TITLE VIIIREMEDIES
CHAPTER IREMEDIES
IN GENERAL
SEC.
202. Final Deed to Purchaser.- In case the taxpayer shall not redeem the property as herein
provided
the Revenue District Officer shall, as grantor, execute a deed
conveying
to the purchaser so much of the property as has been sold, free from
all
liens of any kind whatsoever, and the deed shall succintly recite all
the
proceedings upon which the validity of the sale depends.
SEC.
203. Period of Limitation Upon Assessment and Collection. -
Except as provided in Section 222, internal revenue taxes shall be
assessed
within three (3) years after the last day prescribed by law for the
filing
of the return, and no proceeding in court without assessment for the
collection
of such taxes shall be begun after the expiration of such period: Provided,
That in a case where a return is filed beyond the period prescribed by
law, the three (3)-year period shall be counted from the day the return
was filed. For purposes of this Section, a return filed before the last
day prescribed by law for the filing thereof shall be considered as
filed
on such last day.
SEC.
204. Authority of the Commissioner to Compromise, Abate and Refund
or
Credit Taxes. - The
Commissioner may -
(A) Compromise
the Payment of any Internal Revenue Tax, when:
(1) A
reasonable
doubt as to the validity of the claim against the taxpayer exists; or
For cases of
financial
incapacity, a minimum compromise rate equivalent to ten percent (10%)
of
the basic assessed tax; and
For other cases, a
minimum compromise rate equivalent to forty percent (40%) of the basic
assessed tax.Where the basic tax
involved
exceeds One million pesos (P1,000.000) or where the settlement offered
is less than the prescribed minimum rates, the compromise shall be
subject
to the approval of the Evaluation Board which shall be composed of the
Commissioner and the four (4) Deputy Commissioners.
(B) Abate or
Cancel a Tax Liability, when:
(1) The tax or
any portion thereof appears to be unjustly or excessively assessed; or
(2) The
administration
and collection costs involved do not justify the collection of the
amount due.
All criminal
violations
may be compromised except: (a) those already filed in court, or (b)
those
involving fraud.
(C) Credit
or refund taxes erroneously or illegally received or penalties imposed
without authority, refund the value of internal revenue stamps when
they
are returned in good condition by the purchaser, and, in his
discretion,
redeem or change unused stamps that have been rendered unfit for use
and
refund their value upon proof of destruction. No credit or refund of
taxes
or penalties shall be allowed unless the taxpayer files in writing with
the Commissioner a claim for credit or refund within two (2) years
after
the payment of the tax or penalty: Provided, however, That a
return
filed showing an overpayment shall be considered as a written claim for
credit or refund.
A Tax Credit Certificate
validly issued under the provisions of this Code may be applied against
any internal revenue tax, excluding withholding taxes, for which the
taxpayer
is directly liable. Any request for conversion into refund of
unutilized
tax credits may be allowed, subject to the provisions of Section 230 of
this Code: Provided, That the original copy of the Tax Credit
Certificate
showing a creditable balance is surrendered to the appropriate revenue
officer for verification and cancellation: Provided, further,
That
in no case shall a tax refund be given resulting from availment of
incentives
granted pursuant to special laws for which no actual payment was made.
The Commissioner shall
submit to the Chairmen of the Committee on Ways and Means of both the
Senate
and House of Representatives, every six (6) months, a report on the
exercise
of his powers under this Section, stating therein the following facts
and
information, among others: names and addresses of taxpayers whose cases
have been the subject of abatement or compromise; amount involved;
amount
compromised or abated; and reasons for the exercise of power: Provided,
That the said report shall be presented to the Oversight Committee in
Congress
that shall be constituted to determine that said powers are reasonably
exercised and that the government is not unduly deprived of revenues.