NATIONAL INTERNAL REVENUE CODE

LOCAL GOVERNMENT TAXATION

REAL PROPERTY TAXATION

TARIFF AND CUSTOMS CODE

GOVERNMENT
A. Collection of Tax
1. Tax Lien (Sec. 219)
- Lien in favor of the government
from the time the tax became due
- Notice of lien filed by the
Commissioner in the Office of the
Register of Deeds
2. Compromise, Abatement and Refund
or Credit Tax (Sec. 204)
- Inability of taxpayer to pay based
on financial position
- Claim of taxpayer for refund within
two years after payment of taxes
3. Distraint (Sec. 205-208)
- Actual/Constructive
- Warrant of Distraint to owner
- Notice of Sale in public places
Levy (Sec. 207 B)
- Service of warrant of levy; Written
notice of levy served upon the
Register of Deeds
- Advertisement of sale
- Public Sale of property
4. Civil Action (Sec. 220)
- Instituted by the Government upon
failure of taxpayer to file a protest
or to appeal the decision
5. Criminal Action (Sec. 220, 221, 229)
- Imposition of penalty and payment
of taxes
6. Forfeiture of Property ( Sec. 215)
- In favor of the Government or
rendered invalid if unclaimed or
unutilized within five (5) years


A. Collection of Tax
1. Tax Lien (Sec. 173)
- Lien shall only be
extinguished upon full
payment of delinquent local
taxes and charges
2. Distraint (Sec. 175)
- Written notice to the
taxpayer with a duly
authenticated certificate
showing delinquency
- Publication of notice of sale
in public places
Levy (Sec. 175)
- Duly authenticated certificate
with description of the
property
- Advertisement of sale
3. Civil Action (Sec. 183)
- Distraint and Garnishment
- Administrative/Judicial
4. Purchase of property by LGUs
for want of bidder (Sec. 181)
- Property distrained not
disposed within 120 days
from date of distraint
considered sold to the LGU
5. Power to levy other taxes, fees
or charges (Sec. 186)
- Taxes, fees or charges not
enumerated or taxed under
the NIRC
- Public hearings
- Issues on constitutionality of
tax ordinances must be
raised within 30 days


A. Collection of Tax
1. Real Property Tax Lien
(Sec. 246, 251)
- Enforceable by
administrative or
judicial action and is
extinguished upon
payment of taxes
2. Distraint (Sec. 254)
- Notice of
delinquency
- Notice of sale
Levy (Sec. 254)
- Warrant of levy with
duly authenticated
certificate of tax
- Advertisement and
publication of sale
3. Civil Action ( Sec. 266)
- Formal demand not
required within 5
years from the date
they became due or
within 10 years in
case of fraud or
intent to evade tax
4. Purchase of property by
local treasurer for want
of bidder (Sec. 263)
- In case there is no
bidder, local
treasurer shall
purchase and make
a report therein
- Redemption within
one (1) year


A. Collection of Tax
1. Tax Lien (Sec. 1204
- Attaches on the
goods despite
ownership
2. Reduction of customs
duties/compromise
subject to approval of
Sec. of Finance (Sec.
709)
3. Civil Action (1204)
- Surcharges, fines
or forfeitures
4. Criminal Action
- Instituted in the
name of the
government with
the approval of
the
Commissioner
5. Seizure, Search,
Arrest (Sec. 2205,
2210, 2211 TCC)
6. Forfeiture (2530)
- Wrongful making
of any
declaration or
affidavit
- Declaration or
affidavit, invoice,
letter or paper is
false

B. Cancellation of Tax Liability
1. Abatement (Sec. 204)
- If tax assessments are unjust or
excessive; Collection costs does
not justify collection of payment
- Except criminal violations already
filed in court and those with fraud

B. Cancellation of Tax Liability
- May grant tax exemptions
through ordinances duly
approved but may not
condone or remit taxes (Sec.
192, 193)

B. Cancellation of Tax Liability
- Condonation or reduction of
tax by President or remission of tax
by the Sanggunian (Sec. 277, 276)

B. Cancellation of Tax Liability
1. Abatement Reduction
or non-imposition of customs
duties on certain imported
materials (Sec. 1701- 1708)

C. Prescription of Assessment/Collection:
1. Assessment of Taxes with
Commissioner of Internal Revenue
a.) 3 yrs. from filing of return or date
prescribed by law (Sec. 203)
b.) 10 yrs. when no return is filed or
when the return is false or
fraudulent with intent to evade the
tax from discovery (Sec. 222)
2. Collection of Tax:
a.) 5 yrs. from assessment or within
period for collection agreed upon
b.) 10 yrs. without assessment in
case of false or fraudulent return
with intent to evade tax or failure
to file return (Sec. 222)
3. Criminal Liability:
a.) 5 yrs. from commission or
discovery of violation (Sec. 281)

C. Prescriptive Period of Assessment
and Collection
1. Assessment:
a.) 5 yrs. from due date
b.) 10 yrs. in case of fraud or
intent to evade payment of
taxes from discovery of fraud
or intent to evade payment

2. Collection
a,) 5 yrs. from day of
assessment by administrative or
judicial action (Sec. 194)

- Local Governments may
appeal to courts from
adverse decision of
sanggunian to legal issues

C. Prescription for Collection
1. Collection
a.) 5 yrs. from due date
b.) 10 yrs. in case of
fraud or with intent
to evade payment
from the discovery of
fraud or intent to
evade payment

- Prescriptive period is
suspended when
local treasurer is
prevented from
collecting tax; in
case of
reinvestigation and
owner of property is
out of the country

C. Power/Authority to assess
and collect all lawful revenue
from imported articles and all
other duties and other fines

Automatic Appeal
- If the collector
renders decision
adverse to the
government, it
will be
automatically
elevated to the
Commissioner.
- If affirmed by
Commissioner,
review by the
Secretary of
Finance

TAXPAYER
A. Administrative
I. Before Payment:
1. Protest Petition for reconsideration of
reinvestigation within 30 days from
receipt of assessment (Sec.228)
2. Entering into a compromise (Sec. 204)
II. After Payment:
1. Filing claim for refund or tax credit
within two years from date of payment
regardless of any supervening cause
- Payment under protest is not
necessary; Right of redemption
B. Judicial
1. Appeal within 30 days from receipt of
decision of protest or inaction within
180 days of the Commissioner to CTA
2. Action to contest forfeiture of chattel
3. Action for damages
C. Criminal Action
1. Against erring BIR Officials/Employees
2. Injunction when the CTA in its
opinion the collection b the BIR may
jeopardize the taxpayer. Court may
require deposit of an amount or surety
bond for not more than double the
amount of the property in question

A. Administrative
1. Protest within 60 days from
receipt of assessment
- Payment under protest is not
necessary
2. Payment and subsequent refund
or tax credit within 2 years from
payment of tax to local treasurer
Right of Redemption One year
from the date of sale or from the
date of forfeiture (Sec.181)
3. Appeal Any question on
constitutionality or legality of tax
ordinance within 30 days from
effectivity to Secretary of Justice

B. Judicial
1. Court Action (Sec. 187, 195,197)
2. Action for declaratory relief
3. Injunction If irreparable
damage would be caused to the
taxpayer and no adequate
remedy is available

A. Administrative
1. Protest payment under
protest is required
- Within 30 days
2. Refund or tax credit
within two years
3. Appeal within 60 days
from assessment to
LBAA; within 30 days
from LBAA to CBAA.

B. Judicial
1. Court Action- appeal of
CBAA to Supreme Court
2. Suit assailing validity of
tax; Recovery of refund
3. Suit to declare invalidity
of tax due to irregularity
in assessment/collection
4. Suit assailing the validity
of the tax sale


A. Administrative
1. Protest any
importer or interested
party within 15 days
from date of
publication
- Any taxpayer
within 15 days
from assessment
2. Abatement/Refund
3. Appeal within 15 days

B. Judicial
1. Appeal to the CTA
within 30 days from
decision of
Commissioner of
Secretary of Finance
2. Action to question the
legality of seizure
3. Abandonment