SUMMARY NOTES

R. Remedies of the Taxpayer

1) Disputing an assessment – if the tax has not yet paid the assessment
2) Recovery of erroneously paid taxes – if the tax has already paid

S. Claim for refund

 Tax refund or credit – nature of a tax exemption and highly construed against the taxpayer.
 Taxpayer must present a convincing evidence to substantiate his entitlement to refund or
credit.
 When is an application for a claim for refund/credit not necessary?
 Tax return filed showing an overpayment. (already considered as claim for refund),
 So taxpayer need not file an application anymore.
 When is a claim for refund/credit not allowed?
a) Documentary Stamp Tax
b) Payment on tax assessments that became final and executory.

T. Counting of the 2-year prescriptive period for refund

2-year period counted:
1) From the date of filing of the Final Adjusted Return. (not from quarterly income tax
payments)
2) VAT payments: from the date of filing of the quarterly VAT return. (not from monthly
payments)
3) Tax paid in Installment: from the last installment.
4) Withholding Taxes:
a) Final WHT: from the 25th day after the close of each calendar quarter.
b) Creditable WHT: from the last day of the month. (following the close of quarter
during withholding was made)