TAXPAYERS REMEDIES

NIRC (Input VAT Credit/Refund)

Administrative Claim

NIRC (Other Taxes)

Protest an Assessment

LOCAL TAXES

RPT

TARIFF

Protest against a newly enacted Protest against a newly enacted Abatement

ordinance or revenue measure
ordinance or revenue measure

GR: must be filed within 2 years from 1. Respond to the Preliminary Assessment
the close of the taxable quarter when
Notice (PAN) issued by the BIR within 1.
the relevant sales were made (for
15 days from receipt
zero-rated or effectively zero-rated

If taxpayer responds, Formal Letter

sales) OR within 2 years from the date
of Demand and Final Assessment
of cancellation of VAT registration (for
Notice (FLD/FAN) will be issued by
retirement or cessation of business).
the BIR within 15 days from the
2.
filing of the taxpayers response
EXC: for the period from June 8, 2007

If taxpayer does not respond, he

up to September 12, 2008 in which
will be considered in default and
case the two-year period shall be
FLD/FAN will be issued
reckoned from the filing of the VAT

Instances when PAN is not required

return and the payment of tax. (Atlas
and FLD/FAN can be issued
Consolidated Mining vs. CIR, G.R. No.
outright:
141104, 08 Jun 2007)

Deficiency tax is the result of

mathematical error in the

The CIR shall decide on the application
computation of the tax evident 1.
for credit/refund within 120 days from
on the face of the return
the date of submission.

Discrepancy between the tax

withheld and the amount
Judicial Claim
actually remitted by the
withholding agent
The judicial claim shall be filed within

Taxpayer who opted to claim a 2.

30 days from the denial of the claim
refund or tax credit for excess
by the CIR OR within 30 days from the
creditable withholding tax
lapse of the 120-day period if there is
carried it over and automatically
inaction on the part of the CIR.
applied the amount claimed
The inaction of the CIR after the lapse

Excise tax due on excisable

of the 120-day period is deemed a
articles has not been paid
denial of the claim for refund.
3.

When an article locally

(ROHM Apollo vs. CIR, G.R. No.
purchased or imported by an
168950, 21 Jan 2015)
exempt person has been sold,
traded or transferred to nonGR: The 120-day period is both
exempt person
mandatory and jurisdictional. (CIR vs.
Aichi Forging, G.R. No. 184823, 06 Oct 2. File a Letter of Protest, in the form of a
written request for Reconsideration
2010)
OR for Reinvestigation, within 30 days
from the receipt of the FLD/FAN;
EXC: premature judicial filings
otherwise, the FLD/FAN becomes
between December 10, 2003 and
final, executory, and demandable.
October 5, 2010 where BIR Ruling No.

In case of request for

DA-489-03 was still in force; thus,

Reinvestigation, the taxpayer must
during that period, taxpayers need not
submit all relevant supporting
1.
observer the 120-day period. (CIR vs.
documents within 60 days from the
San Roque, G.R. No. 187145, 12 Feb
date of the filing of his protest
2013)

The CIR shall decide within 180

days from the date of the filing of
Note: The reconciliation of the Aichi
the protest, in case of
Forging ruling and the San Roque
reconsideration, or from the date
ruling was made in the case of
of the filing of the supporting
Taganito Mining Corp. vs. CIR, G.R. No.
documents, in case of
2.
197591, 18 Jun 2014.
reinvestigation
3. In case of partial or whole denial, the
taxpayer may:
3.

Appeal to the CTA In Division

4.
within 30 days from receipt of
decision via a Petition for Review 5.
under Rule 42 (Judicial Appeal); OR

Request for reconsideration with

the CIR within 30 days from receipt
of decision (Administrative Appeal)
4. In case of inaction, the taxpayer may:

Appeal to the CTA within 30days

from the expiration of the period;

Appeal within 30 days from effectivity of 1.

the ordinance to the Secretary of
Justice (SOJ)

The SOJ shall decide within 60 days

from receipt of the appeal.
In case of denial or inaction, appeal to a 2.
competent court within 30 days

RTC: if more than 300K (outside

MM) or if more than 400K (within
MM)

MTC: if 300K or less (outside MM)

or if 400K or less (within MM)

Protest against an assessment

Submit written protest to the local

treasurer within 60 days from receipt
of the notice of assessment

The local treasurer shall decide

within 60 days from receipt of the
protest.
In case of denial or inaction, appeal to
the competent court within 30 days

RTC: if more than 300K (outside

MM) or if more than 400K (within
MM)

MTC: if 300K or less (outside MM)

or if 400K or less (within MM)
Appeal to the CTA within 30 days

In Division: if from RTC acting in its

original jurisdiction (under Rule 42)

En Banc: if from RTC acting in its

appellate jurisdiction (under Rule
43)

1.

2.
3.
4.

Abatement or refund of the duty shall be

made in the following cases:
When any package appearing on the
manifest or bill of lading are missing;
provided, it can be proved that the
missing package has not been
imported in the Philippines
If, upon opening any package, a
deficiency or absence of any article or
of parts of the contents thereof, as
called for by the invoice shall be
found to exist; provided, the shortage
occurred before the arrival of the
article in the Philippines
Remedy against an assessment Upon proof of the injury, destruction or
loss by theft, fire or other causes of
any articles
Appeal to the LBAA within 60 days from

While within the limits of any port

date of receipt of the written notice of
of entry prior to unlading under
assessment
customs supervision

The LBAA shall decide within 120

While remaining in customs

days from receipt of the appeal.
custody after unlading
Appeal to the CBAA within 30 days
Appeal to the CTA En Banc within 30

While in transit under bond from

days (Rule 43)
the port of entry to any port in the
Appeal to the SC within 15 days (Rule
Philippines
45)

While released under bond to

export, except in the case of loss
Note: This is only resorted to if you
by theft
want to question the act of the assessor When an animal which is subject of
and not the amount of the assessment.
importation dies or suffers injury
before arrival or while in customs
Payment under protest
custody
Appeal within 30 days from effectivity of

the ordinance to the Secretary of

Justice (SOJ)

The SOJ shall decide within 60 days

from receipt of the appeal.
In case of denial or inaction, appeal to a

competent court within 30 days

RTC: if more than 300K (outside

MM) or if more than 400K (within
MM)

MTC: if 300K or less (outside MM)

or if 400K or less (within MM)

1. Submit protest in writing to the local

treasurer within 30 days from
payment

The local treasurer shall decide

Note: This is only resorted to if you
within 60 days from receipt of the
want to question the act of the assessor
protest.
and not the amount of the assessment.

2. In case of denial or inaction, appeal to

the LBAA within 60 days
Claim for refund or credit

The LBAA shall decide within 120

days from receipt of the appeal.
File claim for refund or credit to the local
treasurer within 2 years from the date 3. Appeal to the CBAA within 30 days
4. Appeal to the CTA En Banc within 30
of payment or from the date the
days (Rule 43)
taxpayer is entitled to the reduction

5. Appeal to the SC within 15 days (Rule

or adjustment
45)

The local treasurer shall decide

within 60 days from receipt of

Note:
This
is
resorted
to
if
you
want
to
protest.
question the excessiveness of the
Appeal to the LBAA within 60 days

amount of tax imposed.

The LBAA shall decide within 120

days from receipt of the appeal.
Claim for refund or credit
Appeal to the CBAA within 30 days
Appeal to the CTA En Banc within 30
1. File claim for refund or credit to the local
days (Rule 43)
treasurer within 2 years from the date
Appeal to the SC within 15 days (Rule
the taxpayer is entitled to the
45)
reduction or adjustment

The local treasurer shall decide

Note: The supervening clause doctrine

within 60 days from receipt of

applies (i.e. supervening causes are
protest.
allowed as reckoning points for
1.
prescriptive period purposes) unlike in 2. Appeal to the LBAA within 60 days

The LBAA shall decide within 120

refunds for national taxes.

Note: No abatement shall be made on

account of damage incurred or
deterioration suffered during the voyage
of importation.

Refund
Upon written request and notice of error
from the importer OR upon statement of
error certified by the Collector, the
following errors may be corrected in the
computation of duties:
Manifest clerical errors made in an
invoice or entry
Errors in return of weight, measure and
gauge (when duly certified to by the
surveyor or examining official)
Errors in the distribution of charges on
invoices not involving any question of
law and certified to by the examining
official
Note: The error(s) must be discovered
before the payment OR within 1 year
after the final liquidation.

Protest
File a written protest to the Collector at
the time of payment or within 15 days
thereafter

TAXPAYERS REMEDIES
NIRC (Input VAT Credit/Refund)

NIRC (Other Taxes)

OR

Wait for the final decision of the

CIR; then, appeal such decision
within 30 days from receipt
5. If CTAs decision is adverse, appeal to
the SC within 15 days under Rule 45.
Note: Unlike in the judicial claim for
input tax credit/refund, the lapse of the
180-day period without action from the
CIR is not deemed as denial by the CIR.

LOCAL TAXES

RPT

TARIFF

days from receipt of the appeal.

3. Appeal to the CBAA within 30 days
4. Appeal to the CTA En Banc within 30
days (Rule 43)
5. Appeal to the SC within 15 days (Rule
45)
Note: The supervening clause doctrine
applies (i.e. supervening causes are
allowed as reckoning points for
prescriptive period purposes) unlike in
refunds for national taxes.

2.

Claim for refund

A claim for refund may be availed of in

the following instances:
Erroneously or illegally assessed or
collected internal revenue taxes
Penalties imposed without authority
Any sum alleged to have been excessive
or in any manner wrongfully collected

Requirements:
1. Written claim for credit or refund filed
with the CIR, whether or not the tax
has been paid under protest

A return filed showing an

overpayment shall be considered a
written claim for credit or refund.

The CIR may refund or credit a tax,

even without a written claim
therefor, where on the face of the
return upon which payment was
made, the payment clearly
appears to have been erroneously
paid.
2. File within 2 years after the actual
payment or penalty, regarding of the
existence of any supervening cause
after payment

For overpaid quarterly corporate

income tax, the prescriptive period
commences to run from the time
the refund is ascertained (i.e. after
a final adjustment return is
accomplished)

For overpaid withholding taxes, the

period is counted from the end of
the taxable year

For refund of creditable

withholding taxes, the period is
counted from the filing of the
taxpayers final adjustment tax
return

Where the tax is paid in

installments, the period begins
from the date for payment of the
last installment
3. Submit documents to substantiate your
claim (i.e. proof of payment)

Notes:
The supervening clause doctrine does
not apply unlike in local taxation.
Both the claim for refund
(administrative) and the appeal to the
CTA (judicial) must be done within the

The Collector shall issue an order

for hearing within 15 days from
receipt of protest.

The Collector has to decide within

30 days from the termination of
the hearing.
In case of denial or inaction, appeal to
the Commissioner within 15 days

If the decision is adverse to the

Government, it is subject to
automatic review by the
Commissioner.

If the decision of the Commissioner

is still adverse to the Government,
it is subject to automatic review by
the Secretary of Finance.
Appeal to the CTA In Division within 30
days
File MR or MNT before the same division
within 15 days
Appeal to the CTA En Banc within 15
days
Appeal to SC within 15 days (Rule 45)

3.
4.
5.
6.

Abandonment
Express Abandonment: when the
owner, importer or consignee expressly
signifies in writing to the Collection his
intention to abandon the articles

Implied Abandonment: when the

owner, importer or consignee
After due notice, fails to file an entry
within 30 days from the date of
discharge of the last package from
the vessel or aircraft; or
Having filed such entry, fails to claim his
importation within 15 days from the
date of posting of the notice to claim;
or
Fails or refuses to mark the articles
within 30 days after due notice

TAXPAYERS REMEDIES
NIRC (Input VAT Credit/Refund)

NIRC (Other Taxes)

two-year period. The taxpayer need
not wait for the action of the CIR
before taking his claim to the CTA.

LOCAL TAXES

RPT

TARIFF