PROTESTING OF

ASSESSMENT
AND TAX ERRONEOUSLY
OR ILLEGALLY COLLECTED

GROUP 6:
CATACUTAN, SHARAH
DICO, JZYL
PODUNAS, MACKIE
SOLAJES, JANIL
TAMPON, THEODETTE
 PROTESTING OF
ASSESSMENT
General rule:
There should be a Notification of
Assessment.
 PROTESTING OF ASSESSMENT
(cont.)

The taxpayer:
must be notified first when the
Commissioner or his duly authorized
representative finds that proper
taxes should be assessed.
 PROTESTING OF ASSESSMENT
(cont.)

The taxpayer:
be informed in writing of the law
and the facts on which the
assessment is made; otherwise, the
assessment shall be void.
 PROTESTING OF ASSESSMENT
(cont.)

Exceptions (5):
1. When the finding for any
deficiency tax is the result of
mathematical error in the
computation of the tax as
appearing on the face of the
return; or
 PROTESTING OF ASSESSMENT
(cont.)

Exceptions (5):
2. When a discrepancy has
been determined between
the tax withheld and the
amount actually remitted by
the withholding agent; or
 PROTESTING OF ASSESSMENT
(cont.)

Exceptions (5):
3. When a taxpayer who opted to
claim a refund or tax credit of
excess creditable withholding
tax for a taxable period was
determined to have carried over
and
 PROTESTING OF ASSESSMENT
(cont.)

Exceptions (5):
3. automatically applied the same
amount claimed against the
estimated tax liabilities for the
taxable quarter or quarters of the
succeeding taxable year; or
 PROTESTING OF ASSESSMENT
(cont.)

Exceptions (5):
4. When the excise tax due on
excisable articles has not
been paid; or
 PROTESTING OF ASSESSMENT
(cont.)

Exceptions (5):
5. When the 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.
 PROTESTING OF ASSESSMENT
(cont.)

Within a period to be prescribed by IRR, the

taxpayer shall be:
required to respond to said notice.
If the taxpayer fails to respond:
the Commissioner or his duly
authorized representative shall issue
an assessment based on his findings.
 PROTESTING OF ASSESSMENT
(cont.)

Assessment may be protested administratively

30 days from receipt of
by filing a request for reconsideration or
assessment
reinvestigation.

All relevant supporting documents shall have

60 days from filing of
been submitted; otherwise, the assessment
protest
shall become final.

If protest is denied in whole or in part, or is

30 days from receipt of not acted upon within 180 days, the taxpayer
decision or from the may appeal to the CTA; otherwise, the decision
lapse of 180-day period shall become final, executory and
demandable.
 PROTESTING OF ASSESSMENT
(cont.)

RR No. 12-99 - General principle:

In case the tax due from the taxpayer is paid
on a partial or instalment basis,
the INTEREST on the deficiency tax or on
the delinquency tax liability of the taxpayer
will be imposed from due date of the tax
until full payment thereof.
 PROTESTING OF ASSESSMENT
(cont.)

RR No. 12-99 - General principle:

The interest will be computed based on

the diminishing balance of the tax, inclusive
of interests.
 PROTESTING OF ASSESSMENT
(cont.)

RMC No. 40-2003:

LN being served by the BIR upon taxpayers

who were found to have under-declared
their sales or purchases through the Third
Party Information Program

can be considered a notice of audit or

investigation.
 PROTESTING OF ASSESSMENT
(cont.)

RMC No. 40-2003:

This would disqualify the taxpayers

concerned from amending any return,
which is the subject of such audit or
investigation.
 TAX
ERRONEOUSLY /
ILLEGALLY
COLLECTED
A claim for refund or credit must be duly
filed with the Commissioner in order to
maintain a suit or proceeding in court for
the recovery of:
 TAX ERRONEOUSLY / ILLEGALLY
COLLECTED (cont.)

any tax alleged to have been

erroneously or illegally assessed
any tax alleged to have been erroneously
or illegally collected
any penalty claimed to have been
collected without authority
any sum alleged to have been excessively
or wrongfully collected
 TAX ERRONEOUSLY / ILLEGALLY
COLLECTED (cont.)

Such suit or proceeding:

may be maintained, whether or not
such tax, penalty, or sum has been paid
under protest or duress.
shall be filed within 2 years from the
date of payment of the tax or penalty
regardless of any supervening cause.
 TAX ERRONEOUSLY / ILLEGALLY
COLLECTED (cont.)

However, the Commissioner may

refund or credit any tax when it
clearly appears to have been paid
erroneously.
 TAX ERRONEOUSLY / ILLEGALLY
COLLECTED (cont.)

Forfeiture of Cash
Refund
and of Tax Credit
 TAX ERRONEOUSLY / ILLEGALLY
COLLECTED (cont.)

A refund check or warrant which

remains unclaimed or uncashed
within 5 years from the date of
delivery shall be forfeited in favor of
the Government and reverted to the
general fund.
 TAX ERRONEOUSLY / ILLEGALLY
COLLECTED (cont.)

A tax credit certificate which remains

unutilized after five (5) years from the
date of issue, shall, unless revalidated,
be considered invalid, and the amount
covered by the certificate shall revert
to the general fund.
 TAX ERRONEOUSLY / ILLEGALLY
COLLECTED (cont.)

Tax credit certificates issued by the

Commissioner or his duly authorized
representative prior to January 1, 1998,
which remains unutilized or has a
creditable balance as of said date,

shall be presented for revalidation with

the Commissioner or his duly authorized
representative on or before June 30,
1998.
 TAX ERRONEOUSLY / ILLEGALLY
COLLECTED (cont.)

Contest Forfeiture of Chattel:

In case of the seizure of personal property

under claim of forfeiture, the owner may:

Before sale/ destruction: join sale

(auction) upon presentation of
proper bond
 TAX ERRONEOUSLY / ILLEGALLY
COLLECTED (cont.)

Contest Forfeiture of Chattel:

In case of the seizure of personal property

under claim of forfeiture, the owner may:

After sale: bring an action to recover

the net proceeds realized, within six
(6) months from the date of sale.
* END OF
REPORT *