Tax Remedies

For taxation purposes,-a remedy may refer to the enforcement of right, prevention of violation of
such right or a cause of action that a taxpayer or the government may exercise to protect their
respective rights
Remedies under the Tax Code
Sec. 202 Final deed to Purchaser
Taxpayer shall not redeem the property as herein provided, the Revenue District Officer shall, as
grantor, execute a deed conveying to the purchaser so much of the property as has been sold,
free from all liens of any kind whatsoever.
Sec. 203 Period of Limitation upon Assessment & Collection
Except as provided in sec. 222 internal revenue taxes shall be assessed within 3 years after the
last day prescribed by law for the filing of the return and no proceeding in court without
assessment for the collection of such taxes shall begun after expiration of such period.
Sec. 204 Authority of the Commissioner to comprise, Abate and refund or Credit Taxes
A. Compromise the payment of any internal revenue tax when:
(1) A reasonable doubt as to the validity of the claim against the taxpayer exist
(2) The financial position of the taxpayer demonstrates a clear inability to pay the assessed tax
B. Abate or cancel a tax liability when:
(1) The tax or any portion thereof appears to be unjustly or excessively assessed
(2) The administration and collection costs involved do not justify the collection of the amount
due.
C. Credit or refunds taxes erroneously or illegally received or penalties imposed without authority
- A Tax Credit Collection validly issued under the provisions of this code may be applied against
any internal revenue tax excluding withholding taxes, for which the taxpayer is directly liable.
Tax Remedies of the Government
1. Administrative remedies which include:
a. distraint of personal property
b. levy of real property
c. enforcement of forfeiture of property
d. enforcement of tax lien
e. requiring the filing of bonds
f. requiring proof of filing income tax returns
g. deportation of aliens
h. inspection of books of account
i. use of national tax register
2. Judicial Remedies which include
a. ordinary civil section
b. criminal action
Administrative Remedies Explained
1. Distraint - is the seizure by the government of personal property, tangible or intangible to
enforce the payment of taxes and to be followed by its public sale if the taxes are not voluntarily
paid. This remedy may be classified into:
a) Actual distraint and b.) Constructive distraint

2. Levy is seizure of real property to enforce the payment of taxes.

3. Forfeiture implies a deprivation or destruction of a right in consequence of the
nonperformance of some obligation or condition.
4. Tax lien is a legal charge established by law on either real or personal property as a security
to ensure payment of taxes.
Tax lien are extinguished by the ff. cause
a. destructive of the property
b. payment of taxes due plus increments thereto:
c. expiration of the term of the lien
d. if the property subject to lien passes unto the bands of an innocent purchaser.
5. Requiring the Filing of Performance Bonds
- This requirement is to secure the payment of taxes or to forces compliance with certain
provisions of the tax laws or rules and regulation of the implementing agency
6. Requiring Proof of Filing of Income Tax Returns (ITR)
- individuals or corporations intending to engage in trade or business or occupation or to
practice a profession is required to present proof of filing and payment of ITR before a license or
permit can be issued.
7. Deportation of aliens
Any alien who:
a. knowingly and fraudulently evades the payment of any internal tax
b. willfully refuses to pay such tax and its accessory penalties after the decision on tax liability
rendered
8. Inspection of Books of Accounts
- It is within the power of internal revenue officers to examine and inspect books of accounts
and other accounting records of taxpayers.
9. Use of the National Tax Register
- is a record of the names of person residing in each city or municipality.
Judicial Remedies Explained
Civil action as provided in Tax Code:
(1) Refers to suit instituted by the government to collect internal revenue taxes in the ordinary
courts
(2) Includes appeals by the taxpayer to the Court of the Tax Appeals from decisions of the
Commissioner of Internal Revenue on the disputed assessment
Tax Remedies of Taxpayers
A taxpayer may avail of the ff. remedies under the Tax Code: to wit:
1. To dispute an assessment
2. To ask for refund on internal revenue taxes illegally or erroneously collected
3. To question validity of forfeiture of cash refund taxes and a tax credit
4. To contest forfeiture of chatted