Tax Remedies - Filed before the last day prescribed by law for

Self – Assessing filing thereof shall be considered filed on such

- Risk of undercompliance or non-compliance last day

Government Remedies Illustration 2: Late Filing

- Legally mandated procedures to enforce
determination and collection of correct amount
of tax from the taxpayers
Taxpayers’ Remedies
- Procedures for disputing assessments and in
recovering taxes erroneously paid
Government Remedies
1. Assessment
2. Collection
1. Assessment
- Act or process of determining tax liability in
accordance with tax laws
- Notice sent by the govt to the taxpayers
informing them of their unpaid or still unpaid
tax obligations with a demand to pay them
2. Collection
- Procedures of the government to enforce
payment of unpaid taxes from delinquent
taxpayers
Assessment
- Calling for payment only after the govt establish
the correct or reasonably correct amount of tax
of the taxpayer
Power of the CIT Relative to the Determination of
Correct Tax
a. Obtain data and information from third parties
b. Conduct inventory surveillance
c. Examine and inspect books of accounts
d. Prescribe presumptive gross sales and receipts
Presumptive Period of Assessment
General Rule: within 3 years from the date of the actual
filing of the return or deadline required by law,
whichever is later
Illustration 1: Early Filing or Filing on the Deadline
- Filed beyond the period prescribed by law, 3-
year counted from the day the return is filed
Deadlines of Various Taxes
A. Income Tax Return
a. Annual Income Tax
i. Individual – April 15 of the ff. year
ii. Corporation – on the 15th day of the
4th month ff the end of the
taxpayer’s year-end
b. Capital gains tax return
i. Capital gains tax return on sale of
domestic stocks
1. Transactional return – 30
days from the date of sale
2. Annual return – 15th day of
the 4th month ff the end of
the taxpayer’s year-end
ii. Capital gains tax return on sale of
real properties – 30 days from the
date of sale
c. Withholding tax returns
i. Withholding of final tax and FBT –
10 days ff the month of withholding
(manual)
ii. Withholding tax on compensation
income and expanded withholding
tax – 10 days from the end of each
calendar month: for Dec, Jan 15 of
the succeeding year
B. Transfer Tax Returns
a. Donor’s tax – within 30 days from the date
of the donation
b. Estate tax – within 1 year from the date of
the decedent’s death
C. Business Tax Returns
a. Non-VAT Taxpayers – Quarterly Percentage
Tax (BIR Form 2551-Q) – within 25 days of
the end of the quarter
b. VAT Taxpayers – Quarterly VAT (BIR Form
2550Q) within 25 days from the end of the
quarter
D. Documentary Stamp Tax Return – within 10 days
from end of month
Taxpayer’s Right to Modify, Change or Amend Return
- Within 3 years from the date of filing
- Provided no notice for audit or investigation has
been actually served upon the taxpayer
- Date of filing amended return considered the
actual filing of the return

Exception to the 3-Year Prescription Rule

1. Fraudulent returns
2. Willful neglect to file
3. Waiver of the statutes of limitations by the taxpayer

1. Fraudulent Return
- Intentional
2.