IMPORTANT TOPICS IN TAXATION

GENERAL PRINCIPLES
RESCUE DOCTRINES
A. NATIONAL VERSION: THE LIFEBLOOD THEORY
Taxes are the lifeblood of the government and their prompt
and ertain availabilit! is an imperio"s need#$ %&IR vs#
'ineda( )*+ S&RA *+,-
Taxes are the lifeblood of the nation thro"gh .hih
government agenies ontin"e to operate and .ith .hih the
State effet its f"ntion for the .elfare of its onstit"ents#$
B. LO&AL VERSION: The po.er to tax is an effetive
instr"ment to raise reven"es needed to s"pport and finane
m!riad ativities of the loal government for the deliver! of
basi servies essential to the promotion of general .elfare
and enhanement of peae( progress and prosperit! of the
people#$
PRINCIPLE OF NO ESTOPPEL AGAINST THE
GOVERNMENT
The government is not bo"nd b! the errors ommitted b! its
agents# In the performane of its government f"ntions( the
State annot be estopped b! the neglet of its agents and
offiers# Taxes are the lifeblood of the nation thro"gh .hih
the government agenies ontin"e to operate and .ith .hih
the state effets its f"ntions for the .elfare of its
onstit"ents# The errors of ertain administrative offiers
sho"ld never be allo.ed to /eopardi0e the government1s
finanial position# %&IR vs# &TA( )*+ S&RA *+,-
DOCTRINE OF SYMBIOTIC RELATIONSHIP
Taxes are .hat .e pa! for ivili0ed soiet!# 2itho"t taxes(
the government .o"ld be paral!0ed for la3 of the motive
po.er to ativate and operate it# 4ene( despite the nat"ral
rel"tane to s"rrender part of one1s hard5earned inome to
the taxing a"thorities(
ever! person .ho is able to m"st ontrib"te his share in the
b"rden of r"nning the government# The government( for
its part( is expeted to respond in the form of tangible and
intangible benefits intended to improve the lives of the
people and enhane their
material and moral val"es %&IR vs# AL67E( IN&#( 89,
S&RA :-
LIMITATIONS ON THE TAXING POWER
A. Inherent Limitations
8# '"bli '"rpose of Taxes
)# Non5;elegabilit! of the Taxing 'o.er
*# Territorialit! or Sit"s of Taxation
+# Tax Exemption of the 6overnment
9# International &omit!
B. Constitutional Limitations
8# ;"e proess la"se
)# E<"al protetion la"se
*# =reedom of speeh and of the press
+# Non5infringement of religio"s freedom and
.orship
9# Non5impairment of ontrats
># Non5imprisonment for debt or non5pa!ment of poll
tax
?# R"le re<"iring that appropriations( reven"e and
tariff bills shall originate exl"sivel! from the
4o"se of Representatives
,# 7niformit!( e<"itabilit! and progressivit! of
taxation
:# Limitations on the ongressional po.er to delegate
to the 'resident the a"thorit! to fix tariff rates(
import and export <"otas( et#
8@# Tax exemption of properties at"all!( diretl! and
exl"sivel! "sed for religio"s( haritable and
ed"ational p"rposes#
88# Voting re<"irement in onnetion .ith the
legislative grant of tax exemption
8)# Non5impairment of the /"risdition of the S"preme
&o"rt in tax ases
8*# Exemption from taxes of the reven"es and assets of
ed"ational instit"tions( inl"ding grants(
endo.ments( donations and ontrib"tions#
Q. Describe !e Sc"#e "$ !e P"%er " T&'
A. The po.er of taxation is the most absol"te of all po.ers
of the government %Sison vs# Anheta( 8*@ S&RA >9+-# It
has the broadest sope of all the po.ers of government
bea"se in the absene of limitations( it is onsidered as
"nlimited( plenar!( omprehensive and s"preme# 4o.ever(
the po.er of taxation sho"ld be exerised .ith a"tion to
minimi0e in/"r! to the proprietar! rights of the taxpa!er# It
m"st be exerised fairl!( e<"all! and "niforml!( lest the tax
olletor 3ill the hen that la!s the golden egg$ %Pilipinas
Shell v. CIRG.R. No. 172598, 21 December 27 ci!in"
Ro#as vs. C$%, 2& SCR% 27'-#
Q. E'#(&i) !e *ic+, !& -!e #"%er " &' i)."(.es
!e #"%er " *esr"/0.
A. In Aatan &eb" International Airport A"thorit! vs#
Aaros( )>8 S&RA >>?( >?:( the S"preme &o"rt stressed
that taxation is a destr"tive po.er .hih interferes .ith the
personal and propert! rights of the people and ta3es from
them a portion of their propert!
for s"pport of the government# The po.er to tax inl"des the
po.er to destro! if it is "sed validl! as an implement of the
polie po.er in diso"raging and in effet( "ltimatel!
prohibiting ertain things or enterprises inimial to the
p"bli .elfare# %&r"0( &onstit"tional La.( )@@@ Ed#( p#,?-
8
Q. W!& is & &'#&/er1s s+i2 W!e) is i #r"#er2
A. A taxpa!er1s s"it re<"ires illegal expendit"re of
taxpa!ers1 mone!# In Aaeda v# Aaaraig( 8:? S&RA ??8(
the S& s"stained the right of Sen# Aaeda as taxpa!er to file
a petition <"estioning the legalit! of the tax ref"nd to N'&
b! .a! of tax redit ertifiates( and the "se of tax
ertifiates b! oil ompanies to pa! for their tax and d"t!
liabilities to the BIR and B"rea" of &"stoms# 4o.ever( in
6on0ales v# Aaros( >9 S&RA >)+( the S& held that the
taxpa!er had no legal personalit! to assail the validit! of
E#O# *@ reating the &"lt"ral
&enter of the 'hils# as the assailed order does not involve
the "se of p"bli f"nds# The f"nds ame b! .a! of
donations and ontrib"tions( not b! taxation#
INCOME TAXATION
C"r#"r&i")s $"r i)c",e &' #+r#"ses3
&. I)c(+*es4
8# 'artnerships( no
matter ho. reated or organi0ed
)# Coint sto3
ompanies
*# Coint ao"nts %"entas en partiipation-
+# Assoiations or
ins"rane ompanies
b. D"es )" i)c(+*e
8# 6eneral 'rofessional partnerships
)# Coint vent"re or onsorti"m formed
i# for p"rpose of "nderta3ing onstr"tion pro/ets
engaging in 'etrole"m( &oal( 6eothermal( and
other energ! operations(
ii# '"rs"ant to an operation or onsorti"m
agreement "nder a servie ontrat .ith the
6overnment# (Sec!ion 22 ()*, NIRC-
Note: The main characteristic of a joint
venture is that the joint control must be contained
in a contractual agreement.
+#ample o, -nre"is!ere. par!nership !a#able as a
corpora!ion
After an extra/"diial settlement( the o5
heirs "sed the inheritane or the inomes derived
therefrom as a ommon f"nd to prod"e profits for
themselves# (/na vs. CIR, 05 SCR% 70*
+#ample o, co1o2nership no! .eeme. -nre"is!ere.
par!nership !a#able as corpora!ion
&o5heirs .ho inherited properties .hih
prod"e inome sho"ld not a"tomatiall! be
onsidered as partners of an "nregistered
partnership or orporation s"b/et to inome tax#
Sharing of gross ret"rns does not b! itself establish
a partnership( there m"st be an "nmista3able
intention to form a partnership or /oint vent"re#
(/billos, 3r. vs. CIR, 1&9 SCR% 0&'*
E'c(+si")s $r", 5r"ss i)c",e +)*er !e NIRC
8# Life Ins"rane proeeds
)# Amo"nt reeived b! ins"red as ret"rn of premi"m
*# 6ifts( be<"est and devies
+# &ompensation for in/"ries or si3ness
9# Inome exempt "nder treat!
># Retirement benefits( pensions( grat"ities( et#
?# Aisellaneo"s items# %Se# *) %B-( NIR& of 8::?-
6Inome derived b! the 6ovt or its politial
s"bdivision-
%'ri0es and a.ards in sports ompetition-
%;e minimis benefits-
C(&sses "$ De*+ci")s
7. I)*i.i*+&(s
a# .ith gross ompensation inome from
emplo!er5emplo!ee relationship onl!
%8- premi"m pa!ments on health andDor
hospitali0ation ins"rane
%)(+@@Dann"m-
'rovided( Ann"al 6ross =amil!
Inome does not exeed ')9@(@@@#
%)- 'ersonal exemptions
Per RA 89:; : RR 8@5)@@,
effetive <+(/ =3 >::?4 P9:3:::.::
Se *9 NIR& before C"l! >( )@@,E
depending on stat"s:
o Single: ')@(@@@
o 4ead of the
=amil!:')9(@@@
o Aarried: '*)(@@@
%*-Additional Exemption: for eah
<"alified
dependent$ not exeeding +
Per RA 89:; : RR 8@5)@@,
effetive <+(/ =3 >::?4 P>93:::
#er c!i(*
Se *9 NIR& before C"l! >(
)@@,:',(@@@ per hild
;ependent$5 means a legitimate(
illegitimate( or legall! adopted hild hiefl!
dependent "pon and living .ith the taxpa!er if
s"h dependent is not more than )8 !ears of
age( "nmarried( and not gainf"ll! emplo!ed or
if s"h dependent( regardless of age( is
inapable of self5s"pport bea"se of mental or
ph!sial defet#
b# gross inome from b"siness or pratie of
profession
%8- Optional Standard ;ed"tion
%OS;-
)
Per RA 89:; : RR 8@5)@@, effetive
<+(/ =3 >::?4 ;:@
Se *+%L- NIR& % before C"l! >(
)@@,-: 8@F
%)- Itemi0ed ded"tions
%*- premi"m pa!ments on health andDor
hospitali0ation
ins"rane
%+- personal additional exemptions
>. C"r#"r&i")s
Itemi0ed ;ed"tions
Ie,iAe* *e*+ci")s
a# ordinar! an. neessar! expenses
b# interests
# taxes
d# losses
e# bad debts
f# depreiation of propert!E
g# depletion of oil and gas .ells and mines
h# haritable and other ontrib"tions
i# researh and development
/# pension tr"st ontrib"tions of emplo!ees
3# premi"m pa!ments on health andDor
hospitali0ation ins"rane#
Speial ;ed"tions for 'rivate Ed"ational Instit"tions
A private ed"ational instit"tions ma! at its option
elet either:
%a- to ded"t expendit"res
other.ise onsidered as apital o"tla!s of
depreiable assets in"rred d"ring the
taxable !ear for the expansion of shool
failities( or
%b- to ded"t allo.ane for
depreiation thereof (Sec. &0 (%* (2*, NIRC*
E'e,#i")s $"r Se)i"r CiiAe)s
Senior iti0ens shall be treated as dependents
provided for in the NIR& and as s"h individ"al taxpa!ers
aring for them( be the! relatives or not shall be aorded
the privileges granted b! the &ode insofar as having
dependents are onerned# (Sec. 5(a* R% No. 70&24 )a5ba5
vs. CIR, C$% Case No. 528, December 2, 199'*
In determining personal exemptions allo.able to
individ"als "nder Setion *9 of the NIR& as amended b!
RA NO# ,+)+( a senior iti0en ma! be treated as dependent#
=or this p"rpose( the definition of the term head of a
famil!$ "nder the said setion shall be deemed amended to
refer to the definition "nder Art# 9 of this implementing r"les
and reg"lations# (R-le ', Implemen!in" R-les an.
Re"-la!ions o, R% No. 70&2*
The t.ent! perent %)@F- diso"nt re<"ired b! la.
to be given to senior iti0ens is a tax redit( not merel! a tax
ded"tion from the gross inome or gross sale of the
establishment onerned# A tax redit is "sed b! a private
establishment onl! after the tax has been omp"tedE a tax
ded"tion( before the tax is omp"ted# RA No# ?+*)
"nonditionall! grants a tax redit to all overed entities#
(CIR vs. Cen!ral 6-7on Dr-" Corp. GR No. 159'07, %pril
15, 25*
C!&r&cer "$ Wi!!"(*i)5 A5e)
The .ithholding agent is not the pa!or b"t a
separate entit! ating no more than an agent of the
government for the olletion of the tax in order to ens"re its
pa!ments# The pa!or of the tax is the taxpa!er( he is the
person s"b/et to tax imposed b! la.E and the pa!ee is the
taxing a"thorit!#
The agent is not liable for the tax as no .ealth
flo.ed into him( he earned no inome# The tax &ode onl!
ma3es the agent personall! liable for the tax arising from the
breah of its legal d"t! to .ithhold as disting"ished from its
d"t! to pa! tax( sine the governmentGs a"se of ation
against the .ithholding agent is not for the olletion of
inome tax b"t for the enforement of the .ithholding
provisions of the Tax &ode( ompliane .ith .hih is
imposed on the .ithholding agent# (CIR vs. Co-r! o,
%ppeals, GR N. 1857', 3an-ar5 2, 1999*
MINIMUM CORPORATE INCOME TAX 6MCITB
Q. W!& is MCIT &)* %!e) s!"+(* !e MCIT be
i,#"se*2
A. A minim"m orporate inome tax of t.o perent %)F-
of the gross inome as of the end of the taxable !ear( as
defined herein( is hereb! imposed on a orporation taxable(
beginning on the fo"rth taxable !ear immediatel! follo.ing
the !ear in .hih s"h orporation ommened its b"siness
operations( .hen the minim"m orporate inome tax is
greater than the tax omp"ted "nder S"bsetion %A- of this
setion for the taxable !ear#$ HSe# )? %E- %8-( NIR& of
8::?I
Q. P+r#"se "$ !e $"+r 6;B /e&r 5r&ce #eri"* $"r MCIT.
A. The intent of &ongress relative to the A&IT is to grant a
fo"r %+- J !ear s"spension of tax pa!ment to ne.l!
organi0ed orporations# &orporations still starting their
b"siness operations have to stabili0e their vent"re in order to
obtain a stronghold in the ind"str!# It does not ome as a
s"rprise then .hen man! ompanies reported losses in their
initial !ears of operations# Th"s( in order to allo. ne.
orporations to gro. and develop at the initial stages of their
operations( the la.ma3ing bod! sa. the need to provide a
grae period of fo"r !ears from their registration before the!
pa!
their minim"m orporate inome tax# %8anila )an9in"
Corpora!ion v. Commissioner o, In!ernal Reven-e, 6# R#
No# 8>,88,( A"g"st )>( )@@>-
Q. H"% &re &sses c(&ssi$ie* $"r i)c",e &'#&/ers2
*
A. The assets of a taxpa!er are lassified for inome tax
p"rposes into "r*i)&r/ and c&#i&( &sses# 4o.ever( there
is no rigid r"le or form"la b! .hih it an be determined
.ith finalit! .hether propert! sold b! a
taxpa!er .as held primaril! for sale to ost"mers in the
ordinar! o"rse of his trade or b"siness or .hether it .as
sold as a apital asset# A propert! initiall! lassified as a
apital asset ma! thereafter be treated as an ordinar! asset if
a ombination of fators ind"bitabl! tend to sho. that the
ativit! .as in f"rtherane of or in the o"rse of the
taxpa!er1s trade or b"siness# Th"s( a sale of inherited
propert! "s"all! gives apital gain or loss even tho"gh the
propert! has to be s"bdivided or improved or both to ma3e it
saleable# 4o.ever( if the inherited propert! is s"bstantiall!
improved or ver! ativel! sold or both( it ma! be treated as
held primaril! for sale to "stomers in the ordinar! o"rse of
the heir1s b"siness %&alasan0 v# &IR( 8++ S&RA >>+-
ESTATE AND DONORCS TAX
ESTATE TAXES
DEFINITION4 an exise tax on the right of transmitting propert!
at the time of death and on the privilege that a person is given in
ontrolling to a ertain extent the disposition of his propert! to
ta3e effet "pon death#
Es&e T&' F"r,+(&
6ross Estate (Sec. 85*
6ess: %8- ;ed"tions (Sec. 8'*
%)-Net share of the SS in the &''
Net Taxable Estate
8-l!ipl5 b5: Tax rate (Sec. 80*
Estate Tax d"e
6ess: Tax &redit Hif an!I (Sec. 8';+< or 11;)<
Estate Tax ;"e( if an!
GROSS ESTATE
A deedentGs gross estate inl"des (Sec. 85*
RESI;ENT K NON5RESI;ENT &ITILEN( RESI;ENT
ALIEN ;E&E;ENT:
8# Real propert! 2herever sit"ated
)# 'ersonal propert! 2herever sit"ated
Tangible( and
Intangible
NON5RESI;ENT ALIEN ;E&E;ENT
8#Real propert! sit"ated in the Philippines.
)# 'ersonal propert!
a- Tangible propert! sit"ated in the Philippines
b- Intangible personal propert! .ith a sit"s in the
Philippines "nless exempted on the basis of reiproit!#
D+D=C$I/NS /N GR/SS +S$%$+ %PP6IC%)6+ $/
RESI;ENT ALIENS %ND &ITILENS
%REVEN7E RE67LATIONS )5)@@*-
The follo.ing are ded"tible from the gross estate of
iti0ens and resident aliens:
8# Expenses( losses( indebtedness( taxes( et# (ordinary
deductions
)# Transfer for p"bli "se
*# Vanishing ded"tion
+# =amil! home
9# Standard ded"tion e<"ivalent to one million pesos
%'8(@@@(@@@-
># Aedial expenses
?# Amo"nts reeived b! heirs "nder RA +:8? %Retirement
Benefits-
,# Net share of the s"rviving spo"se in the on/"gal or
omm"nit! propert!
VANISHING DEDUCTION
DEFINITION4 The ded"tion allo.ed from the gross estate
for properties that .ere s"b/et to donorGs or estate taxes# It
is alled vanishing ded"tion bea"se the ded"tion allo.ed
diminishes over a period of five !ears# The rate of ded"tion
depends on the period from the date of transfer to the death
of the deedent( as follo.s:
PERIOD DEDUCTION
8 !ear or less 8@@F
8 !ear J ) !ears ,@F
) !ears J * !ears >@F
* !ears J + !ears +@F
+ !ears J 9 !ears )@F
!"#$I%IT"%:
8# the present deedent died .ithin 9 !ears from transfer of
the propert! from a prior deedent or donor#
)# The propert! m"st be loated in the 'hils#
*# The propert! formed part of the taxable estate of the
prior deedent( or of the taxable gift of the donor#
+# The estate tax or donorGs tax on the gift m"st have been
finall! determined and paid#
9# The propert! m"st be identified as the one reeived
from the prior deedent( or something a<"ired in
exhange therefor#
># No vanishing ded"tion on the propert! .as allo.able
to the estate of the prior deedent#
A) Es&e T&' Re+r) Is ReD+ire* T" Be Fi(e*
1. .hen the estate is s"b/et to estate taxE or
2. .hen the estate is not s"b/et to estate tax b"t the gross
estate exeeds ' )@@(@@@E or
+
3. regardless of the amo"nt of the gross estate( .here the
gross estate onsists of registered or registrable propert!
s"h as motor vehile or shares of sto3 or other similar
propert! for .hih learane from the BIR is re<"ired
as a ondition preedent for the transfer of o.nership
thereof in the name of the transferee#
Ti,e $"r Fi(i)5 "$ !e es&e &' re+r)
The estate tax ret"rn shall be $i(e* &ithin si' ((
months a,!er !he .ea!h of the deedent#
E'e)si")4 The BIR ma!( in meritorio"s ases( grant an
extension of no! e#cee.in" !hir!5 (&* .a5s for the filing of
the estate tax ret"rn#
TARIFF AND CUSTOMS CODE
)"*INITI+N%
TARIFF4 &"stoms d"ties( toll or trib"te pa!able "pon
merhandise to the 6overnment#
CUSTOMS DUTIES
WHEN TARIFF AND CUSTOMS APPLIED
Onl! after importation has beg"n b"t before importation
is terminated#
Impor!a!ion be"ins:
8- .hen the onve!ing vessel or airraft
)- enters the /"risdition of the 'hil#
*- .ith intention to "nload therein
Impor!a!ion is .eeme. !ermina!e.:
%a- "pon pa!ment of the d"ties( taxes and other harges d"e
"pon the artiles#
%b- and legal permit for .ithdra.al shall have been
granted#
In ase the artiles are free of d"ties( taxes and
other harges( "ntil the! have legall! left the /"risdition of
the "stoms (Sec. 122, $CC*
INTENTION TO UNLOAD
Even if not !et "nloaded( and there is "nmanifested argo(
forfeit"re ma! ta3e plae bea"se importation has alread!
beg"n#
CLASSIFICATION OF CUSTOM DUTIES
A# Re5+(&r D+ies J those .hih are imposed and
olleted merel! as a so"re of reven"e#
7. A* .&("re, *+/4 This is a d"t! based on the val"e
of the imported artile#
>. S#eci$ic *+/4 This is a d"t! based on the d"tiable
.eight of goods %either the gross .eight( legal
.eight( or net .eight-#
E. A(er)&i)5 *+ies4 This is a d"t! .hih alternates
ad valorem and speifi#
;. C",#"+)* D+/4 This is a d"t! onsisting of ad
valorem and speifi d"ties#

B# S#eci&( *+ies F those .hih are imposed and olleted
in addition to the ordinar! "stoms d"ties "s"all! to
protet loal ind"stries against foreign ompetition#
7. D+,#i)5 *+/
>. C"+)er.&i(i)5 *+/
E. M&rGi)5 *+/
;. Discri,i)&"r/ *+/
TAX ENFORCEMENT AND ADMINISTRATION
BIR ORGANIHATIONAL STRUCTURE
4eaded b! a &ommissioner of Internal Reven"e
and fo"r %+- ;ep"t! &ommissioners#
Eah ;ep"t! heads the Operations 6ro"p( Legal
and Inspetion 6ro"p( Reso"re and Aanagement
6ro"p( and Information S!stems 6ro"p#
T.o more ;ep"t! &ommissioners .ere appointed
in )@@* as head of the 'rose"tion 6ro"p and the
Speial &onerns 6ro"p#
No!e: $hese .ep-!5 commissioners are
!echnicall5, no! .ep-!5 commissioners 2i!hin
Sec!ion & o, !he 1997 NIRC.
The &ommissioner and six %>- ;ep"t!
&ommissioners( together .ith thirteen %8*-
Assistant &ommissioners for the different servies(
omprise !he senior level o, a.minis!ra!ive
a-!hori!5.
S"pporting them are the nineteen %8:- Regional
;iretors( one h"ndred fifteen %889- Reven"e
;istrit Offiers( and tho"sands of reven"e offiers
ond"ting the a"dit of taxpa!ersG boo3s of
ao"nts and ao"nting reords#
AGENTS OF THE CIR4
a# &ommissioner of &"stoms .ith respet to taxes on
imported goods
b# 4ead of the appropriate government offie .ith
respet to energ! tax
# Ban3s d"l! aredited b! the &IR# (Sec. 12, 1997
NIRC*
POWERS AND DUTIES OF THE BIR
8# To assess and ollet national internal reven"e
taxes( fees( and hargesE
)# To enfore all forfeit"res( penalties and fines
onneted there.ithE
*# To exe"te /"dgments in all ases deided in its
favor b! the &TA and the ordinar! o"rtsE and
9
+# To effet and administer the s"pervisor! and polie
po.ers onferred "pon it b! the Tax &ode or other
speial la.s (Sec. 2, NIRC*
POWERS OF THE CIR
8# 'o.er to interpret tax la.s s"b/et to revie. b! the
Seretar! of =inane
)# 'o.er to deide tax ases s"b/et to revie. b! the
&o"rt of Tax Appeals
*# 'o.er to examine boo3s and other ao"nting
reords and obtain information
+# 'o.er to in<"ire into ban3 deposits of taxpa!ers J
Not.ithstanding R#A# 8+@9 %Ban3 Sere!
La.- the &ommissioner is a"thori0ed to in<"ire
into the Ban3 deposits of:
a# a deedent to determine his gross estate
b# a taxpa!er .ho has filed an appliation to
ompromise pa!ment of tax liabilit! b! reason
of finanial inapait!
No!e: $he !a#pa5er>s applica!ion ,or compromise
shall no! be consi.ere. -nless he 2aives in 2ri!in"
his privile"e -n.er R% 105 an. o!her "eneral or
special la2s. S-ch 2aiver shall a-!hori7e !he
Commissioner !o in?-ire in!o his ban9 .eposi!s.
9# 'o.er to assess and ollet the orret amo"nt of
tax
TAX REMEDIES OF THE GOVERNMENT
TAX REMEDIES UNDER THE 788I TAX CODE
8# S"mmar! J remedies at the administrative level or
reg"lation that are exe"ted .itho"t eremon! or
dela!E short or oniseE
)# S"bstantive J remedies provided for b! la. or
reg"lationE an essential part or onstit"ent or
relating to .hat is essentialE
*# 'roed"ral J remedies involving la. of pleading(
evidene( /"risdition( et#
+# Administrative J remedies available at the
administration %BIR- levelE
9# C"diial J remedies that are enfored thro"gh
/"diial ation( .hih ma! be ivil or riminal
SUBSTANTIVE REMEDIES
8# Imposition of .ithholding tax on ertain inome
pa!ments ;Sec. 57()*, NIRC<
)# Iss"ane of reven"e reg"lations b! administrative
agen! ;Sec. 2001 205, NIRC<
*# =ail"re to obe! s"mmons ;Sec. 2'', NIRC<
+# ;elaration "nder penalties of per/"r! ;Sec. 2'7,
NIRC<
Administrative inter,retations should be res,ected
The interpretation given b! the administrative
offier harged b! reason of his offie to arr! o"t the
provisions of a stat"te sho"ld be respeted .henever
s"h interpretation is assailed b! someone .ho alleges
no reasons of .eight to ontradit or .ea3en it.
(Commissioner vs. 6e.esma. &1 SCR% 95*
-rinci,le of Legislative A,,roval by !eenactment
The priniple of legislative approval of
administrative interpretation of a stat"te is to the effet
that the reenatment of a stat"te s"bstantiall!
"nhanged is pers"asive indiation of the adoption b!
&ongress of a prior exe"tive onstr"tion. (%)S1C)N
)roa.cas!in" Corp. vs. C$% an. Commissioner. 18
SCR% 102*
ADMINISTRATIVE REMEDIES OF THE
GOVERNMENT
A. -o&er to Assess
'res"mption of &orretness of the assessments
made b! the &ommissioner
Assessment 'roess
8# Examination of boo3s of ao"nts and
other ao"nting reords of taxpa!ers b!
reven"e offiers to determine his orret
tax liabilit!
)# 'reparation of tentative findings and
holding of informal onferene
*# Iss"ane of 'reliminar! Assessment
Notie %'AN-
+# Iss"ane of =ormal Assessment Notie
%=AN- and letter of demand
B. -o&er to Collect )eficiency or )elin.uent Ta'es
8# =iling of administrative protest b! the taxpa!er
against the assessment %*@5da! period-
)# S"bmission of do"mentar! evidene %>@5da!
period-
Note: S"bmission of do"ments .ithin the
>@ da! period is op!ional !o !he !a#pa5er#
(S!an.ar. Char!ere. )an9 vs. CIR, C$% Case
No. 5'9', %-"-s! 1', 21*
*# ;enial of protest b! the &ommissioner or his
a"thori0ed representative
+# Appeal b! the taxpa!er of the final deision of
the &ommissioner or his a"thori0ed
representative on the disp"ted assessment to
the &TA %.ithin *@ da!s from the reeipt of
the deision( or in ase of ination from the
lapse of the 8,@ da! period-
>
%.minis!ra!ive Reme.ies o, !he Governmen!
8# Tax Lien
)# ;istraint of personal propert!( or lev! of real
propert!( or garnishment of ban3 deposits
*# Sale of propert! of a delin<"ent taxpa!er
+# =orfeit"re
9# &ompromise and abatement
># 'enalties and fines
?# S"spension of b"siness operations
No!e: $he ,ollo2in" are !he cases 2hich ma5 be
compromise.:
1. Delin?-en! acco-n!s4
2. Cases -n.er a.minis!ra!ive pro!es! a,!er
iss-ance o, !he @inal %ssessmen! No!ice !o !he
!a#pa5er 2hich are s!ill pen.in" in !he
Re"ional /,,ices, Reven-e Dis!ric! /,,ices,
6e"al Service, 6ar"e $a#pa5er Service (6$S*,
Collec!ion Service, +n,orcemen! Service an.
o!her o,,ices in !he Na!ional /,,ice4
&. Civil !a# cases bein" .isp-!e. be,ore !he
co-r!s4
0. Collec!ion cases ,ile. in co-r!s4
5. Criminal viola!ions, o!her !han !hose alrea.5
,ile. in co-r! or !hose involvin" criminal !a#
,ra-.. (Reven-e Re"-la!ion No. &12*
<UDICIAL REMEDIES OF THE GOVERNMENT
7. Ci.i( Aci")
a# B! filing a ivil ase for the olletion of a
s"m of mone! .ith the proper reg"lar o"rt
&olletibilit! arises:
%8- Self5assessed tax sho.n in the ret"rn
.as not paid .ithin the date
presribed b! la.
%)- =inal assessment is not protested
administrativel! .ithin *@ da!s from
date of reeipt
%*- Non5ompliane .ith the ondition
laid in the approval of the protest
%+- =ail"re to file a timel! appeal to the
&TA on the final deision of the
&ommissioner or his a"thori0ed
representative on the disp"ted
assessment
b# B! filing an ans.er to the petition for revie.
filed b! the taxpa!er .ith the &TA
>. Cri,i)&( Aci")
a# Attempt to evade or defeat tax (Sec. 250,
NIRC*
b# =ail"re to file ret"rn( s"ppl! orret and
a"rate information( pa! tax( .ithhold and
remit tax and ref"nd exess taxes .ithheld on
ompensation (Sec. 255, NIRC*
TAX REMEDIES OF THE TAXPAYER
REMEDIES OF TAXPAYERS
Administrative !emedies
1. Before pa!ment of the defiien! tax
assessment J file a .ritten protest .ithin *@
da!s from date of reeipt (Sec. 228, NIRC*
2. After pa!ment of the defiien! tax assessment
J file a .ritten laim for ref"nd or tax redit
.ith the appropriate government agen! %the
BIR or the ;epartment of =inane One Stop
Shop &enter- ;Secs. 20 (C* an. 229, NIRC<
/udicial !emedies
If the protest is denied in .hole or in part( or is
not ated "pon( .ithin 8,@ da!s from s"bmission
of do"ments( the taxpa!er adversel! affeted b!
the deision or ination ma! appeal to the &TA
.ithin *@ da!s from reeipt of the said deision( or
from the lapse of the 8,@ da! periodE other.ise( the
deision shall beome final( exe"tor! and
demandable# (Sec. 228, NIRC*
No!e: I! has been hel. b5 !he Co-r! o, $a#
%ppeals !ha!A In cases o, inac!ion, Sec!ion 228 o, !he
$a# Co.e merel5 "ave !he !a#pa5er an op!ion: ,irs!, he
ma5 appeal !o !he Co-r! o, $a# %ppeals 2i!hin !hir!5
(&* .a5s ,rom !he lapse o, !he one h-n.re. ei"h!5
(18* .a5 perio. provi.e. ,or -n.er !he sai. sec!ion, or
secon., he ma5 2ai! -n!il !he Commissioner .eci.es on
his pro!es! be,ore he eleva!es his case. $he !a#pa5er
2as "iven !his op!ion so !ha! in case his pro!es! is no!
ac!e. -pon 2i!hin !he 181.a5 perio., he ma5 be able
!o see9 imme.ia!e relie, an. nee. no! 2ai! ,or an
in.e,ini!e perio. o, !ime ,or !he Commissioner !o
.eci.e. )-! i, he chooses !o 2ai! ,or a posi!ive ac!ion on
!he par! o, !he Commissioner, !hen !he same co-l. no!
res-l! in !he assessmen! becomin" ,inal, e#ec-!or5 an.
.eman.able.A (Lascona Land Co.0 Inc. vs. CI!0 CTA
Case No. 1222. /anuary 30 45556
%ubstantive !emedies
8# M"estioning the onstit"tionalit! or validit! of
tax stat"tes or reg"lations
)# Non5retroativit! of r"lings (Sec. 20', NIRC*
*# =ail"re to inform the taxpa!er in .riting of the
legal and fat"al bases of assessment ma3es it
void (Sec. 228, NIRC*
+# 'reservation of boo3s of ao"nts and one5a5
!ear examination for inome tax p"rposes
(Sec. 2&5, NIRC*
9# '"bliation of RA& and RAO J 2hile the
r"le5ma3ing a"thorit! of the &IR is not
do"bted( li3e an! other government agen!(
the &ommissioner ma! not disregard legal
re<"irements or appliable priniples in the
exerise of <"asi5legislative po.ers# The d"e
?
observane of the re<"irements of notie(
hearing and p"bliation sho"ld not have been
ignored. (CIR vs. 8ichel 6h-illier Pa2nshop.
GR No. 15907. 3-l5 15, 2&*
-rocedural !emedies (!evenue !egulations No.
74899
8# Notie for Informal &onferene
Reven-e /,,icer
a# A"dits the taxpa!erGs reords
b# States in his report .hether or not the
taxpa!er agrees .ith his findings that the
taxpa!er is liable for defiien! tax or
taxes#
)# Informal &onferene Letter
Reven-e Dis!ric! /,,ice or Special
Inves!i"a!ion Division or Chie, o, Division
concerne. (in case o, )IR Na!ional /,,ice*
a# Informs the taxpa!er in .riting( in ase
the taxpa!er is not amenable( of the
disrepan! or disrepanies in the
taxpa!erGs pa!ment of his internal reven"e
taxes for the p"rpose of Informal
&onferene$
8- Taxpa!er respondsE or if
)- Taxpa!er fails to respond .ithin
fifteen %89- da!s from date or reeipt
of notie of informal onferene( he
shall be onsidered in defa"lt#
b# Endorses the ase( in ase of defa"lt or
taxpa!erGs response is not aeptable( to
the Assessment ;ivision of the Reven"e
Regional Offie or to the &ommissioner or
his d"l! a"thori0ed representative
*# 'reliminar! Assessment Notie %'AN-
%ssessmen! Division or !he Commission or his
.-l5 a-!hori7e. represen!a!ive
a# Revie.s and eval"ates# If there exists
s"ffiient basis to assess the taxpa!er for
an! defiien! tax or taxes( the said Offie
shall iss"e to the taxpa!er a 'AN for the
proposed assessment#
8- Taxpa!er responds .ithin fifteen %89-
da!s from date of reeipt of the 'AN
)- If the taxpa!er fails to respond .ithin
89 da!s from reeipt of 'AN( he shall
be onsidered in defa"lt#
b# Iss"es a formal letter of demand and
assessment notie( in ase of defa"lt or
taxpa!erGs response is not aeptable(
alling for the pa!ment of the taxpa!erGs
defiien! tax liabilit!#
4o.ever( a pre5assessment notie shall
not be re<"ired in the follo.ing ases( in
.hih ase( a formal assessment notie shall
be s"ffiient:
%8- 2hen the finding for an! defiien!
tax is the res"lt of mathematial error
in the omp"tation of the tax as
appearing on the fae of the ret"rnE or
%)- 2hen a disrepan! has been
determined bet.een the tax .ithheld
and the amo"nt at"all! remitted b!
the .ithholding agentE or
%*- 2hen a taxpa!er .ho opted to laim
a ref"nd or tax redit of exess
reditable .ithholding tax for a
taxable period .as determined to
have arried over and a"tomatiall!
applied the same amo"nt laimed
against the estimated tax liabilities for
the taxable <"arter or <"arters of the
s"eeding taxable !earE or
%+- 2hen the exise tax d"e on exisable
artiles has not been paidE
%9- 2hen an artile loall! p"rhased or
imported b! an exempt person( s"h
as( b"t not limited to( vehiles( apital
e<"ipment( mahineries and spare
parts( has been sold( traded or
transferred to non5exempt persons#
+# =ormal Letter of ;emand and Assessment
Notie
Commissioner or his .-l5 a-!hori7e.
represen!a!ive iss"es the formal letter of
demand and assessment notie .hih shall
state the fats( the la.( r"les and reg"lations( or
/"rispr"dene on .hih the assessment is
basedE other.ise( it shall be void#
9# ;isp"ted Assessments
$a#pa5er
a# 'rotests administrativel! against the
formal letter of demand and assessment
notie .ithin thirt! %*@- da!s from reeipt
thereof# Other.ise( the assessment shall
beome final( exe"tor! and demandable#
b# S"bmits re<"ired s"pporting do"ments
.ithin sixt! %>@- da!s from the date of
filing his letter of protest( other.ise( the
assessment shall beome final( exe"tor!
and demandable#
# Appeals to the &o"rt of Tax Appeals( if
protest is denied in .hole or in part b! the
&ommissioner( .ithin thirt! %*@- da!s
from date of reeipt of deisionE
other.ise( the assessment shall beome
final( exe"tor! and demandable#
If the &ommissioner fails to at
on the taxpa!erGs protest .ithin
one h"ndred eight! da!s %8,@-
da!s from date of s"bmission of
re<"ired s"pporting do"ments(
the taxpa!er ma! appeal to the
&o"rt of Tax Appeals .ithin
,
thirt! %*@- da!s from the lapse of
the 8,@5da! periodE other.ise(
the assessment shall beome
final( exe"tor! and demandable#
Cons!r-c!ive Service o, No!ice
There shall be onstr"tive servie of notie in the
follo.ing ases:
8# If the notie to the taxpa!er
is served b! registered mail( and no
response is reeived from the taxpa!er
.ithin the presribed period
)# If the notie is personall!
served on the taxpa!er or his d"l!
a"thori0ed representative( .ho( ho.ever(
ref"se to a3no.ledge reeipt thereof
*# B! leaving the notie in the
premises of the taxpa!er and this fat of
servie is attested to( .itnessed and signed
b! at least t.o %)- reven"e offiers other
than the reven"e offier .ho
onstr"tivel! served the same# (Sec.
&.1.7, Rev. Re"s. No. 12199*
ASSESSMENT AND PROTEST
%ssessmen!
The general r"le is that taxes are self5assessing and
th"s( do not re<"ire the iss"ane of an assessment notie
in order to establish the tax liabilit! of a taxpa!er# The
exeptions are:
8# Tax period of a taxpa!er is terminated ;Sec.
'(D*, NIRC<
)# ;efiien! tax liabilit! arising from a tax a"dit
ond"ted b! the )IR ;Sec. 5'()*, NIRC<
*# Tax lien ;Sec. 219, NIRC<
+# ;issolving orporation ;Sec. 52(c*, NIRC<
Si"ni,icance o, %ssessmen!:
a# In the proper p"rs"it of /"diial and
extra/"diial remedies to enfore taxpa!er
liabilities and ertain matters that relate to
it( s"h as the imposition of s"rharges
and interests(
b# In the appliation of stat"te of limitations(
# In the establishment of tax liens( and
d# In estimating the reven"es that ma! be
olleted b! government in the oming
!ear#
Pro!es!
8# ;iret denial of protest
%.minis!ra!ive .ecision on a .isp-!e.
assessmen! J The deision of the
&ommissioner or his d"l! a"thori0ed
representative shall %a- state the fats(
the appliable la.( r"les( and
reg"lations( or /"rispr"dene on .hih
s"h deision is basedE other.ise( the
deision shall be void( in .hih ase(
the same shall not be onsidered a
deision on a disp"ted assessment( and
%b- that the same is his final deision#
(Sec. &.1.5, Rev. Re"s. No. 12 B 99*
)# Indiret denial of protest %C"rispr"dene-
a# &ommissioner did not r"le on the
taxpa!erGs motion for reonsideration of
the assessment J It .as onl! .hen
respondent reeived the s"mmons on the
ivil ation for the olletion of defiien!
inome tax that the period to appeal
ommened to r"n# (Commissioner vs.
=nion Shippin" Corp. 185 SCR% 507*
b# Referral b! the &ommissioner of re<"est
for reinvestigation to the Soliitor 6eneral
(Rep-blic vs. 6im $ian $en" Sons*
# Reiterating the demand for immediate
pa!ment of the defiien! tax d"e to
taxpa!erGs ontin"ed ref"sal to exe"te
.aiver (Commissioner vs. %5ala
Sec-ri!ies Corp. 7 SCR% 20*
PRESCRIPTIVE PERIODS UNDER THE TAX CODE
7. Peri"* " &ssess !e &'
General R-le:
T4REE %*- NEARS after the date the ret"rn is
d"e or filed( .hihever is later (Sec. 2&, 1997
NIRC*.
+#cep!ions:
1. =AIL7RE TO =ILE A RET7RN: TEN %8@-
NEARS from the date of the disover! of the
omission to file the ret"rn (Sec.222;%<*4
2. =ALSE OR =RA;7LENT RET7RN .ith
INTENTION TO EVA;E T4E TAO: TEN
%8@- NEARS from the date of the disover! of
the falsit! or fra"d (Sec.222 ;%<
>. Peri"* " c"((ec !e &ssesse* &'
a# =IVE %9- NEARS J from assessment or .ithin
period for olletion agreed "pon in .riting before
expiration of the 95!ear period (Sec. 222, 1997
NIRC*.
b# TEN %8@- NEARS J .itho"t assessment in ase
of false or fra"d"lent ret"rn .ith intent to evade or
fail"re to file ret"rn (Sec. 222, 1997 NIRC*.
E. Peri"* " $i(e cri,i)&( &ci")
=IVE %9- NEARS from:
%8- da! of the
commission o, !he viola!ion of the la.( and
%)- If the same be
not 3no.n, ,rom .iscover5 !hereo, an. !he
ins!i!-!ion o, !he C-.icial procee.in"s for
its investigation and p"nishment#
:
FALSE RETURN J FRAUDULENT RETURN
The distintion bet.een a ,alse re!-rn and a
,ra-.-len! re!-rn is that the first merel! implies a deviation
from the tr"th or fat .hether intentional or not( .hereas the
seond is intentional and deeitf"l .ith the sole aim of
evading the orret tax d"e#
There is fra"d in the follo.ing deided ases:
8# =ra"d m"st be the prod"t of a deliberate intent to
evade taxes (3alan.oni vs. Rep-blic. 15 SCR% 51*
)# Simple statement that ret"rn filed .as not
fra"d"lent does not disprove existene of fra"d
($a5en"co vs. Collec!or. C$% Case No. 51. 3-l5 &1,
19'0*
*# S"bstantial "nder5delarations of inome for six
onse"tive five !ears demonstrate fra"d"lene of
ret"rn (Pere7 vs. C$%. 61157. 8a5 &, 1958*
+# 'resene of fititio"s expenses( .ith no evidene
presented( proves existene of fra"d ($an G-an vs.
Commissioner*
4o.ever( the o"rts did not onsider the tax ret"rns
filed as false or fra"d"lent .ith intent to evade the
pa!ment of tax in the follo.ing ases:
8# Aere "nderstatement in the tax ret"rn .ill not
neessaril! impl! fra"d (3alan.oni vs. Rep-blic*
)# Sale of real propert! for a prie less than its fair
mar3et val"e is not neessaril! a false ret"rn
(Commissioner vs. ).@. Goo.rich Phils.*
*# =ra"d is a <"estion of fat and the ir"mstanes
onstit"ting fra"d m"st be alleged and proved in
the trial o"rt (Commissioner vs. %5ala Sec-ri!ies.
7 SCR% 20*
+# =ra"d is never imp"ted and the o"rts never s"stain
findings of fra"d "pon ir"mstanes that onl!
reate s"spiion (Commissioner vs. 3avier. 199
SCR% 820*
9# Aista3es of reven"e offiers on three different
oasions remove element of fra"d (%7nar vs. C$%
an. Collec!or*
CIVIL PENALTIES
CIVIL PENALTY J SURCHARGE
7. >9@ s+rc!&r5e
%8- =ail"re to file an! ret"rn and pa! the tax d"e
thereon as re<"ired "nder the provisions of this
&ode or r"les and reg"lations on the date
presribedE or
%)- 7nless other.ise a"thori0ed b! the
&ommissioner( filing a ret"rn .ith an internal
reven"e offier other than those .ith .hom the
ret"rn is re<"ired to be filedE or
%*- =ail"re to pa! the defiien! tax .ithin the
time presribed for its pa!ment in the notie of
assessmentE or
%+- =ail"re to pa! the f"ll or part of the amo"nt of
tax sho.n on an! ret"rn re<"ired to be filed
"nder the provisions of this &ode or r"les and
reg"lations( or the f"ll amo"nt of tax d"e for
.hih no ret"rn is re<"ired to be filed( on or
before the date presribed for its pa!ment.
(Sec. 208, NIRC4 Sec. 0.1, Rev. Re"s. No. 121
99*
>. 9:@ s+rc!&r5e
%8- in ase of .illf"l neglet to file the ret"rn
.ithin the period presribed b! the &ode( or
.ill not appl! in ase a taxpa!er( .itho"t
notie from the &ommissioner( or his d"l!
a"thori0ed representative( vol"ntaril! files
the said ret"rn %onl! )9F shall be
imposed-
9@F s"rharge shall be imposed in ase
the taxpa!er files the ret"rn onl! after
prior notie in .riting from the
&ommissioner or his d"l! a"thori0ed
representative (Sec. 0.2, Rev. Re". 12199*
%)- in ase a false or fra"d"lent ret"rn is .illf"ll!
made
'rima =aie evidene
s"bstantial "nderdelaration (e#cee.in"
&D o, !ha! .eclare.* of taxable sales(
reeipts or inome( or
s"bstantial overstatement (e#cee.in" &D
o, ac!-al .e.-c!ions* of ded"tions %Se#
)+,-
No!e: A taxpa!er ma! modif!( hange or
amend his tax ret"rn .ithin three %*- !ears
from the date of s"h filing( provided ho.ever
that no notie for a"dit or investigation of s"h
ret"rn( statement or delaration has( in the
meantime been at"all! served "pon the
taxpa!er# (Sec. ' (%*, NIRC*. Th"s if the
amended ret"rn has been filed onl! after the
iss"ane of the Letter of A"thorit! for the
investigation or in the o"rse of said
investigation( the 9@F ivil penalt! shall be
applied# (Sec. 0.2.2, Rev. Re"s. No. 12199*
COURT OF TAX APPEALS
U)*er RA NO. 8>?> 6A##r".e* M&rc! E:3 >::;B
The ran3 .as elevated to the level of a ollegiate
o"rt .ith speial /"risdition( and a ne. division
.as reated#
Same level as the &o"rt of Appeals( possessing all
the inherent po.ers of a &o"rt of C"stie
&onsists of a 'residing C"stie and five %9-
Assoiate C"sties
8@
Aa! sit en banc or in t.o %)- ;ivisions( eah
division onsisting of three %*- C"sties# =o"r %+-
C"sties shall onstit"te a <"or"m for sessions en
banc and t.o %)- C"sties for sessions of a
;ivision#
The affirmative votes of fo"r %+- members of the
&o"rt en banc or t.o %)- members of a ;ivision( as
the ase ma! be( shall be neessar! for the
rendition of a deision or resol"tion#
E'#&)*e* <+ris*ici")
I. E'c(+si.e &##e((&e K+ris*ici") " re.ie% b/
&##e&(
%a- ;eisions of the Commissioner o, In!ernal
Reven-e
%8- in ases involving disp"ted
assessments( ref"nds of internal
reven"e taxes( fees or other harges(
penalties in relation thereto(
%)- or other matters arising "nder the
NIR& or other la.s administered b!
the BIRE
%b- Ination b! the Commissioner o, In!ernal
Reven-e
%8- in ases involving disp"ted
assessments( ref"nds of internal
reven"e taxes( fees or other harges(
penalties in relation thereto(
%)- or other matters arising "nder the
NIR& or other la.s administered b!
the BIR( .here the NIR& provides a
speifi period for ation( in .hih
ase the ination shall be deemed a
denialE
%- ;eisions( orders or resol"tions of the
R$C
J in loal tax ases originall! deided
or resolved b! them in the exerise of their
original or appellate /"risditionE
%d- ;eisions of the Commissioner o,
C-s!oms
%8- in ases involving liabilit! for
"stoms d"ties( fees or other mone!
harges( sei0"re( detention or release
of propert! affeted( fines( forfeit"res
or other penalties in relation thereto(
%)- or other matters arising "nder the
&"stoms La. or other la.s
administered b! the B"rea" of
&"stomsE
%e- ;eisions of the Cen!ral )oar. o,
%ssessmen! %ppeals
J in the exerise of its appellate
/"risdition over ases involving the
assessment and taxation of real propert!
originall! deided b! the provinial or it!
board of assessment appealsE
%f- ;eisions of the Secre!ar5 o, @inance
J on "stoms ases elevated to him
a"tomatiall! for revie. from deisions of
the &ommissioner of &"stoms .hih are
adverse to the 6overnment "nder Setion
)*89 of the Tariff and &"stoms &odeE
%g- ;eisions of the Secre!ar5 o, $ra.e an.
In.-s!r5 in the ase of nonagri"lt"ral
prod"t( ommodit! or artile( and the
Secre!ar5 o, %"ric-l!-re in the ase of
agri"lt"ral prod"t( ommodit! or artile(
J involving d"mping and
o"ntervailing d"ties "nder Ses# *@8and
*@)( respetivel!( of the Tariff and
&"stoms &ode( and safeg"ard meas"res
"nder RA No( ,,@@( .here either part!
ma! appeal the deision to impose or not
to impose said d"ties#
II. <+ris*ici") ".er c&ses i)."(.i)5 cri,i)&( c&ses
%a- +#cl-sive ori"inal /"risdition over all
riminal ases arising from violations of
the NIR& or Tariff and &"stoms &ode and
other la.s administered b! the BIR or the
B"rea" of &"stoms
2here the prinipal amo"nt of taxes
and fees( exl"sive of harges and
penalties laimed is less than one
million pesos %'8(@@@(@@@#@@- or
.here there is no speified amo"nt
laimed J the offenses or penalties
shall be tried b! the re"-lar co-r!s
and the /"risdition of the &TA shall
be appellate#
An! provision of la. or the R"les of
&o"rt to the ontrar! not.ithstanding(
the riminal ation and the
orresponding ivil ation for the
reover! of ivil liabilit! for taxes
and penalties shall at all times be
sim"ltaneo"sl! instit"ted .ith( and
/ointl! determined in the same
proeeding b! the &TA( the filing of
the riminal ation being deemed to
neessaril! arr! .ith it the filing of
the ivil ation( and no right to
reserve the filing of s"h ivil ation
separatel! from the riminal ation
.ill be reogni0ed#
%b- +#cl-sive appella!e /"risdition in
riminal offenses
88
%8- Over appeals from the /"dgments(
resol"tions or orders of the RT& in
tax ases originall! deided b! them(
in their respetive territorial
/"risdition#
%)- Over petitions for revie. of the
/"dgments( resol"tions( or orders of
the RT& in the exerise of their
appellate /"risdition over tax ases
originall! deided b! the
Aetropolitan Trial &o"rts( A"niipal
Trial &o"rts( and A"niipal &ir"it
Trial &o"rts in their respetive
/"risdition#
III. <+ris*ici") ".er &' c"((eci") c&ses
%a- +#cl-sive ori"inal /"risdition in tax
olletion ases involving final and
exe"tor! assessments for taxes( fees(
harges and penalties#
In olletion ases .here the prinipal
amo"nt of taxes and fees( exl"sive of
harges and penalties( laimed is less
than one million pesos
%'8(@@@(@@@#@@- J shall be tried b! the
proper 8-nicipal $rial Co-r!(
8e!ropoli!an $rial Co-r!( and
Re"ional $rial Co-r!#
%b- +#cl-sive appella!e /"risdition in tax
olletion ases
%8- Over appeals from the /"dgments(
resol"tions or orders of RT& in tax
olletion ases originall! deided b!
them( in their respetive territorial
/"risdition#
%)- Over petitions for revie. of the
/"dgements( resol"tions or orders of
the RT& in the exerise of their
appellate /"risdition over tax
olletion ases originall! deided b!
the Aetropolitan Trial &o"rts(
A"niipal Trial &o"rts and A"niipal
&ir"it Trial &o"rts( in their
respetive /"risdition#
555 in riminal and olletion ases( the
6overnment ma! diretl! file the said ases .ith
the &TA overing amo"nts .ithin its exl"sive and
original /"risdition#
M"*es "$ A##e&(
%8- B! filing a petition for revie. "nder a
proed"re analogo"s to that provided for "nder R"le +)
of 8::? R"les on &ivil 'roed"re
deision( r"ling( or ination of the
Commissioner o, In!ernal Reven-e(
Commissioner o, C-s!oms( the Secre!ar5
o, @inance( the Secre!ar5 o, $ra.e an.
In.-s!r5 or the Secre!ar5 o, %"ric-l!-re or
the Re"ional $rial Co-r!s
this appeal shall be heard b! a ;ivision of
the &TA
%)- B! filing a petition for revie. "nder a
proed"re analogo"s to that provided for "nder R"le +*
of 8::? R"les on &ivil 'roed"re
deisions or r"lings of the Cen!ral )oar.
o, %ssessmen!s %ppeals and the Re"ional
$rial Co-r!s in the exerise of its
appella!e /"risdition
this appeal shall be heard b! the &TA en
ban#
Pr"ce*+re4
8# The appeal shall be filed
.ith the &TA .ithin thirt! %*@- da!s after the
reeipt of s"h deision or r"ling or after the
expiration of the period fixed b! la. for s"h
ation#
)# A part! adversel! affeted b!
a r"ling( order or deision of a ;ivision of the
&TA ma! file a motion for reonsideration or
ne. trial before the same ;ivision .ithin 89
da!s from notie#
*# A part! adversel! affeted b!
a resol"tion of a ;ivision of the &TA on a
motion for reonsideration or ne. trial ma!
file a petition for revie. .ith the &TA en ban#
+# A part! adversel! affeted b!
a deision or r"ling of the &TA en ban ma!
file .ith the S"preme &o"rt a verified petition
for revie. on ertiorari p"rs"ant to R"le +9 of
the 8::? R"les on &ivil 'roed"re#
In ases .here the BIR have not deided on
the protest after 8,@ da!s and an appeal has
been filed .ith the &TA( the BIR an not later
deide on the protest sine "nder R"les +) and
+* of the R"les of &o"rt( the BIR has onl!
resid"al /"risdition over the ase after the
appeal has been made#
E$$ec "$ A##e&(
No appeal ta3en to the &TA shall s"spend the
pa!ment( lev!( distraint( andDor sale of an! propert! of the
taxpa!er for the satisfation of his tax liabilit! as provided
b! existing la.#
H"%e.er3 .hen in its opinion the olletion ma!
/eopardi0e the interest of the government andDor the
taxpa!er( the &TA ma! s"spend the said olletion and
re<"ire the taxpa!er either to deposit the amo"nt laimed or
8)
to file a s"ret! bond for not more than do"ble the amo"nt
.ith the &o"rt#
:::: ;++)L$C< *$T$!" -AN="!+% >
-AN="!A%:::
Al&ays remember you are not given a dream &ithout being
given the ,o&er to ma?e it come true@
By: Atty. !o&ena *. Aari0 C-A
8*