Tax Remedies

Tax Remedies under
the National Internal

Revenue Code
The SGV Purpose

Nurture leaders and enable businesses for a better Philippines. #SGVforABetterPhilippines
Discussion outline
1 Assessment of Internal Revenue Taxes
2 Taxpayer’s Remedies
3 Civil Penalties
4 Cases penned by Justice Leonen
Page 2 #SGVforABetterPhilippines
Assessment and protest flowchart
RR No. 18-2013 dated 28 November 2013, as amended by RR No. 7-2018

RR No. 22-2020 dated 15 September 2020
Taxpayer Receipt of LOA with First Notice of Submission

Second and Final Notice before Subpoena
Revenue officer is allowed only Duces Tecum
120 days from the taxpayer’s date
of receipt of an LOA to conduct BIR investigation / examination of returns and books of
audit and submit the required accounts Subpoena Duces Tecum
report of investigation.
NOD which shall in no case extend beyond 30 days from

receipt of the NOD.
CIR or authorized representative issues a PAN
Taxpayer pays the amount and the

matter is settled and closed
Taxpayer answers within 15 days Taxpayer ignores the PAN
RO recommends the issuance of a

FAN/FLD

Issuance and receipt of FLD / FAN
Taxpayer files protest Taxpayer ignores the

within 30 days from Taxpayer pays the FLD/FAN; Assessment
receipt of FAN assessment; Audit is becomes final
closed
The Commissioner
Request for Request for issues a warrant of
reconsideration reinvestigation distraint and levy
(180 days)
Commissioner files
In reinvestigation, Taxpayer does not Taxpayer submits a civil case for
the BIR has 180 days submit documents documents within 60 collection
to respond from within 60 days days
submission of Case becomes an
documents.
ordinary collection
In reconsideration, case (follow
the BIR has 180 days FDDA issued
to respond from remedy under the
filing of protest. Rules of Court)
Decision or inaction on protest to the FAN/FLD
Taxpayer files Protest to FAN/FLD
The CIR or authorized The CIR or authorized Inaction by the CIR or authorized
representative cancels the representative denies the representative
assessment protest (FDDA)
End
Await the decision of CIR or

authorized representative
then appeal to CTA within 30
Appeal to the CTA within 30 days
If the CIR’s authorized days
representative denies the
protest, administrative appeal or
request for reconsideration to In reinvestigation, 30 days from lapse of
CIR within 30 days 180-day period from submission of
documents
In reconsideration, 30 days from lapse of
180-day period from filing of protest
Decision or inaction on protest to the FAN/FLD

Taxpayer files Administrative Appeal/Request for Reconsideration to the denial of the
Protest by CIR’s authorized representative
The CIR denies appeal

The CIR reverses the decision of Inaction by the CIR (lapse of
the authorized representative 180 days from date of filing of
and cancels the assessment. protest)
Appeal to the CTA within 30

End days from the receipt of the
decision or lapse of the 180-
day period
Await the decision of the CIR

 No reinvestigation allowed in the administrative appeal to the CIR. Only issues then appeal to the CTA
raised in the decision of the authorized representative are entertained by the CIR. within 30 days thereafter
 A motion for reconsideration on the CIR’s denial of the appeal does not toll the 30-
day period to appeal to the CTA.
Assessment proceedings before the CTA
Appeal to the CTA (division) within 30 days from

receipt of decision / lapse of the 180-day period
The CTA decides in favor of the taxpayer The CTA decides in favor of the CIR (denies
(orders cancellation of the assessment) protest and upholds assessment)
No MR File MR / MNT with the CTA Division within 15 days No MR

from the notice of the decision. Then appeal to CTA
EB.
Taxpayer pays
End
The CTA EB upholds the decision in favor of The CTA EB upholds the decision in favor of
the taxpayer the CIR
No appeal Appeal to the Supreme Court (Rule 45, Rules of No appeal

Court)
End Taxpayer Pays
Assessment of Internal
Revenue Taxes
Procedural Due Process
in Tax Assessments
Letter of Authority (LOA)
• A Letter of Authority (LOA) refers to a letter informing a taxpayer that a certain revenue
officer is authorized to examine the books of accounts and other accounting records of said
taxpayer for the purpose of verifying his tax liabilities during a taxable year.
Case title Decision

CIR vs. Sony Philippines, Inc. There must be a grant of authority before any revenue officer (RO) can conduct
G.R. No. 178797, 17 November an examination or issue an assessment. Thus, the BIR cannot extend its
2010 examination or assessment beyond the period covered by the LOA.
The LOA should cover a taxable period not exceeding one taxable year. The
practice of issuing an LOA covering audit of “unverified prior years” is
prohibited.
Dakay Construction & The LOA must be served or presented to the taxpayer within 30 days from its
Development Corporation vs. date of issue; otherwise it is null and void. (RAMO 1-2000)
CIR, CTA EB Case No. 1294, 03
April 2017
Examination of books only once a year
General rule:
• The books of account shall be subject to examination and inspection only once every taxable
year. (Section 235, Tax Code)
Exceptions:
1. Fraud, irregularity or mistakes, as determined by the Commissioner;
2. The taxpayer requests for reinvestigation;
3. Verification of compliance with withholding tax laws and regulations;
4. Verification of capital gains tax liabilities; and
5. In the exercise of the Commissioner’s power under Section 5(B) to obtain information from
other persons in which case, another or separate examination and inspection may be made.
Mandatory Letter of Authority
RMC 75-2018 dated 5 September 2018
• Prior approval and authorization of the CIR or his duly authorized representatives are
needed, otherwise:
• No Tax Assessments!
• No Assessment Functions or Proceedings!
Any tax assessment without an LOA violates the taxpayer’s right to due process and is,
therefore, “inescapably void”
CTA EB Case No. 1551 November 17, 2017
CIR v. Ithiel Corp.
Facts
• Ithiel Corp. was assessed for various deficiency taxes for taxable year 2006. The tax audit
was conducted based on an undated LOA, which it received on 10Aug2007.
• PAN → FAN → Reinvestigation →Reassigned to another RO → RO issued FDDA based on the
reinvestigation
Issue
• Can the CIR dispense with the issuance of a new LOA in case of reassignment of tax audit to
a new examiner?
Ruling
• No. An assessment is void when the officer who conducts the examination or assessment
has no authority to do so.
G.R. No. 222743, April 5, 2017
Medicard Philippines, Inc. vs. CIR
Facts
• The CIR found discrepancies between Medicard’sIncome Tax return and VAT Returns for
2006, informed Medicardand issued a Letter Notice.
• Subsequently, the CIR issued a PAN and FAN against Medicardfor deficiency VAT.
• After denial of its protest, Medicardfiled a Petition for Review before the CTA which
sustained the CIR’s position.
• The CTA ruled that the determination of deficiency VAT is not limited on the basis of the
issuance of a Letter of Authority (LOA) alone as the CIR is granted vast powers to perform
examination and assessment function. In lieu of the LOA, an LN was issued informing
Medicard of the discrepancies, a procedure authorized under existing rules
G.R. No. 222743, April 5, 2017
Medicard Philippines, Inc. vs. CIR
Issue
• Did the absence of a LOA violate Medicard’s right to due process?
Ruling
• Yes, the absence of an LOA violated Medicard’s right to due process. A FAN issued not on
the basis of an LOA is void.
Notice of Informal Conference (NIC)
• In an informal conference, the taxpayer is given an opportunity to present his side of the
case.
• The taxpayer may discuss with the BIR the merits of the assessment and request that the
assessment be re-examined.
Notice of Discrepancy
RR No. 22-2020 dated 15 September 2020
Notice for
Notice of
Informal
Discrepancy
Conference
Taxpayer presents an explanation

Issuance of a deficiency tax
Discussion of Discrepancy and submits all necessary
RO informs the taxpayer of its assessment in the form of a PAN
(shall in no case extend beyond documents
deficiency taxes through the NOD (within 10 days from the
30 days from receipt of NOD) (within 30 days from receipt of
conclusion of the discussion)
NOD)
Issuance of PAN/FAN/FDDA as a right to due process
Case title Decision

CIR v. Freelife Philippines Issuance of the FAN via electronic mail (e-mail) is not sanctioned by any law,
Distribution, Inc.- Phil Branch rules or regulations.
CTA EB No. 1714, 4 January 2019
FAN/FLD shall be sent to the taxpayer only by registered mail and by personal
delivery.
Square One Realty Corporation Failure to prove actual receipt of the FAN/FLD by the taxpayer or by its
vs. CIR authorized representative is fatal and renders the assessment void for
CTA Case No. 9484, 30 June 2020 noncompliance with the due process requirements.
Getz Pharma (Phils.), Inc. vs. PAN was issued January 13, 2014. FLD was issued on January 14, 2014. BIR
CIR failed to comply with the 15-day period within which the taxpayer may reply.
CTA Case No. 8922, 17 January Company’s right to be heard has been disregarded, thus, violation of the due
2020 process.
Clarifications on the Proper Modes of Service of An Electronic Letter of
Authority (eLA) and Assessment Notices
RMC No. 110-2020 dated September 24, 2020
RMO 30-2019 dated May 30, 2019
• Substituted service
• Party’s registered address/place where business activities are conducted: his clerk or a person having charge
thereof.
• Place of residence: Person of legal age residing therein.
• If no person is found in the party’s registered or known address/party is found but refuses to received the
eLA/Assessment Notice bring a barangay official and 2 disinterested witnesses to the address so that they may
personally observe and attest to such absence. The original copy (if assessment, the duplicate copy) of the
document shall be given to said barangay official.
• Service by mail
• Registered mail with an instruction to the Postmaster to return the mail to the sender after 10 days, if
undelivered;
• Reputable professional courier service; or
• Ordinary mail, if no registry or reputable courier is available in the locality of the taxpayer.
Authority (eLA)
• In case of service by mail, the proofs of service are:

• Registry receipt issued by the Philpost, or the official receipt issued by the professional courier
company (PCC); or
• Registry return card or proof of delivery if mailed through the PhlPost, or proof of delivery if mailed
thru PCC; or
• In case of undelivered eLA/Assessment Notice, the envelope containing the eLA/Assessment Notice
and notice given by the postmaster to the addressee duly certified by the postmaster, or
certification from the PCC stating the detailed circumstances/reason(s); or
• Any other pertinent document executed with the intervention of the PhlPost/PCC company.
Authority (eLA)
• Personal service shall be complete upon actual delivery to the taxpayer or his representative.
• Service by registered mail is complete upon actual receipt by the taxpayer or after 5 days
from the date of receipt of the first notice of the postmaster, whichever date is earlier.
• Service by ordinary mail is complete upon the expiration of 10 days after mailing.
Issuance of Preliminary Assessment Notice
Examination Dispute the PAN

Issuance of PAN
and review by filing Protest
• It is determined that there • PAN shall show in detail the • 15 days from receipt of PAN
exists sufficient basis to assess facts and the law, rules and
the taxpayer for any deficiency regulations, or jurisprudence
tax or taxes on which the proposed
assessment is based.
Preliminary Assessment Notice (PAN)
General rule
• The sending of the Preliminary Assessment Notice (PAN) to a taxpayer is part of the due
process requirement in the issuance of a deficiency tax assessment.
Exceptions (METwEpCo)
• When the finding for any deficiency tax is the result of a mathematical error in the
computation of tax as appearing on the face of the return;
• When the excise tax due on excisable articles has not been paid;
• When a discrepancy has been determined between the tax withheld and the amount actually
remitted by the withholding agent;
• When an article locally purchased or imported by an exempt person, such as but not limited
to vehicles, capital equipment, machineries and spare parts, has been sold, traded or
transferred to non-exempt persons;
• When a taxpayer who opted to claim for a refund or tax credit of excess creditable
withholding tax for a taxable period was determined to have carried over and automatically
applied the same amount claimed against the estimated liabilities for the taxable quarter/s of
the succeeding taxable year.
Issuance of PAN as a right to due process
Case title Decision

CIR vs. Yumex Philippines The right to due process is violated when it received both the PAN and the FAN
Corporation on the same day.
CTA EB Case No. 1139, 11 August
2015 The failure to give the taxpayer the opportunity to respond to the PAN makes
the assessment void.
Global Fresh Products, Inc. vs The BIR is duty bound to wait for the expiration of the 15 days from the date of
CIR the receipt of the PAN before issuing the FAN.
CTA Case No. 9718, 30 June 2020
Section 228 of the Tax Code gives the taxpayer 15 days from receipt of the
PAN to file a reply with the BIR. If during the said period, no protest to the PAN
is filed, it is only then that the BIR can consider the taxpayer in default and can
issue the FAN.
What is the effect of failure to file a protest on the PAN?
• If the taxpayer fails to respond within fifteen (15) days from date of receipt of the PAN, he
shall be considered in default, in which case, a formal letter of demand and assessment
notice shall be caused to be issued by the said Office, calling for the payment of the
taxpayer’s deficiency tax liability, inclusive of the applicable penalties.
Issuance of Final Assessment Notice
Immediately if the taxpayer Within 15 days from filing of

fails to respond within 15 days the taxpayer’s response or
from receipt of the PAN protest to the PAN
• Taxpayer shall be considered in default • Issuance of FLD/FAN within 15 days

• Issuance of FLD/FAN from filing of the response calling for the
payment of the deficiency taxes,
inclusive of applicable penalties
FLD/FAN will be issued by BIR regardless of whether taxpayer protests the PAN
FLD/FAN calling for payment of taxes must include the facts, law, rules and regulations, and jurisprudence upon
which it is based. Otherwise, it shall be void.
Formal Letter of Demand (FLD)/ Final Assessment Notice (FAN)
General rule
• FAN may be issued only after PAN has been served upon the taxpayer
Exceptions
• METwEpCo
CTA EB Case No. 1413, 5 January 2018
CIR v. Derek Arthur P. Ramsay
Facts
• CIR issued PAN against Ramsay for alleged deficiency income tax and VAT for 2006 to
2009.
• Ramsay protested the PAN, arguing that he did not receive any Letter of Authority and that
he filed his tax returns for the covered years in October 2010, wherein he paid the
corresponding penalties for late filing.
• On January 4, 2012, the BIR issued the FLD and on February 20, 2012, a Final Demand
Letter was issued demanding payment.
• On February 21, 2012, Ramsay protested the FLD arguing that since no notice of
assessment was issued, the FLD was illegal.
• He argued that he was denied due process when the BIR only sent FLD with details of
discrepancy without the Assessment Notice.
CTA EB Case No. 1413, 5 January 2018
CIR v. Derek Arthur P. Ramsay
Issue
• Was Ramsay without due process when he was only served with the FLD without an
Assessment Notice?
Ruling
• Yes. A FLD without the corresponding Assessment Notice cannot be validly enforced on a
taxpayer. Section 228 of the Tax Code provides that the taxpayer shall be informed in
writing of the law and facts on which the assessment is made. Otherwise, the assessment is
void.
Lorenzo Shipping Corp. (LSC) v. CIR
Facts
• Respondent CIR assessed petitioner for alleged deficiency taxes covering taxable year 2008.
• LSC received an undated FAN assessing deficiency income tax, VAT, withholding on
compensation, expanded withholding tax, fringe benefits tax, and documentary stamp tax.
• In the last paragraph of the undated FAN, the petitioner is “requested to pay… xxx… within
the time shown in the enclosed assessment notice.”
• The due dates on the enclosed Audit Result/Assessment Notices for all the assessment items
were left blank or unaccomplished.
Lorenzo Shipping Corp. (LSC) v. CIR
Issue
• Is the FAN a valid assessment notice?
Ruling
• No. The subject FAN cannot be deemed a valid formal assessment notice absent specific date
or period within which the alleged tax liabilities must be settled or paid by Petitioner.
• The date certain for the payment of tax liabilities is indispensable in an assessment as it
dictates the time when the penalties, surcharges and interest begin to accrue against.
• The lack of a definite period for payment of the taxes assessed negated the BIR’s demand of
payment.
BIR Officers authorized to sign and approve Assessment Notices
• The PAN, FLD/FAN and FDDA shall be issued by the Commissioner or his duly authorized
representative.
• “Duly authorized representative” who issued the PAN, FLD/FAN, and FDDA refers to:
1. Revenue Regional Directors
2. Assistant Commissioner-Large Taxpayers Service (LTS)
3. Assistant Commissioner-Enforcement and Advocacy Service
• Revenue Delegation Authority Order (RDAO) No. 4-2018 delegates the authority to sign and
approve assessment notices and reports of investigation of the Divisions under the LTS:
1. LTS Assistant Commissioner (PAN)
2. Deputy Commissioner for Operations (FAN/FLD)
3. Commissioner (FDDA)
• The taxpayer or its authorized representative or
tax agent may protest administratively against the
Disputed Assessment FLD/FAN
• Within 30 days from date of receipt thereof
Failure to file a valid protest • Assessment shall become final, executory and
against the FLD/FAN within demandable.
30 days from receipt • No request for reconsideration or reinvestigation
shall be granted
thereof
Disputed Assessment
• It should be noted that unless rebutted, all presumptions generally are indulged with favor of
the correctness of the assessment by the CIR against the taxpayer (Cynamid Philippines, Inc.
v. CA, et al. G. R. No. 108067 20 January 2000).
Administrative decision on a disputed assessment
• The decision of the CIR or his duly authorized representative on the protest, which shall be
appealable to the CTA shall:
• State the facts, the applicable law, rules and regulations, or jurisprudence on which the decision
is based, otherwise, the decision shall be void, in which case, it shall not be considered a decision
on a disputed assessment; and
• State that the same is his final decision.
Note: The failure to comply with these requirements means that the 30-day period allowed to the taxpayer within which
to appeal shall not begin to run yet.
Requisites of a valid
assessment
When is a tax assessment deemed made?
• A tax assessment is deemed made on the date when the demand letter or notice of
assessment is released, mailed or sent, even though the same is actually received by the
taxpayer after the expiration of the prescriptive period (Basilan Estates Inc. v. CIR, G. R. No.
L-22492 05 September 1967).
What are the requisites for a valid assessment?
• The assessment notice and the formal letter of demand (“FLD”) shall be issued by the CIR or
his duly authorized representative;
• An assessment must contain not only the computation of tax liabilities, but must also
contain the demand for payment within a prescribed period.
What are the requisites for a valid assessment?
The FLD calling for the payment of taxpayer’s deficiency tax/es shall:
• State the:
• Facts
• Law, rules and regulations, or jurisprudence on which the assessment is based.
• Shall be sent to the taxpayer only by registered mail or by personal delivery
• If sent by personal delivery, the taxpayer or his duly authorized representative shall
acknowledge receipt thereof in duplicate copy of the FLD, showing the following:
• His name;
• Signature;
• Designation and authority to act for and in behalf of the taxpayer, if acknowledged received by
person other than the taxpayer himself; and
• Date of receipt thereof.
Jeopardy Assessment
• A tax assessment which is assessed without the benefit of complete or partial audit by an
authorized revenue officer, who has reason to believe that the assessment and collection of
deficiency tax will be jeopardized by delay because of the taxpayer’s failure to comply with
audit and investigation requirements to present his books of accounts and/or pertinent
records, or substantiate all or any of the deductions, exemptions, or credits claimed in his
return.
Tax Delinquency and Tax
Deficiency
Tax delinquency vs Tax Deficiency
There is tax delinquency when: There is tax deficiency when:
• the self-assessed tax per return filed by • The amount by which the tax imposed by
the taxpayer on the date prescribed was law as determined by the CIR or his duly
not paid at all or only partially paid; or authorized representative exceeds the
• deficiency tax assessed by the BIR became amount shown as tax by the taxpayer upon
final and executory. his return; or
• If no amount is shown as tax by the
taxpayer upon his return or if no return is
made by the taxpayer, then the amount by
which the tax as determined by the CIR or
his duly authorized representative exceeds
the amounts previously assessed (or
collected without assessment) as a
deficiency.
Prescriptive Period
for Assessment
Prescriptive period for BIR to assess
General rule
• Within three (3) years after:
• The last day prescribed by law for the filing of the return; or
• From the date of actual filing of the return
• whichever comes later.
Prescriptive period for BIR to assess
Exceptions
Scenario Period
In case of false or fraudulent return with intent Within 10 years after the discovery of the falsity,
to evade tax or failure to file a return fraud, or omission
In case there is a valid Waiver of the Statute Up to the extended period agreed upon by the BIR
of Limitations and the taxpayer
There is a difference between “false return” and “fraudulent return”
False return
• Merely implies deviation from the truth. It is usually due to mistake, carelessness, or
ignorance.
Fraudulent return
• Implies intentional or deceitful entry with intent to evade the taxes due.
(Aznar v. CIR, G. R. No. L-20569 23 August 1974)
G. R. No. 213943, 22 March 2017
CIR v. Philippine Daily Inquirer, Inc. (PDI)
Facts
• BIR assessed PDI for deficiency income tax and VAT on its alleged underdeclared gross
income for taxable year 2004. The FAN was received by PDI on 17 April 2008.
• PDI protested the assessment and argued that the BIR’s right to assess deficiency taxes had
already prescribed.
• CIR argued that PDI filed a false or fraudulent return hence, the applicable prescriptive
period is 10 years from discovery of the falsity of the return. The 10-year period should be
reckoned from the time of issuance of the Letter Notice on 10 August 2006.
G. R. No. 213943, 22 March 2017
Issue
• Whether or not the 10-year prescriptive period to assess will apply
G. R. No. 213943, 22 March 2017
Ruling
• No, the 10-year prescriptive period will not apply as there was not enough evidence to prove
fraud or falsity.
• A false return implies deviation from the truth, whether intentional or not, while a
fraudulent return implies intentional or deceitful entry with intent to evade taxes due.
• While the filing of a fraudulent return necessarily implies that the act of the taxpayer was
intentional and done with intent to evade the taxes due, the filing of a false return can be
intentional or due to an honest mistake. The entry of wrong information due to a mistake,
carelessness, or ignorance, without intent to evade tax does not constitute a false
return. There is not enough evidence to prove fraud or intentional falsity on the part of PDI.
Reiterates the salient points on the proper execution of waivers of the defense
of prescription
RMC No. 141-2019 dated December 20, 2019
• The Waiver is a unilateral and voluntary undertaking which shall take legal effect and be
binding on the taxpayer immediately upon his execution thereof.
• The Waiver need not specify the type of taxes to be assessed nor the amount thereof.
• It is no longer required that the delegation of authority to a representative be in writing and
notarized.
• The taxpayer cannot seek to invalidate his Waiver by contesting the authority of his own
representative.
• It is the duty of the taxpayer to submit his Waiver to the officials listed in the said RMO prior
to the expiration of the period to assess or to collect as the case may be.
of prescription
• In addition to the previously authorized officials, the RDO or Group Supervisor as designated
in the Letter of Authority or Memorandum of Assignment can accept the waiver.
• The date of acceptance by the BIR Officer is no longer required to be indicated for the
Waiver's validity.
• The taxpayer shall have the duty to retain a copy of the submitted Waiver.
• Notarization of the Waiver is not a requirement for its validity.
of prescription
• The taxpayer is charged with the burden of ensuring that his Waiver is validly executed when
submitted to the BIR. Thus, the taxpayer must ensure that his Waiver:
a. Is executed before the expiration of the period to assess or to collect taxes.
b. Indicates the expiry date of the extended period.
c. Indicates the type of tax (for waiver of the prescriptive period to collect).
d. Is signed by his authorized representative.
• There is no strict format for the Waiver. The taxpayer may utilize any form with no effect on
its validity. Given the sparse requirements of RMO No. 14-16, an illustration of its key
elements is provided herein as Annex "A".
Suspension of the running of the statute of limitations
• The running of the statute of limitations on the making of an assessment and the beginning
of distraint or levy or a proceeding in court for collection, in respect of any deficiency, shall
be suspended: (PRAWO)
a) For the period during which the Commissioner is prohibited from making an assessment or
beginning of distraint or levy or a proceeding in court and for sixty (60) days thereafter;
b) When the taxpayer requests for reinvestigation which is granted by the Commissioner;
c) When the taxpayer cannot be located in the address given by him in the return filed upon which a
tax is being assessed or collected except if the taxpayer informs the Commissioner of the change in
address
d) When the warrant of distraint or levy is duly served upon the taxpayer, his authorized
representative, or a member of his household with sufficient discretion, and no property could be
located; and
e) When the taxpayer is out of the Philippines. (Section 223, NIRC)
Taxpayer’s Remedies
Protesting an Assessment
Period to file protest

Issuance and receipt of FLD / FAN
Taxpayer files protest Taxpayer ignores the

within 30 days from Taxpayer pays the FLD/FAN; Assessment
receipt of FAN assessment; Audit is becomes final
closed
The Commissioner
Request for Request for issues a warrant of
reconsideration reinvestigation distraint and levy
(180 days)
Commissioner files
In reinvestigation, Taxpayer does not Taxpayer submits a civil case for
the BIR has 180 days submit documents documents within 60 collection
to respond from within 60 days days
submission of Case becomes an
documents.
ordinary collection
In reconsideration, case (follow
the BIR has 180 days FDDA issued
to respond from remedy under the
filing of protest. Rules of Court)
Contents of a Valid Protest
RR No. 18-2013
• The taxpayer shall state in his protest:

1. The nature of protest whether reconsideration or reinvestigation, specifying newly discovered or
additional evidence he intends to present if it is a request for reinvestigation;
2. Date of the assessment notice (i.e., establish timeliness of the filing of the protest); and
3. The applicable law, rules and regulations, or jurisprudence on which his protest is based.
• Otherwise, his protest shall be considered void and without force and effect.
• Taxpayers shall file their responses to the PAN and protests (requests for
reconsideration/reinvestigation) to the FLD/FAN with the duly authorized representative of
the Commissioner who signed the PAN and FLD/FAN. (RMC No. 11-2014 dated 18 February
2014)
Request for reinvestigation or Request for reconsideration
CIR vs. Philippine Global Communication, G.R. No. 167146, 31 October 2006;
Royal Bank of Scotland Phil., Inc. vs. CIR, CTA EB Case No. 446, 23 October 2009
Request for reconsideration Request for reinvestigation

► A plea of re-evaluation of an assessment on the ► A plea of re-evaluation of an assessment on the
basis of existing records without need of additional basis of newly discovered or additional evidence
evidence. that a taxpayer intends to present in the
► It may involve both a question of fact or of law or reinvestigation.
both. ► It may also involve a question of fact or of law or
both.
► 60 days to file
► The term ‘relevant supporting documents’ refers to
those documents necessary to support the legal
and factual bases in disputing a tax assessment, as
determined by the taxpayer.
Protest is void if it fails to indicate whether it is in the nature of reconsideration or reinvestigation.

(Asia Renal Care Philippines, Inc. vs. CIR, CTA EB Case No. 1502, promulgated 4 January 2018, affirmed on 30 May 2018)
Submission of supporting documents
• The taxpayer shall submit all relevant supporting documents in support of the protest within
60 days from date of filing of the letter protest. Otherwise, the assessment shall become
final.
• The term “relevant supporting documents’ refers to those documents necessary to support
the legal and factual bases in disputing a tax assessment, as determined by the taxpayer.
• The 60-day period for taxpayers to submit all relevant supporting documents to the BIR shall
not apply to requests for reconsideration.
• The term “assessment shall become final” shall mean that the taxpayer is barred from
disputing the correctness of the issued assessment by introduction of newly discovered
evidence or additional evidence, and the Final Decision on Disputed Assessment (FDDA) shall
consequently be issued.
• However, this does not mean that the assessment shall become final, demandable and executory.
Effect of failure to protest
• If there are several issues in the FLD/FAN and the taxpayer disputes or protests only some of
them, the assessment on the undisputed issue shall become final, executory and
demandable.
• The BIR shall issue a collection letter requiring the taxpayer to pay the deficiency tax on the
undisputed items.
Denial of protest to FAN by inaction of CIR authorized representative
• If the protest is not acted upon by the CIR’s duly authorized representative within 180 days
from filing of the protest in case of a request reconsideration, or 180 days from submission
by the taxpayer of the required documents in case of a request for reinvestigation, the
taxpayer may either:
Await the final decision of the CIR on the

File a Petition for Review with the CTA
disputed assessment and appeal such
Within 30 days after the expiration of the 180-day
final decision to the CTA
period
Within 30 days after the receipt of the decision.
• Taxpayer’s option is mutually exclusive: Appeal to CTA or await decision of CIR

(Spouses Evono vs. Department of Finance, CIR and Republic of the Philippines, CTA Case EB
No. 705, June 4, 2012)
Denial of a protest to FAN by CIR representative
RR No. 18-2013
• If the protest is denied (in whole or in part) by the CIR’s duly authorized representative, the
taxpayer may either:
1. Appeal or file a Petition for Review with the CTA within 30 days from date of receipt of the
decision; or
2. File a request for reconsideration with the CIR within 30 days from date of receipt of the said
decision.
• No request for reinvestigation shall be allowed in administrative appeal with the CIR.
• Only issues raised in the decision of the CIR’s duly authorized representative shall be
entertained by the CIR.
Denial of a protest to FAN by CIR
• If the protest to the FAN or administrative appeal, as the case may be, is denied (in whole or
in part) by the CIR, the taxpayer may appeal to the CTA within 30 days from date of receipt
of the said decision.
• Otherwise, the assessment shall become final, executory and demandable.
• A Request for Reconsideration on the CIR’s denial of the protest or administrative appeal
shall not toll the 30-day period to appeal to the CTA.
Deemed denial of a protest to FAN
Case title Decision

CIR vs. Algue, Inc. The issuance of the warrant of distraint and/or levy is tantamount to an
G.R. No. L-28896, 17 February 1988 outright denial of a request for reconsideration.
Yabes vs. Flojo, Institution of civil collection by the BIR can also be considered as denial of
G.R. No. L-46954, 20 July 1982 protest.
BIR vs. Union Shipping Corp.,
G.R. No. 66160, 21 May 1990
Effect of failure to appeal
• The final assessment shall become final and executory.
• The BIR shall issue a collection letter requiring the taxpayer to pay the deficiency tax on the
undisputed items.
Recovery of tax
erroneously or illegally
collected
Tax Refund v. Tax Credit
Tax refund Tax credit

As to the manner of recovery Requires physical return of the Involves the application of the
sum erroneously paid by the reimbursable amount against any
taxpayer; sum that may be due and
collectible from the taxpayer;
As to the manner of disposal of The taxpayer on whom the tax is Manner of disposal is restricted
the amount recovered refunded would have the liberty to the application of the amount
as to the manner of disposal of reimbursed against any taxes
the amount refunded; due;
As to when the 2-year period to After the payment of the tax or From the date such credit is
file a claim with the CIR starts penalty allowed
Tax Refund v. Tax Credit
• The options of tax refund or tax credit are alternative and the choice of one precludes the
other.
• However, failure to indicate a choice by the taxpayer will not bar a valid request for a refund,
should this option be chosen later on.
• The indication of the chosen option is only for the purpose of tax administration.
(Philam Asset Management Inc. v. CIR G. R. Nos. 156637 & 162004, 14 December 2005)
When may a taxpayer file a claim for tax refund or tax credit?
1. Tax is collected erroneously or illegally;

2. Penalty is collected without authority; or
3. Sum collected is excessive or in any manner wrongfully collected.
(Section 229, NIRC; CIR v. Fortune Tobacco Corporation G. R. No. 167274-75, 21 July 2008)
What are the requisites for a claim of a tax credit or tax refund?
• There is a tax collected erroneously or illegally, penalty is collected without authority, or a

sum collected is excessive or in any manner wrongfully collected;
• There must be a written claim for refund filed by the taxpayer to the CIR
Note: The following are the exceptions to the filing of a written claim for refund:
• A return filed showing an overpayment shall be considered as a written claim for refund;
• The CIR may, even without the written claim therefor, refund or credit any tax where on the face of the return upon
which the payment was made, such payment appears clearly to have been erroneously paid
• The claim for refund must be a categorical demand for reimbursement. The idea probably
is:
• first, to afford the collector an opportunity to correct the action of subordinate officers; and
• second, to notify the Government that such taxes have been questioned, and notice should be
borne in mind in estimating the revenue available for expenditure;
• The claim for refund must be filed within two (2) years from the date of payment of tax or
penalty regardless of any supervening cause.
Note: If the CIR takes time in deciding the claim, and the period of two (2) years is about to end, the suit or proceeding
for refund must be started in the CTA before the end of the two-year period without the decision of the CIR. The 30-day
period to appeal to the CTA should be within the 2-year prescriptive period.
• The taxpayer must show proof of payment of the tax.

• There must be actual collection and receipt by the Government of the tax sought to be
recovered and this requires factual proof.
Who may claim a tax refund or tax credit?
• The proper party to question, or seek a refund of, an indirect tax is the statutory taxpayer,
the person on whom the tax is imposed by law and who paid the same even if shifts the
burden thereof to another (Silkair (Singapore) Pte. Ltd. v. CIR, G. R. Nos. 171383 & 172379,
14 November 2008)
Is payment under protest necessary in order to obtain refund to internal
revenue taxes?
• No. Payment under protest is not necessary in order to obtain internal revenue taxes.
Power of the CIR
to Compromise
What is a tax compromise?
• A tax compromise involves the reduction of the taxpayer’s liability.
What are the requisites for the compromise of taxes?
a) The taxpayer has a tax liability;

b) There must be an offer (by the taxpayer or Commissioner) of an amount to be paid by the
taxpayer;
c) There must be an acceptance (by the taxpayer or Commissioner, as the case may be) of the
offer in settlement of the original claim; and
d) Based on:
• A reasonable doubt as to the validity of the claim against the taxpayer exists; or
• The financial position of the taxpayer demonstrates a clear inability to pay the assessed tax
Who may compromise tax liability?
• The CIR is the only official vested with the power and discretion to compromise civil and
criminal cases arising from violations of the Tax Code.
• Courts have no power to compel the CIR to exercise such discretion one way or the other.
Who may compromise tax liability?
• The Regional Evaluation Board may enter into a compromise on:

• Assessments issued by the regional offices involving basic deficiency taxes of P500,000 or less;
and
• Minor criminal violations, discovered by regional and district officials.
• The compromise must be approved by the National Evaluation Board when:

• The basic tax involved exceeds P1M; or
• The settlement offered is less than the prescribed minimum rates.
When may the CIR enter into a compromise of taxes?
• A reasonable doubt as to the validity of the claim against the taxpayer exists (40% of the
basic tax assessed); or
• The financial position of the taxpayer demonstrates a clear inability to pay the assessed tax
(depends upon the condition of the taxpayer, minimum of 10% of the basic tax assessed)
What are the cases that cannot be subject of a tax compromise?
• Withholding tax cases, unless the applicant taxpayer invokes provision of law that cast doubt
on the taxpayer’s obligation to withhold;
• Criminal tax fraud cases confirmed as such by the CIR or his duly authorized representative;
• Criminal violations already filed in court;
• Delinquent accounts with duly approved schedule of installment payments;
• Cases where final reports of reinvestigation or reconsideration have been issued where the
taxpayer is agreeable;
What are the cases that cannot be subject of a tax compromise?
• Cases which become final and executory after final judgment of a court, where compromise
is requested on the ground of doubtful validity of the assessment; and
• Estate taxes where compromise requested on the ground of financial incapacity of the
taxpayer
May criminal violations under the NIRC be compromised?
• Yes, except:
• Those already filed in court; and
• Those involving fraud.
What is the remedy of the Government in case of failure of the taxpayer to
comply with compromise?
• Enforce the compromise; or
• Regard it as rescinded and insist upon the original demand.

• In this scenario, it will be necessary to establish the liability of the taxpayer for the amount claimed.
Government Remedies
for Collection of Delinquent
Taxes
Prescriptive Period to Assess and Collect
Period to Assess
• Three (3) years after the (a) last day from the deadline of the filing of the return or (b) the
actual date of the filing of the return, whichever comes later. (Section 203, Tax Code)
• In case of filing of a false or fraudulent return with intent to evade tax, or failure to file a
return, ten (10) years after the discovery of the falsity, fraud, or omission. (Section 222,
Tax Code)
Period to Collect
• Five (5) years from the assessment of the tax, through distraint/levy or by a proceeding in
court.
Suspension of business operations
• The CIR or his authorized representative may suspend the business operation and
temporarily close the business of a VAT-registered person for understatement of taxable
sales or receipts by 30% or more of his correct taxable sales or receipts for the taxable
quarter.
• The duration of suspension of business operation is for a period of not less than 5 days and
shall be lifted only upon compliance of whatever requirements imposed by the CIR in the
collection order.
Judicial Remedies: Civil Action
How is a civil action for the collection of taxes instituted?

• By filing a civil case for the collection of a sum of money with proper regular court; or
• By filing an answer to the petition for review filed by a taxpayer with CTA.
Civil Action
Can the BIR file a civil action for collection pending decision of the administrative protest?
• Yes. In CIR v. Union Shipping, it was held that the request for reinvestigation and
reconsideration was in effect considered denied by the CIR when the latter filed a civil suit
for collection of deficiency income tax.
Criminal Action
What are the crimes punishable under the NIRC?
• Attempt to avoid or defeat tax; and

• Failure to:
• file a return,
• supply correct and accurate information,
• pay tax,
• Withhold and remit tax, and
• Refund excess taxes withheld on compensation.
Criminal Action
• The judgment in the criminal case shall not only impose the penalty but shall also order the
payment of taxes subject of the criminal case as finally decided by the CIR.
Criminal Action
Does the acquittal of the taxpayer from the criminal action affect his liability to pay the
tax?
• No. The acquittal of the taxpayer DOES NOT necessarily result in the exoneration of said
taxpayer from his civil liability to pay taxes.
• The duty to pay is imposed by the statute prior to and independent of any attempt on the
part of the taxpayer to evade payment.
• It is neither a mere consequence of the felonious acts charged nor is it a mere civil liability
derived from a crime.
(Republic v. Patanao, G. R. No. L-14142, 30 May 1961)
Criminal Action
Is the previous assessment necessary before a criminal action may be filed against a
taxpayer?
• No. There is no requirement for the precise computation and assessment of the tax before
there can be a criminal prosecution under the Code.
• For criminal action to proceed before assessment, there must be a prima facie showing of a
willful attempt to evade taxes.
Criminal Action
Is the filing of a criminal action an implied assessment by the Commissioner?
• No. An assessment contains not only a computation of tax liabilities but also demand for
payment within a prescribed period. It also signals the time when the penalties and interests
begin to accrue against the taxpayer.
• To enable the taxpayer to determine his remedies thereon, due process requires that it must
be served on and received by the taxpayer.
Criminal Action
What is the effect of satisfaction of the civil liability to criminal liability in tax cases?
• The subsequent satisfaction of civil liability by payment or prescription does not extinguish
the taxpayer’s criminal liability.
Criminal Action
Can subsidiary imprisonment be imposed on the tax which the taxpayer is sentenced to
pay?
• In case of insolvency on the part of the taxpayer, subsidiary imprisonment cannot be

imposed as regards the tax he is sentenced to pay.
• However, it may be imposed in cases of failure to pay the fine imposed.
No injunction rule;
Exceptions
Is injunction available as a remedy to restrain the collection of taxes?
• No. Section 218 of the NIRC provides that “no court shall have the authority to grant an
injunction to restrain the collection of any national internal revenue tax, fee or charge
imposed by this Code.”
• However, when in the opinion of the CTA the collection of the tax may jeopardize the interest
of the Government and/or the taxpayer, the CTA at any stage of the proceeding may suspend
the said collection and require the taxpayer either to deposit the amount claimed or to file a
surety bond for not more than double the amount with the CTA.

Civil Penalties

Deficiency Interest v. Delinquency Interest
Deficiency interest Delinquency interest

Nature • Amount still due and collectible from a taxpayer • Failure to pay the tax due on the date fixed by law
upon audit or investigation or indicated in the assessment notice or letter of
• Shortage of taxes paid demand
• Delay in payment of taxes
Tax Base Basic tax Basic tax plus interest and surcharges
Reckoning From the date prescribed for its payment until the full From the due date appearing in the notice and
point/date payment thereof, or upon issuance of a notice and demand of the CIR until the amount is fully paid
demand by the CIR, whichever comes earlier
Rate Twice the legal rate set by the Bangko Sentral ng Twice the legal rate set by the Bangko Sentral ng
Pilipinas (BSP) Pilipinas (BSP)
Current legal rate: 6% Current legal rate: 6%

(BSP Circular No. 799 dated June 21, 2013) (BSP Circular No. 799 dated June 21, 2013)

Surcharge
• Civil penalty for the delay in the payment of the taxes due;
• 25% of the amount due in the following cases:

• Failure to file any return and pay the tax due thereon as required by the Code or rules and
regulations on the date prescribed;
• Unless otherwise authorized by the CIR, filing of return is required with an internal revenue officer
other than those with whom the return is required to be filed;
• Failure to pay deficiency tax within the time prescribed for its payment in the notice of assessment;
• Failure to pay full or part of the amount of tax shown on any return required to be filed under the
provisions of the NIRC or rules or regulations or the full amount of tax due thereon for which no
return is required to be filed, on or before the date prescribed for its payment.

Surcharge
• 50% of the tax or of the deficiency tax, in case payment has been made on the basis of such
return before the discovery of falsity or fraud:
• In case of willful neglect to file return within the period prescribed by the NIRC or by rules and
regulations;
• In case fraudulent return is willfully made.
• The payment of surcharge is mandatory and the CIR is not vested with any authority to
waive or dispense with the collection thereof (Lim Co Chui v. Posadas, et. Al 47 Phil. 460).

Compromise Penalty
• Any person, who, under the NIRC or rules and regulations promulgated thereunder, is:
Required to Who willfully
Pay any tax Fails to pay such tax
Make a return Fails to make such return
Keep any record Fails to keep any record
Supply correct or accurate information Supply correct and accurate information, or withhold or remit taxes withheld,
or refund excess taxes withheld on compensation, at the time
• failed to withhold or remit taxes withheld,

• failed to refund excess taxes withheld on compensation
• at the time or times required by law or rules and regulations shall, in addition to other
penalties provided by law, upon conviction thereof, be punished by a fine of not less than Ten
Thousand Pesos (P 10,000) and suffer imprisonment of not less than one (1) year but not
more than ten (10) years (Section 255 Tax Code).

Compromise Penalty
• Any person who:

• attempts to make it appear for any reason that he or another has in fact filed a return or statement,
or
• actually files a return or statement and subsequently withdraws the same return or statement after
securing the official receiving seal or stamp of receipt of internal revenue office wherein the same
was actually filed
• shall, upon conviction therefor, be punished by a fine of not less than Ten Thousand Pesos
(P10,000) but not more than Twenty Thousand Pesos (P 20,000) and suffer imprisonment
of not less than one (1) year but not more than three (3) years. (Section 255 Tax Code).

Cases decided
by J. Leonen

GR Nos. 201398-99, October 3, 2018
Commissioner of Internal Revenue vs. Avon Products Manufacturing, Inc.
Facts
• Avon filed its VAT Returns and Monthly Remittance Returns of Income Tax Withheld for the
taxable year 1999.
• The BIR issued a PAN to which Avon protested by filing a protest.
• Without ruling on Avon’s protest, BIR prepared the FLD and FAN which were received by
Avon on April 11, 2003. Except for the amount of interest, the FAN was the same as the
PAN.
• AVON protested the FAN and resubmitted its protest to the PAN and adopted the same as its
protest to the FAN. AVON also informed the revenue officers that all the documents
necessary to support its defenses had already been submitted.
• Without acting on the protest, the BIR recommended the enforcement and collection of the
assessments on the sole justification that Avon failed to submit the supporting documents
within the 60-day period.

GR Nos. 201398-99, October 3, 2018
Commissioner of Internal Revenue vs. Avon Products Manufacturing, Inc.
Issue
• Are the deficiency tax assessments void because they are made without due process and
were not based on actual facts but on the erroneous presumptions of the BIR?
Ruling
• Yes, tax assessments issued in violation of the due process rights of a tax payer are null and
void. The Tax Code and revenue regulations allow a taxpayer to file a reply or otherwise to
submit comments or arguments with supporting documents at each stage in the assessment
process. Due process requires the BIR to consider the defenses and pieces of evidence
submitted by the tax payer 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.

GR No. 215957 November 9, 2016
Commissioner of Internal Revenue vs. Fitness by Design
Facts
• Fitness received a copy of the FAN which stated “Please note, however, that the interest and
the total amount due will have to be adjusted if paid prior to April 15, 2004”.
• Fitness argued that the FAN issued to it could not be claimed as a valid deficiency
assessment that could justify the issuance of a warrant of distraint and/or levy. It asserted
that it was a mere request for payment as it did not provide the period within which to pay
the alleged liabilities.

GR No. 215957 November 9, 2016
Commissioner of Internal Revenue vs. Fitness by Design
Issue
• Is the disputed FAN a valid assessment?
Ruling
• No, the disputed FAN is not a valid assessment.
• First, it lacks the definite amount of tax liability for which the respondent is accountable. It
does not purport to be a demand for payment of tax due, which a FAN should supposedly be.
Although the disputed notice provides for the computations of respondent’s tax liability, the
amount remains indefinite. It only provides that the tax due is still subject to modification,
defending on the payment.
• Second, there are no due dates in the FAN. This negates petitioner’s demand for payment.
Contrary to the BIR’s view, April 15, 2004 was the reckoning date of accrual of penalties and
surcharges and not the due date of tax liabilities. The total amount depended upon when
respondent decides to pay.
• Therefore, the notice did not contain a definite and actual demand to pay
GR No. 191856; December 7, 2016
Republic vs. GMCC United Development Corporation
Facts
• GMCC allegedly failed to declare the income it earned from arrangements for taxation
purposes in 1998. In 1999, GMCC sold condominium units and parking slots for a total of
P5,350,000.00 to Wong. However, GMCC did not declare the income it earned from these
transactions. In 2003, GMCC protested the issuance of the Final Assessment Notice citing
that the period to assess and collect the tax had already prescribed.
• In arguing for the application of the 10-year prescriptive period, BIR claims that the tax
return is fraudulent and thus, the three-year prescriptive period is not applicable.

GR No. 191856; December 7, 2016
Republic vs. GMCC United Development Corporation
Issue
• Whether the applicable prescriptive period for the tax assessment is the ten year period not
the three-year period
Ruling
• The applicable prescriptive period is the three-year prescriptive period.
• GMCC may have erred in reporting their tax liability when they recorded the assailed
transaction in the wrong year but such error stemmed from the wrong application of law and
is not an indication of their intent to evade payment. If there was really an intent to evade
payment, GMCC would not have reported and subsequently paid the income tax, albeit in the
wrong year.

Tax amnesty cases decided by Justice Leonen
Case title Decision

CIR vs. Apo Cement The submission of documentary requirements and payment of amnesty tax are
GR No. 193381, 08 February 2017 considered full compliance with Republic Act No. 9480 and the taxpayer can
immediately enjoy the immunities and privileges under said RA.
ING Bank vs. CIR Cases that involve final and executory judgments are excluded from the tax
GR No. 167679, July 22, 2015 amnesty program as explicitly provided under Section 8 of RA No. 9480.
Thus, ING Bank is not disqualified from availing itself of the tax amnesty under
the law during the pendency of its appeal.

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Tax Remedies

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Tax Remedies under

the National Internal

The SGV Purpose

1 Assessment of Internal Revenue Taxes

4 Cases penned by Justice Leonen

RR No. 18-2013 dated 28 November 2013, as amended by RR No. 7-2018

Taxpayer Receipt of LOA with First Notice of Submission

NOD which shall in no case extend beyond 30 days from

CIR or authorized representative issues a PAN

Taxpayer pays the amount and the

Taxpayer answers within 15 days Taxpayer ignores the PAN

RO recommends the issuance of a

RR No. 18-2013 dated 28 November 2013, as amended by RR No. 7-2018

Taxpayer files protest Taxpayer ignores the

Decision or inaction on protest to the FAN/FLD

Taxpayer files Protest to FAN/FLD

Await the decision of CIR or

Decision or inaction on protest to the FAN/FLD

The CIR denies appeal

Appeal to the CTA within 30

Await the decision of the CIR

Appeal to the CTA (division) within 30 days from

No MR File MR / MNT with the CTA Division within 15 days No MR

No appeal Appeal to the Supreme Court (Rule 45, Rules of No appeal

Case title Decision

RMC 75-2018 dated 5 September 2018

RR No. 22-2020 dated 15 September 2020

Taxpayer presents an explanation

Case title Decision

• In case of service by mail, the proofs of service are:

Examination Dispute the PAN

Case title Decision

Immediately if the taxpayer Within 15 days from filing of

• Taxpayer shall be considered in default • Issuance of FLD/FAN within 15 days

• Shall be sent to the taxpayer only by registered mail or by personal delivery

There is tax delinquency when: There is tax deficiency when:

(Aznar v. CIR, G. R. No. L-20569 23 August 1974)

RR No. 18-2013 dated 28 November 2013, as amended by RR No. 7-2018

Taxpayer files protest Taxpayer ignores the

• The taxpayer shall state in his protest:

Request for reconsideration Request for reinvestigation

Protest is void if it fails to indicate whether it is in the nature of reconsideration or reinvestigation.

Await the final decision of the CIR on the

• Taxpayer’s option is mutually exclusive: Appeal to CTA or await decision of CIR

• Otherwise, the assessment shall become final, executory and demandable.

Case title Decision

• The final assessment shall become final and executory.

Tax refund Tax credit

1. Tax is collected erroneously or illegally;

• There is a tax collected erroneously or illegally, penalty is collected without authority, or a

• The taxpayer must show proof of payment of the tax.

• A tax compromise involves the reduction of the taxpayer’s liability.

a) The taxpayer has a tax liability;

• The Regional Evaluation Board may enter into a compromise on:

• The compromise must be approved by the National Evaluation Board when:

• Regard it as rescinded and insist upon the original demand.

How is a civil action for the collection of taxes instituted?

What are the crimes punishable under the NIRC?

• Attempt to avoid or defeat tax; and

Is the filing of a criminal action an implied assessment by the Commissioner?

• In case of insolvency on the part of the taxpayer, subsidiary imprisonment cannot be

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