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ASSESSMENT PROCESS

Appeal to Appeal to ASSESSMENT (FAN) DEFINED


BIR Audit CTA En SC-
Banc Division
Appeal to Appeal to
TAX REMEDIES NIC CTA SC-En
Division Banc
A formal notice to the taxpayer stating that
Submit
PAN Supportin the amount thereon is due as a tax containing
g Docs a demand for payment thereof.

Protest
FAN
with CIR

PRESCRIPTIVE PERIOD FOR ASSESSMENT


EXCEPTION TO ISSUANCE OF PAN PRESCRIPTION RECKONING AMOUNT DUE
POINT
1. Mathematical error in the tax computation;
2. Discrepancy between tax withheld as against amount FILED A NF 3 YEARS AF vs. D
remitted to BIR; RETURN (Later) Tax PXXX
3. Claim for refund or tax credit of CWTs while claiming Surcharges XXX
the same as deduction from tax payable in the F 10 YEARS Discovery Interest XXX
subsequent taxable year; Amount Due PXXX
4. Non-payment of excise tax; DID
5. Sale of imported article by exempt person to non- NOT
exempt person. FILE A
RETURN

NF* = Not Fraudulent F* = Fraudulent


AF* = Actual Filing D* = Deadline
SURCHARGES COLLECTION
SIMPLE INTEREST
NEGLECT KINDS OF COLLECTION:
TO FILE 1. Administrative Action:
WRONG a) Distraint
25%
PLACE
20% per Annum b) Levy
FAILURE TO
PAY BASED
c) Garnishment
SC ON FAN 2. Judicial Action
WILLFUL a) Civil Action
NEGLECT TO b) Criminal Action
FILE
50%
FALSE
RETURN
PRESCRIPTIVE PERIOD FOR COLLECTION REFUND PROCESS
PRESC. RECKONING POINT
File claim w/
W/ASSESSMENT 5 Yrs. Date of Assessment BIR

W/O FAR NF 3 Yrs. Actual Filing vs. Appeal to


THE END
ASSESSMENT Deadline (Later) CTA
Appeal to SC- T H A N K Y O U ! ! !
En Banc
Division
F 10 Yrs. Discovery
Appeal to
Appeal to SC-
DN FAR CTA En
Division
Banc