PART I

REMEDIES UNDER THE NIRC

I. Assessment of Internal Revenue Taxes

A. Definition/Nature/effect/Basis
Sections 4-7, 203, 222, 223, 228, 232, 235, 266 of the NIRC
Revenue Regulations (RR) No. 12-99 dated September 6, 1999, as
amended by RR No. 18-2013 dated November 28, 2013
http://www.bir.gov.ph/taxpayerrights/taxpayerrights.htm
Republic Act No. 10021

1. Tax Audit Process

2. Letter of Authority/Audit Notice/Tax Verification Notice
Revenue Audit Memorandum Order No. 1-00
Revenue Memorandum Order No. 44-2010 dated May 12, 2010
Revenue Memorandum Order No. 69-2010 dated August 11, 2010
CIR vs. Sony Phils, Inc. G.R. No. 178697, November 17, 2010

3. Preservation of Books of Accounts and tax records

RR No. 17-2013 dated September 27, 2013
RR No. 5-2014 dated July 30, 2014

4. Tax Assessment
CIR vs. Pascor Realty (GR No. 128315 dated June 29, 1999)

5. Pre-assessment Notice (PAN)/when not required

6. Notice of Assessment or Formal Assessment Notice (FAN)
7. Deficiency vs. Delinquency
8. Jeopardy Assessment
Sec. 3 (1)(a) of RR No. 30-02 dated December 16, 2002

9. Power of the Commissioner to assess deficiency tax / best evidence

obtainable
Revenue Memorandum Circular No. 23-00 dated November 27, 2000
Bonifacia Sy Po vs. CTA (164 SCRA 524)
Fitness By Design, Inc. vs. CIR (GR No. 177982 dated October 17, 2008)

10.Rule on Amendment of Returns

11.Power to issue Subpoena Duces Tecum
Revenue Memorandum Order No. 045-10 dated May 12, 2010
Revenue Memorandum Order No. 10-13 dated April 17, 2013
Revenue Memorandum Order No. 08-14 dated January 29, 2014

B. Period to assess deficiency tax

1. Prescription
a. Rationale/Construction/Interpretation
 Republic vs. Ablaza (108 Phil 1105)

b. Ordinary 3 years from date of filing (Sec. 203, NIRC)

c. Extraordinary 10 years from discovery of fraud, falsity, or
omission(see also Sec. 248(B)
d. Counting of periods (Art. 13 of NCC vs. Sec. 31 of Revised Admin
Code)

CIR vs. Primetown Property Group (GR No. 162155, August 28,
2007)

e. Rule if wrong returns/amended return

CIR vs. Ayala Securities (GR No. L-29485, dated November 21,
1980)
Butuan Sawmill, Inc. vs. CTA (GR No. L-20601, February 28, 1966)
CIR vs. Phoenix (GR No. L-19727, May 20, 1965)
CIR vs. Gonzales (18 SCRA 757)

2. Suspension of prescriptive periods/ exceptions

Secs. 203, 222 and 223 NIRC
Revenue Memorandum Order No. 20-90, as amended by Revenue
Delegation Authority Order No. 05-01 dated August 2, 2001 (Execution of
waiver of statute of limitations)
RMO No. 14-2016 April 4, 2016

Cases on Sec. 222 and 223:

Republic vs. Ret (GR No. L-13754 dated March 31, 1962)
BPI vs. CIR (GR No. 139736, October 17, 2005)
Continental Micronesia, Inc. Phil. Branch vs. CIR (CTA Case No. 6191,
March 22, 2006)
Phil. Journalists, Inc. vs. CIR (GR No. 162852, December 16, 2004)
CIR vs. Kudos Metal (GR No. 178087, May 5, 2010)
RCBC vs. CIR (GR No. 170257, September 7, 2011)
Aznar vs. CTA (58 SCRA 519)
Republic vs. Ker (18 SCRA 208)
CIR vs. Suyoc (104 Phil. 819)
CIR vs. Phil Global Communication (GR No. 167146, October 31, 2006)
CIR vs. United Salvage and Towage (Phils.), Inc. (GR No. 197515 dated July
2, 2014)
CIR vs. BASF Coating + Inks Phils., Inc. (GR No. 198677 dated November
26, 2014)
CIR vs. Next Mobile, Inc. (GR No. 212825 dated December 29, 2015)

C. Requisites of a valid assessment

Sec. 3 of RR No. 12-99, as amended by RR No. 18-2013

1. Due Process
Collector vs. Benipayo (4 SCRA 182)
CIR vs. Enron Subic (GR No. 166387 dated January 19, 2009)
 CIR vs. Azucena T. Reyes (GR No. 159694, January 27, 2006)
A Brown Co., Inc. vs. CIR (CTA Case No. 6357, June 7, 2004)
CIR vs. Menguito (GR No. 167550, September 17, 2008)
CIR vs. Metro Star Superama, Inc., G.R. No. 185371, December 8, 2010

2. Power of CIR to issue assessments

Meralco vs. Savellano (117 SCRA 804)
Maceda vs. Macaraig (197 SCRA 771)

3. Modes of Service of Assessments

4. When Assessment made
Nava vs. CIR (GR No. L-19470, January 30, 1965)
Barcelon, Roxas Securities vs. CIR, (GR No. 157064, dated August 7,
2006)

II. Protesting an assessment/ Remedy BEFORE payment

A. How to protest or dispute an assessment administratively

Sec. 228, NIRC
Sec. 3.1.5, RR No. 12-99, as amended by RR No. 18-2013

1. When to file protest within 30 days from receipt of the FAN

2. Where to file
3. Reinvestigation vs. Reconsideration
BPI vs. CIR (GR No. 139736, October 17, 2005)

4. Other requirements
a. Submission of relevant documents
b. Payment of protest not required under the NIRC

5. Effects of filing of the protest

6. Effects of failure to file protest / failure to submit relevant documents
Marcos II vs. CA (GR No. 120880 dated June 5, 1997)
Republic vs. Ker (18 SCRA 208)
Prulife of UK Insurance Corp vs. CIR(CTA Case No. 6774 dated September
11, 2007)
ABN-AMRO Savings Bank Corp vs. CIR (CTA Case No. 7089 dated
September 10, 2008)
CIR vs. First Express Pawnshop (GR Nos. 172045-06 dated June 16, 2009)

B. Commissioner of Internal Revenue renders a decision on the disputed

assessment
Oceanic Wireless Network, Inc. vs. CIR (GR No. 14380, dated December 9,
2005)

C. Remedy of the taxpayer

Sec. 3.5.1, RR No. 12-99, as amended by RR No. 18-2013

Sec. 228 of the NIRC

RA No. 9282, as amended by RA No. 9503

Revised Rules of the CTA, AM No. 05-11-07-CTA dated November 22, 2005, as
amended on September 16, 2008

1. If protest is expressly denied

2. CIRs actions equivalent to denial of protest

3. CIR fails to act on the protest within 180 days from submission of relevant
documents

Lascona Land vs. CIR (GR No. 171251, March 5, 2012)

RCBC vs. CIR (GR No. 168498, April 24, 2007)

4. Remedy in case CIR files a case or issues a warrant of distraint or levy

5. Effect of failure to protest/appeal on time

CIR vs. Concepcion (22 SCRA 1058)

Phil. Journalists, Inc. vs. CIR (GR No. 162852, December 16, 2004)

6. Matter appealable to the CTA

7. Appeal to the CTA En Banc / Supreme Court

Fishwealth Canning Corp. vs. CIR (GR No. 179343 dated January 21, 2010)

Allied Banking Corporation vs. CIR (GR No. 175097 dated February 5,
2010)

Republic vs. Lim Tian Teng Sons (GR No. L-21731 dated March 31, 1966)

ABN-AMRO Savings Bank Corp vs. CIR (CTA Case No. 7089 dated
September 10, 2008)

Advertising Associates vs. CA (133 SCRA 765)

CIR vs. Algue (158 SCRA 9)

Yabes vs. Flojo (GR No. L-46954, July 20, 1982)

CIR vs. Union Shipping (185 SCRA 547)

CIR vs. Isabela Cultural Corp. (GR No. 135210, July 11, 2001)
 CIR vs. Liquigaz Philippines Corporation, GR No. 215534 dated April 18,
2016

D. Non-retroactivity of rulings (Sec. 246, NIRC)

1. BIR Rulings

RR No. 5-2012

2. Rulings of first impression (Sec. 7(B) NIRC)

3. Review/Appeal to Sec. Of Finance (Sec. 4, NIRC)

CIR vs. Phil. Healthcare Providers (GR No. 168129, April 24, 2007)

CIR vs. Burmeister and Wain GR No. 153205 dated Jaunary22, 2007

Phil. Bank of Communications vs. CIR (GR No. 112024, January 28, 1999)

CIR vs. CA (GR No. 117982, February 6, 1997) [read also concurring opinion
of Justice Vitug]

CIR vs. Filinvest Development Corporation (GR Nos. 163653 and 167689, July
19, 2011)

CIR vs. San Roque Power (GR No. 187485 dated February 12, 2013) and
other cases

CIR vs. San Roque Power (GR No. 187485 dated October8, 2013) and other
cases

Philamlife vs. Secretary of Finance (GR No. 210987 dated November 24,
2014)

Banco De Oro vs. Republic (GR No. 198756, January 13, 2015)

III. Remedies Available to the Government

A. Prescriptive period to collect

Sec. 222, NIRC
Republic vs. Hizon (GR No. 130430. December 13, 1997)
CIR vs. Hambrecht & Quist Philippines, Inc. (GR No. 169225 November 17,
2010)
 B. Administrative remedies / Summary Remedies
Secs. 205-217

1. Distraint of personal property

Secs. 205-207, 217, 208-209, 210, 212, NIRC
Revenue Memorandum Circular No. 5-01 dated February 19, 2001

2. Levy of Real Property

Secs. 205-207, 217, 208-209, 213-214, NIRC

3. Forfeiture
Sec. 215, NIRC
Castro vs. CIR (GR No. L-12174, April 26, 1962)

4. Tax lien
Sec. 219, NIRC

Republic vs. Enriquez (166 SCRA 608)

CIR vs. NLRC (238 SCRA 42)

Hong Kong Shanghai Bank vs. Rafferty (39 SCRA 145)

5. No injunction to restrain collection of taxes

Sec. 218, NIRC

Rule 10, Revised Rules of the CTA, AM No. 05-11-07-CTA dated November
22, 2005, as amended on September 16, 2008

Revenue Memorandum Order No. 42-10 dated May 4, 2010

Spouses Pacquiao vs. the CTA, GR No. 213394 dated April 6, 2016.

C. Judicial Remedies
Sec. 205
Secs. 220-221, NIRC
Republic vs. Hizon (GR No. 130430 December 13, 1997)
Mambulao Lumber vs. Republic (132 SCRA 1)
Fernandez Hermanos vs. CIR (GR No. L-21551, September 30, 1969)
PNOC vs. CIR (GR No. 109976, April 26, 2005)

IV. Statutory Offenses and Penalties

A. Civil Penalties / Surcharge / Interest

 Secs. 247-251, NIRC
RR No. 12-99, as amended by RR No. 18-2013

1. Applicable Interest Rate

2. How to compute interest
3. Rules on interest
BPI vs. CIR (GR No. 137002, July 27, 2006)
Republic Cement Corp. vs. CIR (CTA Case No. 7144, August 2, 2011
Amended Decision)

4. Deficiency vs. Delinquency Tax

5. Surcharge: 25% or 50%
Sec. 248, NIRC
Castro vs. CIR (GR No. L-12174, April 26, 1962)
Liquigaz Philippines Corporation vs. CIR, CTA EB Case No. 1117 dated
September 21, 2015

a. False vs. Fraudulent return

b. Fraud Assessment
c. Mandatory imposition of penalties
Phil. Refining Co. vs. CA (GR No. 118794 dated May 8, 1996)

d. When penalties may be waived

Lhuillier Pawnshop vs. CIR (GR No. 166786 dated September 11, 2006)

e. Rule on prima facie fraud

Sec. 248(B), NIRC
Aznar vs.CIR (58 SCRA 519)
Javier vs. CIR (199 SCRA 824)

B. Crimes / Offenses / Penalties / Forfeitures

Secs. 220-221, 224-226, NIRC
Secs. 253-281, NIRC
Revenue Memorandum Circular No. 101-90 dated November 26, 1990

1. Precondition before a criminal case may be filed

Ungab vs. Cusi (97 SCRA 877)
CIR vs. CA (257 SCRA 200)
CIR vs. Pascor Realty (GR No. 128315 dated June 29, 1999)
Adamson vs. CA (GR No. 120935, May 21, 2009)

2. Compromise Penalty
a. Nature and enforcement
Revenue Memorandum Order No. 7-15 dated January22, 2015
CIR vs. Liangga Bay Logging (GR No. L-35266, January 21, 1991)

3. Elements of tax evasion

CIR vs. The Estate of Benigno Toda, Jr. (GR No. 147188, September 14,
2004)
 4. Persons liable in case taxpayer is a juridical entity
5. Payment of tax in criminal cases
Sec. 253 (a), NIRC
Sec. 205 (b) last paragraph

Republic vs. Patanao (GR No. L-22356, July 21, 1967)

Castro vs. CIR (GR No. L-12174, April 26, 1962)

6. Probable Cause
BIR vs CA, GR No. 197590 dated November 25, 2015
7. Crimes under Secs. 254 and 255
8. Civil liability in criminal cases
People vs. Galero (CTA Criminal Case No.O-055. September 30, 2009)
People vs. Mendez (CTA Criminal Case Nos. O-013 &O-015, January 5,
2011)
People vs. Kintanar (CTA Criminal Case No. O-030 dated August11, 2010)
People vs. Santos (CTA Criminal Case No. O-012dated January16, 2013)
People vs. Spouses Castillo (CTA CTA Criminal Case No. O-219 dated
October 7, 2013)

9. Prescription of violations of the NIRC

Lim vs. CA (190 SCRA 616)

V. Claims for refund and credit of taxes/Remedy AFTER payment

A. Who may file claim for refund/tax credit

1. Basis of Tax Refunds

CIR vs. Acesite Phils. (GR No. 147295, February 16, 2007)

2. Taxpayer/withholding agent

CIR vs. Procter & Gamble (204 SCRA 377)

CIR vs. Smart Communications, Inc. (GR Nos. 179045-46, August 25,
2010)
Honda Cars Philippines, Inc. vs. Honda Cars Technical Specialist and
Supervisors Union
(GR No. 204142 dated November 19, 2014)
CIR vs. Philippine Associated Smelting and Refining Corporation, GR No.
186223 dated October 1, 2014

3. Requisites for a valid claim for refund / Creditable Withholding Tax Cases

Koppel (Phils) vs. CIR (GR No. L-10550, September 19, 1961)
CIR vs. Meralco, GR No. 181459 dated June 9, 2014
CIR vs. Far East Bank GR No. 173854 March 15, 2010
CIR vs. Concepcion (22 SCRA 1058)
CIR vs. CA (234 SCRA 348)
PNB vs. CIR (GR No. 206019 dated March 18, 2015
CIR vs. PNB, GR No. 180290 dated September 29, 2014
4. Refunds where written claim is not needed
Sec. 204 (3), NIRC
Sec. 229, NIRC
Vda de San Agustin vs. CIR, GR No. 138485, September 10, 2001

5. Refunds of Corporate taxpayers/Irrevocability Rule

Sec. 76, NIRC
ACCRA Investments vs. CA (204 SCRA 957)
CIR vs. TMX Sales (205 SCRA 184)
Systra Phils. Inc. vs. CIR (GR No. 176290, September 21, 2007)
Sithe Phils. Holdings vs. CIR (CTA Case No. 6274, April 4, 2003)
BPI-Family Savings Bank, Inc. vs. CA, CTA and CIR (GR No. 122480, April
12, 2000)
Philam Asset Management, Inc. vs. CIR (GR Nos. 156637/162004,
December 14, 2005)
CIR vs. BPI (GR No. 178490, July 7, 2009)
Asia World Properties vs. CIR (GR No. 171766, July 29, 2010)
IMPSA Construction Corporation vs. CIR (CTA EB Case No. 685, May 24,
2011)
CIR vs. Rhombus Energy Incorporated (CTA EB Case No. 803, October 11,
2012)
Winbrenner & Inigo Insurance Brokers, Inc. (GR No. 206526 dated January
28, 2015)
Republic vs. Team (Phils.) Energy Corporation, (GR No. 188016 dated
January 14, 2015) read also concurring opinion of CJ Sereno

6. Rule in case of Merger/Corporate taxpayers contemplating dissolution

Sec. 52 (C), NIRC
BPI vs. CIR (GR No. 144653, August 28, 2001)

7. When 2 year period does not apply

CIR vs. PNB (GR No. 161997, October 25, 2005)

8. Remedy of the taxpayer

Sec. 229, NIRC

RA No. 9282, as amended by RA No. 9503

Revised Rules of the CTA, AM No. 05-11-07-CTA dated November 22,

2005, as amended on September 16, 2008

a. CIR renders a decision

b. CIR does not render a decision
c. Appeal to the CTA

9. Issuance of Tax Credit Certificate

Secs.203 (C), 230, NIRC
 RR No. 05-00 dated July 19, 2000
RR No. 14-11 dated July 29, 2011

a. Tax Credit, Tax Credit Certificate, Tax Debit Memo

b. Sources of Tax Credit
c. Uses of Tax Credit
d. Sale / Assignment of Tax Credit
e. Validity, Conversion and Validation
f. Forfeiture of Cash Refunds / Tax Credit

10.Erroneously Refunded Tax

GuaguaElectric Light vs. CIR (GR No. L-23611, April 24, 1967)

VI. Jurisdiction of the Court of Tax Appeals

RA No. 9282, as amended by RA No. 9503
Revised Rules of the CTA, AM No. 05-11-07-CTA dated November 22, 2005, as
amended on September 16, 2008

1. Why was the CTA created?

Philippine Refining Co. vs. CA (256 SCRA 661

2. Weight given to CTA decisions

3. Composition of the Court (No. of Divisions and Justices, the CTA En Banc)
4. Reversal of Decisions of CTA Division
5. Jurisdiction of CTA Division
a. Constitutionality/Validity of Regulations/Tax Laws
Asia International Auctioneers vs. Parayno GR No. 163445,
December 18, 2007.
British American Tobbaco vs. Camacho, GR No. 163583, August 20,
2008.
St. Paul College vs. of San Rafael, CTA EB Case No. 874 dated May
27, 2013.

Philamlife vs. Secretary of Finance (GR No. 210987 dated

November 24, 2014)

Banco De Oro vs. Republic (GR No. 198756, January 13, 2015)

CIR vs. CTA and Petron, GR No. 207843 dated July 15, 2015

b. Civil/Criminal Cases
Adamson vs. CA (GR No. 120935, May 21, 2009)
CIR vs. Hambrecht & Quist Philippines, Inc., G.R. No. 169225,
November 17, 2010
City of Manila vs. Grecia-Cuerdo, GR No. 175723 dated February 4,
2014.

6. Jurisdiction of CTA EB
7. Suspension of Collection of Tax
 8. Appeal to the SC

VII. Abatement of Tax / Tax Compromise

Secs. 7 and 204, NIRC
RR No. 13-01
RR No. 30-02
RR No. 8-04
RR No. 4-12
RR No. 9-13

A. Authority of CIR to abate taxes

1. Grounds for abating taxes and penalties
2. Conditions

B. Power to compromise
1. Cases that can be compromised
2. Cases that cannot be compromised
3. Timing of payment of amount offered as compromise
4. Basis for acceptance of compromise settlement and rates
CIR vs. Azucena T. Reyes (GR No. 159694, January 27, 2006)