Title | Flowchart of Tax Remedies (2019 Update/ TRAIN) |
---|---|
Author | P. Reyes |
Pages | 11 |
File Size | 820.7 KB |
File Type | |
Total Downloads | 280 |
Total Views | 673 |
FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes Page 1 of 11 I. REMEDIES UNDER THE NATIONAL INTERNAL REVENUE CODE A. Assessments (Section 228, NIRC) OPTIONS OF TAXPAYER IF RECONSIDERATION 1. If CIR denies Protest: 180 days 30 days NIC 15 days 30 days Period within CIR or Authorized Representativ...
FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes I. REMEDIES UNDER THE NATIONAL INTERNAL REVENUE CODE A. Assessments (Section 228, NIRC)
NIC
LOA
15 days
PAN
Reply
30 days
FLD/ FAN
IF RECONSIDERATION 180 days
Protest
60 days
Submit Documents
OPTIONS OF TAXPAYER
1. If CIR denies Protest:
30 days
Period within CIR or Authorized Representative to decide
IF REINVESTIGATION
Page 1 of 11
180 days
Period within CIR or authorized representative to decide
Petition for Review with CTA Division
FDDA
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.
2. If authorized representative denies Protest: a. Follow Procedure in I(A)(1); or
b. File a Motion for Reconsideration with CIR 30 days
FDDA
MR with CIR
30 days
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
Page 2 of 11
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
Denial
NOTE: Prior to TRAIN, the period to decide is 120 days.
2. If inaction:
Lapse of 90-day period
Petition for Review with CTA Division
30 days
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.
Page 3 of 11
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
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
30 days
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
2 years
Date of Payment of Tax
Page 4 of 11
1. If ≤ P300,000 (or ≤ P400,000 for Metro Manila) Follow procedure in II(A)(1).
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 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
Page 5 of 11
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 2. Refund
Date Payment
2 years
of
60 days
File Claim with Local Treasurer
NOTE: Only the administrative claim must be filed within the two-year period.
Period to decide
Page 6 of 11
If denied or inaction by the Local Treasurer Follow Procedure in II(B)(1). -
FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes III.
REMEDIES UNDER THE CUSTOMS MODERNIZATION AND TARIFF ACT.
A. Assessments 15 days
Payment under Protest
Page 7 of 11
1. If protest is sustained
30 days
Protest to Commissioner of Customs (COC)
Period to decide
NOTE: Assessment shall be deemed final within 15 days after receipt of the notice of assessment.
The COC shall make the appropriate order and the entry reassessed, if necessary.
2. If protest is denied
30 days
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
Date payment
of
If the claim is denied
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
30 days
30 days
Appeal COC
to
Period to decide
If denied by the COC
Follow procedure in III(A)(2).
FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes
Page 8 of 11
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
Adverse decision of District Collector
Notice of Appeal to District Collector
30 days or 15 days if perishable
The District Collector shall transmit records to COC
Period for COC to decide
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. Follow Procedure in III(A)(2).
FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes
Page 9 of 11
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.
Page 10 of 11
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
Page 11 of 11...