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PRE-WEEK COMPANION IN TAXATION

Prepared by: Dr. Jeannie P. Lim, LLM, Ed. D.


Baguio City

REMEDIES and PRESCRIPTIVE


PERIODS
Local, Real Property Taxation and Tariff Code

Particulars NIRC LTC RPTC TCC


Gen. Rule: 3 years from due date
of tax or actual payment whichever
is later.
Assessment of EXCEPTIONS: Within 5 years from due date of Within 5 years from due date Protective duties are
taxes 1) 10 years in cases of fraud or subject tax or 10 years from of subject tax or 10 years from imprescriptible
failure to file a tax return. discovery of fraud or intent to discovery of fraud or intent to
2) Valid WAIVER of taxpayer evade tax payment evade tax payment
3) Valid agreement entered into
bet. Taxpayer and CIR
1) During the time of an Within 5 years from
assessment (3 years) but without assessment Local Treasurer
one made in cases of self- may issue an administrative
assessing taxes collection (issuance of warrant
Collection of 2) With assessment and with valid of distraint of personal property
taxes protest within 5 years from the of Warrant of Levy on real Within 5 years from Collectible until importation
finality of an assessment property. Taxpayer may opt to assessment has ended
3) With an assessment but w/out pay the assessed tax OR files
valid protest, within 5 years from an INJUNCTION case in the
assessment regular court to stop local
4) Within 10 years from discovery treasurer from enforcing
of fraud or omission to file a return collection. (NOTE: Injunction is
not available in IR taxes!)
1) Within 15 days from receipt of (a) Upon receipt of an An owner of a real property
the pre-assessment notice (PAN) assessment from the Local who is not satisfied with the
“T” must explain why he should not Treasurer, taxpayer has 60 assessment of his property
be the subject of an assessment days to dispute the same. may within 60 days from 1) At the time when
notice. receipt of an assessment payment is made or within
(b) Local Treasurer is given 60 appeal to the Local Board of 15 days thereafter file a
2) within 30 days from receipt of days to resolve the dispute Assessment Appeals (LBAA), written protest against the
official or formal or final if an adverse decision has assessment before the
assessment (FAN) when no (c) If treasurer denies T’s been rendered to appeal to collector of customs. (NO
agreement was arrived at between protest, taxpayer may file a the CBAA – within 30 days, PAYMENT NO PROTEST
CIR and “T” during the pre- complaint before the regular then to the CTA En Banc OR DISPUTE)
assessment level court depending on within 30 days, and finally
jurisdictional amount. within 15 days to SC. 2) Upon receipt of adverse
3) After formal dispute “T” submits Payment under protest must decision of the Collector,
Disputing an all documentary evidences within (d) If there is inaction taxpayer be made before “T” is allowed “T” has 30 days to appeal
assessment 60 days from dispute in support of may file his complaint before to question the excessiveness to the Commissioner of
his protest. Failure to do so will the regular court within 30 days of the amount of property tax. Customs
dissolve his valid dispute as if “T” from lapse of the 60-day
has not disputed at all. period. (NOTE: Solutio indebeti and
issues questioning validity of
(f) If RTC renders an adverse tax ordinance do not require
decision against T, within 30 payment under protest)
days T may appeal to the CTA
Division, if RTC is exercising
an original jurisdiction or if RTC
is exercising an appellate
jurisdiction in T’s case T may
within 15 days appeal the lower
court’s adverse decision to

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RTC, then to CTA En Banc
within 30 days, and finally to
SC within 15 days
Particulars NIRC LTC RPTC TCC
a) Any affected “T” may ask for
an opinion/query from the
Prov’l. Fiscal (for provincial,
municipal or barangay tax
ordinances) or City fiscal (for
city tax ordinances or barangay
ordinances within the city)
about the legality of the subject
ordinance
Contesting the
validity of a tax a) Within 30 days from
ordinance effectivity of the ordinance
appeal to the Sec. of Justice
questioning its legality

b) Within 30 days from adverse


decision of the Sec. of Justice
appeal to the RTC

c) After 60 days of inaction of


the SOJ appeal to the RTC

NOTE: This procedure is not


applied in questioning the
validity of a “FEE.”
Taxpayer files the same before
Declaratory the RTC. If taxpayer receives
Relief RTC’s adverse decision he
may within 30 days appeal to
NOTE: Judicial CTA Division, if decision still
remedies of T adverse to T’s interest he may
on Local Taxes within 15 days from receipt of
– (1) Refund (2) the same file an MR with the
questioning same Division, if denied again,
legality of tax then to CTA En Banc within 15
ordinance (3) days via a Petition for Review.
Mandamus (4) Finally within 15 days from
Injunction and receipt of adverse decision of
(5) Declaratory CTA En Banc to the SC
relief.
a) When the owner,
importer, consignee or
interested party after due
notice fails to file an entry
When may within 30 days (non-
customs extendible) from the
officials discharge of the last
consider goods package from the vessel or
abandoned in aircraft OR
favor of the
government? (b) Having filed the entry for
his shipment fails to claim
the importation within 15
days (non-extendible) from
date of posting the notice to
claim such importation.
1) To an individual taxpayer - the 2
year period to claim is from
payment of the tax if said payment
was made on or before due date; If - do - - do - - do -
Refund of payment was made after due date
taxes the 2 year period to claim for TR or
TC is reckoned from due date of
the tax.

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2) If “T” is a corporate taxpayer the
2 year period is reckoned from the
date of submission of the final
adjustment return.
Refund of
taxes 3) If Corporation is operating inside
the ecozone, 6 years from
payment.
a) Within 30 days from express or Within 30 from adverse
implied denial of request for Within 30 days from adverse decision of the Commr. Of
reconsideration or decision of the RTC Customs. (protective
reinvestigation by the CIR duties)
NOTE: (a) if RTC exercised an Within 30 days from adverse
Appeal to CTA b) Within 30 days from the original decision the appeal is decision of the CBAA, the Within 30 days from
expiration of the 180-day period to CTA Division, (b) if RTC appeal is made before the adverse decision of the STI
to resolve without any action exercised an appellate CTA En Banc. or SA on imposition of
from the CIR jurisdiction, the appeal is CTA dumping duties or
En Banc. countervailing duties as the
case may be
Criminal action Within 5 years from commission of
for violation of the offense or from discovery of the
the Tax Code violation whichever is later.

Taxpayer’s Remedies under the NIRC/BIR RR 18-2013

ON TAX ASSESSMENT:

 General Rule - The BIR has a 3-year period to assess. The 3-year period commences to run
one (1) day after due date if the tax was paid on or before due date or from actual payment
if the tax was paid late.

 If during the 3-year period of assessment, the BIR finds that the taxpayer has submitted or
filed a FRAUDULENT tax return or FAILURE/OMISSION to file a tax return, the BIR has 10
years to assess from discovery of the FRAUD or OMISSION to file a tax return.

I. BIR sends taxpayer a notice of informal conference (NIC). This is not mandatory under the
Tax Code. (NOTE: Under the TRAIN Law this is now mandatory in cases of tax
assessment.)

II. The BIR issues a Preliminary Assessment Notice (PAN) within the 3-year period stating the
basis of the assessment, (detailed facts, laws, rules upon which is assessment is based)
unless not required under Sec. 228, NIRC)

 Sec. 228 enumerates the different instances when PAN may be dispensed with.

 The assessment notice at this stage is referred to as a PROSPECTIVE ASSESSMENT


NOTICE.

III. If the taxpayer does not agree with the PAN, he may dispute the same within 15 days from
receipt thereof. Taxpayer’s dispute must also contain a recital of facts, laws, rules and
jurisprudences, if there be any, in support of his protest.

IV. If taxpayer fails to dispute the PAN, the BIR issues a FLD/FAN (Final Letter of Demand or
Final Assessment Notice) for the payment of the tax due. Both the FLD and the FAN must
contain detailed facts, laws, rules, regulations, supporting the CIR’s findings including a
computation of the tax due, penalties and interest.)

 If the deficiency tax is not paid within the period provided in the FLD/FAN, a deficiency
interest of 20% per annum on the total amount due shall be imposed computed from
due date as stated in the FLD/FAN until fully paid.

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V. Upon receipt of the FAN, the taxpayer may dispute the same within 30 days from receipt
thereof.
 To dispute – the taxpayer may file a (a) Motion for Reconsideration (based on existing
documents submitted) or (b) Motion for Reinvestigation (based on newly discovered
evidences which were not earlier submitted)

 If taxpayer’s Motion for Reinvestigation is granted by the CIR, the prescriptive period to
collect is suspended.

 The FAN issued by the CIR may not be made, released, mailed or sent to the taxpayer
within the 3-year period to assess, provided it is preceded by a valid PAN which was
sent within the 3-year period to assess.

VI. After taxpayer’s valid dispute he has 60 days from dispute to submit all his documentary
evidences in support of his protest. Failure on his part to comply with this will dissolve his
dispute, i, e., as if there was no dispute at all.

VII. If taxpayer did not dispute/protest the FAN within 30 days from receipt. The assessment
becomes final and it ripens to a collection case.

 If BIR enforces collection, taxpayer cannot allege that the collection is pre-mature
because he was waived all his defenses as to the validity of the assessment having
failed to contest it within 30 days from receipt.

 Taxpayer cannot also go on appeal questioning the collection because CTA has no
jurisdiction over an uncontested assessment. .

VIII. After taxpayer has submitted complete documents in support of his dispute the CIR is given
180 days to resolve or rule on his protest;

IX. If taxpayer’s protest is given due course within the 180-day period, the CIR will issue a
second assessment. Thereafter, the taxpayer upon receipt of the second assessment has a
fresh 30-day period within which to dispute the second assessment.

X. If taxpayer’s protest is denied within the 180-day period, he may within 30 days file an MR
with the CIR but this MR will not toll/extend the 30-day period of appeal to the CTA Division.
Hence, the decision of the CIR adversely affecting taxpayer’s interest shall be brought on
appeal within 30 days from receipt thereof to the CTA Division otherwise the decision
becomes final and executory.

XI. Failure of taxpayer to seasonably appeal CIR’s adverse decision to the CTA Division within
30 days will result to the finality of the decision and it then ripens to the collection case.

XII. Taxpayer may file an MR with the same CTA Division’s decision within 15 days from receipt.
If still denied, taxpayer may file his petition for review within 30 days with the CTA En Banc.

XIII. The decision of the CTA En Banc may be brought by the taxpayer to the attention of the
Supreme Court within 15 days from receipt.

On COLLECTION OF IR TAXES:

1. Collection of an IR tax without an assessment is valid, because IR taxes are self-


assessing. The CIR has 3 years to enforce such collection and the period is reckoned from
due date.

2. If CIR made a valid assessment but taxpayer failed to seasonably dispute the same, the
CR has 5 years to collect which is reckoned from assessment.

3. If CIR made a valid assessment and taxpayer seasonably disputed the same, the CIR can
collect the assessed tax within 5 years from the finality of the assessment.

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4. The CIR can collect within the period agreed upon in case taxpayer submits a valid waiver.

5. In case of finding of fraud or failure to file a tax return, the CIR may proceed to collect the
tax without an assessment within 10 years from discovery of the fraud or omission. In this
situation the CIR can enforce collection by judicial proceedings ONLY. Administrative
collection is not allowed.

6. (a) Upon issuance by the CIR or his authorized representative of his Final Decision on
Disputed assessment (FDDA) BIR can immediately enforce collection via the issuance of
a warrant of distraint, levy or garnishment, UNLESS the taxpayer perfects his appeal
before the CTA and in that appeal he prays for an injunction to enjoin BIR from collection.
or (b) when taxpayer files a Petition for Review before the CTA on the CIR’s FDDA, BIR
can likewise immediately enforce collection UNLESS taxpayer files an injunction before
the CTA to enjoin tax collection.

 MODES OF COLLECTION: (A) Administrative, (b) Judicial, or (c) Administrative and Judicial
simultaneously.

I. Administrative collection is effected by the CIR. He issues warrant of distraint, levy or


garnishment in lieu of an answer to taxpayer’s protest. (The assumption is that the BIR
has issued a valid FAN to the taxpayer whereby the later has disputed the same
seasonably)

The issuance of a warrant in lieu of an answer to taxpayer’s dispute is an implied


denial of taxpayer’s protest. Hence, within 30 days from receipt of the warrant taxpayer
may file a Petition for Review before CTA Division. In taxpayer’s appeal he may pray for
injunction so that the BIR will not pursue the taking of his property in satisfaction of his
tax liability.

Should the taxpayer fail to appeal to the CTA Division within the reglamentary period
of 30 days from receipt of the warrant, the assessed tax becomes final and executory.

The taxpayer may opt to pay the assessed tax, or he may move before the CTA the
issuance of an injunction by posting a cash bond equal to the assessed tax or a property
bond at double the amount of the assessed tax.

II. JUDICIAL COLLECTION is effected by filing a civil case for sum of money against the
taxpayer before the regular courts.

 Within Metro-Manila - If the assessed tax is Php 400,000 and below, the civil case
for collection is filed before the MTC, METC, or MCTC. If amount is more than Php
400,000 it is filed with the RTC and if the assessed tax is Php 1.0 million and above,
exclusive of surcharge and penalties, the collection shall be filed with the CTA.

 Outside of Metro-Manila - If the assessed tax is Php 300,000 and below, the civil
case for collection is filed before the MTC, METC, or MCTC. If amount is more than
Php 300,000 it is filed with the RTC and if the assessed tax is Php 1.0 million and
above, exclusive of surcharge and penalties, the collection shall be filed with the
CTA.

 Taxpayer has 15 days from receipt of the court’s summons to file his answer, if he
fails to file his answer, BIR shall present evidence ex-parte. Thereafter court decides
and shall issue an order to enforce collection.

NOTE: If court of origin is MTC, METC, MCTC, the prejudiced party may appeal to RTC
within 15 days from receipt of the adverse decision, then to CTA En Banc within 30
days, thereafter within 15 days to the SC. Whereas, if the court of origin is the RTC, the
prejudiced party may appeal to CTA Division within 15 days, then to CTA En Banc within
30 days and finally to the SC within 15 days.

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CRIMINAL CASES AGAINST TAXPAYER FOR VIOLATION OF THE NIRC:

When CIR finds that the taxpayer is criminally, he shall endorse the case to the Fiscal’s
Office. If Prosecutor finds probable cause, he files information in ordinary courts. Thereafter,
taxpayer files his counter-affidavit before the Fiscal. Trial shall proceed in court. Taxpayer is the
accused.

I. If with specified amount, the jurisdiction of courts in criminal cases is as follows:

 Within Metro-Manila - If the assessed tax is Php 400,000 and below, the civil case
for collection is filed before the MTC, METC, or MCTC. If amount is more than Php
400,000 it is filed with the RTC and if the assessed tax is Php 1.0 million and above,
exclusive of surcharge and penalties, the collection shall be filed with the CTA.

 Outside of Metro-Manila - If the assessed tax is Php 300,000 and below, the civil
case for collection is filed before the MTC, METC, or MCTC. If amount is more than
Php 300,000 it is filed with the RTC and if the assessed tax is Php 1.0 million and
above, exclusive of surcharge and penalties, the collection shall be filed with the
CTA.

NOTE: If court of origin is MTC, METC, MCTC, the prejudiced party may appeal to RTC
within 15 days from receipt of the adverse decision, then to CTA En Banc within 30
days, thereafter within 15 days to the SC. Whereas, if the court of origin is the RTC,
exercising an original jurisdiction the prejudiced party may appeal to CTA Division within
15 days, then within 30 days to CTA En Banc and finally to the SC within 15 days.

II. If without specified amount, the jurisdiction of courts in criminal cases is determined
as follows:

 Within or Outside Metro Manila

1. MTC/METC/MCTC if penalty is 6 years and 1 day and below

2. RTC if penalty is more than 6 years and 1 day

3. CTA has no criminal jurisdiction.

NOTE: If court of origin is MTC, METC, MCTC, the prejudiced party may appeal to RTC
within 15 days from receipt of the adverse decision, then to CTA En Banc within 30
days, thereafter within 15 days to the SC. Whereas, if the court of origin is the RTC, the
prejudiced party may appeal to CTA Division within 30 days, then to CTA En Banc within
15 days and finally to the SC within 15 days.

Prescriptive period for INVALID PAYMENTS of IR Taxes: (Sec. 229)

 INVALID PAYMENTS refer to overpayment, illegal payment (collection without legal basis,
erroneous payment (violation of tax situs) and penalties imposed without authority.

 In case of an invalid payment, taxpayer has two (2) remedies: (a) apply for tax refund via
the issuance of Tax Credit Certificate OR (b) apply for a tax credit (referred to as the carry-
over option).

 A claim for tax refund or tax credit must be in writing addressed to the CIR.

 The option to choose between these two (2) remedies is IREVOCABLE (The
IRREVOCABLE RULE of Sec. 76, NIRC)

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If the taxpayer opted to avail of the carry-over option (tax credit) he CANNOT later on
insist that he be refunded his invalid payment because his choice is irrevocable.
HOWEVER, if his first choice is TAX REFUND, he may later on avail of TAX CREDIT but
only after he has withdrawn his application for tax refund and re-applies for tax credit.
(University Physicians Services, Inc. Management Inc. vs. CIR, GR No. 205955, March 7,
2018)

 The period to claim an invalid payment is 2 YEARS. Where is the reckoning point of the 2-
year period?

1. Individual taxpayer – Within two (2) years from payment if the tax was paid early OR
from due date if the tax was paid late.

2. Corporate taxpayer – Within two (2) years from the filing of the Final Adjustment
Return (FAR) for income tax purposes. But, if the payment is a FINAL withholding tax
the 2-year period is reckoned from of the said tax.

3. If the corporation is operating inside the ECOZONE - Within six (6) years from
payment.

 In case of an adverse decision of the CIR on the claim for tax refund or tax credit of an
invalid payment and the taxpayer decides to appeal the adverse decision to the CTA
Division. The appeal must be filed WITHIN the original 2-year prescriptive period of claim.
(DOCTRINE OF TWIN PRESCRIPTIVE PERIOD)

Taxpayer cannot appeal to the CTA outside of the TWO (2) YEAR PERIOD of
claim!

Prescriptive period for claims of UNUTILIZED INPUT TAXES under a 0% VAT Sale
or Effectively Zero-Rate Sale – Sec. 112.

a) The VAT-Registered persons must file his/its claim within TWO (2) years, which is
reckoned from the last day of the last month of the quarter of export.

b) Upon submission of complete documents, the CIR is given 120 days (now 90 days only,
TRAIN Law) to resolve the validity of the claim. (NOTE: completion of documents MUST
BE DONE WITHIN THE 2-YEAR PERIOD)

c) In case the CIR denies taxpayer’s claim within the 120-day period OR in case CIR failed to
act on the claim within the 120-day period (inaction is deemed an implied denial of
taxpayer’s claim), taxpayer may appeal to the CTA Division within thirty (30) days from
receipt of the adverse decision or within 30 days from the expiration of the 120-day period
in case of inaction.

d) When taxpayer-claimant or CIR receives an adverse decision of the CTA Division either
one of them or both may file a Motion for Reconsideration (MR) with the same Division
within 15-days from receipt of said adverse decision;

e) If the CTA Division denied the MR, the taxpayer and/or the CIR may file an appeal before
the CTA En Banc within 15-days from receipt of the denial;

f) If CTA En Banc sustains the findings of the CTA Division, taxpayer and/or CIR may file a
Petition of Review before the Supreme Court within 15 days from receipt the CTA En
Banc’s decision.

REMINDER:

 The CIR’s 120-day period to resolve the administrative claim of the taxpayer
commences to run from the submission of complete document in support of the
claim. (NOTE: THE SUBMISSION OF COMPLETE DOCUMENTS MUST BE MADE

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WITHIN THE 2-YEAR PERIOD OF CLAIM!)

 Taxpayer CANNOT appeal to the CTA Division within the 120-day period without a
CIR’s resolution on his claim. (Pre-mature appeal).
 Taxpayer may appeal to the CTA Division even outside of the TWO (2) YEAR PERIOD
of claim provided he/it has an adverse decision of the CIR rendered within the 120-
day period or in case of CIR’s inaction.

 In case of CIR’s inaction. (no decision on taxpayer’s claim within the 120-day period
of taxpayer’s administrative claim, the inaction is DEEMED AN IMPLIED DENIAL of
taxpayer’s claim; thereafter, the taxpayer may ONLY appeal to the CTA Division within
30 days immediately following the expiration of the 120-day period;

 In case of inaction, an appeal outside the 30-day period immediately following the
expiration of the 120-day is TIME BARRED.

Questioning LEGALITY OF TAX ORDINANCE under the Local Government Code


(Sec.187, LGC)

 If new imposition is the subject matter of the tax ordinance, prior public hearing is mandatory
prior to its enactment.

 Taxpayer questioning the constitutionality or legality of the tax ordinance or revenue


measure may raise on appeal within 30 days from the effectivity thereof to the Sec. of
Justice. The Sec. of Justice shall render a decision within 60 days from date of receipt of the
appeal.

 The appeal will not suspend the tax ordinance and the accrual and payment of the tax, fee
or charge levied therein.

 Within 30 days from receipt of the SOJ’s decision or lapsed of 60 days of inaction, the
aggrieved party may file appropriate proceedings with a court of competent jurisdiction RTC,
then to the CA and finally to the SC.

NOTE. Under Sec. 7, RA 9282 does not make any mention of an appellate jurisdiction of
CTA over decisions of the DOJ. However, in the case of NPC vs. Municipal Gov’t of
Navotas, Nov. 24, 2014, it was ruled that CTA has jurisdiction over decisions, orders and
resolution of RTC on local tax cases originally decided or resolved by them in the exercise
of their original or appellate jurisdiction. Hence, RTC’s adverse decision is appealable within
30 days to the CTA Division, then within 15 days to the CTA En Banc and finally within 15
days to the SAC.

On Assessment and Collection of LOCAL TAXES:

a) If there is a finding of deficiency or delinquency tax, the Local Treasurer shall send the
taxpayer an assessment notice within 5 years from due date.

b) If taxpayer does not agree he may protest/dispute the same within 60 days from receipt
thereof with the local treasurer. NO NEED OF PAYMENT OF THE ASSESSED TAX.

c) Treasurer is given 60 days to decide the protest from its filing. If there is a decision or
there be an inaction, within 30 days therefrom taxpayer may appeal to court depending
on the jurisdictional amount.

d) If court of origin is MTC, METC, MCTC, the prejudiced party may appeal to RTC within
15 days from receipt of the adverse decision, then to CTA En Banc within 30 days,
thereafter within 15 days to the SC. Whereas, if the court of origin is the RTC, the
prejudiced party may appeal to CTA Division within 30 days, then to CTA En Banc within

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15 days and finally to the SC within 15 days.

 No action for collection of local taxes, fees and charges, whether administrative or judicial
shall be instituted after the expiration of the prescriptive period provided. (5 years to
assess from due date and 5 years to collect from assessment)

 In case of discovery of fraud or intent to evade payment of taxes, fees and charges, the
same may be assessed within a period of 10 years from discovery thereof.

 The prescriptive period of “FIVE and FIVE” shall be suspended (a) if the treasurer is
legally prevented from making the assessment or collection, (when there is a injunction);
(2) When the taxpayer request for a reinvestigation and executes a waiver in writing before
expiration of the period within which to assess or collect, and (c) when the taxpayer is out
of the country or otherwise cannot be located.

 In case of an invalid payment of a local tax, the taxpayer has 2 years to file for its
refund/credit. The period is reckoned from payment.

On Assessment or valuation of REAL PROPERTY:

I. Appraisal (valuation) and Assessment of Real Property by the Assessor’s Office:

 All real property, whether taxable or exempt, shall be appraised at the current and fair
market value prevailing in the locality where the property is located.

 The City/Provincial/Municipal Assessor shall undertake a general revision of real


property assessments (valuation) once every three (3) years. All assessment shall
take effect January 1 the following year.

 When real properties are assessed, the Assessor shall within 30 days send notice of
his new valuation to the registered property owner.

II. The property owner who is not satisfied with the new valuation of his property may within
60 days from receipt of the written notice of assessment, appeal to the Local Board of
Assessment Appeals (LBAA) of the Province or City. The LBAA shall decide the
dispute/protest within 120 days from receipt of such appeal.

III. If the property owner is not satisfied with the LBAA’s decision, he may within 30 days from
receipt of such decision appeal to the Central Board of Assessment Appeals (CBAA)

IV. From the CBAA, the property owner may appeal to the CTA En Banc within 30 days from
receipt of the adverse decision of the CBAA. The to the SC within 15 days

NOTE: Appeal on assessment of real property made shall not suspend the collection of the
real property taxes on the property involved in the assessment by the Assessor, without
prejudice to subsequent adjustment depending on the outcome of the appeal.

On Assessment and Collection of REAL PROPERTY TAXES by the Local Treasurer:

 The annual real property ad valorem tax on land, building, machinery and improvements
shall be at a rate not exceeding 1% of the assessed value if located in the province and not
exceeding 2% in City, or municipality within Metro Manila.

 The real property tax is payable on or before January 20 of every year.

I. If the property owner does not agree with the levy or imposition of his real property, he may
dispute the same before the local treasurer within 30 days from payment. PAYMENT IS A
REQUIREMENT OF THE PROTEST!)

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II. The treasurer shall resolve the protest within 60 days from receipt. Within 30 days from
decision or within 60 days from inaction of the treasurer, the prejudiced property owner may
appeal to the LBAA within 30 days therefrom. Then to the CBAA within 30 days and then to
CTA En Banc also within 30 days from adverse decision of the CBAA and finally within 15
days to the Supreme Court.

On Tariff Customs Duties under the Tariff Customs Code:

 The Collector of Customs shall appraise and assess taxes, fees and charges on imported
goods within 15 days from arrival of the goods in the BOC warehouse.

I. If importer does not agree with the Collector’s appraisal and assessment, he may protest
before the Collector within 15 days from payment. NO PAYMENT NO PROTEST!

II. Within 15 days from receipt of payment the Collection shall schedule hearing. After
adjudication, Collector has 30 days to decide the case.

III. If Collector denies the protest, the importer who intends to appeal such adverse decision
to the Commissioner of Customs (CC) shall file with the Collector notice of his intention
to appeal to the CC within 15 days. Thereupon Collector shall transmit all the records of
the proceedings to the CC within 5 days.

IV. The importer has 15 days to perfect his appeal to the CC. The CC has 30 days to decide
the case, if importer receives CC’s adverse decides or in case of inaction, importer may
within 30 days therefrom appeal to the CTA Division. Then within 15 days to CTA En
Banc and finally to SC also within 15 days from receipt of adverse decision.

V. In case the Collector decides in favor of the importer (such decision is against the
government), that decision is subject to the automatic review of the CC. All records of
the case shall be forwarded to the CC within 5 days and CC has 30 days to decide the
same.

VI. If CC affirms the findings of the Collector, his decision shall be subject to the automatic
review by the Sec. of Finance. All records of the case shall be forwarded to the SOF
within 5 days from promulgation of CC’s decision. If SOF affirms CC’s decision. End of
process. However, if SOF reverses CC’s decision, the importer may within 30 days
appeal to the CTA Division. Then within 15 days to CTA En Banc and finally to SC also
within 15 days from receipt of adverse decision.

On the imposition of Special Levies or Protective Tariffs (Dumping Duties by Sec. of


Trade and Industry for non-agricultural products and Countervailing Duties by
Sec. of Agriculture for agricultural products):

 The affected importer files his protest with the STI or SA as the case may be and NOT
with the BUREAU OF CUSTOMS.

In case STI or SA decides in favor of the importer, the proceeding is ended because
automatic review by the Sec. of Finance is NOT available to co-equal agencies of the
government. However if STI or SA decides against the importer, the later may within 30
days from receipt of the adverse decision appeal to the CTA Division. Then within 15 days
to CTA En Banc and finally to SC also within 15 days from receipt of adverse decision.

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Taxes Due date


Income Tax (Individual and April 15 of each calendar year
corporate taxpayer using the
CALENDAR period)
Corporate Income tax of an entity Determine the end of the 12-month period add 4 months and 15
using the FISCAL period days thereto to establish due date
Quarterly corporate income tax Within the first 60 days of the following quarter
(first 3 Qrts)
2% Minimum Corporate Income On or before April 15 of each year.
Tax (MCIT)
Optional Corporate Income Tax of On or before April 15 of each year
15%
Improperly Accumulated Earnings Within the period stated in the demand from CIR
Tax
Fringe Benefit tax Within the first 25 days of the succeeding quarter
Estate Tax Under the Tax Code within 6 months from death of decedent.
Under the TRAIN Law within 1 year from death.
Donor’s Tax Within 30 days from date of donation or gift
Capital Gains Tax on Real Within 30 days from date of sale of capital asset
properties
CGT on foreclosure of mortgages Within 30 days from the expiration of the 1-year period of
redemption without the mortgagor exercising his right to redeem
the property mortgaged.
Documentary Stamps Tax Within 5 days after the close of the month when the taxable
document was made, signed, issued, accepted or transferred
Percentage Tax (8 kinds) Within 25 days after the end of each taxable quarter
Excise tax on certain goods (local) Upon release or removal of domestic products from place of
(11 kinds under the Tax Code plus production
2 new excise taxes under the
Train Law)
Excise tax on certain goods Before release of goods from the customs’ custody
(imported)
Value Added Tax Within 25 days following the close of each taxable quarter
Withholding of creditable VAT by Within 10 days following the end of the month the withholding was
the national or local gov’t units made
and GOCC
Final withholding taxes Within 25 days from the close of each calendar quarter
Creditable withholding taxes On or before the last day of the month following the close of the
quarter during which withholding was made
Local taxes and business permits January 20 of each calendar year
or licenses
Real Property taxes January 20 of each calendar year
Community Development tax On or before February 28 of each calendar year
(cedula)
Professional Taxes On or before January 31 of each calendar year

JPLim. ALL RIGHTS RESERVED.

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