REMEDIES FOR NATIONAL TAXES

Period Reckoning Day

Assessment Within 3 years From date of actual filing of return or
deadline required by law, whichever
is later.

Tax Return Filed:
Return is non-fraudulent
Return is fraudulent
Non-Filling of tax return
Tax Compliance Verification
Payment
Note:
 Before last day – considered
filed on such last day
 After last day – counted
from the day the return was
filed
3 years From date of filling or deadline
whichever is Late
10 years From the discovery of fraud
10 years From the discovery of non-filling
Within 15 days

Requisites for the Validity of LA

LA served to taxpayer Within 30 days From its date of issuance

Data Matching System

Reconcile discrepancy 5 days From the receipt of LN
Taxpayer Agrees to findings ; Within 30 days From the receipt of LN
settlement
Conduct of Audit Examination
Conduct audit & Submit report Up to 120 days From date of receipt

Notice of Discrepancy
Taxpayer: Present and Explain Within 5 days From receipt of notice
Taxpayer: Present more docs After discussion, From receipt of notice of discrepancy
within 30 days
Discussion of discrepancy Not extend From receipt of notice
beyond 30 days
Endorse the case for review Within 10 days From the conclusion of discussion

Preliminary Assessment Notice ( PAN )

Reply to the PAN Up to 15 days From receipt of PAN
 Formal Letter of Demand & Final Assessment Notice ( FLD/FAN )
Issuance of FLS/FAN Within 15 days From the filling or submission of
taxpayer`s response
or Within 15 days From the issuance of PAN in case
taxpayer failed to respond
Dispute of Assessment
Written protest by taxpayer Within 30 days Upon receipt of FLD/FAN
Re-investigation ; submission of Within 60 days From the date of filling of the protest
relevant supporting docs
Finality of Assessment on Undisputed Issues
Final and executory; failure of Within 30 days Upon release of FLD/FAN
taxpayer to validly protest the
FLD/FAN
Final Notice Before Seizure Letter
BIR sends Final notice before Within 10 days From the issuance of the Preliminary
seizure letter collection letter

Limitation of Warranty of Distraint and/ Levy

WDL shall not be sent earlier 90 days From the date the assessment
become due and demandable

Exception: See module p. 44

Auction Sale of Seized Property

Property sold at auction sale : Within 20 days From levy
taxpayer did not settle delinquent Advertise: at least 30 days
tax
Prescriptive Period of Collection
Collection by government 5 years From the date of release of final
assessment to taxpayer

Demand is undated: counted from

the date of receipt of assessment
notice
Prescription Rules: Collection
With prior assessment 5 years From assessment

Mode of Collection: Summary

proceedings or by judicial action
Without Prior assessment 10 years From discovery of fraud or falsity
 MOC: By judicial action only

TAX REMEDIES OF THE TAXPAYER

Disputing an Assessment
Taxpayer must explain his Within 15 days Upon receipt of the Pre-assessment
position notice
File a Formal Protest 30 days Upon receipt of the Formal
Assessment Notice/FLD
Taxpayer must wait for BIR Within 180 days From submission of documents –
request for re-investigation

From the receipt of FAN/FLD –

request for reconsideration

BIR Denial or Adverse Decision

Judicial Appeal
Administrative Appeal –
reconsideration with CIR
Final Decision (FDDA) of CIR
appealed to CTA
30 days From the receipt of adverse decision
Within 30 days From the receipt of adverse decision
Within 30 days From the receipt of adverse decision

BIR not act on protest within 180 day period

File a petition with CTA Within 30 days From the lapse of 180 day period

File a motion for reconsideration Within 15 days Upon the receipt of an adverse ruling
under same division from the CTA
Adverse decision of CTA – Within 15 days
appealed en banc
Adverse decision of CTA en banc Within 15 days
appealed to supreme court

Recovery of Erroneously Paid Taxes

Claim for refund Within 2 years From date of payment of tax
Claim denied – file a petition for Within 30 days From the receipt of the denial
reconsideration Note: must be within 2 year
prescriptive period from date of
payment of tax
Adverse final decision of CIR – Within 30 days From the receipt of final decision
appealed by filling review before Note: must be within 2 year
CTA prescriptive period
 Counting of 2-year Prescriptive Period
VAT payments
Tax paid in installment
Final withholding tax
Creditable withholding tax
2 year period From the date of filling of final
adjusted return
2 year period From the date of filling of quarterly
VAT return
2 year period From last installment
2 year period From the last day after the close of
each calendar quarter
2 year period From the last day of the month
following the close of the quarter
during withholding was made