment and procedure, or when it becomes final and executory, the
BIR may avail the remedy of the collection.