Professional Documents
Culture Documents
b. That the taxpayer is willing to deposit the amount equal to the taxes assessed or to
file a bond amounting to not more than twice the value of the tax being assessed.
c. That the CTA may issue an injunction only in the exercise of its appellate
jurisdiction.
5. When is the deadline for filing ITR or payment of income taxes?
For individual. It shall be filed on or before the 15 th day of April of each year
covering income for the preceding taxable year; except when April 15 falls on
Saturday, Sunday or non-working holidays, the return shall be filed in the next
working holiday and unless the Commissioner, in meritorious cases, grant a
reasonable extension of time for filing of ITR.
For corporation. A corporation may employ either calendar year or fiscal year as
basis for filing its ITR. Provided, that it will not change the accounting period
employed without prior approval of the Commissioner. The corporate quarterly
declaration shall be filed within 60 days following the close of each of the first 3
quarters of the taxable year.
Calendar year.On or before 15th of April.
Fiscal year.On or before the the 15th day of the 4th month following the close of the
fiscal year, as the case maybe.
6. What is notice of assessment?
A Notice of Assessment is a declaration of deficiency taxes issued to a Taxpayer
who fails to respond to a Pre-Assessment Notice within the prescribed period of
time, or whose reply to the PAN was found to be without merit.
7. What are the principles governing tax assessments?
a. Post-reporting notice or notice for an informal conference after the tax audit.
b. Pre-assessment notice sent to the taxpayer, except in several instances.
c. The taxpayers shall be informed in writing of the law and the facts upon
which the assessment is made.
d. Assessment must be made within the prescriptive period.
Kinds of assessment
1. Self assessment
2. Deficiency assessment
3. Illegal and void assessment
4. Erroneous assessment
Self assessment
One in which the tax is assessed by the taxpayer himself.
The amount of tax is reflected in the tax return that is filed by him and the tax
assessed is paid at the time he files the return. This system of filing of return and
payment of tax is known as the pay-as-you-file system.
Deficiency assessment
This is an assessment made by the tax assessor himself whereby the correct amount of
the tax is determined after an examination or investigation is conducted.
The liability is determined and is thereafter assessed for the following reasons:
1. The amount ascertained exceeds that which is shown as the tax by the
taxpayer in his return;
2. No amount of tax is shown in the return; or
3. The taxpayer did not file any return at all.
c. Before the expiration of the 3 year period, the BIR Commissioner and
the Taxpayer may agree in writing on the assessment period.
No prescriptive period for assessment when the government opts to collect
without assessment.
The Tax code does not provide for a prescriptive period for the collection of
taxes under sec 203.
Two views regarding the prescriptive period for collection:
1st View: 5 years from final assessment for normal assessment. (Sababan Taxation
Law review 2008 p. 182)
2nd View: Within 3 years form the isuuance of an assessment notice where there
was a return filed, for normal assessment.
5 years from the date of final assessment, for abnormal assessment.
21. What are the grounds for a valid waiver of suspension of prescriptive period?
22. What are the instances wherein notice of Informal Conference may be dispensed with?
23. What are the instances wherein PAN may be dispensed with?
PAN may not be required in the following cases:
(a) When the finding for any deficiency tax is the result of mathematical error in
the computation of the tax as appearing on the face of the return; or
(b) When a discrepancy has been determined between the tax withheld and the
amount actually remitted by the withholding agent; or
(c) When a taxpayer who opted to claim a refund or tax credit of excess creditable
withholding tax for a taxable period was determined to have carried over and
automatically applied the same amount claimed against the estimated tax
liabilities for the taxable quarter or quarters of the succeeding taxable year; or
(d) When the excise tax due on exciseable articles has not been paid; or
(e) When the article locally purchased or imported by an exempt person, such as,
but not limited to, vehicles, capital equipment, machineries and spare parts, has
been sold, traded or transferred to non-exempt persons.
24. What are the legal requirements that must be complied with to claim the reward?
Any person, except an internal revenue official or employee, or other public
official or employee, or his relative within the sixth degree of consanguinity, who
voluntarily gives definite and sworn information, not yet in the possession of the
Bureau of Internal Revenue, leading to the discovery of frauds upon the internal
revenue laws or violations of any of the provisions thereof.
25. How much is the amount of reward?
The following amounts or rates are followed.
a. 10% based on revenues, surcharge imposed or collected, for giving
voluntary sworn information to the BIR
b. 10% based on tax imposed, including surcharges and penalties, or 1
million pesos, whichever is lower for the violations of tax code.
c. 10% based on the fair market value, or 1M, whichever is lower, for the
discovery and seizure of smuggled goods.
The cash reward of informers shall be subject to income tax, collected as a final
withholding tax, at the rate of 10%.
28. Discuss the administrative remedies of the government for the collection of delinquent
taxes under the NIRC.
Assessment
Collection
29. Differentiate actual and constructive distraint.
a. Procedure. In constructive distraint- the BIR does not take the physical
possession of the personal property while in actual distraint the personal
property is physically taken.
b. Basis. In constructive distraint there is no finding yet of discrepancy, only
that the taxpayer is leaving the country or disposing of his property in
fraud of creditors or is in the process of liquidation while in actual distraint
the taxpayer is already delinquent in the payment of his taxes.
c. Disposition of the personal property. In constructive distraint, the personal
property is merely held as security to answer for any future tax
i.
ii.
37. What is a large taxpayer for VAT, for Excise tax, for corporate income tax and for
Withholding tax?
'Large taxpayer' means a taxpayer who satisfies any of the following criteria;
(1) Value-Added Tax (VAT) - Business establishment with VAT paid or payable of at
least One hundred thousand pesos (P100,000) for any quarter of the preceding
taxable year;
(2) Excise tax - Business establishment with excise tax paid or payable of at least
One million pesos (P1,000,000) for the preceding taxable year;
(3) Corporate Income Tax- Business establishment with annual income tax paid or
payable of at least One million pesos (P1,000,000) for the preceding taxable year;
and
(4) Withholding tax- Business establishment with withholding tax payment or
remittance of at least One million pesos (P1,000,000) for the preceding taxable
year.
Provided, however, That the Secretary of Finance, upon recommendation of the
Commissioner, may modify or add to the above criteria for determining a large
taxpayer after considering such factors as inflation, volume of business, wage
and employment levels, and similar economic factors.