SUMMARY OF PROCEEDINGS UNDER THE NIRC

IV. COLLECTION OF INTERNAL REVENUE TAXES Period: Period:

PREJUDICED PARTY
BIR TX
(BIR OR TX) With Assessment Collection

3 yrs from due date if return

MODES OF COLLECTION: filed on or before due date
3 yrs from actual date of filing
1. Administrative: (the assumption is BIR has issued a FAN) if return filed beyond due date

10 yrs from discovery by BIR

W of Distraint on personal properties
TX may opt to pay tax due; OR of filing of fraudulent return
TX may post a bond double the 5 yrs from receipt by TX of FAN
amount of tax due. In the (administrative or judicial)
meantime, TX who is presumed to
have filed a protest on the FAN
may file an appeal to CTA DIV as 10 yrs from discovery by BIR
W of Levy on real properties
the protest is deemed denied of non-filing of return
when BIR issues W of D/L;

2. Judicial ( civil/criminal case) within agreed period (waiver)

Civil Case in ordinary courts No Assessment Collection
If court of origin is
MTC,METC,MCTC, prejudiced 10 yrs from discovery by BIR of
MTC/METC/MCTC RTC CTA party appeals to RTC (15 No Assessment ( applicable filing of fraudulent return
days), then to CTA EN only by way of filing (judicial proceedings only)
BANC( 30 days), then to SC civil/criminal case in court, 10 yrs from discovery by BIR of
within Metro P 400 THOUSAND MORE THAN P 400 File Answer, otherwise, BIR
(15 days); If court Sec. 222 NIRC) non-filing of return (judicial
Manila AND BELOW THOUSAND PESOS presents evidence ex-parte;
of origin is RTC, prejudiced proceedings only)
1M AND ABOVE
party appeals to CTA DIV (15
EXCLUSIVE OF PENALTIES,
days), then to CTA EN BANC
outside of Metro P 300 THOUSAND MORE THAN P 300 AND SURCHARGES (30 days), then to SC (15
Manila AND BELOW THOUSAND PESOS days);

Criminal Case in ordinary courts

BIR can immediately enforce collection on disputed assessments
File counter-affidavit before Fiscal. and can immediately issue Warrants of Distraint, Garnishment,
Criminal Case first filed before the Fiscal, and in case of findings of probable cause, fiscal files
Trial proceeds in court with TX as If court of origin is and/or Levy upon the happening of the following events:
information in ordinary courts
accused; MTC,METC,MCTC, prejudiced
party appeals to RTC, then to
If with specified amount, the jurisdiction of courts in criminal cases is determined as follows: CTA EN BANC (30 days) ,
then to SC(15 days); A. Upon issuance by the Commissioner or its authorized
MTC/METC/MCTC RTC CTA If court of origin is RTC, representative of its final decision on the disputed assessment
prejudiced party appeals to against the taxpayer, or
CTA DIV (30 days), then to
within Metro P 400 THOUSAND MORE THAN P 400 B. Upon filing of a Petition for Review before the Court of Tax
CTA EN BANC (15 days), Appeals in Division or En Banc of the BIR’s decision upholding
Manila AND BELOW THOUSAND PESOS then to SC (15 days) ; If the assessment.
1M AND ABOVE EXCLUSIVE OF PENALTIES, AND court of origin is CTA,
SURCHARGES appeal to CTA En BAnc (30 Thus, the BIR has the option of immediately collecting a disputed
outside of Metro P 300 THOUSAND MORE THAN P 300 days), then SC (15 days); tax liability unless the CTA enjoins its enforcement after
Manila AND BELOW THOUSAND PESOS requiring the taxpayer to post a bond of up to double the
amount of the alleged tax liability.
If court of origin is
If without specified amount, the jurisdiction of courts in criminal cases is determined as follows:
MTC,METC,MCTC, prejudiced
party appeals to RTC, then to
MTC/METC/MCTC RTC CTA CTA EN BANC (30 days) ,
then to SC (15 days);
If court of origin is RTC,
prejudiced party appeals to
within or outside penalty is 6 yrs and penalty is more than
no jurisdiction CTA DIV (15 days) , then to
of Metro Manila 1 day and below 6 yrs and 1 day
CTA EN BANC (30 days),
then to SC (15 days);