Tax - 4 - Module - 3 With Answer
Tax - 4 - Module - 3 With Answer
Tax - 4 - Module - 3 With Answer
MODULE 2
NOTES IN REMEDIES
INTRODUCTION
Assessment should be made within 3 years from the date of filing of return,
or from the last day required by law for filing, if the return was filed before
such last day.
Collection should be made within 5 years from the date of assessment, either
by summary proceedings or judicial proceedings.
a. Administrative remedies
b. Judicial remedies
1. Civil actions
2. Criminal actions
a. Administrative remedies
1. Reinvestigation or reconsideration
2. Compromise
3. Claim for refund
b. Judicial remedies
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REMEDIES IN GENERAL
Assessment
Assessment should be made within 3 years from the date of filing of return,
or from the last day required by law for filing, if the return was filed before
such last day.
Collection
Collection should be made within 5 years from the date of assessment, either
by summary proceedings or judicial proceedings.
Any internal revenue tax, which has been assessed within the extended
period agreed upon may be collected by distraint or levy or by a proceeding
in court within the period agreed upon in writing before the expiration of the 5
year period. The period so agreed upon may be extended by subsequent
written agreements made before the expiration of the period previously
agreed upon.
Collection should be made within 3 years from the date of filing of return, or
from the last day required by law for filing, if the return was filed before such
last day, by judicial proceedings only.
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2. Authority of the Commissioner to compromise, abate and refund or credit
taxes
Where the basic tax involved exceeds One million pesos (P1,000.000)
or where the settlement offered is less than the prescribed minimum
rates, the compromise shall be subject to the approval of the Evaluation
Board which shall be composed of the Commissioner and the four (4)
Deputy Commissioners.
1. Delinquent accounts;
2. Cases under administrative protest pending in the regional offices,
revenue district offices, legal service, large taxpayer service (LTS),
collection service, enforcement service and other offices in the
national office;
3. Civil tax cases being disputed before the courts;
4. Collection cases filed in courts;
5. Criminal violations, other than those already filed in court or those
involving criminal tax fraud; and
6. Cases covered by pre-assessment notices but taxpayer is not
agreeable to the findings of the audit office as confirmed by the re-
view office.
Kinds of distraint:
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4. Actual distraint is made on the property only of a delinquent taxpayer ,
while constructive distraint may be made on the property of any
taxpayer, whether delinquent or not;
5. In actual distraint there is a taking of possession or transfer of control
over the property distrained, while in constructive distraint, the taxpayer
is merely prohibited from disposing of his property;
6. Actual distraint is effected by leaving a list of the property distained or
by service of a warrant of distraint or garnishment, while constructive
distraint, by requiring the taxpayer to sign a receipt of the property or
by the revenue officer preparing and leaving a list of such property; and
7. Actual distraint is an immediate step for collection of delinquent taxes,
while constructive distraint is not necessarily so, its purpose being to
prevent the taxpayer from disposing of his property pending final
determination of his tax liability.
1. It shall be made not earlier than 3 months nor later than 6 months from
receipt of demand by the taxpayer;
2. The distraint of personal property shall be made by the Commissioner
of Internal Revenue or his duly authorized representative if the amount
involved is more than P1,000,000 or the Revenue District Officer, if the
amount involved is P1,000,000 or less.
Distraint vs Levy
The Bureau of Internal Revenue (BIR) files civil or criminal action before the
Municipal Trial Court, Regional Trial Court or the Court of Tax Appeals with
appropriate jurisdiction.
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PROTEST OF ASSESSMENT
1. Period of assessment
Assessment should be made within 3 years from the date of filing of return,
or from the last day required by law for filing, if the return was filed before
such last day.
Jeopardy assessment
4. If the taxpayer does not do anything within 30 days from receipt of the
notice of assessment, the assessment becomes final, executory,
demandable and not appealable to the Court of Tax Appeals, and the
BIR could avail of its remedies to collect the tax.
5. The BIR denies the administrative protest or dispute within 180 days
from receipt of the relevant supporting documents.
The BIR either denies the administrative protest or dispute, or does not
act on the administrative protest or dispute.
1. The BIR may file an action with the CTA – Division where the principal
amount of taxes and fees, exclusive of charges and penalties, claimed
is P1,000,000.00or more.
The BIR may file an action with the Regional Trial Court or the
Municipal Trial Court, as the case may be, where the principal amount
of taxes and fees, exclusive of charges and penalties, claimed is less
than P1,000,000.00.
2. The decision of the Regional Trial Court in the exercise of its original
jurisdiction or appellate jurisdiction is appealable to the CTA - Division.
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3. Decisions, orders or resolutions of the Regional Trial Courts in
local tax cases originally decided or resolved by them in the
exercise of their original or appellate jurisdiction.
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EXERCISE
(REMEDIES)
1. The civil remedies for the collection of internal revenue taxes, fees or
charges, and any increment thereto resulting from delinquency shall be the
following, except:
4. All criminal violations involving the Tax Reform Act may be compromised.
Which of the following may not?
a. Delinquent accounts;
b. Civil tax cases being disputed before the courts;
c. Collection cases filed in courts;
d. Cases which become final and executory after final judgment of a court.
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13. Which of the following statements is wrong? An appeal on an assessment
may be made to the Court of Tax Appeals:
15. Which of the following is the correct prescription period for tax assessment?
16. When could levy of real property as a civil tax collection remedy be done?
17. Distraint proceeding as a tax collection remedy could be carried out by the
Revenue District Office when the pertaining tax liability is
18. A tax collection remedy where the Commissioner informs the Register of
Deeds so that the real properties of the delinquent taxpayer could not be
transacted or transferred until the tax liabilities are fully paid is
19. If taxes are not voluntarily paid by the taxpayer, the seizure by the
government of personal property to enforce tax payments followed by the its
public sale pertains to
a. Distraint c. Forfeiture
b. Levy d. confiscation
a. Assessment c. Expropriation
b. Forfeiture d. Compromise settlement
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a. Confiscation c. Forfeiture
b. Distraint d. Levy
22. In case the warrant of levy on real property is not issued before or
simultaneously with the warrant of distraint on personal property, and
personal property of the taxpayer is not sufficient to satisfy his tax
delinquency, the Commissioner or his duly authorized representative shall
within
a. 30 days after execution of the distraint, proceed with the levy on the
taxpayer’s real property.
b. 60 days after execution of the distraint, proceed with the levy on the
taxpayer’s real property.
c. 30 days after execution of the distraint, proceed with the levy and
distraint of the taxpayer’s real property.
d. 60 days after execution of the distraint, proceed with the levy and
distraint of the taxpayer’s real property.
23. The following are requisites for exercise of remedy of distraint or levy. Which
is the exception?
24. After the taxpayer has filed a protest of assessment within the reglamentary
period, he has to submit supporting documents within
26. Statement 1: If the taxpayer does not do anything within 30 days from
receipt of the notice of assessment, the assessment becomes final,
executory.
Statement 2: If the taxpayer receives the BIR’s denial of his administrative
protest or dispute, the taxpayer should appeal the decision to the Court of
Tax Appeals within 30 days from receipt of the denial.
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28. The Commissioner of Internal Revenue plans to avail of judicial remedy for
collection of tax liability of a taxpayer amounting to P1,500,000. Where will
the Commissioner file the collection case?
33. Statement 1: A claim for refund for tax erroneously paid must be made by
the taxpayer within 2 years from the date of payment.
Statement 2: In case of denial by the Bureau of Internal Revenue of claim for
refund for tax erroneously paid, the taxpayer has 30 days to appeal to the
Court of Tax Appeals, and in no case shall the appeal period go beyond 2
years from the date of payment.
34. Date the national internal revenue tax erroneously paid – January 5, 2019;
Date a claim for refund was filed with the Bureau of Internal Revenue –
February 6, 2020; Date decision of denial by the Bureau of Internal Revenue
was received – October 28, 2020. Last day to appeal to the Court of Tax
Appeals:
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a. February 6, 2021 c. December 27, 2020
b. January 5, 2021 d. November 27, 2020
35. Date the national internal revenue tax was paid – April 10, 2018. Claim for
refund was filed with the Bureau of Internal Revenue – March 10, 2019. Date
decision of denial of refund was received – March 21, 2020. Last day to
appeal to the Court of Tax Appeals:
36. Statement 1: If before the expiration of the time prescribed for the
assessment of the tax, both the Commissioner and the taxpayer have agreed
in writing to its assessment after such time, the tax may be assessed within
the period of extension agreed upon.
Statement 2: Under the doctrine of equitable recoupment, a liability for tax
the collection of which has not prescribed may be offset against a refund of
another tax the refund of which has prescribed. Conversely, a liability for a
tax the collection for which has prescribed may be offset against a refund of
another tax the refund for which has not yet prescribed. This American
jurisprudence can very well apply in the Philippines.
39. Statement 1: A tax lien attaches to all the property and property rights of a
taxpayer only from the time when the assessment was made by the Bureau
of Internal Revenue for the unpaid tax, with interest, penalties and costs.
Statement 2: A tax lien shall not be valid against any mortgagee, purchaser
or judgment creditor until notice of such lien shall be filed in the office of the
register of Deeds of the province or city where the property is situated or
located.
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