Tax Assessment

-refers to the process of determining the correct amount of tax due in accordance with the
prevailing tax laws. Taxpayer reports hos own assessment of his tax liability in his tax return to
the Internal Revenue Officer.
Tax Return- refers to a formal report prepared by the taxpayer or his agent in a prescribed form
showing an enumeration of taxable amounts and description of taxable transaction, allowable
deductions, amount of tax and tax payable to the government.

TAX ASSESSMENT

Taxpayer’s Assessment Government’s Assessment

(Thru Tax Returns) (Before and After Payments of Tax)

Assessment Period
-refers to the period in processing, appraising and determining the value of the subject of
taxation, including the computation of tax prescription, surcharges, and interests to arrive at the
specific sum of tax charged on a person or property.

TAX ASSESSMENT PERIOD

When is Within the 3-year prescription period, when the taxpayer filed an
Government accurate tax return.
Tax
Assessment
Made? Within the 10-year prescription period when the BIR discovers that the
tax return filed was fraudulent.

Before the expiration of the 3-year period, the BIR and the taxpayer
may agree on the period of assessment.

Jeopardy Assessment, if the taxpayer

-retires from business
-leaves the country
 TAX ASSESSMENT PROCEDURE

BIR Sends written notice of findings Taxpayer

Responds

Issues Assessment Fails to respond

Files protest within 30 days

from receipt of assessment

Submits proofs within 60 days

from filing of protest

No supporting documents.
Assessment becomes final

Denies taxpayer’s
protest or ignores
supporting
documents within Appeals to the CTA within
180 days upon 30 days from receipt of
submission deial or from the lapse of
the 180-day period

No appeal was made. BIR

decision on Tax Assessment
becomes final, executory
and demandable.