Concept of Assessment Requisites For A Valid Assessment: 10 Years After Discovery
Concept of Assessment Requisites For A Valid Assessment: 10 Years After Discovery
Concept of Assessment Requisites For A Valid Assessment: 10 Years After Discovery
An assessment is deemed made when the notice to that effect is released, mailed or sent to the
taxpayer for the purpose of giving effect to the assessment. (Republic v. Dela Rama)
2. Delinquency - failure of the taxpayer to pay the tax due on the date fixed by law or indicated in
the assessment notice or letter of demand.
Jeopardy Assessment
A tax assessment made by an authorized Revenue Officer without the benefit of complete or
partial audit, in light of the RO‘s belief that the assessment and collection of the deficiency tax will
be jeopardized by delay caused by the taxpayer‘s failure to:
i. Comply with audit and investigation requirements to present his books of accounts and/or
pertinent records
ii. Substantiate all or any of the deductions, exemptions or credits claimed in his return.
It is usually issued when statutory prescriptive periods for the assessment or collection of taxes
are about to lapse due principally to the taxpayer‘s fault.
I. Taxpayer’s Remedies
1. Protesting an assessment
a. Protested assessment
b. Period to file protest
- Within 30 days from receipt of the assessment, within 60 days from filing the protest, all
relevant supporting docs must be submitted
c. Form, content, and validity of protest
d. Submission of supporting documents
e. Effect of failure to file protest
- The Commissioner shall issue an assessment based on his findings
f. Decision of the commissioner on the protest filed.
1.) Period to act upon or decide on protest filed
- 180 days upon submission of documents
2.) Remedies of the taxpayer in case the commissioner denies the protest or fails
to act on the protest
- The taxpayer may appeal to the CTA within 30 days from receipt of the decision
3.) Effect of failure to appeal
2. Compromise and abatement of taxes
- the decision becomes final, executory and demandable
Compromise
- allowed when:
Compromise v. ABATEMENT:
As Effect
Compromise: reduce tax liability;
Abatement: cancel the entire tax liability
As to when proper
Compromise: when there is reasonable doubt as to validity of tax assessment or the
taxpayer is financially incapacitated to pay;
Abatement: when there is unjust assessment (excessive) or when administration and
collection cost do not justify the amount of tax due
b. Grounds, requisites and period for filing a claim for refund or issuance of a tax
credit certificate
- when a tax is assessed and the assessment becomes final and unappealable (because TP
failed to file administrative protest with BIR within 30d from receipt of assessment)
- when an administrative protest is denied or is not acted upon within 180d from
submission of documents and TP fails to appeal to the CTA
WHERE:
- regular courts, with approval of CIR except if express delegation to Regional Director;
motion to dismiss the complaint should also be filed in the regular courts
HOW:
- the complaint must be brought in the name of the Government and conducted by a
legal officer of the BIR
Criminal Action
WHEN:
- before lapse of 5 years (prescription period)
WHERE:
- DOJ
HOW:
- complaint approved by CIR brought in the name of the Government and conducted by a
legal officer of the BIR
GROUND:
- prima facie showing of failure to file a required tax return or a willful attempt to evade
taxes; no need for assessment