REMEDIES OF LGU

1. Means to ensure tax compliance

a. Surcharges and interests 25%/2% a month; 72% max.
b. Examination of books of accounts
c. Retirement/Cessation/Termination of business 2. Examination of books
a. Who treasurer or his deputy but with written authority in case of
the latter
b. When regular business hours
c. Frequency once for every tax period
3. Period of Assessment Within five (5) years from the date the
deficiency tax became due. If there is fraud or intent to evade the
payment of taxes, 10 years from discovery of fraud or intent to evade
payment.
4. Suspension of period to assess
a. Treasurer is legally prevented from making an assessment
b. A request for reinvestigation with waiver is executed by taxpayer
c. Taxpayer is out of the country or otherwise can not be located
5. Does a request for reconsideration suspend the period to assess?
No.
6. Essential requisites of a valid WAIVER
a. In writing
b. Agreed to by both the taxpayer and the local treasurer
c. Executed before the expiration of the original prescriptive period or
the period subsequently agreed upon
d. Period must be for the definite period BEYOND the ordinary
prescriptive period for assessment.
7. Period to collect Within five (5) years from date of assessment. The
period may be SUSPENDED on the same grounds for the suspension of
the period to assess.
8. Retirement/Cessation/Termination of business operations are stopped
completely. Change in ownership, management, and/or name does not
constitute retirement/cessation/termination of business.
9. May an LGU compromise a tax liability?
An LGU may not compromise a tax liability that has already become
due unless specifically allowed by Congress. The only exception is with
respect to the violation of an ordinance regulating the use of weights
and measures under the following conditions:

(a) An ordinance specifically authorizes the treasurer to compromise

(b)There is no fraud
(c) Case in court is not yet filed
(d)Compromise penalty of not less than Php200.00 is paid
10.

Remedies available to the LGU (Sec 172 to 184)

(a) Administrative distraint and levy

(b)Judicial remedies only a civil action after delinquency is
established
11.

Personal property exempt from distraint or levy (Sec 185)