III.

Civil Penalties:
a. Surcharge (Sec. 248)
b. Interest (Sec. 249)
c. Compromise Penalty

IV. Delinquency Tax v. Deficiency Tax

V. Suspension of Running of Statute of Limitations. (Sec. 223)

a. When the Commissioner is prohibited from making the assessments or
collection, and for 60 days thereafter;
b. When the taxpayer requests for a reinvestigation which is granted; and
c. When the taxpayer cannot be located in the address given by him in the return
filed, except :
(i) If the taxpayer informs the Commissioner of any change in address;
(ii) When the warrant of distraint or levy is duly served upon the taxpayer, his
authorized representative, or a member of his household with sufficient
discretion, and no property could be located; and
(iii) When the taxpayer is out of the Philippines.

VI. Tax Credit and Tax Refund General Principles

A. What may be subject to tax credit and tax refund:
1. Taxes erroneously or illegally received
2. Penalties imposed without authority
3. Documentary Stamps
B. When to file request for Tax Credit/Refund:
Administrative - Sec. 229
Judicial Sec. 230
C. When to start counting the 2-year prescriptive period:
GR: date of payment of tax or penalty
Exceptions:
1. Income Tax
Corporate
Installment payments
2. Withholding Tax
Creditable
3. VAT (Sec. 112[A])
D. Why is the filing of an administrative claim with the BIR necessary:
1. To afford the Commissioner an opportunity to consider the claim and to have
a chance to correct the errors of subordinate officers
2. To notify the Commissioner that such taxes have been questioned and the
notice should be borne in mind in estimating the revenue available for
expenditures

VII. VAT Refund/TCC/Carry-over

A. Zero-rated sales of goods (Sec. 106 [A][2])
B. Zero-rated sales of services (Sec. 108 [B])
C. Effectively zero-rated sales (Sec. 108 [B][3])
D. Proper party to claim refund/credit: Statutory Taxpayer
E. When to file claim for refund/credit:
Administrative Sec. 112 (C)
Judicial 1. In case of denial of the CIR: within 30 days from receipt of denial
2. Inaction of the CIR within 120 days from submission of complete
documents: within 30 days after expiration of the 120 days
- Atlas Consolidated v. CIR, G.R. Nos. 141104 & 148763, June 8, 2007
- Southern Phils. V. CIR

F. 2-year period is not jurisdictional and may be suspended for reasons of equity
and other special circumstances, such as:
1. Assurance on the part of the BIR that steps were being taken to credit
taxpayer with the amount sought to be refunded.
2. An agreement or understanding with the BIR that they await the result of a
pending case involving similar issue raised in the claim for refund.
THE NEW COURT OF TAX APPEALS
R.A. 9282 An act expanding the jurisdiction of the Court of Tax Appeals, elevating its rank to
the level of a collegiate court with special jurisdiction and enlarging its membership, amending
for the purpose certain sections of R.A. 1125, as amended, otherwise known as the law creating
the Court of Tax Appeals, and for other purposes.

R.A. 1125 R.A. 9282

Composition 1 division of 3 Judges 3 divisions of 9 Justices
Appeals Appeal to CA decisions of CTA. Appeal to CTA en banc decisions of
CTA division.
Appeal to SC decisions of CA. Appeal to SC decisions of CTA en
banc.
Expanded 1. Exclusive original jurisdiction over
Jurisdiction criminal cases arising from violations
of the NIRC or TCC and other laws
administered by the BIR and the
BOC- principal amount of tax and
penalty involved is P1million or more.

Appellate jurisdiction over decisions of

the RTC where the amount is less
than P1million.

2. Exclusive original jurisdiction over

collection cases - principal amount of
tax and penalty involved is P1million
or more.

Appellate jurisdiction over decisions of

the RTC where the amount is less
than P1million.

3. Appellate jurisdiction over decisions

of RTC in local tax cases.

4. Appellate jurisdiction over decisions

of the Central Board of Assessment
Appeals over cases involving the
assessment of taxation of real
property.

OUTLINE OF JURISDICTION

1. Exclusive appellate jurisdiction to review by appeal

a. via petition for review under Rule 42:
(i) Decisions of the CIR disputed assessments, refunds, other matters;
(ii) Inaction of the CIR - disputed assessments, refunds, other matters;
(iii) Decisions of the CoC liability of custom duties, fees, etc. under the
Customs Law;
(iv) Decisions of the Secretary of Finance customs cases elevated to them
automatically for review from the decisions of the CoC which are adverse to
the government under Section 2315 of the TCC;
(v) Decisions of the Secretary of Trade and Industry cases of non-agricultural
product, commodity or article; and
(vi) Decisions of the Secretary of Agriculture cases of agricultural product,
commodity or article involving dumping and countervailing duties.
b. via petition for review under Rule 43:
(i) Decisions, orders or resolutions of the RTC in local tax cases originally
decided or resolved by them in the exercise of their original or appellate
jurisdiction; and
 (ii) Decisions of the Central Board of Assessment Appeals in the exercise of its
appellate jurisdiction over cases involving the assessment and taxation of
real property originally decided by the provincial or city board of assessment
appeals.

2. Criminal and Civil Cases

a. Exclusive ORIGINAL jurisdiction violations of the NIRC, TCC and other laws
administered by the BIR and the BOC, where the principal amount of taxes and fees,
exclusive of charges and penalties claimed is P1million and above.
b. Exclusive APPELLATE jurisdiction:
(i) Violations of NIRC, TCC and other laws administered by the BIR and the
BOC, originally decided by the regular court where the principal amount of
taxes and fees is less than P1million or no specified amount claimed;
(ii) Judgments, resolutions or orders of the RTC in tax cases originally decided
by them.
(iii) Judgments, resolutions or orders of the RTC in the exercise of their appellate
jurisdiction over tax cases originally decided by the MeTC, MTC, and MCTC
via a petition for review;
(iv) Tax collection cases from judgments, resolutions or orders of the RTC:
(a) Originally decided by them, via an appeal.
(b) In the exercise of its appellate jurisdiction in tax collection cases originally
decided by the MeTC, MTC, and MCTC, via a petition for review.

CTA Cases:
1. British American Tobacco v. Jose Isidro Camacho, et al, GR No. 163583, August 20, 2008
2. Dacudao Brothers, Inc. v. CTA, CTA EB 819, Sept 30, 2013 and May 2, 2014
3. City of Manila v. Hon. Caridad H. Grocia-Cuerdo, GR No. 175723, Feb. 4, 2014
4. St. Paul College of san Rafael v. CIR, CTA EB 874, May 27, 2013
5. Erwin Salaveria& Portia Gonzales v. CIR, CTA Case No. 8681, October 1, 2013
6. CIR v. Fortune Tobacco Corporation, GR No. 167274-75 & 192576, Sept. 11, 2013