TAX REMEDIES

I. Remedies of the Government

a. Assessment and Collection
- CIR v Pascor 309 scra 402
o Commissioner’s recommendation letter cannot be considered as Formal
 Adamson v CA 588 scra 27
o Presumption of regularity of Assessment
 CIR V CA 242 SCRA 289
o Follow up letter reiterating Demand for payment considered Notice of Assessment
 REPUBLIC OF THE PHILIPPINES VS CA 149 SCRA 351
o Assessment deemed made
 CIR V PASCOR 309 SCRA 402
o Meaning of Best Evidence
 CAMPBELL, JR V GUETERSLOH
 CIR V HANTEX TRADING, CO 454 SCRA 301
o Existing revenue procedures and jurisprudence Governing assessment based on Best Evidence
Obtainable
 Cir v Hantex Trading citing US v Davey
o Assessment based on 50% Rule, in the absence of Receipts to prove Actual amount of Expense
deduction
o Networth Method of investigation

B. REMEDIES FOR COLLECTION OF DELINQUENT TAXES

1. Distraint of personal property and levy upon real property

 Central Cement Corp v Commissioner –
 Procedure for Actual Distraint (208-212)
o CIR v Roberta Flores
 Procedure on levy on real property (207-B, 213, 214, 215)
 Marcos II v CA
 Cabrera v Provincial treasurer of Tayabas and Pedro Katigbak
 Valencia v Jimenez

2. Civil or Criminal Action

a. Civil Action (Sec 2280
 Republic v Lim Tang Teng
 Yabes v Flojo
 CIR v Lilia Yusay Gonzales
 Augusto basa v republic
 Republic v Ker & Co

A proceeding in court after the collection of Tax May begun w/o assessment
  Adamson v CA
 Ungab v Cusi
 Republic v Salud Hizon
 Oceanic Wireless Network v CIR

b. Criminal Action
 Republic v Patanao
 People v Tierra
 People v Gregorio Balagtas

Crim Complaint for tax evasion distinguished from assessment

Case for study

 Ungab v Cusi
3. Compromise
 Chuy et al v CIR
 CIR v Abad

Cases which may be compromised

1. Delinquent accounts
2. Cases under admin protest after issuance of the final assessment notice to the taxpayer which are still
pending in the regional services office, revenue district offices, legal service, large taxpayer service,
collection service, enforcement service and other offices in the national service
3. Civil tax cases being disputed before the courts
4. Collection of cases filed in courts
5. Criminal violations other than those already filed in court or those involving criminal tax fraud
6. Cases covered by PANs but taxpayer is not agreeable to the findings of the audit office as confirmed
by the review office

Commissioner may compromise any IRT

1. Reasonable doubt as to the validity of the claim against the taxpayer exists
2. Financial position of the taxpayer demonstrates a clear inability to pay the assessed tax
 People v Desiderio
 People v Magdaluyo’
 Roviro v Amparo

4. Tax Lien (219

 Hongkong v Rafferty
 Corazon Velos de Torres v Collector
 CIR v NLRC GR 74965 nov 9 194
Governments claim predicated on a tax lien is superior to claim based on judgment

 CIR v NLRC 238 scra 42

5. Forfeiture (224 NIRC)
 Castro v Collector 4 scra 1193

Forfeiture and seizure distinguished

 Bank of PI v Trinidad
 US v Suria
 Garcia v Collector

6. Civil Penalties (248)

NO INJUNCTION TO RESTRAIN TAX COLLECTION

 See State of Tennessee v Sneed

Bond should be dispensed with under exceptional circumstances

 Pacquiao v CTA
o Avelino case
o Zulueta Case

II. STATUTE OF LIMITATIONS

a. Note of the requisites
b. 203, 222
 Arches v Bellosillo

The prescribed period for assessment or collection of the tax/es attributable to the disputed issues shall be
suspended

 RR 18-2013
 Rr 12-99

a. Assessment of tax liability

a. 3yrs
 CIR v Phoenix Assurance Co ltd
b. 10yrs
 Basilan estates v commissioner
 Republic v Marsman Development Company
 Butuan Sawmill, Inc v CTA
Demand Letter Issued by the Bureau of Forestry not an Assessment

 Mambulao Lumber Company v RP

b. collection of the tax

 Diluangco v Commissioner 4 scra 263

CIR has 3 yrs from issuance of an assessment involving neither false nor fraudulent return within which to
collect tax due

 CIR v United Salvage and Towage

Filing of answer to taxpayer’s petition for review considered as institution of judicial action

 Fernandez Hermanos Inc v CIR

 Republic v Araneta

Approval of the court sitting in probate not a mandatory requirement in the collection of estate taxes

 Marcos II v CA
 Vera v Fernandez (Vectigalia nervi sunt rei publicae

Fraudulent or false return

 Aznar v CTA

What constitutes fraud

 Gomez v Domingo
 Tan Guan v CTA
 CIR v Ayala Securities Corporation
 Aznar v CTA

c. Criminal Liability

 Lim, Sr v CA

Suspension of prescriptive periods

 Republic v Acebedo
 Alca v CTA
 Republic v Kerr
 Colletor v Suyoc consolidated mining
 Commissioner v Wyeth Suaco Laboratiories
Prescription: Suspension of the Statutory Period for collection

 Republic v Salud Hizon

III. TAXPAYER’S REMEDIES