TITLE VIIIREMEDIES
CHAPTER
IIIPROTESTING
AN ASSESSMENT, REFUND, ETC.chanrobles virtual law library
SEC.
228. Protesting of Assessment. -When
the Commissioner or his duly authorized representative finds that
proper
taxes should be assessed, he shall first notify the taxpayer of his
findings:
Provided, however, That a preassessment notice shall not be
required
in the following cases:
(a) When the finding
for any deficiency tax is the result of mathematical error in thecomputation of the tax as appearing on the face of the return; or
(b) When a
discrepancy
has been determined between the tax withheld and the amountactually remitted by the withholding agent; or
(c) When a taxpayer
who opted to claim a refund or tax credit of excess creditablewithholding tax for a taxable period was determined to have carried
over
andautomatically applied the same amount claimed against the estimated tax
liabilitiesfor the taxable quarter or quarters of the succeeding taxable year; or
(d) When the excise
tax due on exciseable articles has not been paid; or
(e) When the article
locally purchased or imported by an exempt person, such as, butnot limited to, vehicles, capital equipment, machineries and spare
parts,
has been sold,traded or transferred to non-exempt persons.
The taxpayers shall be
informed in writing of the law and the facts on which the assessment is
made; otherwise, the assessment shall be void.
Within a period to be
prescribed by implementing rules and regulations, the taxpayer shall be
required to respond to said notice. If the taxpayer fails to respond,
the
Commissioner or his duly authorized representative shall issue an
assessment
based on his findings.cralaw:red
Such assessment may
be protested administratively by filing a request for reconsideration
or
reinvestigation within thirty (30) days from receipt of the assessment
in such form and manner as may be prescribed by implementing rules and
regulations.cralaw:red
Within sixty (60) days
from filing of the protest, all relevant supporting documents shall
have
been submitted; otherwise, the assessment shall become final.cralaw:red
If the protest is denied
in whole or in part, or is not acted upon within one hundred eighty
(180)
days from submission of documents, the taxpayer adversely affected by
the
decision or inaction may appeal to the Court of Tax Appeals within
thirty
(30) days from receipt of the said decision, or from the lapse of one
hundred
eighty (180)-day period; otherwise, the decision shall become final,
executory
and demandable.
SEC.
229. Recovery of Tax Erroneously or Illegally Collected. -
no suit or proceeding shall be maintained in any court for the recovery
of any national internal revenue tax hereafter alleged to have been
erroneously
or illegally assessed or collected, or of any penalty claimed to have
been
collected without authority, of any sum alleged to have been
excessively
or in any manner wrongfully collected without authority, or of any sum
alleged to have been excessively or in any manner wrongfully collected,
until a claim for refund or credit has been duly filed with the
Commissioner;
but such suit or proceeding may be maintained, whether or not such tax,
penalty, or sum has been paid under protest or duress.cralaw:red
In any case, no such
suit or proceeding shall be filed after the expiration of two (2) years
from the date of payment of the tax or penalty regardless of any
supervening
cause that may arise after payment: Provided, however, That the
Commissioner may, even without a written claim therefor, refund or
credit
any tax, where on the face of the return upon which payment was made,
such
payment appears clearly to have been erroneously paid.
SEC.
230. Forfeiture of Cash Refund and of Tax Credit. -
(A) Forfeiture
of Refund.- A refund check or warrant issued in accordance with the pertinent
provisions of this Code, which shall remain unclaimed or uncashed
within
five (5) years from the date the said warrant or check was mailed or
delivered,
shall be forfeited in favor of the Government and the amount thereof
shall
revert to the general fund.cralaw:red
(B) Forfeiture
of Tax Credit.
- A tax credit certificate issued in accordance with the pertinent
provisions
of this Code, which shall remain unutilized after five (5) years from
the
date of issue, shall, unless revalidated, be considered invalid, and
shall
not be allowed as payment for internal revenue tax liabilities of the
taxpayer,
and the amount covered by the certificate shall revert to the general
fund.
(C) Transitory
Provision.- For purposes of the preceding Subsection, a tax
credit
certificate issued by the Commissioner or his duly authorized
representative
prior to January 1, 1998, which remains unutilized or has a creditable
balance as of said date, shall be presented for revalidation with the
Commissioner
or his duly authorized representative or on before June 30, 1998.
SEC.
231. Action to Contest Forfeiture of Chattel. -
In case of the seizure of personal property under claim of forfeiture,
the owner desiring to contest the validity of the forfeiture may, at
any
time before sale or destruction of the property, bring an action
against
the person seizing the property or having possession thereof to recover
the same, and upon giving proper bond, may enjoin the sale; or after
the
sale and within six (6) months, he may bring an action to recover the
net
proceeds realized at the sale.