Professional Documents
Culture Documents
CABANEIRO) A2011 1
Chapter 8: TAXPAYERS REMEDIES *** Motion for reconsideration must raise new grounds, meaning grounds
which have not been raised in that request for reconsideration or
In General reinvestigation. Otherwise, it is just a pro-forma motion, it will not suspend
the period within which to appeal the BIR decision to the CTA which is 30
Remedies of the taxpayer days from receipt of the BIR decision.
1. Remedies before payment of tax: Protest of assessment
a. Protest of pre-assessment notice 15 days upon receipt ISSUES that may be raised on appeal with the CTA
b. Protest of Final Assessment 30 days upon receipt 1. Questions of law or fact OR both
c. Appeal to CTA of the decision of the Commissioner 30 2. Questions of fact
days from receipt of decision of the Commissioner, or from 3. both
the lapse of 180 days. If CTA affirms the decision of the BIR:
d. Appeal decision of the CTA to the CA 15 days Appeal the CTA decision to CA.
2. Remedy after payment of tax: Claim for tax refund or credit ISSUES: Questions of law
2 years from payment of tax. WHEN: Within 15 days from receipt of the CA decision.
Decisions of the Regional Director ILLEGALLY COLLECTED TAX vs. ERRONEOUSLY COLLECTED TAX:
It should be noted that the Regional Director may also render Illegally collected tax means it violates certain provision of the
decisions on protests. law. It may not be authorized by a peculiar Tax Law or statute.
Revenue Regulations 12-85 authorizes appeals to the CTA from
Erroneously collected tax means there may be a law passed but
decisions of the Regional Director on administrative protests within
there was a mistake in the collection.
the same 30 day period. Sec. 7 of RA 1125, however, mentions only
decisions of the Commissioner. WHEN TO FILE: Within 2 years from the date of payment
Be that as it may, it is very well within the perimeter of correct
Payment must be proven in contemplation of Tax Law, there is
procedure if the taxpayer, instead of going directly to the CTA,
payment when the tax liability is fully paid. So, if it is payable in
appeals the decision of the Regional Director to the Commissioner,
installment, there can only be payment when the final installment
since it is the Commissioner who has the final authority to decide,
has been paid.
assessment protests.
REFUND AND CREDIT
Two ways of protesting administratively These are remedies of the taxpayer after payment of tax.
1. Request for reconsideration: This refers to a plea for re-evaluation of Both are modes of recovering taxes which are either erroneously or
an assessment on the basis of existing records without the need of illegally paid to the government.
additional evidence. It may involve a question of fact or law or both. Tax refund is when there is actually a reimbursement of the tax,
2. Request for reinvestigation: This refers to a plea for re-evaluation of improperly collected and paid. In tax credit, the government applies
an assessment on the basis of newly-discovered or additional the amount determined to be improperly collected, after proper
evidence. It may also involve a question of fact or law or both. verification, against any sum that may be due and collectible from
the taxpayer.
CLAIMS FOR REFUND AND CREDIT OF TAXES
The taxpayer may, instead of filing a protest, file a written When may claim for refund or credit be filed?
claim for refund. 1. When tax has been erroneously or illegally collected.
By virtue of solutio indebiti principle 2. When any penalty is claimed to have been collected without
authority.
REQUISITES FOR FILING REFUND: 3. When any sum is alleged to have been excessively or in any manner
1. This must be filed within the two (2) year period from the date of wrongfully collected, [Sec. 229, NIRC].
payment; 4. Commissioner is also given the authority to refund the value of
2. The fact of withholding must be proven; Internal Revenue Stamps when they are returned in good condition
3. This must be included in the income tax return of the taxpayer; by the purchaser, and in his discretion redeem or change unused
Chapter 8: TAXPAYERS REMEDIES. Page 2 of 4
TAX REVIEWER: LAW OF BASIC TAXATION IN THE PHILIPPINES BY: Benjamin B. Aban JUICY NOTES (PROF. CABANEIRO) A2011 3
stamps that have been rendered unfit for use and refund their value 2. If claim is denied or is not acted upon by the Commissioner, the
upon proof of destruction. [Sec. 204, NIRC] taxpayer must file an appeal to the CTA within 30 days after the
receipt of the decision of the Commissioner.
Requisites for refund or credit 3. Both the written claim and the appeal to the CTA must be filed
1. A written claim for refund or credit must be filed with the within the two-year prescriptive period.
Commissioner.
2. The claim for refund or credit must be a categorical demand for The two-year prescriptive period for overpaid quarterly corporate
reimbursement; and income tax
3. It must be filed within two years from the date of payment of the In case of an overpaid quarterly income tax for corporations, the
tax or penalty regardless of any supervening event that may arise prescriptive period of two years within which a claim for refund
after the payment. should be filed is counted, not from the time the corporation files its
4. The tax should have been paid in full. quarterly income tax return and pays the tax thereon, but from the
Payment under protest is not required. Sec. 229 of the NIRC date the final adjustment return is filed after the end of the taxable
provides that a suit or proceeding for refund or credit may be year.
maintained whether or not such tax, penalty, or sum has been paid
under protest or duress. Prescriptive period for taxes withheld
In the case of taxes withheld under the withholding tax system, the
When payment under protest required two-year prescriptive period for refunds is counted not from the date
1. In real property protest cases the tax is withheld and remitted to the Bureau of Internal Revenue
2. Protest in customs cases but from the end of the taxable year.
EQUITABLE RECOUPMENT
It is a principle which allows a taxpayer whose claim for refund has
been barred due to prescription to recover said tax by setting off the
prescribed refund against a tax that may be due and collectible from
him.
This rule is not applicable in the Philippines.