Flowchart of Tax Remedies i. Remedies Un

FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes I. REMEDIES UNDER THE NATIONAL INTERNAL REVENUE CODE A. Assessments (Section 228, NIRC)

30 days

30 days Period within CIR or Authorized Representative to decide

LOA

PAN

Reply

OPTIONS OF TAXPAYER 1. If CIR denies Protest:

IF RECONSIDERATION 180 days 15 days

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FLD/ FAN

Protest

NOTE: Taxpayer may file a Motion for Reconsideration with the CIR but it shall not toll the 30-day period to appeal to the CTA.

IF REINVESTIGATION 60 days

Petition for Review with CTA Division

FDDA

180 days

2. If authorized representative denies Protest: a. Follow Procedure in I(A)(1); or b. File a Motion for Reconsideration with CIR

Submit Documents

Period within CIR or authorized representative to decide

30 days

30 days

FDDA

MR with CIR

Petition for Review with CTA Division

3. If CIR or authorized representative does not act within the 180-day a. File a Petition for Review within 30 days; or period: 30 days

Lapse of 180-day period (deemed a denial)

Petition for Review with CTA Division

b. Await for FDDA Follow procedure in either I(A)(1) or I(A)(2).

FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes

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B. Recovery of Erroneously or Illegally Collected Taxes and/or Penalties (Section 229, NIRC) 2 years

Date of Payment or Withholding of Tax

NOTE: Both the administrative and the judicial claim must be filed within the two-year period.

Petition for Review with CTA Division

File Administrative Claim with CIR (before Judicial Claim)

C. VAT Refund/Credit (Section 112, NIRC) 120 days

2 years

Close of the Taxable Quarter when the relevant sales were made

File Administrative Claim with CIR and submit complete documents

Period to decide

OPTIONS OF TAXPAYER 1. If CIR or authorized Representative denies claim: 30 days

Petition for Review with CTA Division

Denial

2. If inaction: 30 days

NOTE: Only the administrative claim must be filed within the two-year period.

Lapse of 120-day period (considered a denial)

Petition for Review with CTA Division

FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes II.

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REMEDIES UNDER THE LOCAL GOVERNMENT CODE A. Local Business Tax 1. Assessment 60 days

60 days

1. If ≤ P300,000 (or ≤ P400,000 for Metro Manila) 15 days

15 days

Notice of Assessment

Protest to Local Treasurer

30 days

Period to decide Denial by LT or Lapse of 60 days

Appeal to MTC

Appeal to RTC

Petition for Review to the CTA en banc

2. If ˃ P300,000 (or ˃ P400,000 for Metro Manila) 30 days

15 days

Denial by LT or Lapse of 60 days

NOTE: The period to appeal shall be interrupted by a timely motion for new trial or reconsideration. In any case, if the motion is denied, the movant has a fresh period of 15 days from receipt or notice of order denying or dismissing the motion for reconsideration within which to file the appeal. (Neypes Doctrine)

Appeal to RTC

Petition for Review to the CTA Division

FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes

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2. Refund 2 years 1. If ≤ P300,000 (or ≤ P400,000 for Metro Manila) Follow procedure in II(A)(1). Date of Payment of Tax

Appeal to either MTC or RTC 2. If ˃ P300,000 (or ˃ P400,000 for Metro Manila) Follow procedure in II(A)(2).

File Claim for Refund before Local Treasurer NOTE: Both the administrative and the judicial claim must be filed within the two-year period.

3. Assail Tax Ordinance 30 days

Effectivity of Tax Ordinance

60 days

Appeal to Secretary of Justice

Period for the SOJ to decide

30 days

Denial by SOJ or lapse of 60 days

15 days

Appeal to the RTC

15 days (extendible)

Appeal to Court of Appeals

Appeal to Supreme Court

NOTE: The period to appeal shall be interrupted by a timely motion for new trial or reconsideration. In any case, if the motion is denied, the movant has a fresh period of 15 days from receipt or notice of order denying or dismissing the motion for reconsideration within which to file the appeal (Neypes Doctrine)

FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes

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B. Real Property Tax 1. Assessment a. Erroneous Assessment 30 days

Pay with Protest

60 days

60 days

Protest to Local Treasurer

Period to decide

Denial by LT or Lapse of 60 days

Appeal to LBAA

b. Illegal Assessment 30 days

15 days

Issuance of Illegal Assessm ent

File Injuncti on with RTC

120 days

Petition for Review to the CTA Division

30 days

Denial by LBAA or Lapse of 120days

30 days

Appeal to the CBAA

Adverse Decision of the CBAA

Petition for Review to the CTA en banc

FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes

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2. Refund 2 years

60 days If denied or inaction by the Local Treasurer

Date Payment

of

File Claim with Local Treasurer

NOTE: Only the administrative claim must be filed within the two-year period.

Period to decide

Follow Procedure in II(B)(1). -

FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes

III.

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REMEDIES UNDER THE CUSTOMS MODERNIZATION AND TARIFF ACT.

A. Assessments 15 days

1. If protest is sustained

30 days

The COC shall make the appropriate order and the entry reassessed, if necessary.

Payment under Protest

Protest to Commissioner of Customs (COC)

Period to decide

2. If protest is denied 30 days

NOTE: Assessment shall be deemed final within 15 days after receipt of the notice of assessment.

Denial by the COC

Petition for Review to the CTA Division

B. Refund 1. If the claim and application is for refund of duties. 12 months

If the claim is denied

If denied by the COC 30 days

30 days Date payment

of

File Claim with Bureau

Denial NOTE: Only the administrative claim must be filed within the 12-month period. The CMTA did not specify the office within which to file the claim for refund

Appeal COC

to

Period to decide

Follow procedure in III(A)(2).

FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes

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2. If the claim and application is for refund of duties and taxes. As to refund of the duties element Follow procedure under III(B). As to refund of internal revenue taxes element Follow procedure under I(B). Note: The Bureau of Customs shall cause the refund of internal revenue taxes after issuance of a certification from the CIR granting claim for refund, whether wholly or partially.

C. Forfeiture 1. If importer is aggrieved by decision of District Collector 15 days or 5 days if perishable

Adverse decision of District Collector

Notice of Appeal to District Collector

30 days or 15 days if perishable goods

The District Collector shall transmit records to COC

Period for COC to decide

1. If importer aggrieved by decision of COC Follow Procedure in III(A)(2). 2. If no decision rendered (inaction) The adverse decision of the District Collector is deemed affirmed. Follow Procedure in III(A)(2).

FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes

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2. If government is aggrieved by decision of the District Collector (Automatic Review)

30 days or 10 days if perishable goods

5 days

Adverse decision of District Collector

Elevate Records to CoC

Receipt of records by CoC

If no decision rendered within the said period or when a decision adverse to government is rendered by the COC involving goods with FOB or FCA value of P10,000,000.00

Period for COC to decide

5 days

COC

Elevate records to SoF

If importer aggrieved by decision of COC Follow Procedure in III(A)(2).

3. If the importer is aggrieved by the decision of the Secretary of Finance on automatic review 30 days

Adverse decision of SOF

Petition for Review to the CTA Division

NOTE: The decision of the SOF whether or not a decision was rendered by the COC within 30 days, or within 10 days in the case of perishable goods, from receipt of the records, shall be final upon the Bureau.

FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes

IV.

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APPELLATE REMEDIES IN THE COURT OF TAX APPEALS 15 days

Petition for Review before the CTA Division

Adverse Decision of the CTA Division

MR of CTA Div. Decision or MNT

15 days (extendible)

Adverse Resolution of the CTA Division

Petition for Review before the CTA En Banc

15 days

Adverse Decision of the CTA-EB

MR of CTA-EB Decision

15 days (extendible)

Adverse Resolution of the CTAEB

Petition for Review to the Supreme Court

NOTE: A petition for review of a decision or resolution of the CTA in Division must be preceded by the filing of a timely MR or MNT with the Division. The filing of a MR or MNT, however, with the CTA en banc is not mandatory.

FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes V.

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ASSAILING THE VALIDITY OF REVENUE ISSUANES

A. Quasi-Judicial (BIR Rulings) 30 days

30 days

Petition for Review with CTA Division

Appeal to Secretary of Finance

Adverse Ruling

B. Quasi-Legislative (Revenue Regulations, Revenue Memorandum Circulars, or Revenue Memorandum Orders) 1. If in the exercise of the Secretary of Finance’s rule-making power (Revenue Regulations) If there is no breach

Issuance of the SOF

Declaratory Relief (Rule 63) with the RTC

If there is breach

Breach of the issuance

15 days

15 days

Petition for Certiorari (Rule 65) with the RTC

15 days (extendible)

Court of Appeals

Supreme Court

15 days (extendible)

Court of Appeals

Supreme Court

NOTE: The period to appeal shall be interrupted by a timely motion for new trial or reconsideration In any case, if the motion is denied, the movant has a fresh period of 15 days from receipt or notice of order denying or dismissing the motion for reconsideration within which to file the appeal (Neypes Doctrine)

FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes

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2. If in the exercise of the CIR’s power to interpret tax laws (Revenue Memorandum Circulars and Revenue Memorandum Orders) 30 days

Issuance of the CIR

Request for Review before the SOF

Adverse Decision of the SOF

15 days

Petition for Certiorari (R65) before the RTC

15 days (extendible)

Court of Appeals

Supreme Court