Taxation Law Review (Finals Reviewer) Lectures by Judge Sylvia Z.

Pocpoc-Lamoste
Lecture 1 August 24, 2013 Saturday
Remedies available to the taxpayer and government in cases of local taxes, fees, and charges in the local government code

1st Sem AY 2013-2014

(6) If the local Treasurer denies the protest, the taxpayer may either appeal or not appeal. The taxpayer appeals within 30 days from receipt of the decision denying the protest. He files his appeal with the court of competent jurisdiction (regular court, not CTA); or 30 days from the lapse of the 60-day period within which the local Treasurer is to decide on the protest.

INCLUDED IN EXAMS What is the period to assess and what is the period to collect?
The period to assess is within 5 years from the date it became due; different from NIRC. For local taxes, fees and charges which have accrued before the effectivity of the Local Government Code in January 1, 1992, the assessment shall be 3 years from the date they became due.

On the other hand, if the taxpayer decides not to appeal the decision denying his protest: The assessment becomes final, conclusive and unappealable.

Q: What is one instance wherein a decision of the local Treasurer becomes final and unappealable? A: When a taxpayer fails to file an appeal because the decision of the local Treasurer becomes conclusive and unappealable after a period of 30 days. JURISDICTION of the COURTS as to AMOUNT: Court of competent jurisdiction first level court or second level court Jurisdictional amount for Metro Manila Php 400,000 and below 1st level courts (MTC and MTCC) Php 400,000 and above 2nd level courts (RTC)

EXCEPTION: In case of fraud or intent to evade the payment of taxes, fees, or charges, the same may be assessed within ten (10) years from the discovery of the fraud or intent to evade payment (Sec. 194. LGC); same with NIRC As to collection: within 5 years from the date of assessment to collect by way of administrative or judicial action

STEPS INVOLVED IN THE ASSESSMENT OF LOCAL TAXES, FEES, AND CHARGES

(Except in real property because the steps involved is different although, please do not forget, that real property tax is a local tax.) (1) It will start with the assessment by the local Treasurer (provincial, city or municipal treasurer). The assessment shall be within 5 years. (2) The local Treasurer will issue assessment. (3) Upon receipt of the notice of assessment, the taxpayer may pay the assessment or pay the tax under protest or without protest. (4) The taxpayer files a written protest within a period of 60 days from receipt of the assessment notice. Before you file your protest with the local Treasurer, you pay first. (5) When the local Treasurer receives the protest, he decides on it within 60 days from the date of filing; The local Treasurer may either grant the protest or deny the protest. If the local treasurer grants the protest, then there is a refund or credit of the amount paid. the notice of

For 1st level courts outside Metro Manila P300,000 and below 1st level courts (MTC and MTCC) (7) If the decision of the court is still adverse to the taxpayer his next move is to appeal to the Court of Tax Appeals in division. Take note that the appeal of decision of the RTC in the exercise of its appellate jurisdiction shall be made to the Court of Tax Appeals en banc

In the exercise of its appellate jurisdiction meaning: You made an appeal with the 1st level court. Then the decision of the 1st level court was adverse to the taxpayer. You elevate that matter to the RTC and the decision of the RTC was still adverse to the taxpayer. 14:55

Transcribed by: Joahna C. Bulanadi LLB IV-A

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