Tax Rem Flowchart

TAXPAYER’S REMEDIES FROM ASSESSMENT OF LOCAL TAXES OTHER THAN REAL PROPERTY TAXES START

Local Treasurer* (LT) assess local taxes within 5 years from date they become due or 10 years from discovery of fraud

LT decides w/in 60 days?

Taxpayer files written protest is protest made within 60 days from receipt of assessment

Local Treasurer issues notice of assessment

Local Treasurer decides on protest within 60 days from filing of protest

Is protest made w/in YES

prescribed period?

NO

LT grants protest?

Taxpayer appeals to court of competent jurisdiction (regular courts) within 30 days from receipt of notice or from lapse of 60 days

NO

YES Local Treasurer issues notice cancelling partially/wholly the assessment

END

Appeal to CTA Division; but if the decision is from an RTC exercising appellate jurisdiction, appeal should be made directly to CTA en banc under Rule 43 of the ROC

NO

Assessment becomes final

If Division decides against the taxpayer, he must file a Motion for Reconsideration w/in 15 days with the same division

If Motion for Reconsideration is denied, file Petition for review with CTA en banc

Appeal to Supreme Court (SC)

END

PROCEDURE FOR DISTRAINT AND LEVY FOR PURPOSES OF SATISFYING LOCAL TAXES

START

Tax constitutes a lien superior to all liens and may only be extinguished upon payment of the tax and the related charges. (Sec. 173)

Officer posts notice in office of the chief executive of the LGU** where the property is distrained and in at least 2 other public places specifying the time and place of sale, and distrained goods. The time of sale shall not be less than 20 days after the notice. (Sec. 175)

Before the sale, the goods or effects distrained shall be restored to the owner provided all charges are paid

Excess of proceeds over charges shall be returned to the owner of the property sold.

Time for payment of Local taxes expires

Local Treasurer (LT), upon written notice, seizes sufficient personal property to satisfy the tax, and other charges (Sec. 175)

LT issues a certificate which serves as warrant for the distraint of personal property. (Sec. 175)

Officer executing the distraint accounts for the goods distrained. (Sec. 175)

Property distrained Disposed within 120 days from distraint?

NO

It shall be considered as sold to the LGU for the amount of the assessment made by the Committee on Appraisa***l and to the extent of the same amount, the tax delinquencies shall be cancelled.

YES Officer sells the goods at public auction to the highest bidder for cash. Within 5 days, the local treasurer shall report sale to the local chief executive concerned

If the proceeds of the sale are insufficient, other property may be distrained until the full amount due, including all expenses, is collected

A

A

Real property may be levied on before, simultaneously, or after the distraint of personal property (Sec. 176)**** until said tax, fee, or charge has been fully paid.

Take note: *LT – Local Treasurer; **LGU – Local Government Unit; *** It is composed of Local Treasurer as Chairman, Commission on Audit representative and LGU assessor as members; ****Procedure for levying real properties to satisfy local taxes is the same as levy procedure for satisfying real property taxes (Sec. 258-266) except the following: a. Publication is once a week for 3 weeks for local taxes (Sec. 178) and once a week for 2 weeks for real property taxes (Sec. 260); b. For local taxes, LGU may purchase levied property if there is no bidder or of the highest bid is insufficient to cover the taxes and other charges (Sec. 181) while for real property taxes, the LGU may purchase levied property if there is no bidder.