Tax remedies and administration

ASPECTS OF TAXATION

Legislative Aspect

Administrative Aspect

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TAXPAYER’S REMEDIES

Assessment

Collection
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TAX ASSESSMENT

This refers to the process

of computing and
determining tax liability
of taxpayer based on
prevailing tax rate
Tax delinquency VS Tax
deficiency

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Requisites for a Valid Assessment

Issued by the BIR

Based on findings of fact

and/or law: actual facts

Factual and/or legal bases of

the assessment must be stated
Contain a computation of tax
liabilities
Contain a demand for payment
within the prescribed period

It must be sent to the taxpayer

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Assessment Process

Determination of the amount

due.
Issuance of proper notice to the
taxpayer regarding the amount
tax liability.
Enforcement or demand for
payment simultaneous with the
giving of notice.

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Prescribed Period of
Assessment
Three years from the date of filing
the return
1. If the return was filed before the last
day of filing, the three year period will
start after the last day of filing the
return.

Example:
Return filed : March 1, 2019
Last day of filing : April 15, 2019
Last day of valid ass. : April 15, 2022

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Prescribed Period of
Assessment
Three years from the date of filing
the return
2. If the return was filed after the
mandated period of filing, the three
year period of assessment will start
from the date of filing the return.

Example:
Return filed : April 15, 2019
Last day of filing : June 30, 2019
Last day of valid ass. : June 30, 2022

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Prescribed Period of
Assessment
Ten years from the date of discovery
or omission
1. Failure to file a return
2. Return filed was false or fraudulent with
the intention to evade the tax.

Example:
Return filed : April 15, 2019
Last day of filing : June 30, 2019
Last day of valid ass. : June 30, 2029

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Assessment Procedure

Formal Protest phase of Appeal on tax

assessment phase the assessment assessment
procedure decision

• By mail • Within 30 days • When the

• By personal • Either cover all protest has
delivery the issues or been denied by
only some of revenue officer
the issues of BIR
• All facts and • When BIR
bases of the made no action
protest be within 180 days
stated from
• Required submission of
documents and documents
evidences be
submitted within
10
60 days
TAX COLLECTION

This refers to the process

wherein the government
devises effective and
efficient ways and means
to collect taxes.
This is an administrative
aspect o f taxation.

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Remedies for collection
of delinquent taxes
Administrative remedies
1. Distraint of all personal property
2. Levy of real property belonging to
the taxpayer

Judicial remedies
1. Civil action
2. Criminal action

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Other Remedies of Enforcement of forfeiture of
the Government
property
Enforcement of tax lien

Entering into compromise

of tax cases
Requiring the filing of
bonds
Giving of rewards to
qualified tax informers
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Other Remedies of Imposition of surcharges for
the Government
non/late payment
Making arrest, search, seizure

Deportation of aliens who

violated tax laws
Inspection and examination of
records and books of accounts
Use of national tax register

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For cases of financial incapacity

10% of assessed tax 20% of assessed tax 40% of assessed

liability liability tax liability

• Without source of • Dissolved corporation • Has surplus or

income • Non-operating earnings deficit
• Zero or negative company for less resulting in
net worth / non- than 3 yrs impairment in the
operating income • Declared bankrupt / original capital by at
for a period of 3 yrs insolvent least 50%
or more
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Rewards to tax informers

10% based on 10% based on tax 10% based on FMV

revenues, surcharge imposed, including or 1,000,000
imposed or collected, surcharges, and whichever is lower,
for giving of penalties or 1,000,000 for discovery and
voluntary sworn whichever is lower, for seizure of smuggled
information violations of tax code goods

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POWER OF THE COMMISSIONER

1. Make assessments and prescribe additional requirements for tax administration and
enforcement.
2. Interpret tax laws and decide tax cases.
3. Obtain information, summon, examine, and take testimony of person.
4. Delegate powers vested by him by the code to any subordinate officer with rank
equivalent to a division chief of.
5. Suspend business operation of taxpayer.
6. Compromise, abate, and refund or credit taxes.
7. Power to expand its authority to look into a taxpayer’s bank accounts and share obtain
information with the requesting foreign tax.

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Power of the Commissioner that cannot be delegated

1. The power to recommend the promulgation and regulations by the secretary of finance,
and the power to issue rulings of first impression or to reverse, revoke or modify rulings
of BIR.
2. The power to compromise or abate any tax liability.
3. The power to assign or re-assign internal revenue officers to establishments where
articles is subject to excise tax are produced or kept.

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POWER and DUTIES OF BIR

1. Assessment and collection – Tax, fees and charges.

2. Enforcement of all forfeiture, penalties, fines and etc.
3. Execution of judgement in all cases decided in its favor by the court of tax appeals and
Ordinary courts.
4. Administration of supervisory and Police powers conferred or granted to it. To give
effect to and administer the supervisory and Police power conferred to it by the tax
code.
5. To recommend to the secretary of finance all needful rules and regulations for the
effective enforcement of the provision of the tax code.

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AUTHORITY OF REVENUE OFFICER

1. Perform assessment functions pursuant to the letter of authority issued by the revenue
regional director.
2. Examine taxpayers within the jurisdiction of the district in order to collect the correct
amount of tax.
3. Recommend the assessment of any deficiency tax due in the same manner that the
said acts could have been performed by the revenue regional director himself.

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THANK YOU!