REMEDIES UNDER THE NIRC

A. Letter of Authority / Audit Notice:

1. Sec. 6(A) (as amended by RA 10963) and Sec. 13 of the NIRC
2. Revenue Memorandum Order No. 43-90 dated September 20, 1990 (as cited in the SC
Cases)
3. CIR vs. Sony Phils, Inc. G.R. No. 178697, November 17, 2010
4. CIR vs. De La Salle, GR No. 198841 dated November 9, 2016
5. Medicard Philippines, Inc. vs. CIR, GR No. 222743 dated April 5, 2017
6. Number of times a taxpayer may be audited -Sec. 235 of the NIRC

B. Tax Assessment:
1. CIR vs. Pascor Realty (GR No. 128315 dated June 29, 1999)
2. SMI-ED Technology Corporation, Inc. vs. CIR, GR No. 175410 dated November 12,
2014
3. CIR vs. Fitness By Design, Inc., GR No. 215957 dated November 9, 2016

C. Certain Powers of the Commissioner/BIR in relation to a tax audit/tax assessment:

1. Power of the Commissioner to assess deficiency tax / best evidence obtainable
Sec. 6(B) of the NIRC
2. Revenue Memorandum Circular No. 23-00 dated November 27, 2000
3. Bonifacia Sy Po vs. CTA (164 SCRA 524)
4. Fitness By Design, Inc. vs. CIR (GR No. 177982 dated October 17, 2008)
5. Power to Inquire into Bank Deposit Accounts - Sec. 6(F) of the NIRC, as amended by
RA No. 10021

D. Prescriptive period to assess and collect:

1. Period for Assessment – General Rule/Ordinary Prescription - Sec. 203 of the NIRC
2. Period for Collection – General Rule Sec. 222(c) of the NIRC
3. Wrong Form/Return - Butuan Sawmill, Inc. vs. CTA (GR No. L-20601, February 28,
1966)
4. False Return, Fraudulent Return, Omission to File a Return/Extraordinary Prescription
a. Sec. 222(a) of the NIRC
b. Sec. 248(B) of the NIRC
c. Aznar vs. CTA (58 SCRA 519)
d. CIR vs. Asalus Corporation (GR No. 22150 dated February 22, 2017)
e. CIR vs. Fitness By Design, Inc., (GR No. 215957 dated November 9, 2016)
5. Suspension of the prescriptive period
a. Secs. 223 and 91(B) of the NIRC
b. CIR vs. United Salvage and Towage (Phils.), Inc. (GR No. 197515 dated July 2,
2014)
c. BPI vs. CIR (GR No. 139736, October 17, 2005)
d. CIR vs. BASF Coating + Inks Phils., Inc. (GR No. 198677 dated November 26,
2014)
6. Waiver of the Statute of Limitations
a. New Requirements under RMO 14-2016 dated April 4, 2016
b. Phil. Journalists, Inc. vs. CIR (GR No. 162852, December 16, 2004)
c. CIR vs. Kudos Metal (GR No. 178087, May 5, 2010)
d. RCBC vs. CIR (GR No. 170257, September 7, 2011)
e. CIR vs. Next Mobile, Inc. (GR No. 212825 dated December 29, 2015)

E. Requisites of a valid assessment / Due Process / Pre-assessment Notice

1. Sec. 228 of the NIRC
2. RR No. 12-99, as amended by RR No. 18-2013
3. A Brown Co., Inc. vs. CIR (CTA Case No. 6357, June 7, 2004)
4. CIR vs. Metro Star Superama, Inc., G.R. No. 185371, December 8, 2010
5. CIR vs. Asalus Corporation (GR No. 22150 dated February 22, 2017)
 6. CIR vs. Fitness By Design, Inc., (GR No. 215957 dated November 9, 2016)
7. Samar-I Electric Cooperative vs. CIR, GR No. 193100 dated December 10, 2014

F. Protesting an assessment
1. Reinvestigation vs. Reconsideration
a. RR No. 18-2013
b. BPI vs. CIR (GR No. 139736, October 17, 2005)
2. Submission of relevant documents / 60-day period
a. RR No. 18-2013
b. CIR vs. First Express Pawnshop (GR Nos. 172045-06 dated June 16, 2009)

G. Decision / Inaction on the Pending Protest / Appeal to the Court of Tax Appeals
1. The 180-day period to Decide
a. Sec. 228
b. RR No. 18-2013
2. Final Decision on a Disputed Assessment (“FDDA”)
a. RR No. 18-2013
b. CIR vs. Liquigaz Philippines Corporation, GR No. 215534 dated April 18, 2016
3. Inaction during the 180-day period / Appeal to the Court of Tax Appeals
a. Sec. 228
b. RR No. 18-2013
c. Revised Rules of the CTA, AM No. 05-11-07-CTA dated November 22, 2005, as
amended on September 16, 2008
d. Lascona Land vs. CIR (GR No. 171251, March 5, 2012)
e. RCBC vs. CIR (GR No. 168498, April 24, 2007)
f. PAGCOR vs. BIR, GR No. 208731 dated January 27, 2016
g. Fishwealth Canning Corp. vs. CIR (GR No. 179343 dated January 21, 2010)
h. Allied Banking Corporation vs. CIR (GR No. 175097 dated February 5, 2010)
4. Administrative Appeal with the CIR
a. RR No. 18-2013

H. Collection / Remedies of the Government

1. Prescriptive period to collect
a. Secs. 222(c) and 222(a)
2. Administrative remedies / Summary Remedies / Judicial Collection
a. Secs. 205 and 220
b. Republic vs. Hizon (GR No. 130430. December 13, 1997)
c. CIR vs. Hambrecht & Quist Philippines, Inc. (GR No. 169225 November 17,
2010)
3. No injunction to restrain collection of taxes
a. Sec. 218, NIRC
b. Rule 10, Revised Rules of the CTA, AM No. 05-11-07-CTA dated November 22,
2005, as amended on September 16, 2008
c. Revenue Memorandum Order No. 42-10 dated May 4, 2010.
d. Spouses Pacquiao vs. the CTA, GR No. 213394 dated April 6, 2016.
e. Tridharma Marketing Corporation vs. CTA, GR No. 215950 dated June 20, 2016

I. Criminal Cases / Offenses under the NIRC

1. Precondition before a criminal case may be filed
a. Ungab vs. Cusi (97 SCRA 877)
b. CIR vs. CA (257 SCRA 200)
c. CIR vs. Pascor Realty (GR No. 128315 dated June 29, 1999)
2. Compromise Penalty
a. Revenue Memorandum Order No. 7-15 dated January22, 2015
b. CIR vs. Liangga Bay Logging (GR No. L-35266, January 21, 1991)
3. Tax evasion / Criminal Cases / Offenses / Civil Liability in Criminal Cases
a. CIR vs. The Estate of Benigno Toda, Jr. (GR No. 147188, September 14, 2004)
b. Persons liable in case taxpayer is a juridical entity
 c. Sec. 253 (a), NIRC
d. Sec. 205 (b)
e. Republic vs. Patanao (GR No. L-22356, July 21, 1967)
f. Castro vs. CIR (GR No. L-12174, April 26, 1962)
g. BIR vs CA, GR No. 197590 dated November 25, 2015
4. Prescription of violations of the NIRC
a. Sec. 281, NIRC
b. Lim vs. CA (190 SCRA 616)

J. Claims for refund and credit of taxes

1. Taxpayer/withholding agent
a. CIR vs. Procter & Gamble (204 SCRA 377)
b. CIR vs. Smart Communications, Inc. (GR Nos. 179045-46, August 25, 2010)
c. Honda Cars Philippines, Inc. vs. Honda Cars Technical Specialist and
Supervisors Union (GR No. 204142 dated November 19, 2014)
d. CIR vs. Philippine Associated Smelting and Refining Corporation, GR No.
186223 dated October 1, 2014
2. Requisites for a valid claim for refund / Creditable Withholding Tax Cases
a. CIR vs. Meralco, GR No. 181459 dated June 9, 2014
b. CIR vs. Far East Bank GR No. 173854 March 15, 2010
3. Refunds where written claim is not needed
a. Sec. 204 (3), NIRC
b. Sec. 229, NIRC
c. Vda de San Agustin vs. CIR, GR No. 138485, September 10, 2001
4. Refunds of Corporate taxpayers/Irrevocability Rule
a. Sec. 76, NIRC
b. CIR vs. TMX Sales (205 SCRA 184)
c. Systra Phils. Inc. vs. CIR (GR No. 176290, September 21, 2007)
d. Philam Asset Management, Inc. vs. CIR (GR Nos. 156637/162004, December
14, 2005)
e. IMPSA Construction Corporation vs. CIR (CTA EB Case No. 685, May 24, 2011)
f. CIR vs. Rhombus Energy Incorporated (CTA EB Case No. 803, October 11, 2012)
g. Winbrenner & Inigo Insurance Brokers, Inc. (GR No. 206526 dated January 28,
2015)
h. Republic vs. Team (Phils.) Energy Corporation, (GR No. 188016 dated January
14, 2015) – read also concurring opinion of CJ Sereno
5. When 2 year period does not apply
a. CIR vs. PNB (GR No. 161997, October 25, 2005)
6. Interest on Tax Refunds
a. BDO vs. Republic, GR No. 198756 dated August 16, 2016
b. Sec. 79(C)(2)

K. The Court of Tax Appeals

a. RA No. 9282, as amended by RA No. 9503
b. Revised Rules of the CTA, AM No. 05-11-07-CTA dated November 22, 2005, as
amended on September 16, 2008
c. CIR vs. CTA and Petron Corporation, GR No. 207843 dated July 15, 2015
d. Banco De Oro vs. Republic (GR No. 198756, January 13, 2015) and resolution on
the Motion for reconsideration (GR No. 198756 dated August 16, 2016)
e. CIR vs. Hambrecht & Quist Philippines, Inc., G.R. No. 169225, November 17, 2010
f. City of Manila vs. Grecia-Cuerdo, GR No. 175723 dated February 4, 2014.

L. Abatement of Tax / Tax Compromise

a. Secs. 7 and 204, NIRC
b. RR No. 13-01
c. RR No. 30-02
d. RR No. 8-04
e. RR No. 4-12
f. RR No. 9-13
g. Asiatrust Development Bank, Inc. vs. CIR, GR No. April 19, 2017