The Rules on Recovery of Tax Erroneously or Illegally Collected Can Be Found Under Section 229 of the Tax Code

For a claim based on erroneous payment of tax (Sec. 229), various cases decided by the Supreme Court provides for the requirements as follos!

(1) There must be a written claim flled by the taxpayer with the CIR; (2) The claim must also categorically demand or reimbursement; and (!) The taxpayer must show proo o payment o the tax"

"rounds! 1. The tax was was illegally illegally collect collected ed – There is no law law that authoriz authorizes es the collecti collection on of the tax 2. The tax was was excessively excessively collec collected ted – There There is a law that authoriz authorizes es the collecti collection on but the tax collected was more than what the law allows 3. The tax was was paid through through a mistaken mistaken belief belief that the taxpay taxpayer er should should pay the tax – This This is a case of solutio indebiti #hat are the requirements for a claim of a tax refund or a tax credit$ 1.

There is a tax collected collected erroneously or illegally illegally or a penalty collected collected without without authority authority or a sum excessively or wrongfully collected !see "ection 22# Tax $ode%

2. There There must be a written written claim claim for refund refund filed filed by the taxpayer taxpayer to the $&' !see !see (da. )e )e *guinald *guinaldo o v. $&' +,ebruary 2- 1#-/% • 

Exceptions (no written claim required): a. 0hen on the face of the return upon which payment was made such payment appears clearly to have been erroneously paid the $&' may refund or credit the tax even without a written claim !"ection 22# Tax Tax $ode% b. * return return filed showing an overpayment shall b e considered as a written claim for credit or refund. !"ec. 2!$% Tax $ode%

3. The claim claim for refund refund must be filed filed within within 2 years from from the date of payment payment of the the tax regardless regardless of  any supervening cause !"ection 22# Tax Tax $ode% . The taxpayer taxpayer must must show proof proof of payment payment of the tax tax !"ee $&' v. v. i 4ao 4ao +)ecemb +)ecember er 25 1#-3/% 1#-3/% 6otes7

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8ayment under protest is not re9uired in order to obtain a refund of erroneously or illegally collected internal revenue taxes. !"ection 22# Tax $ode%

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 *s to !3%7 The idea is first to afford the $&' an opportunity to correct the action of subordinate officers and second to notify the :overnment that such taxes have been 9uestioned and the notice should then be borne in mind in estimating the revenue available for expenditure !see ;ermeavi ,ood "ervices 8hils. &nc. vs. $&'. $T* Bb 6o. C !$ta $ase 6o. 553% =une 2C 212

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&n a claim for refund of excess income tax failure to present the original annual income tax return is fatal to the claim. ?aunsell 8hilippines &nc. vs. $&' $.T.*. B; 6o.C- @ctober 23 212