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 TAXATION LAW REVIEW. Sababan. 2008 ed. Ppg 181-200

CHAPTER XXI: REMEDIES

  There are two remedies provided in the NIRC:

1. The remedies of the Government, and : S!""#$e %&e 'e%!' #' %&e c*+e,*' -e*' 200 /$ /+e, - %&e
2. The remedies of the taxpayer %*1"*-e' # A"'/+ 0 2004 5&e 5/++ %&e "'e$c'/"%/6e "e'/#,
e7/ %# '!8
A.THE REMEDIES OF THE GOVERNMENT

  The Code provides the Government with TWO remedies: A:

the the pres$riptive
0"0-IN period
for fi#in3 thewi## *e3inforto2''>
ret+rn r+n "TR "7RI- 1, 2''< 4
1! "ssessment, and
2! Co##e$tion : S!""#$e %&e 'e%!' #' 2009 5*$ /+e, # A"'/+ 2 2004 5&e
 5/++ %&e "'e$c'/"%/6e "e'/#, e7/ %# '!8
2 KINDS OF ASSESSMENT AND COLLECTION:
a! Norma# or ordinary assessment and $o##e$tion % &e$. A: the period wi## $ommen$e from "R7I- 12, 2''<.
2'() and " $aref+# ana#ysis of the $ase wo+#s show that the ret+rn was fi#ed
*! The "*norma# or extraordinary assessment and *eyond the period for fi#in3 the ret+rn. The ret+rn was for the
$o##e$tion % &e$. 222 $a#endar year 2'' th+s, the ret+rn sho+#d have *een fi#ed *efore
"pri# 1, 2''>! *+t on#y fi#ed in 2''<. The ret+rn was fi#ed #on3
NORMAL OR ORDINARY ASSESSMENT AND COLLECTION (Sec. "TR the dead#ine. Th+s, the pres$ription period sho+#d $ommen$e
203) from the date the ret+rn is fi#ed 4 "7RI- 12, 2''<.

: avai#a*#e to the Government if there was a ret+rn fi#ed *y
the taxpayer and s+$h ret+rn is not "-& OR
R"/0/-NT
: Govt may on#y mae the assessment +nder this se$tion
 win ( years after the #ast day pres$ri*ed *y #aw for the
fi#in3 of the ret+rn 4 NOT RO5 T6 TI5 O 7"85NT.
: when the ret+rn is fi#ed *eyond the period of fi#in3
pres$ri*ed *y #aw, the (year period sha## *e $o+nted from
the day of the fi#in3 of the ret+rn
2 INSTANCES CONTEMPLATED ↓ THIS SECTION:
FIRST SECOND
4 the ret+rn is fi#ed 9OR "T 4 when the ret+rn is fi#ed *eyond
T6 TI5 pres$ri*ed *y #aw  the period pres$ri*ed *y #aw.
 w$ is ON OR 9OR "7RI-
1 of ea$h year $overin3 the
in$ome for the pre$edin3 taxa*#e
year for those +sin3 the $a#endar
year) &e$ 1 $ 1!OR
;; the ret+rn is fi#ed
N#%e:  for $o##e$tion, the Code does not provide for a pres$riptive
period.
 "+thor?s note: the pres$riptive period for a*norma# is 
years from assessment, hen$e it $an *e $on$#+ded that the
pres$riptive period for norma# is a#so  years. It wi## $reate an a*s+rd
sit+ation where there is no pres$riptive period +nder the norma# *+t
there is a pres$riptive period for a*norma#. It is more #o3i$a# to
$on$#+de that the #e3is#at+re intended to provide a pres$riptive period
+nder the norma# $o##e$tion.
ANORMAL OR EXTRAORDINARY ASSESSMENT AND
COLLECTION
: resorted to *y the Govt in the ff $ases: O!
1! The taxpayer O5IT& or "I-& to fi#e his ret+rn
2! The taxpayer I-0 a ret+rn *+t the ret+rn was
R"/0/-NT
(! The ret+rn fi#ed *y the taxpayer was "-&.
: an error in the ret+rn fi#ed *y the taxpayer does not imp#y
fra+d or that the same is "-&.
: #e3a# pres+mption   the ret+rn fi#ed is TR/ and


9OR "T T6 TI5 CORRCT. ∴ the *+rden of proof #ies in the 3ovt to prove that s+$h
pres$ri*ed *y #aw   w$ is ON

ret+rn is fra+d+#ent or fa#se.
OR 9OR the 1 th day of the
2 REMEDIES (#"%/#$) ↓ THIS KIND OF ASSESSMENT AND
O/RT6 5ONT6 fo##owin3 the
COLLECTION:
$#ose of the I&C"- 8"R for
those +sin3 the fis$a# year &e$ 1! assess and $o##e$t, and
<<9! 2! $o##e$tion wo assessment
PRESCRIPTIVE PERIOD
*e3ins to r+n from the dead#ine: *e3ins to r+n from the time the 1! or assessment and $o##e$tion 4 pres$riptive period is 1'years
"pri# 1 or the 1 th day of the = th ret+rn is fi#ed. from the 0I&CO@R8 of the non;fi#in3 of the ret+rn or the
month fo##owin3 the $#ose of the fra+d+#ent or fa#se ret+rn. &e$ 222 a!
fis$a# year.

♥  NOTES

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 TAXATION LAW REVIEW. Sababan. 2008 ed. Ppg 181-200

  period for $o##e$tion pres$ri*es "TR  years
from date of IN"- "&&&&5NT &e$ 222 $!

2! Govt opts to $o##e$t wo assessment 4 there wo+#d *e NO

7R&CRI7TI@ 7RIO0 for assessment.    win ('days fr re$eipt of
"N


  period for $o##e$tion pres$ri*es within 1'years
from the 0I&CO@R8 of the non;fi#in3 of the ret+rn or the
fra+d+#ent or fa#se ret+rn. I- " 7ROT&T:

2 KINDS OF PROTESTS:
: C* %&e IR ;!$% c#++ec% 5<# *$$e$$=e%8
1! 5otion for re$onsideration
;>' day period NOT app#i$a*#e
A: ort+ne To*a$$o $ase 4 8&. &in$e the ret+rn fi#ed was
R"/0/-NT, the 9IR $an avai# of the remedy of $o##e$tion 2! 5otion for reinvesti3ation 4
 witho+t assessment. The 9IR is a##owed to exer$ise that >' days from fi#in3 of protest
option.

.PROCED>RE FOR ASSESSMENT (Sec22?@ RR N#. 2

BB
&/95IT CO57-T &T O
  &e$ 22A provides for 2 &T7& for "&&&&5NT: 0OC/5NT&

1! pre;assessment noti$e) and

2! fina# assessment noti$e
9IR I& GI@N 1A' 0"8& TO
  RR No. 12;BB provides for ( &T7&: 0CI0

1! noti$e of informa# $onferen$e)

2! pre#iminary noti$e of assessment 7"N!)
(! forma# #etter of demand and noti$e to pay the
tax "N!. 7ROT&T I& 0NI0) or
1A' 6"& -"7&0

PROCED>RE FOR ASSESSMENT:  

Noti$e of Informa# Conferen$e
Win (' days from
 win 1 days from re$eipt of noti$e denia##apse

"77"- to the Co+rt of Tax

I- " R7-8 "ppea#s IN 0I@I&ION

  Win 1 days from re$eipt

"I-0 TO I- " R7-8 I-0 " R7-8
5otion for Re$onsideration with
the 0I@I&ION

&N0 NOTCI "G"IN 7R-I5IN"R8 NOTIC O  

"&&&&5NT 7"N!
Win 1 days from re$eipt
"77"- to the Co+rt of Tax
1 days +pon re$eipt "ppea#s EN BANC 
of 7"N
I- " R7-8

  Win 1 days from re$eipt

"77"- to the
&/7R5 CO/RT
"I-0 TO I- " R7-8

R7"T 7"N 0C-"R IN 0"/-T, &N0

OR5"- -TTR O
 ♥ NOTES
05"N0 "N0 NOTIC TO
7"8 T" "N

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1! The taxpayer havin3 re$eived a

7"N, fai#s to respond within the
period provided for *y the r+#es and
re3+#ations &e$ 22A, #ast par!

2! % the five instan$es en+merated %

&e$ 22A where pre;assessment is
NOT ne$essary.
*. PREASSESSMENT NOTICE (PAN)
c. PROTEST
"s a r+#e: 7"N is iss+ed to a taxpayer
   after re$eipt of "N, taxpayer E immediate#y


; who fai#s to fi#e a ret+rn, or appea# to the CT".

; fi#es a ret+rn *+t fai#s pay the tax,
; pays the tax, *+t the same is
IN&/ICINT
: 9OR "N "77"-, a 7ROT&T m+st IR&T
  &e$ 22A, when is 7"N NOT NECESSARY: 50 *e I-0 *y the taxpayer.
C&!
PROTEST  
 an a$tion disp+tin3 the fina# assessment.
1! When the findin3 for defi$ien$y tax
is the res+#t of 5"T65"TIC"- : in a$$ordan$e w the r+#e in "dmin -aw ; the
RROR in the $omp+tation of the e1&*!$%/# # *,=//$%'*%/6e 'e=e,/e$.
tax appearin3 on the fa$e of the
ret+rn) : after fi#in3 protest, 9IR 4 3iven a period of 1A'
days win w$ to de$ide on the matter.
        2! When a 0I&CR7"NC8 has *een
   S determined *etween the tax I 5R: the 1A';day period is to *e $ommitted on
   E  withhe#d and the amo+nt a$t+a##y
   C the day the protest has *een fi#ed.
   N remitted *y the withho#din3 a3ent)
   A I 5I: the 1A';day period sha## *e re$oned on the
   T
   S (! When a taxpayer who opted to $#aim day the do$+ments or re$eipts were fi#ed with the >';day
   I
   N a ref+nd or tax $redit of ex$ess period of time.
   E $redita*#e withho#din3 tax for a
   S taxa*#e period was determined to : /pon denia# of the protest #apse of the 1A';day
   E have C"RRI0 O@R and
   H period wo the 9IR a$tin3 on the protest, the ta$payer may
   T 
a+tomati$a##y app#ies the same appea# to the CT" win ('days from re$eipt of the dnia# or
   N amo+nt $#aimed a3ainst the #apse of the period) otherwise the de$ision sha## *e$ome
   I 
estimated tax #ia*i#ities for the IN"-, C/TOR8 and 05"N0"9-.
   D taxa*#e D+arter or D+arters of the
   E
   U s+$$eedin3 taxa*#e year) : I %&e %*1"*-e' ,!'/7 %&e "e,ec- # &/$ "'#%e$%
   S 'ece/6e, * #%/ce # * *c%/# #' c#++ec%/# /+e, - %&e
   S
   I =! When the CI& T" 0/ on IR 5&*% /$ &/$ "'#"e' 'e=e,-8
ex$isa*#e arti$#es has not *een paid)
A: 8a*es v. #oFo  /nion &hippin3 -ines v. Commissioner 4
! When an arti$#e #o$a##y p+r$hased or &C he#d that the s+*seD+ent fi#in3 of a $o##e$tion s+it *y the
imported *y an exempt person, s+$h 9IR may *e $onsidered as a denia# of the reD+est for
  as, *+t not #imited to, vehi$#es, protest, hen$e, the proper remedy of the taxpayer is to
$apita# eD+ipment, ma$hineries and appea# the denia# to the CT".
spare parts, has *een &O-0,
TR"00 OR TR"N&RR0 TO ,. APPEAL TO THE CTA
NON;57T 7R&ON&.
 if protest is 0NI0, in who#e or in part)
 In the fore3oin3 instan$es, the taxpayer sha##  or the 1A';day period has a#ready #apsed wo
re$eive a fina# assessment noti$e witho+t the the 9IR a$tin3 +pon the protest
*enefit of a pre;assessment noti$e.
∴ taxpayer may appea# the denia# to the CT" win

. FINAL ASSESSMENT NOTICE (FAN) ('days from the re$eipt of the denia# or the #apse of the
period
  from the f#ow$hart, "N is iss+ed when:

 ♥ NOTES

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:PENDING APPEAL c* %&e IR $%/++ *=e, %&e /*+ (2) ↓ Rea# 7roperty Tax
*$$e$$=e%8 (3) ↓ Tariff and C+stoms Code

A: 2 @IW&: N: " =th may *e added 4 "05IN 7ROT&T % NIRC.

1. 9atan3as v. Co##e$tor 4 &C he#d that the 9IR
may sti## amend the assessment d+rin3 the
penden$y of the appea# to avoid m+#tip#i$ity of
s+its.
2. G+errerro v. Commissioner 4 &C he#d that 9IR
E amend the assessment &INC IT I& NO
-ONGR " 0I&7/T0 "&&&&5NT.
 "+thor?s Note: favors the first r+#in3.
e. APPEAL TO THE SC
. PROTEST ↓ LOCAL TAX (Sec B9 LGC)
-GC provides: when the #o$a# treas+rer or his d+#y
a+thoriHed representative finds that $orre$t taxes,
fees, or $har3es have not *een paid, he sha## iss+e a noti$e
of assessment statin3 the nat+re of the tax, fee, or
$har3e the amo+nt of defi$ien$y, the s+r$har3es,
interest and pena#ties.
: it is from this assessment that the taxpayer may
fi#e a protest win >'days from re$eipt of noti$e of
assessment. If taxpayer does not fi#e the protest win
said period, the assessment sha## *e$ome fina# and
exe$+tor.

  after appea#in3 to CT", and after renderin3 an :#o$a# treas+res sha## de$ide the protest within
+nafvora*#e de$ision, taxpayer may fi#e a motion for >'days from its fi#in3. 6e may either 3rantdeny the
re$onsideration of said de$ision within 1 dyas from re$eipt protest.
of the de$ision of the CT" sittin3 IN 0I@I&ION.
: GR"NT 4 if he finds that it is, who##y or
part#y, meritorio+s.
  if de$ision is sti## /N"@OR"9-, to the CT" ; ∴ he sha## iss+e a noti$e
En Banc. C"NC-ING who##y or part#y
the assessment.
  if CT" 9 sti## renders an +nfavo+ra*#e
de$ision, taxpayer has remedy to fi#e 7TITION OR : 0N8 4 who##yparty, if he
CERTIORARI  % R/- >, on#y on the 3ro+nd of GR"@ finds that the assessment is who##y or
"9/& O 0I&CRTION amo+ntin3 to #a$ex$ess of part#y CORRCT, w
 F+risdi$tion. NOTIC to the taxpayer

SEVERAL INSTANCES HERE THE FINAL : the taxpayer is 3iven a period of ('days from
ASSESSMENT ECOMES FINAL AND EXEC>TORY: re$eipt of denia# or the #apse of the >';day period,
(SONA)  win w$ to *""e*+  to the $o+rt of $ompetent F+risdi$tion 4
RTC.
1! &/77ORTING 0OC/5NT& NOT fi#ed win
the >';day period : RTC 4 renders +nfavo+ra*#e de$ision, T7 may
*""e*+ to CTA EN BANC   4 is sti## +nfavo+ra*#e 

2! 7rotest NOT fi#ed ON TI5) SC.

(! NO "77"- was fi#ed with the CT" win
('days after the #apse of the 1A';day period)
and
=! There was an "77"- I-0 *+t it was
98ON0 the period to appea#.
2. PROTEST ↓ REAL PROPERTY TAX (Sec$ 22 230 292
LGC)
: made *y a T7 who is not satisfied with the a$tion of the
provin$ia#, $ity or m+ni$ipa# assessor in the assessment of
his property.

C.FORMS OF PROTEST : T7 may, win >'days from date of re$eipt of the

 written noti$e of assessment, appea# to the -o$a# 9oard of
: 7rotest is a remedy afforded to the taxpayer in "ssessment "ppea#s -9""! of the provin$e or $ity.
$ases where the 9IR iss+es a fina# assessment to the
taxpayer . : 9OR T6I& 7ROT&T 5"8 9
NTRT"IN0, &e$ 22 -GC reD+ires   T7 

( OR5& O 7ROT&T "OR00 TO T6 T"7"8R: IR&T 7"8& T6 T". (PAYMENT >NDER
PROTEST)
() ↓ -o$a# Tax

 ♥ NOTES

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: 7rotest may on#y *e fi#ed win (' days from the : from this "t+tomati$ Review the de$ision of the
payment of the tax. the words “paid under protest”   sha## *e &e$ 4 if +nfavo+ra*#e to importer;T7, sha## *e *""e*+*+e
annotated on the tax re$eipt! to CTA.
   what is appea#a*#e is the &e$?s de$ision from
: -9"" sha## de$ide win 12' days from re$eipt of "R of Commr?s de$ision % R" B2A2.!
the appea#. The 9oard after hearin3, sha## render a
de$ision *ased on s+*stantia# eviden$e. D. COMPROMISE
: -9""; renders +nfavo+ra*#e de$ision, T7 may Commr may $ompromise payment of any interna# reven+e
*""e*+ to the Ce%'*+ #*', # A$$e$$=e% tax % 2 IN&T"NC&:
A""e*+$ (CAA)  if sti## +nfavo+ra*#e   CTA  then


to SC. 1! When a reasona*#e do+*t exists as to the

va#idity of the $#aim E the T7
3. PROTEST ↓ THE TARIFF AND C>STOMS CODE (Sec 2! When the finan$ia# position of the T7
233 *$ *=,, - RA N#. 49) demonstrates a $#ear ina*i#ity to pay the
assessed tax.
: appea#s % TCC in$#+de those reD+ests for protests as we##
as for ORIT/R&. : M*- %&e 7#6% c#="'#=/$e #%& c'/=/*+ *, c/6/+
c*$e$8 S!""#$e %&e c/6/+ c*$e /$ *+'e*,- /*+ *,
FIRST SIT>ATION ↓ TCC: e1ec!%#'- c* /% $%/++ e $!;ec% %# c#="'#=/$e8
: / /="#'%e' +#$e$ &/$ c*$e, remedy  "77"-
 win 1 days  OIC O T6 CO55I&&IONR
 A: in $ivi# $ases, the 3ovt may $ompromise the #ia*i#ity of the
T7 at "N8 &T"G of the pro$eedin3 e1ce"% when the $ase
: Commr r+#es for the Govt 4 importer may fi#e is a#ready fina# and exe$+tory. In this $ase, if the 3ovt wo+#d
appea# to the CT" sittin3 IN 0I@I&ION win (' days a##ow a $ompromise even if the $ase is a#ready fina# and
from re$ipt of the de$ision. exe$+tory, the do$trine of separation of powers wi## *e
vio#ated.
: CT" for Govt 4 importer to fi#e 5R *efore the
same division win 1days   sti## +nfavo+ra*#e
  In $rimina# $ases, $ompromise is a##owed ex$ept if the
appea# *efore the CT" En Banc. $rimina# $ase is a#ready fi#ed *efore the RTC or if the $ase
invo#ves fra+d.
: CT" 9 4 sti## +nfavo+ra*#e, importer appea# win
1 days from re$eipt of de$ision 
&C : S!""#$e %&e c#'"#'*%/# /$ *+'e*,- ,/$$#+6e, c* %&e
$%#c&#+,e' $%/++ e c#="e++e, %# "*- %&e %*1 +/*/+/%-8
SECOND SIT>ATION ↓ TCC:
: /="#'%e' "'e6*/+$ #6e' %&e 7#6e'=e%. A: GR: NO.
2  EXECEPTIONS: 1! there is eviden$e to prove
that the assets of the $orporation were taen *y the &6) or
: in this $ase, there wi## *e an "/TO5"TIC 2! if the &6 has +npaid s+*s$ription.
R@IW wn days.
: the amo+nt to *e $ompromised 4 #imited *y the Code. or
: "/TO5"TIC R@IW sha## *e fi#ed *efore $ases of finan$ia# in$apa$ity, the minim+m rate sha## *e
1. &C of IN"NC 4 if va#+e of $ommodity  eD+iva#ent to 1'K of the *asi$ assessed tax. or other
75 or  $ases, the minim+m rate sha## *e eD+iva#ent to ='K of the
2. Offi$e of Commr 4 if va#+e of $ommodity is J *asi$ assessed tax. In other words, the minim+m amo+nt to
75 *e assessed sha## *e:
1! In $ases of finan$ia# ina$apa$ity 4 not J 1'K
: in 2 a*ove, the Commr is 3iven a period of ('dyas win w$ of the ori3ina# assessment) and
to de$ide. 2! or other $ases, not J ='K of the ori3ina#
assessment.
: if Commr REVERSES the r+#in3, ∴ he r+#es for
the Govt, this de$ision sha## *e$ome FINAL AND : I$ %&e'e *- /$%*ce 5&e'e %&e *=#!% *$$e$$e, /$
EXEC>TORY. +#5e' %&* %&e +/=/%*%/#$ "'#6/,e,8

: if Commr AFFIRMS the Co##e$tor does not A: GR: the $ompromised amo+nt sho+#d not *e #ower than
render a de$ision win (';day period, then   "/TO5"TIC
 the #imitations provided *y the Code.
R@IW *efore the &e$ of inan$e.
EXC: where the *asi$ tax invo#ved ex$eeds 715 or where
the sett#ement offered is #ess than the pres$ri*ed rates, the
$ompromise sha## *e s+*Fe$t to the approva# of the

 ♥ NOTES

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7/17/2019
 TAXATION LAW REVIEW. Sababan. 2008 ed. Ppg 181-200
va#+ation 9oard w$ sha## *e $omposed of the Commr and =
0ep+ty Commrs.
E. REMEDIES FOR COLLECTION OF DELIN>ENT
TAXES (Sec 209))
2 GRO>PS OF REMEDIES PROVIDED Y THE CODE:
1. L/0ICI"- "CTION:
a. Civi# a$tion
*. Crimina# a$tion
2. "05INI&TR"TI@ "CTION
a. 0istraint
*. -evy
$. Tax #ien
N: a determination of whether the fina# assessment is +nder
norma#a*norma# assessment$o##e$tion is materia# in order to
determine the remedies avai#a*#e to the 3ovt.
∴ in $ase of a*norma#, where the ret+rn fi#ed is
fa#se or fra+d+#ent, the 3ovt may not on#y avai# of F+di$ia#
a$tion, a#so of #evy or distraint.
F. DISTRAINT
3 KINDS OF DISTRAINT:
1. Constr+$tive
2. 0istraint of intan3i*#e properties
(. "$t+a# 0istraint
() CONSTR>CTIVE DISTRAINT (Sec 20)
  the Commr may p#a$e % C0 the property of a de#inD+ent
T7 or any T7 who in his opinion is:
1! Retirin3 from any *+siness s+*Fe$t to tax)
2! Intendin3 to #eave the 7hi#s)
(! Intendin3 to remove his properties in the 7hi#s)
=! Intendin3 to hide$on$ea# his property)
! Intendin3 to perform any a$t tendin3 to
o*str+$t pro$eedin3s for $o##e$tin3 tax d+e
 w$ may *e d+e to him.
: $!;ec% # ,/$%'*/%  PERSONAL PROPERTY OF TP
  this is effe$ted *y:
1! ReD+irin3 the T7 or any person havin3
possession or $ontro# of s+$h property to si3n
a re$eipt $overin3 the property distrained) and
2! O*#i3ate himse#f to preserve the same inta$t
and +na#tered and not to dispose of the same
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Taxation Law Reviewer by Sababan
in any manne whatever, wo the a+thority of
the Commr.
  if T7 or person a+thoriHed R/&& "I-& to
si3n re$eipt, the reven+e offi$er effe$tin3 the C0 sha##
pro$eed to prepare a #ist of s+$h property and in the
presen$e of 2 witnesses, #eave a $opy thereof in the
premises where the property distrained is #o$ated, after w$
the said property sha## *e deemed to have *een p#a$ed %
C0.
(2) DISTRAINT OF INTANGILE PROPERTIES (Sec 20?)
Intan3i*#e props w$ $an *e % distraint:
; sto$s and other se$+rities
; de*ts and other $redits
; *an a$$o+nts
H#5 ,/$%'*/% /$ =*,e:
  &to$s and other se$+rities:
: sha## *e distrained *y servin3 a $opy of the
 warrant of distraint +pont the tp and +pon the
president, mana3er, treas+rer, or other responsi*#e
offi$er of the $orporation, $ompany or asso$iation, w$
iss+ed the said sto$s or se$+rities.
  0e*s and other $redits:
: sha## *e distrained *y #eavin3 with the person
owin3 the de*ts or havin3 in his possession or
+nder his $ontro# s+$h $redits, or his a3ent, a $opy of
the warrant of distraint.
  9an a$$o+nts:
: sha## *e 3arnished *y servin3 a warrant of
3arnishment +pon the tp and +pon the president,
mana3er, treas+rer, or other responsi*#e offi$er of the
*an.
(3) ACT>AL DISTRAINT (Sec$ 204 * *, 20B)
: means that the persona# property of the tp is
768&IC"--8 taen *y the distrainin3 offi$er.
: win 1'days from re$eipt of warrant, a report on
the distraint sha## *e s+*mitted *y the distrainin3 offi$er
to the Reven+e 0istri$t Offi$er and to the Reven+e
Re3iona# 0ire$tor.
: prop distrained  &O-0 in 7/9-IC "/CTION.

:2'B provides that a noti$e sha## *e posted in not
#ess than 2 p+*#i$ p#a$es in the m+ni$ipa#ity or $ity where the
distraint is made, spe$ifyin3 the time and p#a$e of sa#e and
arti$#es distrained. The time of sa#e sha## not *e #ess than
2' days after noti$e to the owner or possessor of the
property and the p+*#i$ation or postin3 of s+$h noti$e.
 ♥ NOTES
6/9
7/17/2019
 TAXATION LAW REVIEW. Sababan. 2008 ed. Ppg 181-200
: win 2 days after the sa#e, the offi$er main3 the
same sha## mae a report of his pro$eedin3s in writin3 to
the Commr and sha## himse#f preserve a $opy of s+$h
report as an offi$ia# re$ord &e$ 211!
: NO RIG6T O R057TION in sa#e of persona#

prop distrained  "9&O-/T R/-
: OWNR has RIG6T O 7R;57TION:
:&e$ 21' provides, if at any time prior to
the $ons+mmation of the sa#e a## $har3es are paid to
the offi$er $ond+$tin3 the sa#e, the 3ood or effe$ts
distrained sha## *e restored to the owner.
0/RING "/CTION &"-, 2 instan$es w$ may
happen:
1! There is a 9I00R *+t the *id is eno+3h
2! NO 9I00R there is a 9I00R *+t *id is
NOT eno+3h.
: in 1!, when the amo+nt is ins+ffi$ient to $over the
amo+nt of the #ia*i#ity, &e$21< a##ows the 3ovt to $ond+$t
f+rther distraint as ne$essary +nti# the f+## mao+nt d+e,
in$#+din3 a## expenses, is $o##e$ted. If there?s an ex$ess, s+$h
sha## *e ret+rned to T7.
: &e$ 212 4 provides for the r+#e when the amo+nt
*id for the property % distraint is E eD+a# to the amo+nt of the
tax or is very m+$h #ess than the a$3t+a# maret va#+e of the
arti$#es offered for sa#e. ∴  the Commrhis dep+ty may
p+r$hase the same in *eha#f of the Nat# Govt for the amo+nt
of the taxes, pena#ties and $osts thereon.
:the 3ovt sha## p+r$haser the property
and thereafter &-- the same in "/CTION.  if pro$eeds
 3ovt, it sha##
are ins+ffi$ient, NO /RT6R distraint may *e $ond+$ted *y
the 3ovt.
N#%* ee:  &e$ 21< is app#i$a*#e ON-8 to the sit+ation
 where there is a 9I00R or there is a *idder and the 9I0 is
NOT NO/G6. In $ase of any ex$ess, the same sha## *e
ret+rned to the T7, *+t sha## *e remitted to the Nationa#
Treas+ry.
G. LEVY

 this remedy is app#i$a*#e to 'e*+ "'#"e'%-
: &e$ 2'< 9 : rea# property may *e #evied +pon, *efore,
sim+#taneo+s#y or after the distraint of persona# property
*e#on3in3 to the de#inD+ent T7.
H#5 eec%e,:
: *y writin3 +pon the $ertifi$ate, a des$ription of the
property +pon w$ #evy is made
: at the same time, WRITTN NOTIC of the #evy
sha## *e 5"I-0 to &R@0 /7ON:
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Taxation Law Reviewer by Sababan
1! The Re3ister of 0eeds of the provin$e or $ity
 where the prop is #o$ated) and
2! /pon the de#inD+ent T7, or if he is "9&NT
from the 7hi#s, to his a3ent or the mana3er of
the *+siness in respe$t to w$ the #ia*i#ity
arose, of if there *e none, to the o$$+pant of
the property in D+estion.
: &e$ 21( provides: that any time *efore the day fixed for the
sa#e, the T7 may dis$ontin+e a## pro$eedin3s *y payin3 the
taxes, pena#ties and interest.  RIG6T O 7R;57TION

afforded to T7.
: - 5*- # c#="*'/$# / %&e c*$e # +e6- /$ %&e'e
*+$# NO RIGHT OF REDEMPTION *$ / %&e c*$e #
,/$%'*/%8
A: +n#ie in $ases of distraint, in $ases of #evy of rea# prop,
the T7 is afforded, NOT ON-8 w the RIG6T O 7R;
57TION *+t a#so the RIG6T O R057TION as
provided in se$ 21=, w$ provides:
: that win 1 year from the date of sa#e,
the 0M T7, or any one for him, sha## have the RIG6T O
7"8ING to the R0O the amo+nt of p+*#i$ taxes, pena#ties,
and interest thereon from the date of de#inD+en$y to the
date of sa#e xxx, and s+$h payment sha## entit#e the person
payin3 to the de#ivery of the $ertifi$ate iss+ed to the
p+r$haser and a $ertifi$ate from the said R0O that he
has R050 the property.
: &e$ 21>: in $ase the rea# prop is #evied *y the
*e &O-0 IN 7/9-IC "/CTION.
  it is reD+ired however, that the Commr
sha## 3ive not #ess than 2'days noti$e *efore
the sa#e and dispotsition of the rea# prop in p+*#i$
a+$tion. The rea# prop #evied may a#so *e so#d in
a 7RI@"T &"- *+t this sa#e is s+*Fe$t to
the 7RIOR "77RO@"- of the &e$ of
inan$e.
R&/-T& if 7RO7 &O-0 in 7/9-IC "/CTION:
1! There is a *idder and the *id is eno+3h) or
2! NO 9I00R there is a *idder *+t *id is NOT
eno+3h.
:&e$ 21: 3overns the sit+ation where there is NO
*idder.
  in $ase where there is no *idder for rea# prop
#evied and so#d at p+*#i$ a+$tion or if the hi3hest *id
is for an amo+nt ins+ffi$ient to pay the tax d+e,
∴ the Interna# Reven+e Offi$er $ond+$tin3 the sa#e
sha## de$#are the prop forfeited to the Govt in satisfa$tion
of the $#aim in D+estion and win 2 days thereafter, sha##
mae a ret+rn of his pro$eedin3s
R0 is a#so mandated *y the Code to transfer the
tit#e of prop forfeited to the 3ovt wo the ne$essity of an order
from a $ompetent $o+rt.  the tp is 3iven 1 year from the

 ♥ NOTES
7/9
7/17/2019
 TAXATION LAW REVIEW. Sababan. 2008 ed. Ppg 181-200
date of forfeit+re to R05 the property. If there is NO
R057TION 5"0, forfeit+re ∴ 9CO5& "9&O-/T
No f+rther #evy is a##owed *y the $ode in this $ase.
In $ase of 1! a*ove: the r+#es on distraint of rea# prop sha##
*e app#i$a*#e. If there?s sti## defi$ien$y after the pro$eeds are
app#ied to
the tax #ia*i#ity, there &6"-- 9 /RT6R -@8 on the rea#
props of the tp.
In $ase of 2! a*ove, the property is ORIT0 *y the 3ovt.
in $ontrast, in $ases of distraint, the prop sha## *e
7/RC6"&0 *y the 3ovt!
:&*% /$ %&e /="+/c*%/# # %&/$ ,/e'ece8
A: in $ase the prop is forfeited, the TIT- TO T6 7RO7 I&
"/TO5"TIC"--8 TR"N&RR0 TO T6 GO@T "TR
RGI&TR"TION O &/C6 ORIT/R WIT6 T6 R0)
 Whi#e in $ases of distraint, where the prop is 7/RC6"&0
*y the 3ovt, the TIT- TO T6 7RO7 I& NOT
"/TO5"TIC"--8 RGI&TR0 IN T6 N"5 O T6
GO@T.
H. IN>NCTION (Sec 2?)
: refers to a 7RO6I9ITOR8 INL/NCTION 4 the p+rpose is to
“restrain the collection of any National Internal Revenue tax
fee or char!e.” 
:21A prohi*its any $o+rt to have any a+thority to
3rant an inF+n$tion for the p+rpose a*ovementioned.
: the prohi*ition sha## E *e app#ied to taxes other
than those mentioned in the NIRC.
CT" 4 3iven a+thority to iss+e writs of inF+n$tion.
% R"s 112 and B2A2, the CT" is a##owed to isse
 writs of inF+n$tions provided the $ontested tax is % the NIRC.
I. TAX LIEN (Sec 2B)
 in $ases where the T7 ne3#e$ts  ref+ses to pay
an interna# reven+e tax, the amo+nt d+e sha## $onstit+te as a
#ien in favor of the 3ovt from the time the assessment was
made +nti# payment thereof is made.
  proviso : the #ien $onstit+ted sha## NOT 9
 K. S>SPENSION OF THE R>NNING OF STAT>TE OF
@"-I0 E any mort3a3ee, p+r$haser or F+d3ment $reditor +nti#
the noti$e of s+$h #ien is fi#ed *y the Commr to the Offi$e of
the R0 of the provin$e  $ity where the prop of the tp is
sit+ated or #o$ated. ∴ *efore s+$h #ien $an affe$t the ri3hts
of the mort3a3ee or p+r$hases of s+$h property, the #ien sha##
IR&T *e re3istered with the Offi$e of the Rei3ster of 0eeds.
: S!""#$e %&e 7#6% +e6/e, * "*'ce+ # +*, 5<c /$ e/7
#'ec+#$e, - %&e =#'%7*7ee. &/c& # %&e %5# $&*++ e
"'ee''e,8
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Taxation Law Reviewer by Sababan
A: IT DEPENDS. 9efore the ri3ht of a mort3a3ee is affe$ted,
the #ien $reated m+st IR&T *e re3istered with the Offi$e of
the Re3ister of
0eeds 4 in this $ase, the 3ovt sha## *e preferred) otherwise, it
is the mort3a3ee who wi## prevai# over the 3overnment.
. APPROVAL OF THE COMMISSIONER (Sec 220)
   9OR an a$tion, $ivi# or $rimina#, may *e
fi#ed in $o+rt, the Commissioner m+st IR&T "77RO@ s+$h
fi#in3 of the a$tion.
: the a$tion or pro$eedin3 m+st *e instit+ted % the
name of the Govt of the 7hi#ippines.
&e$ 22'  &e$ < ∴ se$< provides that the Commr
may de#e3ate the powers vested in him +nder the Code to
any or s+$h s+*ordinate offi$ia# with the ran eD+iva#ent to a
division $hief or hi3her.
POERS # %&e COMMR 5<c  e DELEGATED (RICA):
1! The power to RCO55N0 the prom+#3ation
of r+#es and re3+#ation *y the &e$ of inan$e
2! The power to I&&/ r+#in3s of first impression
or to reverse, revoe or modify any existin3
r+#in3 of the 9+rea+)
(! The power to CO57RO5I& or "9T % se$
2'= " and 9 of the Code, any tax #ia*i#ity) and
=! The power to "&&IGN or R"&&IGN interna#
reven+e offi$ers to esta*#ishments where
arti$#es s+*Fe$t to ex$ise tax are prod+$ed or
ept.
&e$ = adds: the Commr has the ex$#+sive and
ori3ina# F+risdi$tion to interpret the provisions of the NIRC,
s+*Fe$t to review *y the &e$ of inan$e.
: % said se$, the Commr has the power to 0CI0
disp+ted assessment, ref+nds of interna# reven+e taxes, fees
or $har3es, pena#ties imposed in re#ation thereto, or other
matters arisin3 % the NIRC or other #aws or portions thereof
administered *y the 9IR.  this de$ision is s+*Fe$t to the

ex$#+sive appe##ate F+risdi$tion of the CT".
LIMITATIONS (Sec 223)
: the periods % 2'( and 222 sha## *e &/&7N00
for the fo##owin3 reasons:
1! When the T7 RM/&T& for a
RIN@&TIG"TION w$ is GR"NT0 *y the
Commr.
2! When the T7 E *e -OC"T0 in the address
3iven *y him in the ret+rn fi#ed +pon w$ a tax
 ♥ NOTES
8/9
7/17/2019
 TAXATION LAW REVIEW. Sababan. 2008 ed. Ppg 181-200
is *ein3 assessed or $o##e$ted, 7RO@I00 4
that if the T7 informs the Commr of any
$han3e in address, the r+nnin3 of the stat+te
of #imitations wi## NOT 9 &/&7N00.
(! When the warrant or distraint or #evy is 0/-8
&R@0 +pon the T7, his a+thoriHed rep or a
mem of his ho+seho#d with s+ffi$ient
dis$retion, and no prop $o+#d *e #o$ated) and
=! When the tp is O/T of the $o+ntry.
: *%e' 9 -e*'$ A * F/+/"/# %" 5e% *c %# %&e P&/+$.
T&e IR *$$e$$e, &/= ↓ %&e #'=*+ *$$e$$=e%. H*$ %&e
*c%/# "'e$c'/e,8
A: NO. the r+nnin3 of the pres$riptive period sha## *e
s+spended when he is o+t of the $o+ntry. ∴ the tp, for 1
years was o+t of the $o+ntry, s+spension is "/TO5"TIC in
this $ase. The a$tion has not yet pres$ri*ed.
L. CLAIM FOR REF>ND (Sec 22B)
   $#aim or ref+nd sha## first *e fi#ed *efore the
Commr 9OR a s+it or pro$eedin3 sha## *e maintained in
any $o+rt for the re$overy of any nationa# interna# reven+e tax
a##e3ed to have *een erroneo+s#y or i##e3a##y assessed or
$o##e$ted, or of any pena#ty $#aimed to have *een $o##e$ted
 wo a+thority, or of any s+m a##e3ed to have *een
ex$essive#y, or in any manner wron3f+##y, $o##e$ted.
: the s+itpro$eedin3 sha## *e fi#ed after the
expiration of 2 years from the payment of the tax. 6owever,
the Code f+rther provides that the Commr may, a#tho+3h
there is no written $#aim for ref+nd or $redit fi#ed *y the tp,
ref+nd or $redit any tax, if +pon the fa$e of the ret+rn +pon
 w$ payment was made, s+$h payment appears $#ear#y to
have *een erroneo+s#y made.
HO TO DETERMINE PERIOD IN COMP>TING TAX
REF>ND:
T7 4 $#assified into IN0I@I0/"- and COR7OR"TION&.
INDIVID>AL: re$onin3 period sho+#d *e on the
day the tax has *een paid.
 if payin3 % the withho#din3 tax system: the
period sha## start at the end of the taxa*#e year.
  if payin3 *y way of insta##ment: the period sha##
*e re$oned on the date of the #ast insta#ment.
  for tps s+*Fe$ted to distraint#evy: if prop was
so#d in p+*#i$ a+$tion, the date the pro$eeds were app#ied for
the satisfa$tion of the tax #ia*i#ity sha## *e $onsidered.
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Taxation Law Reviewer by Sababan
CORPORATE TPS   2 3ro+ps are a#so

$onsidered: the I&TING and NON;I&TING COR7O&.
EXISTING NONEXISTING
2;yr period starts to r+n from the 2;yr period $ommen$es from the
day the ann+a# adF+sted ret+rn is day the ann+a# ret+rn is fi#ed. or
fi#ed 4 sin$e it is on#y from this these types of $orpos, +pon
time that the tax #ia*i#ity $an *e re$eipt of the noti$e from &C of
$orre$t#y determined. the disso#+tion of the $orpo, a
ret+rn sho+#d *e fi#ed after ('
days. The disso#ved $orpo is not
reD+ired to wait for the end of
the taxa*#e year to fi#e the ret+rn.
2YEAR PERIOD IS ASOL>TE.
: even if there?s a s+pervenin3 event w$ $o+#d
prevent the tp from fi#in3 a written $#aim for
ref+nd$redit, the $#aim sho+#d sti## *e fi#ed win the 2;
year period.
9/T if the Commr has not yet a$ted on the $#aim
and the 2yr period is a*po+t to expire, tp?s remedy  fi#e
appea# with CT" sittin3 in 0I@I&ION. The ina$tion of the
Commr $an *e $onsidered a 0NI"-.
: if 9IR denies the $#aim win the 2yr period, tp?s
remedy  fi#e appea# with CT" win ('days from the
denia#. NOT that s+$h (';day period 5/&T 9
WIT6IN T6 2;8"R 7RIO0.
∴ if there are on#y 21 days remainin3 in the 2;year
period and the 9IR denied the $#aim, tp has on#y 21 days
 win w$ to fi#e his appea#.
EXCEPTION    &e$ 2'= C: a ret+rn fi#ed showin3 an

O@R7"85NT sha## *e $onsidered as a written $#aim for
ref+nd. ∴ in that $ase, no written $#aim for ref+nd or $redit is
reD+ired to *e fi#ed.
:In $ases of written $#aim for ref+nd or $redit in
determinin3 the 3ross va#+e of the estate, the Commr
may open the *an a$$o+nt of the tp.  written $onsent

is NOT RM/IR0. 9+t in $ases of $ompromise % 2'= ",
 written $onsent is reD+ired for the Commr to inD+ire into
the *an a$$o+nt of the tp.
 ♥ NOTES
9/9