Tax Table - Based on a Lecture by Justice Dimaampao

ASSESSMENT AND COLLECTION TABLE NIRC Definition Sec. 228 NIRC. A written notice AND demand (CIR vs. Pascor), it must comply with due process by including the following: 1. Law, 2. Facts upon which the demand was based, 3. Proof of receipt by TP. (BIR must prove all of the above.)

Prescriptive Periods

Suspension of prescriptive period

Sec. 203 and 222 No false/fraudulent return – 3 years False/fraudulent/failure to file return (FFF) – 10 years Substantially amended return – 3 years from amendment Amended return, not substantially amended – 3 years from date of original filing (Phoenix Assurance vs. CIR) Sec. 223 (PRAWN) 1. Prohibited from making assessment 2. Request for Reinvestigation on ground of Newly Discovered Evidence (NDE) 3. Answer to a petition for

Local Government Taxation Sec. 195 LGC It must specify such local tax, fee or charge subject to the assessment.

Sec. 194 LGC 5year/10-year periods, 10-year period if fraud is employed

(PRO) 1. Prevented legally from making an assessment 2. Request for reinvestigation 3. Out of the Philippines (TP)

Real Property Tax Sec. 199(f) Act or process of determining the value of real property, including listing and appraisal of: Kinds of Property, Assessed value, Market value, Level of assessment, Actual use. (MERALCO vs. Province of Laguna) Sec. 219 3-year period general assessment or real properties Sec. 22. Prescriptible: 10-year period prior to present tax period can be assessed. Beyond the 10-year period, period to assess prescribes.

Tariff and Customs Code No clear definition in TCC. Philippine Petroleum vs. Commissioner of Customs define it as “liquidation” of the following: Final computation of the duties imposed on imports, Official reports as source of quantity/quality/value, Rates as indicated by the Collector. Sedc. 1603, amended by RA 9135. 3 years

No ground

No ground

review in the TA (Fernandes vs. CIR) 4. Waiver of statute of limitations (Asked already) 5. No property can be subject to levy/distraint, no address Method

Sec. 6 NIRC Net worth method (ex. Via SALN) Presumptive gross sales/receipts method Cash expenditure method Best evidence obtainable (Possible bar q)

No jurisprudence

Reyes vs. Almanzor CIR Comparable sales approach Income approach Reproduction or replacement cost method See RR 03-75

Best evidence obtainable is resorted to when there is : (FINE) False report, Incomplete report, No report at all, or Erroneous report

COLLECTION Prescriptive periods

NIRC Sec. 203 (This is a disputed area, further discussed in the pre-week notes) 5 years according to BIR, 3 years according to the academe Sec. 222 – 5 years

LGC 5/10 years 10-year period if fraud was employed

RPT Sec. 270 5/10 year periods 10-year period if fraud was employed

No longer ad valorem as RA 8484 changed it to transactional valuation. Transaction value is the price actually paid or payable on goods when sold for export to the Philippines. It is connected to VAT on importation (Sec. 107) 2 customs duties that may be imposed: 1. Specific – landed cost plus excise taxes as basis 2. Ad valorem duties – transaction value is the basis TCC 3-year period

10 years in case of FFF Grounds for suspension of prescriptive period

PRAWN 1. Prohibited from making assessment 2. Request for Reinvestigation on ground of Newly Discovered Evidence (NDE) 3. Answer to a petition for review in the TA (Fernandes vs. CIR) 4. Waiver of statute of limitations (Asked already) 5. No property can be subject to levy/distraint, no address

PRO 1. Prevented legally from making an assessment 2. Request for reinvestigation 3. Out of the Philippines (TP)

PRO 1. Prevented legally from making an assessment 2. Request for reinvestigation 3. Out of the Philippines (TP)

None

Pending protest, can BIR file a collection case? (Possible bar 1)

Yes. (Yabes vs. Flojo) TP’s remedies: 1. Appeal to the CTA 2. File a motion to dismiss in the court as the action is premature there being a disputed assessment and since the issue was elevated in the CTA YES Sec. 218, or the no-injunction rule, is just a general rule, as it does not lie to the CTA due to the law giving life to the

No

No

No

Justice Vitug said that we should apply Rule 58 Rules of Court Requisites (CSP): 1. Clear and unmistakable

Justice Vitug said that we should apply Rule 58 Rules of Court

Commissioner of Customs has exclusive quasi-judicial jurisdiction over seizure and forfeiture cases and in no case can courts interfere

Can injunction be had to restrain collection?

CTA. Requisites for availing of injunction: 1. The collection may jeopardize the government or TP 2. TP shall file a bond equal to the tax or a surety equal to double the amount of the unpaid taxes.

Administrative Remedies of Government NIRC Enforce tax Yes lien Distraint Yes

right (right in esse) 2. Substantial and material violation of such right 3. Paramount and urgent necessity to prevent damage to parties

under the Doctrine of Primary Jurisdiction

LGC

RPT

TCC

Yes

Yes

Yes

Yes

Yes, called seizure

Levy on Real Property

Yes

Yes

No. Section 254(B) is an erroneous provision (Justice Dimaampao) Yes

Notice and Publication prior to sale on public

Sec. 213 Sale by public is a proceeding in rem!

Sec. 178 It is a proceeding in rem, and thus personal notice to party and publication of the sale by

Sec. 260 It is a proceeding in rem, and thus personal notice to party and publication of the sale by

No. Enforcement of lien in TCC is peculiar. Bureau of Customs may resort to this following these requisites: 1. The goods or articles must still be in the custody of the Bureau of Customs 2. The goods are either prohibited or irregular, and are thus subject to seizure. Seizure is a remedy. It is not criminal in nature, and is a proceeding in rem. The defense of good faith is not

auction

public auction is required.

public auction is required.

availing since the action is filed against the object seized, not the TP. (CIR vs. M/V Pascual)

Protest Period of rotest

Delinquent TP may prevent the sale by paying the tax, thus publication without personal notice to the TP shall cause the sale to be invalid. Yes 30 days from receipt of assessment

Yes 60 days from receipt of assessment

Yes 15 days from payment. Payment of customs duties is indispensable.

Refund Prescriptive Period for Refund

Yes Within 2 years from payment (See pre-week notes for thorough discussion)

Yes 2 years from the date of payment or from the time he is entitled thereto

Yes There must be PAYMENT UNDER PROTEST. Payment is indispensable as local treasurer may not recognize the protest. Protest must be made within 30 days from payment. Yes 2 years from the date of payment or entitlement.

Yes Sections 1701 to 1708 No prescriptive periods provided, but there is a 1-year period for manifest error. Justice Tinga applied the NCC on prescriptive periods: Arts. 1144-1148 1144 -10 years (contract, obligation, judgment) 1145- 6 years due to quasicontracts (possible bar q) 1146 – 4 years (injury, quasidelict) 1147 – 1 year (forcible entry and unlawful detainer, defamation) 1148 – 5 years (if no period is provided by law) (possible bar q)