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A B AT E M E N T O R C A N C E L L AT I O N
Grounds:
1. If the assessment is excessive or erroneous
2. If the administration costs involved do not
justify the collection of the amount due
DISTRAINT
( A C T UA L / C O N S T R U C T I V E ) A N D
LEVY
Requisites:
1. The taxpayer must be delinquent
2. There must be a subsequent demand for its
payment
3. The taxpayer must fail to pay the delinquent
tax at the time required
4. The period within which to collect the tax
has not yet prescribed
Note:
1. Constructive distraint does not require
delinquency of taxpayer
2. Distraint and levy cannot be availed of where
amount does not exceed P100.00
D I S T R A I N T M AY B E M A D E B Y
CIR/ authorized representatives Deliquent
tax is more than 1 million
SUSPENSION OF BUSINESS
O P E R AT I O N S
TA X L I E N
Note: A tax on specified property of a
taxpayer is also a lien on his other property.
However, this does not extend to a property
merely leased to him
The lien shall not be valid against any
mortgagee, purchaser, or judgment creditor
until notice of such lien shall be filed by the
Commissioner of Internal Revenue in the Office
of the Register of Deeds of the province or city
where the property of the taxpayer is situated
E X T I N G U I S H M E N T O F TA X L I E N S
By payment or remission
By prescription of right of government to assess or
collect
By failure to file notice of lien in the office of ROD
as against any mortgagee, purchaser or judgment
creditor
By destruction of property
FORFEITURE
Forfeited property maybe sold or destroyed.
Note: Subject to limitation that forfeited property
shall not be destroyed until atleast 20days after
seizure
E N F O R C E M E N T O F A D M I N I S T R AT I V E
FINE
JUDICIAL REMEDIES
Civil action
Criminal actions
Note: In filing of criminal actions ( false or
fraudulent return), proceedings may commenced
without an assessment
PRESCRIPTIVE
PERIOD
Assessment- 3 years from date of last day of filing
Except:
Section 222. False, fraudulent or failure to file ITR10 years from discovery
Agreement to extend period before expiration of
3years
Waiver of renunciation
Collection of taxes:
5years from assessment
10years without assessment in case of fraudulent
or false return with intent to evade or failure to file