UNIVERSITY OF THE PHILIPPINES

COLLEGE OF LAW
Diliman, Quezon City

Syllabus on
RIGHTS AND REMEDIES OF THE TAXPAYER UNDER
THE NATIONAL INTERNAL REVENUE CODE
Prof. Carlos G. Baniqued

I. AMEND TAX RETURN

Sec. 6(A), NIRC, last paragraph
Rev. Mem. Cir. No. 40-2003, July 3, 2003

II. PROTEST ASSESSMENT

A. Procedure
Sec. 3, Rev. Regs. No. 12-99, Sept. 6, 1999
Rev. Regs. No. 18-2013, Nov. 28, 2013
B. Notice of Informal Conference
Pilipinas Shell Petroleum Corp. v. CIR, 541 SCRA 316 (2007)
C. Preliminary Assessment Notice (PAN)
Sec. 228, NIRC
Rev. Mem. Cir. No. 11-2014, Feb. 18, 2014
1. Exceptions
Sec. 228(a) to (e), NIRC
2. Effect of Failure to Receive PAN
CIR V. Menguito, G.R. No. 167560, Sept. 17, 2008, 565 SCRA
461 (2008)
CIR v. Metro Star Superama, Inc., G.R. No. 185371, Dec. 8,
2010, 637 SCRA 633 (2010)
Pilipinas Shell Petroleum Corp. v. CIR, supra
D. Final Assessment Notice
Sec. 228, NIRC
Rev. Mem. Cir. No. 11-2014, Feb. 18, 2014
E. Requirement to Inform Taxpayer of Factual and Legal Basis of
Assessment
Sec. 228, NIRC
CIR v. Reyes, 480 SCRA 382 (2006)
CIR v. Enron Subic Power Corp, 576 SCRA 212, 218 (2009)
CIR v. Bank of the Philippine Islands, 521 SCRA 373, 383-385
(2007)
F. Submission of Supporting Documents and Effect of Non-
Compliance
Sec. 228, NIRC
Rev. Mem. Cir. No. 11-2014, Feb. 18, 2014
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CIR v. First Express Pawnshop Company, Inc., G.R. No. 172045-

06, June 16, 2009, 589 SCRA 253 (2009)
G. Effect of Failure to File Protest
Sec. 228, NIRC
Marcos II v. Court of Appeals, 273 SCRA 47 (1997)
Dayrit v. Cruz, 165 SCRA 571 (1988)

III. IN CASE OF DENIAL OF PROTEST OR INACTION, APPEAL TO

CTA
A. What Constitutes Denial of Protest/Decision on Disputed
Assessment
1. General Rule
2. Issuance of Revised Assessment Upon Reinvestigation
Rev. Mem. Cir. No. 11-2014, Feb. 18, 2014
3. Final Notice Before Seizure
Oceanic Wireless Network, Inc. v. CIR, 477 SCRA 205, 211-
213 (2005)
CIR v. Isabela Cultural Corp., 361 SCRA 71 (2001)
4. Final Demand Letter
CIR v. Ayala Securities Corp., 70 SCRA 204 (1976)
Allied Banking Corp. v. CIR, G.R. No. 175097, Feb. 5, 2010
5. Filing of Collection Suit
CIR v. Union Shipping Corp., 185 SCRA 547 (1990)
Cf. San Juan v. Vasquez, 3 SCRA 92 (1961)
6. Referral to Solictor General for Collection
Republic v. Lim Tian Teng Sons & Co., Inc., 16 SCRA 584
(1966)
7. Issuance of Warrant of Distraint and Levy
Phil. Planters Investment Co., Inc. v. Acting CIR, CTA Case
No. 1266, Nov. 11, 1962
Hilado v. CIR, CTA Case No. 1256, Oct. 22, 1962
Central Cement Corporation v. CIR, CTA Case No. 4312,
Sept. 1, 1993
Cf.
CIR v. Algue, Inc., 158 SCRA 9 (1988)
Advertising Associates, Inc. v. CA, 133 SCRA 765 (1984)
8. Effect of MR of Denial of Protest
Fishwealth Canning Corporation v. CIR, 610 SCRA 524
(2010)
CIR v. Bank of the Philippine Islands, 521 SCRA 373, 377-
388 (2007)
Oceanic Wireless Network, Inc. v. CIR, 477 SCRA 205, 211-
212 (2005)
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Surigao Electric Co., Inc. v. CTA, 57 SCRA 523

B. Scope of Jurisdiction of CTA/What is Appealable to CTA
Sec. 4, 2nd par., NIRC
Sec. 228, NIRC
Sec. 7, Rep. Act No. 1125, as amended by Rep. Act No. 9282
CIR v. Villa, 22 SCRA 4 (1968)
Meralco Securities Corp. v. Savellano, 117 SCRA 804 (1982)
CIR v. COA, G.R. No. 101976, Jan. 29, 1993, 218 SCRA 203
(1993)
Savellano v. COA, G.R. No. 102258, Jan. 29, 1993, 218 SCRA 203
(1993)
PNOC v. Court of Appeals, 457 SCRA 32, 76-77 (2005)
Secretary of Finance v. Agana, 62 SCRA 689
CIR v. Josefina Leal, 392 SCRA 9 (2002)
Asia International Auctioneers, Inc. v. Parayno, Jr., 540 SCRA
536 (2007)
British American Tobacco v. Camacho, et. al., G.R. No. 163583,
Aug. 20. 2008, 562 SCRA 511 (2008)
Tan Tiong Bio et. al. v. BIR, 100 Phil. 86 (1956)
Acting Collector of Customs v. CTA, 102 Phil. 244
Southern Cross Cement Corporation v. Cement Manufacturers
Association of the Philippines, 465 SCRA 532, 571-582 (2005)
C. Matters Not Appealable to CTA
1. Tax Rulings
2. Unfair Competition
Ollada v. CTA, 99 Phil. 604
3. Declaratory Relief
D. Application of 180-day Rule
Sec. 3(a)(2), Rule 4 and Sec. 3(a), Rule 8, Revised Rules of the
CTA (S.C. A.M. No. 05-11-07-CTA, Nov. 22, 2005)
Lascona Land Co., Inc. v. CIR et. al., CTA Case No. 5777, Jan. 4,
2000
Rizal Commercial Banking Corp. v. CIR, 522 SCRA 144 (2007)
E. Mode of Appeal and Effect of Appeal
Collector v. Yuseco and CTA, 3 SCRA 313
Collector v. Batangas Trans. Co. et. al, 102 Phil. 822 (1958)
1. Appeal to a Division of the CTA
Sec. 11, Rep. Act No. 1125, as amended by Rep. Act No.
9282
Commissioner of Customs v. Gelmart Industries
Philippines, Inc., 579 SCRA 272, 284-285 (2009)
2. Appeal to CTA En Banc
Sec. 18, Rep. Act No. 1125, as amended by Rep. Act No.
9282
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Commissioner of Customs v. Marina Sales, Inc., G.R. No.

183868, Nov. 22, 2010, 635 SCRA 606, 613-614 (2010)
Judy Anne L. Santos v. People and BIR, G.R. No. 173176,
Aug. 26, 2008
F. Period to Appeal
Sec. 228, last par., NIRC
Sec. 11, Rep. Act No. 1125, as amended by Rep. Act No. 9282
St. Stephen’s ‘Association v. Collector of Internal Revenue,
104 Phil. 314, 317-318 (1958)
Baguio Country Club v. Collector, 105 Phil. 1269 (1959)
Roman Catholic Archbishop of Cebu v. Collector, 4 SCRA 279
(1962)
Pantranco v. Blaquera, 107 Phil. 975 (1960)
Basa v. Republic, 138 SCRA 34 (1985)
Mambulao Lumber Co. v. CIR, 132 SCRA 1 (1984)
Republic v. Court of Appeals, 149 SCRA 351, 357 (1987)
Collector v. CTA, 109 Phil. 1027 (1960)
CIR v. Union Shipping Corp., supra
Advertising Associates, Inc. v. CA, supra
CIR v. Algue, Inc., supra
Lascona Land Co., Inc. v. CIR et. al., CTA Case No. 5777, Jan. 4,
2000
Rizal Commercial Banking Corp. v. CIR, 522 SCRA 144 (2007)

IV. APPEAL TO SUPREME COURT

Sec. 19, Rep. Act No. 1125, as amended by Rep. Act No. 9282
A. Mode of Appeal
B. Effect of Appeal to Supreme Court

V. REFUND AND/OR TAX CREDIT OF ERRONEOUSLY PAID TAX

A. What Constitutes Erroneous Payment
CIR v. Central Azucarera Don Pedro, 49 SCRA 474
CIR v. PNB, 474 SCRA 303, 315 (2005)
B. Requirement of Filing Administrative Claim
Sec. 229, NIRC
Sec. 204(C), NIRC
Santiago Bermejo v. Collector, 87 Phil. 96 (1950)
Andrea Vda. De Aguinaldo v. CIR, 13 SCRA 269 (1965)
CIR v. Acosta, 529 SCRA 177 (2007)
C. Exception to Requirement of Filing Administrative Claim
Sec. 204(C), NIRC
Sec. 229, NIRC, proviso, last paragraph
D. Effect of Supervening Event
Sec. 229, NIRC
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Manila Electric Co. v. CIR, CTA Case No. 7107, Oct. 16, 2006
CIR v. Central Azucarera Don Pedro, supra
E. Payment Under Protest Not Needed
Ramie Textiles, Inc. v. Mathay, 89 SCRA 586
F. Utilization of Tax Credit Certificate; Meaning of Tax Debit
Memo
Sec. 204(C), NIRC, 2nd paragraph
Piilipinas Shell Petroleum Corp. v. CIR, 541 SCRA 316 (2007)
Rev. Mem. Order No. 86-98, Nov. 10, 1998 (check new issuance)
Rev. Regs. No. 5-2000, July 19, 2000
BIR Rul. No. 164-98, Nov. 23, 1998
BIR Rul. No. 165-98, Nov. 23, 1998
BIR Rul. No. 113-99, July 29, 1999
BIR Rul. No. 192-99, Dec. 6, 1999
G. Forfeiture of Refund or Tax Credit
Sec. 230, NIRC
H. Offsetting Against Deficiency Tax Assessments
CIR v. Cebu Portland Cement Co., 156 SCRA 535, 541 (1987)
BPI Securities Corp. v. CIR, CTA Case No. 6089, Aug. 22, 2002
A. Soriano Corp. v. CIR, CTA Case No. 5351, Oct. 27, 1998
Republic v. Mambulao Lumber Co., 6 SCRA 858
Domingo v. Garlitos, 8 SCRA 443
FNCB Finance v. CIR, CTA Case No. 3717, May 10, 1993
BIR Rul. No. 359-93, August 26, 1993
I. Whether Government is Liable for Interest, Attorney’s Fees, Etc.
Philex Mining Corp. v. CIR, et. al., G.R. No. 120324, April 21,
1999
Collector v. Sweeney, 106 Phil. 59 (1959)
Victorias Milling Co., Inc. v. Commissioner, 19 SCRA 430
(1967)
J. Proper Party to File a Claim for Refund or Tax Credit
CIR v. Wander Philippines, 160 SCRA 573 (1988)
CIR v. Procter & Gamble PMC, 160 SCRA 560 (1988)
CIR v. Procter & Gamble PMC, 204 SCRA 377, 384-387 (1991)
China Banking Corp. v. CIR, CTA Case No. 3171, Nov. 8, 1993
Exxonmobil Petroleum and Chemical Holdings, Inc. -
Philippine Branch v. CIR, G.R. No. 180909, Jan. 19, 2011,
640 SCRA 203, 219
Silkair (Singapore) Pte. Ltd. v. CIR, 544 SCRA 100 (2008)
Philippine Geothermal, Inc. v. CIR, 465 SCRA 308, 317-318
(2005)
K. Taxes Not Subject of Set-Off
Francia v. IAC, 162 SCRA 753
Caltex v. COA, 208 SCRA 726, 754-756 (1992)
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Marcos II v. Court of Appeals, supra

BPI-Family Savings Bank, Inc. v. CA, et. al, G.R. No. 122480,
April 12, 2000
Philex Mining Corp. v. CIR, 294 SCRA 687, 695 (1998)
CIR v. Citytrust Banking Corporation, 499 SCRA 477, 481
(2006)
BIR Ruling No. 415-93, Oct. 15, 1993
L. Solutio Indebiti as Basis of Tax Refund/Credit
CIR v. Acesite (Philippines) Hotel Corporation, 516 SCRA 93,
102-103 (2007)
CIR v. Tokyo Shipping Co., Ltd., 244 SCRA 332 (1995)
AB Leasing and Finance Corporation v. CIR, 405 SCRA 380
(2003)
CIR v. Meralco, 535 SCRA 399 (2007)
Philam Asset Management, Inc. v. CIR, 477 SCRA 761, 776
(2005)
M. Substantiation Requirements for Refund Claims: Withholding
Tax Certificates, etc.
Citibank N.A. v. CA and CIR, 280 SCRA 459
Far East Bank and Trust Co. v. CA, 477 SCRA 49, 54 (2005)
Banco Filipino Savings and Mortgage Bank v. CA, 519 SCRA 93,
99 (2007)
PLDT v. CIR, 543 SCRA 329 (2008)
CIR v. A. Soriano Corporation, 267 SCRA 313 (1997)
Filinvest Development Corporation v. CIR, 529 SCRA 605 (2007)
BPI Family Savings Bank v. CA, 330 SCRA 507 (2000)
CIR v. Meralco, supra
State Land Investment Corp. v. CIR, 542 SCRA 114 (2008)
CIR v. Far East Bank & Trust Co., G.R. No. 173854, March 16,
2010

VI. APPEAL IN CASE OF DENIAL OF REFUND/TAX CREDIT CLAIM

A. CTA (Division and En Banc)
Sec. 7(a)(1), (2), Rep. Act No. 1125, as amended by Rep. Act No.
9282
Sec. 11, Rep. Act No. 1125, as amended by Rep. Act No. 9282
Sec. 18, Rep. Act No. 1125, as amended by Rep. Act No. 9282
CTA Circular No. 1-95
Rev. Mem. Circular No. 49-2003, Aug. 15, 2003
B. Supreme Court
Sec. 19, Rep. Act No. 1125, as amended by Rep. Act No. 9282

VII. STATUTE OF LIMITATIONS

A. Period to File Protest
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Sec. 228 , NIRC

Pantranco v. Blaquera, 107 Phil. 975
Dy Pac & Co., Inc. v. CTA, 78 SCRA 442
Commissioner v. Concepcion, 22 SCRA 1058
Basilan Estates, Inc. v. CIR, 21 SCRA 17
Republic v. CA, 149 SCRA 351 (1987)
B. Period to File Refund or Tax Credit Claim
Sec. 204(C), NIRC
Sec. 229, NIRC
Trans-Philippines Investment Corp. v. CIR, CTA Case No. 4889,
Sept. 11, 1995
Collector v. Sweeney, 106 Phil. 59 (1959)
Gibbs v. CIR, 107 Phil. 232 (1960)
CIR v. CA, et. al. , 301 SCRA 435 (1999)
ACCRA Investments Corp. v. CA, G.R. No. 96322, Dec. 20, 1991
BPI v. CIR, 363 SCRA 840, 844-846 (2001)
CIR v. TMX Sales, Inc., G.R. No. 83736, Jan. 15, 1992
CIR v. Primetown Property Group, 531 SCRA 436 (2007)
CIR v. PL Management International Philippines, Inc., 647
SCRA 72 (2011)
College of Oral & Dental Surgery v. CTA, 102 Phil. 912 (1958)
CIR v. Philippine American Life Insurance Co., 244 SCRA
446
Far East Bank and Trust Company v. CIR, 488 SCRA 473,
484-486 (2006)

VIII. REQUEST FOR RULING

Rev. Mem. Order No. 45-99
A. Procedure
Sec. 4, NIRC
B. Appeal Procedure
Sec. 4, NIRC
Rev. Administrative Order No. 3-2001, Oct. 22, 2001
Rev. Mem. Circular No. 40-A-2002, May 7, 2002
C. Non-Retroactivity of Revocation of Rulings or Regulations
Sec. 246, NIRC
Commissioner v. Mega Gen. Merch., 166 SCRA 166
CIR v. Burroughs Ltd. and CTA, 142 SCRA 324, 328 (1986)
ABS-CBN v. CTA, 108 SCRA 142 (1981)
PNOC v. Court of Appeals, 457 SCRA 32, 102 (2005)
CIR v. Benguet Corporation, 463 SCRA 28, 44 (2005)
CIR v. Benguet Corporation, 495 SCRA 59, 65-72 (2006)
CIR v. Burmeister and Wain Scandinavian Contractor
Mindanao, Inc., 512 SCRA 124, 141 (2007)
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CIR v. CA, CTA & Alhambra Industries, Inc., 267 SCRA 557, 564
(1997)
CIR v. Telefunken Semiconductor Phils., Inc. et. al., 249 SCRA
401, 407 (1995)
D. Weight of BIR Rulings
PBCom v. CIR, 302 SCRA 241 (1999), cited in
Nippon Life Insurance Company of the Phils., Inc. v. CIR, CTA Case
No. 6142, Feb. 4, 2002 and Malayan Zurich Insurance Co. v.
CIR, CTA Case No. 6251, Sept. 30, 2002
E. Reliance on Ruling Issued to Third Party
Saniwares v. CIR, CTA Case No. 4150 (Aug. 21, 1992)
F. Authority of Regional Directors to Issue Certain Rulings
Rev. Mem. Circular No. 3-2001, Jan. 31, 2001
See also more recent issuance/s on the matter

IX. AMNESTY, ABATEMENT AND COMPROMISE

Rev. Regs. No. 30-2002 (Compromise)
Rev. Regs. No. 9-2013, May 10, 2013 (Compromise)
Rev. Regs. No. 7-2013, April 29, 2013 (Abatement)
Rev. Regs. No. 8-2013, May 10, 2013 (Abatement)
Rev. Mem. Cir. No. 61-2014, July 28, 2014 (Amnesty)
CIR v. CA, et. al., G.R. NO. 108576, Jan. 20, 1999, 301 SCRA 152 (1999)
PNOC v. Court of Appeals, 457 SCRA 32, 90. 100 (2005)
People v. Sandiganbayan, 467 SCRA 137, 162-163 (2005)
Security Bank Corporation v. CIR, 499 SCRA 453 (2006)
Philippine Banking Corporation (now Global Business Bank, Inc.) v. CIR,
577 SCRA 366, 392 (2009)
Bañas, Jr. v. CA, G.R. No. 102967, Feb. 10, 2000, 325 SCRA 259 (2000)
Republic v. CA, et. al., G.R. No. 109193, Feb. 1, 2000, 324 SCRA 237
(2000)
CIR v. Ariete, 610 SCRA 464 (2010)
CIR v. Philex Mining Corporation, CTA EB No. 578 (CTA Case No. 6780),
June 28, 2010
CS Garment, Inc. v. CIR, G.R. No. 182399, March 12, 2014, 718 SCRA 614
Philippine Banking Corporation (Now: Global Business Bank, Inc. v.
Commissioner of Internal Revenue, G.R. No. 170574, January 30, 2009, 577
SCRA 366

X. DECLARATORY RELIEF, CERTIORARI, PROHIBITION AND

MANDAMUS
British American Tobacco v. Camacho, et. al., G.R. No. 163583,
Aug. 20. 2008
See the Petroleum Dealers case.
See the PEACe Bonds case.
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CJH Development Corporation v. BIR, et. al., G.R. No. 172457, Dec. 24,
2008, 575 SCRA 467 (2008)