GOVERNMENT REMEDIES

SECTION 2 & 3

1. Who are the chief officials of BIR?

a. Chief of BIR, to be known as Commissioner of Internal Revenue (CIR)

b. 4 assistant chiefs to be known as deputy commissioners

2. What are the powers and duties of BIR?

a. To assess and collect all taxes, fees and charges

b. To enforce all forfeitures, penalties and fines in connection therewith

SECTION 4

1. Discuss the Commissioner’s power to interpret tax laws and decide tax cases.

The Commissioner has the exclusive and original jurisdiction to interpret tax laws, subject to
review by the SECRETARY OF FINANCE.

The commissioner also has exclusive power to decide matters including:

a. Disputed assessments
b. Refunds of internal revenue taxes, fees, penalties.
c. Other matters arising from the NIRC, subject to review by the CTA

2. What is the rule on taxpayer, abiding in good faith on the interpretative rules of the CIR (which
is original and exclusive power), which later on turns out to be erroneous and be reversed by
commissioner or this court?

Taxpayer acting in good faith should not be made to suffer for adhering to general
interpretative rules of the commissioner in interpreting tax laws.

A general interpretative rule issued by the CIR may be relied upon by taxpayers from the time
the rule is issued.
SECTION 5

1. What are the GROUNDS, by which the commissioner could exercise the powers granted him by
law?

a. Ascertaining the correctness of any return

b. Making a return when none has been made
c. Collecting any such liability
d. Evaluating tax compliance
e. Determining the liability of any person for tax

2. What are the things by which the CIR is authorized to do?

a. Examine any document which may be relevant or material to an inquiry

b. Obtain information from a third party in relation to an investigation or audit of a taxpayer
c. Summon the taxpayer or any person holding records of the taxpayer to appear before the
CIR and produce documents
d. Take testimonies of the person concerned
e. Cause BIR employees to canvass around and inquire on persons who may be liable for any
internal revenue tax

SECTION 6

1. What are the other things by which the CIR is authorized to do?

a. Conduct inventory-taking as a basis for determining the taxpayer’s internal revenue tax
liabilities
b. Place the business of any persons under observation or surveillance
c. Divide the Philippines into different zones and compute the fair market value

2. Can the CIR unilaterally divide the Philippines into zones?

No. it must be done upon consultation with competent appraisers both from the public and
private sectors.

3. When do you apply the rule on “best evidence obtainable”?

The rule on “The Best Evidence Obtainable” applies when a tax report required by law for the purpose of
assessment is not available or when tax report is incomplete or fraudulent.

4. What are the instances wherein bank deposits may be examined by the CIR?

a. A decedent to determine his gross estate

b. Any taxpayer who has filed an application for compromise based on financial incapacity
c. Pursuant to an international convention or tax agreement which the Philippines is a
signatory

SECTION 7

1. As a general rule, the CIR may delegate the power to assess taxes to his subordinates. Give
instances wherein the CIR cannot delegate such power?

a. To recommend the promulgation of rules and regulation by the secretary of finance

b. To issue rulings of first impression or to reverse, revoke or modify any existing ruling of the
bureau
c. To compromise or abate any tax liability
d. To assign or reassign officers to establishments where excise tax articles are produced or
kept

SECTION 8

1.