TAX REMEDIES

JBCG
TAX REMEDIES
■ Tax Remedies of the Government
■ Tax Remedies of the Taxpayer
Tax Remedies of the Government

■ The civil remedies for the collection of internal revenue

taxes, fees, or charges, and any increment thereto resulting
from delinquency shall be by:
1) Summary proceedings:
a) Distraint of personal property and
b) Levy upon real property and interest in or rights to
real property.
2) Judicial proceedings:
a) Civil action or
b) Criminal action.
Tax Remedies of the Government
■ The remedies of distraint and levy shall not be
availed of where the amount of tax involved is not
more than P100.
■ The judgment in the criminal case shall not only
impose the penalty but shall also order payment of
the taxes subject of the criminal cases as finally
decided by the Commissioner.
Tax Remedies of the Government
■ Distraint of Personal Property
ACTUAL CONSTRUCTIVE CONSTRAINT
DISTRAINT
Personal property is Personal property is not physically taken.
physically taken.
The taxpayer is already There is no finding yet of a discrepancy, only
delinquent in payment of that the taxpayer is leaving the country or
his taxes. disposing of his property in fraud of creditors
or is in the process of liquidation.
Personal property taken Personal property is merely held as security to
is sold in order to satisfy answer for any future tax delinquency.
the tax delinquency.
Tax Remedies of the Government
■ Levy on Real Property
– After the expiration of the time required to pay the
delinquent tax or delinquent revenue, real property
may be levied upon before, simultaneously or after
the distraint of personal property belonging to the
delinquent taxpayer.
– The remedy by distraint on personal property and
levy on realty maybe repeated, if necessary, until the
full amount due, including all expenses, is collected.
Tax Remedies of the Government
■Warrant of Distraint
■Warrant of Levy
■Warrant of Garnishment
Tax Remedies of the Taxpayer
■ Definition of Terms
– Assessment
■ The official action of an officer authorized by law in
ascertaining the amount of tax due under the law from
a taxpayer.
– Assessment Notice
■ A formal demand sent to the taxpayer requiring
payment within a specified time of the tax due from
him including interest and civil penalties.
Tax Remedies of the Taxpayer
■ Due Process in the Issuance of a Deficiency Tax Assessment (Remedy
Against an Assessment) (RR 18-2013 as amended under Revenue
Regulations No. 7-2018 as further amended under RR No. 22-2020)
– Notice Discrepancy (replaced Notice for Informal Conference) (Sec. 2,
RR No. 22-2020)
– Preliminary Assessment Notice (PAN)
– Formal letter of demand assessment notice
– Protest the assessment
– Submit all relevant supporting documents to the BIR
– Appeal to Court of Tax Appeals (CTA) division or request for
reconsideration to the Commissioner
– File an appeal with the CTA en banc
– File a verified petition for review with Supreme Court
Tax Remedies of the Taxpayer
■ Remedy Against an Erroneously or Illegally Paid Tax
– File a formal claim for refund
■ File a formal claim for refund with the BIR within 2 years
from the date of payment of the tax.
– Submit the relevant documents
– File an appeal with CTA
– File an appeal with the CTA en banc
– File a verified petition for review with Supreme Court
THANK YOU!