FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes
I. REMEDIES UNDER THE NATIONAL INTERNAL REVENUE CODE
A. Assessments (Section 228, NIRC)
15 days
30 days
30 days
Period within CIR or
Authorized Representative
to decide
LOA
PAN
Reply
OPTIONS OF TAXPAYER
1. If CIR denies Protest:
IF RECONSIDERATION
180 days
NIC
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FLD/
FAN
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
Submit
Documents
Petition for Review with
CTA Division
FDDA
180 days
Period within CIR or
authorized representative
to decide
2. If authorized representative denies Protest:
a. Follow Procedure in I(A)(1); or
b. File a Motion for Reconsideration with CIR
30 days
30 days
FDDA
MR with CIR
Petition for Review with
CTA Division
3. If CIR or authorized 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
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B. Recovery of Erroneously or Illegally Collected Taxes and/or Penalties (Section 229, NIRC)
2 years
Date of Payment
or Withholding of
Tax
NOTE: Both the administrative and the judicial
claim must be filed within the two-year period.
Petition for
Review with
CTA Division
File Administrative
Claim
with
CIR
(before
Judicial
Claim)
C. VAT Refund/Credit (Section 112, NIRC)
90 days
2 years
Close of the
Taxable Quarter
when
the
relevant
sales
were made
OPTIONS OF TAXPAYER
1. If CIR or authorized Representative denies claim:
30 days
File
Administrative
Claim with CIR
and
submit
complete
documents
NOTE: Only the administrative claim must be
filed within the two-year period.
Period to
decide
Petition for
Review with
CTA Division
Denial
NOTE: Prior to TRAIN, the
period to decide is 120
days.
2. If inaction:
30 days
Lapse of 90-day period
Petition for
Review with
CTA Division
NOTE: Although Section 112 as amended by R.A.
No. 10963 (TRAIN) removed the remedy of the
taxpayer in case of inaction, R.A. No. 1125, as
amended, providing for the jurisdiction of the
CTA states that inaction involving refunds of
internal revenue taxes where the Tax Code
provides a specific period of action shall be
deemed a denial and may thus be elevated to the
CTA Division.
FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes
II.
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REMEDIES UNDER THE LOCAL GOVERNMENT CODE
A. Local Business Tax
1. Assessment
60 days
Notice
of
Assessment
60 days
Protest to
Local
Treasurer
Period to
decide
NOTE: Where an assessment is issued, the
taxpayer cannot choose to pay the assessment
and thereafter seek a refund at any time within
the full period of two years from the date of
payment. If refund is pursued, the taxpayer must
administratively question the validity or
correctness of the assessment in the 'letter claim
for refund' within 60 days from receipt of the
notice of assessment, and thereafter bring suit in
court within 30 days from either decision or
inaction by the local treasurer.
1. If ≤ P300,000 (or ≤ P400,000 for Metro Manila)
15 days
30 days
Denial by
LT
or
Lapse of
60 days
Appeal
to MTC
30 days
Appeal
to RTC
2. If ˃ P300,000 (or ˃ P400,000 for Metro Manila)
30 days
30 days
Denial by
LT
or
Lapse of
60 days
Appeal
to RTC
Petition
for
Review
to the
CTA
Division
Petition
for
Review
to
the
CTA en
banc
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
2. Refund
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2 years
1. If ≤ P300,000 (or ≤ P400,000 for Metro Manila)
Follow procedure in II(A)(1).
Date of
Payment of
Tax
Appeal to
either MTC
or RTC
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
60 days
Appeal to
Secretary of
Justice
Period for the
SOJ to decide
30 days
Denial by
SOJ
or
lapse of
60 days
15 days
Appeal
to the
RTC
15 days (extendible)
Appeal to
Court of
Appeals
Appeal to
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
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B. Real Property Tax
1. Assessment
a. Erroneous Assessment
30 days
Pay
with
Protest
60 days
Protest to
Local
Treasurer
Period to
decide
60 days
Denial by
LT
or
Lapse of
60 days
Appeal
to LBAA
b. Illegal Assessment
30 days
15 days
Issuance
of Illegal
Assessm
ent
File
Injuncti
on with
RTC
120 days
Petition
for
Review
to the
CTA
Division
30 days
Denial
by LBAA
or Lapse
of 120days
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
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2. Refund
2 years
60 days
If denied or inaction by the Local Treasurer
Date
Payment
of
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 by Pierre Martin D. Reyes
III.
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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
the COC
Petition for
Review to
the
CTA
Division
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
NOTE: Only the administrative claim must be
filed within the 12-month period. The CMTA did
not specify the office within which to file the
claim for refund
Denial
Appeal
COC
to
Period to
decide
Follow procedure in III(A)(2).
FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes
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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
if perishable
30 days or 15
days if perishable
1. If importer aggrieved by decision of COC
Follow Procedure in III(A)(2).
2. If no decision rendered (inaction)
Adverse
decision
of District
Collector
Notice of
Appeal to
District
Collector
The District
Collector
shall
transmit
records to
COC
Period
for COC
to decide
The adverse decision of the District Collector is deemed affirmed.
Follow Procedure in III(A)(2).
FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes
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2. If government is aggrieved by decision of the District Collector (Automatic Review)
30 days or 10
days if perishable
5 days
Adverse
decision
of District
Collector
Elevate
Records
to CoC
Receipt of
records by
CoC
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
Period
for COC
to decide
5 days
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 by Pierre Martin D. Reyes
IV.
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APPELLATE REMEDIES IN THE COURT OF TAX APPEALS
15 days
Petition for
Review
before the
CTA Division
Adverse
Decision of
the
CTA
Division
MR
of
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 by Pierre Martin D. Reyes
V.
ASSAILING THE VALIDITY OF TAX LAWS, RULES AND REGULATIONS, AND OTHER ADMINISTRATIVE ISSUANCES
A. Tax Laws and Rules and Regulations (i.e. Revenue Regulations)
30 days
Tax Laws and Revenue
Regulations
(i.e.
Revenue Regulations)
Petition for
Review with
CTA Division
B. Other Administrative Issuances (i.e. Revenue memorandum orders, revenue memorandum circulars, or BIR rulings)
30 days
Other Administrative
Issuances (i.e. Revenue
memorandum orders,
revenue memorandum
circulars, or BIR rulings)
30 days
Review by
Secretary of
Finance
Petition for
Review with
CTA Division
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