SUMMARY NOTES

O. Summary remedies under the NIRC

1) Seizure of taxpayer’s property
a) Distraint – seizure by the gov’t of tangible or intangible personal property.
b) Levy – seizure by the gov’t of real properties of taxpayer.

 Garnishment – seizure or distraint of interests such as bank accounts and credits owned by
taxpayer.
 Either or both distraint and levy – may be pursued by the authorities.

2) Civil or criminal action

P. Prescriptive period for collection

 Gov’t has 5 years from the date of release of final assessment to taxpayer to make collection.
 Demand letter is undated, the 5 year prescriptive period is counted from the date of receipt
of the assessment notice.

Q. Suspension of the statute of limitation

Following circumstances:
a) Request for reinvestigation (granted by the CIR)
b) Commissioner – prohibited from making assessment.
–prohibited from beginning distraint or levy or a proceeding in court.
c) Taxpayer cannot be located in the address given by him.
d) Warrant of distraint or levy – served and no properties can be located.
e) Taxpayer is out of the Philippines.