FLOWCHART OF TAX REMEDIES
by Pierre Martin D. Reyes
Page 1 of 12
I. REMEDIES UNDER THE NATIONAL INTERNAL REVENUE CODE A. Assessments (Section 228, NIRC)
OPTIONS OF TAXPAYER 1. If CIR denies Protest:
IF RECONSIDERATION 180 days 15 days
30 days
30 days Period
within
CIR
or
Authorized Representative
LOA
PAN
Reply
FLD/ FAN
Petition for Review with CTA Division
FDDA
to decide Protest
NOTE: Taxpayer may file a Motion for Reconsideration with the CIR but it shall not toll the 30-day period to appeal to the CTA.
IF REINVESTIGATION 60 days
180 days
2. If authorized representative denies Protest: a. Follow Procedure in I(A)(1); or b. File a Motion for Reconsideration with CIR
Period
within
CIR
or
Submit
authorized representative
Documents
to decide
30 days
30 days
MR with CIR
FDDA
Petition for Review with CTA Division
3. If CIR or authorized representative representative does not act within the 180 -day a. File a Petition for Review within 30 days; or 30 days
Lapse of 180-day period (deemed a denial )
Petition for Review with CTA Division
b. Await for FDDA Follow procedure in either I(A)(1) or I(A)(2).
FLOWCHART OF TAX REMEDIES
by Pierre Martin D. Reyes
Page 2 of 12
B. Recovery of Erroneously or Illegally Collected Taxes and/or Penalties (Section 229, NIRC) 2 years
Date of Payment
NOTE: Both the administrative and the judicial claim must be filed within the two-year period.
Petition for Review with CTA Division
or Withholding of Tax
File Administrative Claim with CIR (before Judicial Claim)
C. VAT Refund/Credit (Section 112, NIRC)
OPTIONS OF TAXPAYER 1. If CIR or authorized Representative denies claim: 30 days 120 days
2 years
Close
of
the
Taxable Quarter when relevant were made
the sales
File Administrative Claim with CIR and submit complete documents
Period to decide
Petition for Review with CTA Division
Denial
2. If inaction: 30 days
NOTE: Only the administrative claim must be filed within the two-year period.
Lapse of 120-day period (considered a denial )
Petition for Review with
FLOWCHART OF TAX REMEDIES
II.
by Pierre Martin D. Reyes
Page 3 of 12
REMEDIES UNDER THE LOCAL GOVERNMENT CODE A. Local Business Tax 1. Assessment 60 days
1. If ≤ P300,000 (or ≤ P400,000 for Metro Manila) 60 days 15 days
15 days
Notice
of
Assessment
Protest to Local Treasurer
30 days
Period to decide Denial by LT
Appeal to MTC
or
Appeal to RTC
Lapse of 60 days
Petition for Review to the CTA en banc
2. If ˃ P300,000 (or ˃ P400,000 for Metro Manila)
Denial by LT
or
Lapse of 60 days
NOTE: The period to appeal shall be interrupted by a timely motion for new trial or reconsideration. In any case, if the motion is denied, the movant has a fresh period of 15 days from receipt or notice of order denying or dismissing the motion for reconsideration within which to file the appeal. ( Neypes Doctrine)
30 days
15 days
Appeal to RTC
Petition for Review to the CTA Division
FLOWCHART OF TAX REMEDIES
by Pierre Martin D. Reyes
Page 4 of 12
2. Refund 2 years
1. If ≤ P300,000 (or ≤ P400,000 for Metro Manila) Follow procedure in II(A)(1). Date of
Appeal to either MTC or RTC
Payment of Tax
2. If ˃ P300,000 (or ˃ P400,000 for Metro Manila) Follow procedure in II(A)(2).
File Claim for Refund before Local Treasurer NOTE: Both the administrative and the judicial claim must be filed within the two-year period.
3. Assail Tax Ordinance 30 days
Effectivity
of
Tax Ordinance
30 days
60 days
Appeal to Secretary of Justice
Period for the SOJ to decide
Denial by SOJ
or
lapse
of
15 days
Appeal to the RTC
15 days (extendible)
Appeal to
Appeal to
Court
Supreme
Appeals
of
Court
60 days NOTE: The period to appeal shall be interrupted by a timely motion for new trial or reconsideration. In any case, if the motion is denied, the movant has a fresh period of 15 days from receipt or notice of order denying or dismissing the motion for reconsideration within which to file the appeal ( Neypes Doctrine)
FLOWCHART OF TAX REMEDIES
by Pierre Martin D. Reyes
Page 5 of 12
B. Real Property Tax 1. Assessment a. Erroneous Assessment 30 days
Pay
with
Protest
60 days
60 days
Protest to Local Treasurer
Period to decide
Denial by LT
or
120 days
Appeal to LBAA
Denial by LBAA
Lapse of
or Lapse
60 days
of 120days
b. Illegal Assessment 30 days
15 days
Issuance of Illegal Assessm ent
File Injuncti on with RTC
30 days
Petition for Review to the CTA Division
30 days
Appeal to the CBAA
Adverse Decision of the CBAA
Petition for Review to the CTA en banc
FLOWCHART OF TAX REMEDIES
by Pierre Martin D. Reyes
Page 6 of 12
2. Refund 2 years
60 days
If denied or inaction by the Local Treasurer
Date
of
Payment
File Claim with Local Treasurer
NOTE: Only the administrative claim must be filed within the two-year period.
Period to decide
Follow Procedure in II(B)(1).
FLOWCHART OF TAX REMEDIES
III.
by Pierre Martin D. Reyes
Page 7 of 12
REMEDIES UNDER THE CUSTOMS MODERNIZATION AND TARIFF ACT.
A. Assessments 15 days
1. If protest is sustained
30 days
The COC shall make the appropriate order and the entry reassessed, if necessary.
Payment under Protest
Protest to Commissioner of Customs (COC)
Period to decide
2. If protest is denied 30 days
NOTE: Assessment shall be deemed final within 15 days after receipt of the notice of assessment.
Denial by
Petition for Review to the CTA Division
the COC
B. Refund 1. If the claim and application is for refund of duties. 12 months
If the claim is denied
If denied by the COC 30 days
30 days
Date payment
of
File Claim with Bureau Denial
NOTE: Only the administrative claim must be filed within the 12-month period. The CMTA did
Appeal COC
to
Period to decide
Follow procedure in III(A)(2).
FLOWCHART OF TAX REMEDIES
by Pierre Martin D. Reyes
Page 8 of 12
2. If the claim and application is for refund of duties and taxes. As to refund of the duties element Follow procedure under III(B).
As to refund of internal revenue taxes element Follow procedure under I(B).
Note: The Bureau of Customs shall cause the refund of internal revenue taxes after issuance of a certification from the CIR granting claim for refund, whether wholly or partially.
C. Forfeiture 1. If importer is aggrieved by decision of District Collector 15 days or 5 days
30 days or 15
if perishable
days if perishable
1. If importer aggrieved by decision of COC Follow Procedure in III(A)(2).
2. If no decision rendered (inaction) The adverse decision of the District Collector is deemed affirmed. Adverse decision of District Collector
Notice of Appeal to District Collector
The District Collector shall transmit records COC
to
Period for COC to decide
Follow Procedure in III(A)(2).
FLOWCHART OF TAX REMEDIES
by Pierre Martin D. Reyes
Page 9 of 12
2. If government is aggrieved by decision of the District Collector (Automatic Review)
30 days or 10 5 days
days if perishable
If no decision rendered within the said period or when a decision adverse to government is rendered by the COC involving goods with FOB or FCA value of P10,000,000.00
Adverse decision of District
Elevate Records to CoC
Receipt
of
records by
Period for COC to decide
5 days
CoC
Collector COC
Elevate records to SoF
If importer aggrieved by decision of COC Follow Procedure in III(A)(2).
3. If the importer is aggrieved by the decision of the Secretary of Finance on automatic review 30 days
Adverse decision of SOF
Petition for Review to the CTA Division
NOTE: The decision of the SOF whether or not a decision was rendered by the COC within 30 days, or within 10 days in the case of perishable goods, from receipt of the records, shall be final upon the Bureau.
FLOWCHART OF TAX REMEDIES
IV.
by Pierre Martin D. Reyes
Page 10 of 12
APPELLATE REMEDIES IN THE COURT OF TAX APPEALS
15 days
Petition for Review before the CTA Division
Adverse Decision of the
CTA
Division
of MR CTA Div. Decision or MNT
15 days (extendible)
Adverse Resolution of the CTA Division
Petition for Review before the CTA En Banc
15 days
Adverse Decision of the CTA-EB
MR of CTA-EB Decision
15 days (extendible)
Adverse Resolution of the CTAEB
Petition for Review to the Supreme Court
NOTE: A petition for review of a decision or resolution of the CTA in Division must be preceded by the filing of a timely MR or MNT with the Division. The filing of a MR or MNT, however, with the CTA en banc is not mandatory.
FLOWCHART OF TAX REMEDIES
V.
by Pierre Martin D. Reyes
Page 11 of 12
ASSAILING THE VALIDITY OF REVENUE ISSUANES
A. Quasi-Judicial (BIR Rulings) 30 days
30 days
Petition for Review with CTA Division
Appeal to Secretary of Finance
Adverse Ruling
B. Quasi-Legislative (Revenue Regulations, Revenue Memorandum Circulars, or Revenue Memorandum Orders) 1. If in the exercise of the Secretary of Finance’s rule -making power (Revenue Regulations) If there is no breach
Issuance of the SOF
Declaratory Relief (Rule 63) with the RTC
If there is breach
Breach of the issuance
15 days
15 days
Petition for Certiorari (Rule 65)
15 days (extendible)
Court of Appeals
Supreme Court
15 days (extendible)
Court of Appeals
Supreme Court
NOTE: The period to appeal shall be interrupted by a timely motion for new trial or reconsideration In any case, if the motion is denied, the movant has a fresh period of 15 days from receipt or notice of order denying or dismissing the motion for reconsideration within which to file the appeal ( Neypes Doctrine)
FLOWCHART OF TAX REMEDIES
by Pierre Martin D. Reyes
Page 12 of 12
2. If in the exercise of the CIR’s power to interpret tax laws (Revenue Memorandum Circulars and Revenue Memorandum Orders) 30 days
Issuance of CIR
the
Request for Review before the SOF
Adverse Decision of the SOF
15 days
Petition for Certiorari (R65) before the RTC
15 days (extendible)
Court Appeals
of
Supreme Court
