November 21, 2020

10:00AM to 12:00NN

NOTES ON TAX
REMEDIES OF THE ATTY. DARYL
MATTHEW A. SALES,
GOVERNMENT AND CPA, MBA
TAXPAYERS ATTORNEY-AT-LAW

“PREPARATION FOR THE BATTLE

IS HALF THE BATTLE WON”
- LAWRENCE D. ABRAMS.
GATEWAY, P. 212
“Tax assessments issued in violation of the
due process rights of a taxpayer are null and
void. While the government has an interest in
the swift collection of taxes, the Bureau of
Internal Revenue and its officers and agents
cannot be overreaching in their efforts, but
must perform their duties in accordance with
law, with their own rules of procedure, and
always with regard to the basic tenets of due
process.
Due process requires the Bureau of Internal
Revenue to consider the defenses and
evidence submitted by the taxpayer and to
render a decision based on these
submissions. Failure to adhere to these
requirements constitutes a denial of due
process and taints the administrative
proceedings with invalidity.”

– J. Leonen (AVON PRODUCTS

MANUFACTURING, INC. v. THE
COMMISSIONER OF THE
INTERNAL REVENUE, G.R. Nos.
201418-19, October 3, 2018)
Coverage based on Table of
Specifications (Taxation)
■ Tax Remedies
– Evaluate the remedies of the Government
– Apply the remedies of the Taxpayer
– Explain the expanded jurisdiction of the
Court of Tax Appeals
Weight – 11.43%
No. of items – 8
Qualification Descriptors – Understanding (4
items) and Application (4 items)
Remedies of the Government

■ To issue a deficiency tax assessment

■ Imposition of penalties (civil or criminal) in
addition to deficiency tax
■ To collect
(summary/extrajudicial/administrative
remedies OR via judicial remedies/court action)
in cases where the assessment is final and
unappealable/executory
■ To grant compromise or abatement (can be
seen as a remedy of taxpayer as well)
Constitutional Limitation on the
Power of Taxation
■ Article III, Section 1.
– No person shall be deprived of life, liberty, or
property without due process of law, nor
shall any person be denied the equal
protection of law
Remedies of the Taxpayer

■ To protest or dispute the deficiency tax

assessment
■ To refund or recover erroneously or illegally
collected taxes
■ To grant compromise or abatement since it will
reduce the tax liability
■ To avail tax amnesty or voluntary assessment
payment program of the Government, if any
■ Release of property from public sale or actual
redemption within the period allowed by law
BIR Audit Process
Nature of BIR Assessment

ASSESSMENT is the official action of an officer

authorized by law in ascertaining the amount of
tax due under the law from a taxpayer.
The term assessment involves:
- Giving notice of assessment
- Computation of the sum due
- Issuance of notice of demand upon the
taxpayer for the payment of the tax or
deficiency stated
The BIR has the power to . . .

SEC 6. Power of the Commissioner to Make

Assessments and Prescribe Additional
Requirements for Tax administration and
Enforcement –

(A) Examination of Returns and Determination of Tax

Due. - After a return has been filed, the Commissioner or his
duly authorized representative may authorize the
examination of any taxpayer and the assessment of the
correct amount of tax: Provided, however, that failure to file a
return shall not prevent the Commissioner from
authorizing the examination of any taxpayer.
Period of Limitation Upon
Assessment and Collection
GENERAL RULE

3 years

(Section 203, Tax Code)

Period of Limitation Upon
Assessment and Collection
EXCEPTION

10 years
■ FAILURE to file Return
■ FALSE Return
■ FRAUDULENT Return (with intent to evade tax)
10 years from discovery of falsity,
fraud or omission (Section 222, Tax Code)
Reckoning of 10-year prescriptive
period
A false return was filed on April 15, 1990, and the falsity
was discovered only on March 8, 1991. The assessment
for the 1989 deficiency income tax was issued on
January 9, 1995.
Supreme Court: The assessment was made well within
the 10-year prescriptive period reckoned from March 8,
1991.
(Commissioner of Internal Revenue v. Estate of Benigno
P. Toda, GR 147188, September 14, 2004)
False vs. Fraudulent return
False return - implies deviation from truth,
whether intentional or not.
Fraudulent return with intent to evade tax -
implies intentional or deceitful entry with intent
to evade tax; actual and not constructive
Negligence, whether slight or gross, is not
equivalent to fraud with intent to evade the tax
contemplated by law. It must amount to
intentional wrongdoing with the sole object of
avoiding the tax.
(Aznar vs. Court of Tax Appeals, G.R. No. L-20569, August 23, 1974, 58 SCRA 519; and Estate of
Fidel F. Reyes and Teresita R. Reyes v. CIR, CTA EB Case No. 189, March 31, 2007)
What constitutes "false return"
which warrants the application of
the ten-year prescriptive period?
1. Substantial under declaration revenues or overstatement
of expenses (30%) shall constitute prima facie evidence
of false and fraudulent return [Section 248(B) of the Tax
Code]
- Substantial under-remittance of the withholding tax
returns on compensation (Samar-I Electric Cooperative,
Inc. v. CIR, CTA EB Case No. 462, March 11, 2010)
2. Absence of income in the return (filing of deficient
returns), tantamount to an omission to file returns (UCPB
V. CIR, CTA EB 567 re CTA Case No. 7259, January 12,
2011, and CIR v. Gonzales, No. L-19495, November 24,
1966)
Reckoning of prescriptive period of
assessment:

Where do I begin?
PRESCRIPTIVE PERIOD TO ASSESS
GENERAL RULE EXCEPTION
BIR can only assess
(issue the FAN) within 3
BIR can assess (issue the
years from:
FAN) within 10 years from
discovery in case of:
• deadline for filing the
return (if filed on or
• False return
before the deadline); or
• Fraudulent return
• from actual filing, if filed
• Failure to file return
late; or
• from filing of amended
return
 PRESCRIPTIVE PERIOD TO ASSESS
Date of
Returns for Deadline for Last Day to Prescribed
Date of Filing issuance of
2018 filing Assess or not?
FAN

Final ITR (Annual) April 1, 2019 April 15, 2019 April 15,2022 January 26, 2022 No

1st Q VAT Return April 25, 2018 April 25, 2018 April 25, 2021 January 26, 2022 Yes

July 30, 2018

2nd Q VAT Return July 25, 2018 July 30, 2021 January 26, 2022 Yes
(Late)

FWT (4Q) January 9, 2019 January 31, 2019 January 31, 2022 January 26, 2022 No

EWT (4Q) January 9, 2019 January 31, 2019 January 31, 2022 January 26, 2022 No

WTC (December) January 15, 2019 January 15, 2019 January 15, 2022 January 26, 2022 Yes

January 30, 2019

DST (December) January 5, 2019 January 30, 2022 January 26, 2022 No
(Amended)
When an assessment is made

An assessment is deemed made within the prescriptive

period when the notice of assessment is released,
mailed or sent to the taxpayer within the prescriptive
period.

Notice of assessment = Final Assessment Notice (FAN)

When an assessment
is made

■ Taxpayer received the eLA and

preliminary assessment notice
(PAN) all within the 3- year
prescriptive period, but the final
assessment notice (FAN) was
released, mailed or sent beyond
the 3-year assessment period.
Waiver of the Statute of Limitations

Waiver of statute of limitations - an agreement between the

taxpayer and the BIR to extend the period for the
issuance of an assessment beyond the 3-year period
prescribed by law
Basis: Section 222 (b) of the Tax Code
Waiver of the
Statute of
Limitations
Validity of waiver as a defense

An invalid waiver could not extend the prescriptive period

and will render the assessment INVALID.

The waiver must strictly comply with Section 222(b) of

the Tax Code and with the requirements in RMC 141-
2019 to be considered valid.
Types of audit notices
1. Electronic Letter of Authority (eLA)
2. Memorandum of Assignment (MOA)
3. Letter Notices (LN)
4. Mission Orders (MO)
PROCEDURE
(RRs 12-1999, 18-2013, 7-2018, and 22-2020)

■ ISSUANCE of LETTER OF AUTHORITY (LOA)

■ SENDING OF NOTICE OF DISCREPANCY (NOD)
■ ISSUANCE of PRELIMINARY ASSESSMENT
NOTICE (PAN)
■ ISSUANCE OF FINAL ASSESSMENT NOTICE
(FAN) and/or FORMAL LETTER OF DEMAND
(FLD)
 ISSUANCE
OF
LETTERS OF
AUTHORITY
(LOA)
ISSUANCE OF
LETTER OF AUTHORITY (LOA)
■ It is specifically required under the Tax Code
prior to an examination of a TP.
■ It authorized the appropriate revenue officers
assigned to perform assessment functions.
■ An LOA is limited to specific taxable year only
(unverified prior years not allowed).
■ An LOA is different from a Letter Notice (LN). LN
is a mere notification.
■ Without the LOA, an assessment or examination
is a nullity (Medicard Philippines, Inc. v. CIR, GR 222743, April 5, 2017)
 VALID
NOTICE
OF
AUDIT ?
Letter of Authority (LOA) versus
Letter Notice (LN)
■ Under RR No. 12-2002, an LN is issued to a person found to have underreported sales/receipts
per data generated under the RELIEF system.
■ Upon receipt of the LN, a taxpayer may avail of the BIR's Voluntary Assessment and Abatement
Program.
■ If a taxpayer fails or refuses to avail of the said program, the BIR may avail of administrative and
criminal remedies, particularly closure, criminal action, or audit and investigation.
■ An assessment issued on the basis of Letter Notice is VOID. (Medicard Philippines, Inc. v. CIR,
GR 222743, April 5, 2017)
■ RMC 75-2018:
– No assessments can be issued without an LOA.
– An LN is entirely different and serves a different purpose than an LOA.
– Once an LN has served its purpose, the revenue office must properly secure an LOA
before examining or assessing the taxpayer.
– Any examiner or revenue officer initiating tax assessments or performing assessment
functions without an LOA shall be subject to appropriate administrative functions.
 VALID
NOTICE
OF
AUDIT ?
 ISSUANCE OF LETTERS OF
AUTHORITY
■ Submit documents in the Checklist attached to LA within 10 days.
– If not submitted, First Notice shall be issued.
– If TP fails to comply within 10 days, Second and Final Notice shall be
issued.
– If TP still fails to comply with 10 days, a Subpoena Duces Tecum (SDT)
shall be issued.
– If TP fails to comply with SDT, TP may be prosecuted criminally under Sec.
266 of NIRC.
■ Examiner shall investigate and examine TP’s books and accounting records.
■ If examiner found to be liable for deficiency tax(es), a Notice of Discrepancy
shall be issued to TP.
SAMPLE LIST OF
REQUIREMENTS
DURING LOA STAGE
SAMPLE
SUBPOENA
DUCES TECUM
 NOTICE OF DISCREPANCY (NOD)
(RR 22-2020)
■ Objective: to afford the TP to explain his side on the discrepancies
found [part of TP’s administrative due process]
■ Discussion of Discrepancy must be held not later than 30 days
from receipt of NOD. During Discussion, TP must explain his side
and submit supporting documents.
■ TP may submit documents after Discussion but not later than 30
days from receipt of Notice of Discrepancy.
■ If despite the explanation, the TP is found to be liable for deficiency
tax(es), a Preliminary Assessment Notice (PAN) shall be issued
within 10 days from conclusion of Discussion.
SAMPLE
NIC/NOD
 BIR Audit Process
First Notice

TP submitted Final Notice

NO
documents in
LETTER OF AUTHORITY the checklist Subpoena Duces
w/in 10 days? Tecum

YES
CRIMINAL ACTION

Investigation/Examination
of TP's books and
accounting records

NOTICE OF DISCREPANCY
 ISSUANCE OF PRELIMINARY
ASSESSMENT NOTICE (PAN)
■ Issued by CIR/Authorized representative if there exists sufficient
basis to assess TP for any deficiency tax
■ PAN must show IN DETAIL the following:
– Facts, and
– Law, rules and regulations, or jurisprudence.
■ TP must respond within 15 days from receipt of the PAN.
■ If TP does not respond or continues to disagree with the finding of
deficiency tax(es), a Final Assessment Notice (FAN) shall be issued
within 15 days from filing or submission of TP’s response.
 ISSUANCE OF PRELIMINARY
ASSESSMENT NOTICE (PAN)
■ The sending of PAN to a taxpayer to inform him of the assessment
is part of the “due process requirement in the issuance of a
deficiency tax assessment,” the absence of which renders void any
assessment made by the tax authorities (CIR vs Metro Star
Superama, Inc., G.R. No. 185371)
■ Hence if no PAN is given (not covered by the exceptions), the FAN
which follows it is void.
– EXCEPTIONS (if PAN not required in certain instances)– no
violation of due process requirement as provided in the Metro
Star Superama doctrine
SAMPLE
PAN
BIR Audit Process
NOTICE OF DISCREPANCY

TP pays the deficiency;

the matter will be
YES settled and closed or
TP agrees may be subject for
on findings review of higher
of the RO? authorities
NO

TP is given opportunity
to present his side
during the Discussion (in
no case to exceed 30
days).
YES

PRELIMINARY
TP is still found liable for TP is ASSESSMENT NOTICE
deficiency taxes. amenable? (PAN)
NO
WHEN PAN IS NOT
NECESSARY
■ When the deficiency assessment is based on a finding that there was a
mathematical error in the computation of the tax as appearing on the face
of the tax return filed;
■ When a discrepancy has been determined between the tax withheld and
the amount actually remitted by the withholding agent;
■ When a taxpayer who has opted to claim a refund or tax credit of excess
creditable withholding tax for a taxable period carried over and
automatically applied the same amount claimed against the estimated tax
liabilities for the taxable quarter or quarters of the succeeding taxable year;
■ When the excise tax due on excisable articles has not been paid; and
■ When a tax-exempt person who locally purchased or imported an article,
such as vehicle, capital equipment, machineries and spare parts, has sold,
traded or transferred such article to a non-exempt person.
 POLL QUESTION #1

On October 5, 2016, the BIR sent Gabriel

Corporation (GC) an outright FAN, stating that after
its audit pursuant to an issued LOA, GC had
deficiency income tax and VAT. Subsequently, a
warrant of distraint/levy was issued against GC. GC
opposed BIR on the ground that it was not accorded
due process.
Are the deficiency tax assessment (outright FAN)
and warrant of distraint/levy issued against GC
valid?
 POLL QUESTION #1
■ Both are not VALID (deficiency tax assessment and
warrant of distraint).
■ Invalid due to absence of PAN
■ PAN required by law as part of due process (CIR vs
Metro Star Superama)
■ Warrant of distraint or levy cannot be issued to
enforce (collection) an invalid assessment. Invalid
assessment will render the collection process invalid.

ANSWER
 ISSUANCE OF FINAL
ASSESSMENT NOTICE (FAN)/
Formal Letter Demand (FLD)
■ Issued by CIR/Authorized representative calling for payment of
deficiency tax
■ FAN must show IN DETAIL the following:
– Facts, and
– Law, rules and regulations, or jurisprudence.
– Otherwise, assessment is void
■ TP must respond within 30 days from receipt of the FAN.
■ TP must state whether its protest is a request for REINVESTIGATION
or RECONSIDERATION.
■ Supporting documents, if any, must be submitted within 60 days
from filing of the protest.
■ Failure to protest or submit the supporting documents shall render the FAN
final.
ISSUANCE OF FINAL
ASSESSMENT NOTICE (FAN)
AND/OR FORMAL DEMAND
LETTER (FDL)
■ RECONSIDERATION: plea of re-evaluation of an
assessment on the basis of existing records without
need of additional evidence; it may involve both a
question of fact or of law or both.
■ REINVESTIGATION: plea of re-evaluation of an
assessment on the basis of newly discovered or
additional evidence that a taxpayer intends to present in
the reinvestigation; it may also involve a question of fact
or of law or both.
SAMPLE
FAN/FLD
BIR Audit Process
PRELIMINARY
ASSESSMENT NOTICE
(PAN)

TP pays the YES

Case is settled and
amount in
closed.
the PAN?

NO

TP files a YES FINAL ASSESSMENT

NOTICE (FAN) / FORMAL
Reply w/in
LETTER OF DEMAND (FLD)
15 days?

NO
BIR Audit Process
FINAL ASSESSMENT
NOTICE (FAN) / FORMAL
LETTER OF DEMAND (FLD)

TP pays the YES

Case is settled and
amount in the
closed.
FAN/FLD?

NO

TP files a NO
Protest to ASSESSMENT
FAN/FLD w/in BECOMES FINAL
30 days?

YES
PROTEST to FAN/FLD
 ISSUANCE OF FINAL DECISION
ON DISPUTED ASSESSMENT
(FDDA)
■ FDDA must show IN DETAIL the following:
– Facts, and
– Law, rules and regulations, or jurisprudence.
– Otherwise, the decision is void
■ It is the Commissioner’s final decision.
■ TP has 30 days from receipt to appeal to the Court of
Tax Appeals (CTA).
 ISSUANCE OF FINAL DECISION
ON DISPUTED ASSESSMENT
(FDDA)
NOTE:
■ A void FDDA does not invalidate the underlying
assessment. If the FDDA is void, it is as if there was no
decision of the CIR. Hence, tantamount to a denial by
inaction by the CIR, which may be appealed to the CTA.
(CIR vs. Liquigaz Philippines Corporation, G.R. No.
215534, April 18, 2016)
SAMPLE
FDDA
 BIR Audit Process
PROTEST to FAN/FLD

TP submits NO
What kind Request for documents ASSESSMENT
of protest? Reinvestigation w/in 60 BECOMES FINAL
days?

YES

FINAL DECISION ON
Request for
Reconsideration
DISPUTED ASSESSMENT
(FDDA)

If there is no response from the BIR within 180 days after the TP filed the
protest (R for Recon) or submitted supporting documents (R for ReinV), the TP
may:
✓ APPEAL to the CTA w/in 30 days; or
✓ AWAIT the FDDA.
 Filing an appeal to CTA
upon denial of protest
Failure of a taxpayer to appeal before the CTA the inaction of the CIR
on a protested assessment within 30 days after the 180-day period
does not render an assessment final and executory.

The taxpayer may await the final decision of the CIR and, within 30
days from receipt of the decision, appeal the decision with the CTA.

(Lascona Land Co., Inc. v. CIR, GR 171251, March 5, 2012)

BIR Audit Process
FINAL DECISION ON
DISPUTED ASSESSMENT
(FDDA)

TP pays the YES

Case is settled and
amount in the
closed.
FDDA?

NO

TP files an NO
appeal to ASSESSMENT
FDDA w/in 30 BECOMES FINAL
days?

YES
TP may choose to protest:
Administratively or
Judicially
 POLL QUESTION #2
After the BIR audit, Liam Corporation (LC) was found to have
deficiency income tax for the year 2015. For 2015, LC filed its ITR
on April 15, 2016 since it used calendar period of accounting.
The BIR sent PAN on December 23, 2018, and eventually FAN on
April 11, 2019, which were received by LC on the same dates
they were sent. Upon receipt of FAN, LC filed its protest letter on
June 11, 2019.

Then, without action from CIR, LC filed a petition for review before
CTA, alleging that the assessment has prescribed. For its part,
CIR moved to dismiss the case, pointing out that the assessment
had already become final and executory.

Is the assessment prescribed as contended by LC or had become

final and executory?
 POLL QUESTION # 2
■ The assessment had become final and executory since the
taxpayer failed to file a protest within thirty (30) days from
the date of receipt of the FAN (date of receipt – April 11,
2019 / filing date of protest – June 11, 2019 – or 61 days
from date of receipt of FAN)
■ Assessment not prescribed. Last day to assess is on April
15, 2019. Since FAN having been issued on April 11,
2019, the right of the BIR to assess has not yet prescribed.

ANSWER
 OTHER REMEDIES – REFUND
NIRC SEC 229 – Recovery of Tax
Erroneously or Illegally Collected
■ Both Administrative and Judicial Claim shall be made during the
two (2) year period from payment.
■ With decision - If there is a denial by CIR within the 2-year period,
appeal to CTA div should also be within the 2-year period
■ Inaction of CIR - If there is no decision and the 2-year period is
about to lapse, appeal the claim to CTA div so that the judicial
claim should also be within the 2-year period
■ Appeal to CTA div due to a denial or inaction should be made
within 30 days
Refund under Section 229
File administrative claim
for refund (CIR) within 2
year period from payment

YES Appeal to CTA Division

With Decision (Judicial claim) within 2
-Denial of CIR year period

NO

TP files Appeal NO
due to inaction REFUND DENIAL
w/in 2 year pd BECOMES FINAL
w/in 30 days?

YES Appeal to CTA Division

(Judicial Claim) within 2
year period
OTHER REMEDIES – REFUND
NIRC SEC 229
Procedure:
■ Payment of the Tax/Filing of return
■ File claim for refund- CIR (within 2-year period)
■ CIR – denial or inaction
■ CTA division (appeal within 2-year period) – Decision – MR
■ CTA EB – MR
■ Supreme Court
 OTHER REMEDIES – VAT
REFUND NIRC SEC 112 (before
train – before Jan 1, 2018)
■ File application for refund with the CIR within 2 years after the
close of the taxable quarter when the sales were made
■ CIR has 120 days to decide from the date of submission of
complete documents in support of the application
■ In case of denial or inaction, the TP has 30 days from receipt of
denial OR after expiration of the 120-day period to decide to
appeal CTA
■ The120+30 rule is mandatory. Administrative claim within 2
years. Judicial claim is 30 days from denial or lapse of 120-day
period for BIR to decide.
Refund under Section 112 (before TRAIN)
File admin claim for refund
within 2 year period from
close of taxable quarter

With Decision Appeal to CTA Div within 30

YES
-Denial of CIR days - even not within 2
within 120 year period (120+30)
days

NO

TP files Appeal
NO
after expiration of
REFUND DENIAL
120 day period
(inaction) w/in
BECOMES FINAL
30 days?

YES Appeal to CTA Div within 30

days - even not within 2
year period (120+30)
OTHER REMEDIES – VAT
REFUND NIRC SEC 112 (under
TRAIN)
■ File application for refund with the CIR within 2 years after the
close of the taxable quarter when the sales were made
■ CIR has 90 days to decide from the date of submission of
complete documents in support of the application
■ In case of denial, the TP has 30 days from receipt of denial to
appeal CTA (no 120-day period deemed denial in case of
inaction)
■ If there is an inaction (no decision within 90 days), wait for the
decision, without prejudice to the sanction under Sec 269 of
NIRC on the BIR official.
Refund under Section 112 (TRAIN)
File admin claim for refund
within 2 year period from
close of taxable quarter

With Decision YES Appeal to CTA Div within 30

-Denial of CIR days - even not within 2
within 90 days year period

TP wait for the

NO
decision. (No
REFUND DENIAL
deemed denial
due to inaction
BECOMES FINAL
after 90 days)

YES Appeal to CTA Div within 30

days - even not within 2
year period (120+30)
OTHER REMEDIES – VAT
REFUND NIRC SEC 112 (under
TRAIN)
Procedures:
■ Refund/Tax Credit Claim
■ CIR (Before TRAIN – inaction of 120 days/ TRAIN –
no deemed denial via inaction)
■ CTA Division
■ CTA EB
■ SC
 COURT OF TAX APPEALS (CTA)
RA 1125 (1954) as amended by
RA 9282 (2004) and RA 9503
(2008)
■ To entrust tax cases to a specialized court composed of men
technically qualified in the field of taxation and to develop
expertise on the subject
■ To expedite the disposition of tax cases, hasten collection of
taxes and provide adequate and speedy remedy to taxpayers
 COURT OF TAX APPEALS (CTA)
as a collegiate court

■ RA 9282 expanded the jurisdiction of the CTA and elevated its

rank to the level of a collegiate court with special jurisdiction.
Section 1 provides that the CTA shall be of the same level as the
Court of Appeals, possessing all the inherent powers of a Court
of Justice
 COURT OF TAX APPEALS (CTA)
composition

■ A Presiding Justice and eight (8) Associate Justices

(nine [9] Justices)
■ CTA may sit en banc or in three (3) divisions, each
division consisting of three (3) Justices
■ Quorum – EB (five [5] Justices)
– Division (two [2] Justices)
 COURT OF TAX APPEALS (CTA)
AND ITS EXPANDED
JURISDICTION
■ Section 7 of Republic Act No. 1125 provides that the
CTA shall exercise exclusive appellate jurisdiction to
review decisions of the Commissioner of Internal
Revenue in cases involving disputed assessments,
refunds of internal revenue taxes, fees or other
charges, penalties imposed relation thereto or other
matters arising from the NIRC or other laws or part of
laws administered by the BIR.
 COURT OF TAX APPEALS (CTA)
AND ITS EXPANDED
JURISDICTION
■ "2. Inaction by the Commissioner of Internal Revenue
in cases involving disputed assessments, refunds of
internal revenue taxes, fees or other charges,
penalties in relations thereto, or other matters arising
under the National Internal Revenue Code or other
laws administered by the Bureau of Internal Revenue,
where the National Internal Revenue Code provides a
specific period of action, in which case the inaction
shall be deemed a denial
 COURT OF TAX APPEALS (CTA)
AND ITS EXPANDED
JURISDICTION
■ "3. Decisions, orders or resolutions of the Regional Trial
Courts in local tax cases originally decided or resolved by
them in the exercise of their original (CTA Division – e.g.,
constitutionality of a local tax ordinance – since original
action is initially filed to a court of competent jurisdiction)
or appellate jurisdiction (CTA En Banc – e.g., protesting
local tax assessment – via regular courts based on
jurisdictional amount);

RTC (original)– CTA division – CTA EB – Supreme Court

MTC – RTC (appellate)– CTA EB – Supreme Court
 COURT OF TAX APPEALS (CTA)
AND ITS EXPANDED
JURISDICTION
■ "4. Decisions of the Commissioner of Customs in cases
involving liability for customs duties, fees or other money
charges (e.g., tariff classification, customs valuation, and
rules of origin – issue is liability), seizure, detention or
release of property affected, fines, forfeitures or other
penalties (e.g., seizure and forfeiture - issue is legality of
importation) in relation thereto, or other matters (e.g.,
abatement, drawbacks, refunds) arising under the
Customs Law (CMTA) or other laws administered by the
Bureau of Customs;
Collector of Customs – Comm of Customs – CTA division –
CTA EB - SC
 COURT OF TAX APPEALS (CTA)
AND ITS EXPANDED
JURISDICTION
■ "5. Decisions of the Central Board of Assessment Appeals
in the exercise of its appellate jurisdiction over cases
involving the assessment and taxation of real property
(protest assessment involving valuation – FMV versus
assessed value, special levy under Section 244 of LGC,
protesting payment for of real property tax under Section
252) originally decided by the provincial or city board of
assessment appeals;

LBAA – CBAA – CTA EB – SC

Local Treasurer – LBAA – CBAA – CTA EB – SC (Payment
under Protest Section 252)
 COURT OF TAX APPEALS (CTA)
AND ITS EXPANDED
JURISDICTION
■ "6. Decisions of the Secretary of Finance on customs
cases elevated to him automatically for review from
decisions of the Commissioner of Customs which are
adverse to the Government (other matters –
abatement, refund, drawbacks) under Section 2315
of the Tariff and Customs Code;
Collector of Customs – COC – SOF (if adverse to the
government – final/ if adverse to the taxpayer/importer
go to CTA) – CTA – CTA EB - SC
 COURT OF TAX APPEALS (CTA)
AND ITS EXPANDED
JURISDICTION
■ "7. Decisions of the Secretary of Trade and Industry (DTI),
in the case of nonagricultural product, commodity or
article, and the Secretary of Agriculture (DA) in the case of
agricultural product, commodity or article, involving
dumping (exports to PH sold at a lower value) and
countervailing (imported article enjoys subsidy in COO)
duties under Section 301 and 302, respectively, of the
Tariff and Customs Code, and safeguard measures (surge
in importation of a particular agricultural or non- agri
product) under Republic Act No. 8800, where either party
may appeal the decision to impose or not to impose said
duties.
DTI/DA – CTA Division – CTA EB - SC
GOD BLESS AND
THANK YOU!