REPUBLIC ACT NO. 5203 - AN
ACT TO AMEND CERTAIN SECTIONS OF TITLE IX OF THE NATIONAL INTERNAL
REVENUE CODE. (RE: CIVIL REMEDIES FOR COLLECTION OF TAXES)
Section 1. Section Three hundred and eighteen of the National
Internal Revenue Code is hereby amended to read as follows:
"Sec. 318. Distraint of personal property. — The
property by distraint shall proceed as follows: Upon the failure of the
person owing any delinquent tax or delinquent revenue to pay the same,
at the time required, the Revenue District Officer, if the amount
involved does not exceed five thousand pesos; the Revenue Regional
Director, if the amount involved is more than five thousand pesos but
does not exceed twenty thousand pesos; and the Commissioner of Internal
Revenue, if the amount involved exceeds twenty thousand pesos shall
seize and distrain not earlier than three months nor later than six
months from receipt of demand, and goods, chattels, or effects, and the
personal property, including stocks and other securities, debts,
credits, bank accounts, and interest in and rights to personal
property, of such person is sufficient quantity to satisfy the tax, or
charge, together with any increment thereto incident to delinquency,
and the expenses of the distraint and the cost of the subsequent
sale.
"A report on any distraint shall, within ten days from receipt of the
warrant, be submitted by the distraining officer to the Revenue
District Officer, to the Revenue Regional Director, and to the
Commissioner of Internal Revenue."
Sec. 2. Section Three hundred and twenty-four is
hereby amended to read as follows:
"Sec. 324. Levy on real estate. — After the
expiration of the time required to pay the delinquent tax or delinquent
revenue as prescribed by Section three hundred eighteen, real property
may be levied upon before, simultaneously, or after the distraint of
personal property belonging to the delinquent. To this end, any
internal revenue officer designated by the Revenue District Officer, or
the Revenue Regional Director or the Commissioner of Internal Revenue,
as the case may be, shall prepare a duly authenticated certificate
showing the name of the taxpayer and the amounts of the tax and penalty
due from him. Said certificates shall operate with the force of a legal
execution throughout the Philippines. Levy shall be effected by writing
upon said certificate a description of the property upon which levy is
made. At the same time, written notice of the levy shall be mailed to
or served upon the Register of Deeds of the province or city where the
property is located and upon the delinquent or, if he be absent from
the Philippines, to his agent or the manager of the business in respect
to which the liability arose, or, if there be none, to the occupant of
the property in question.
"In case the levy on real property is not issued before or
simultaneously with the warrant or distraint on personal property, and
the personal property of the taxpayer is not sufficient to satisfy his
tax delinquency, the Revenue District Officer, Regional Director or
Commissioner, as the case may be, shall within thirty days after
execution of the distraint, proceed with the levy on the taxpayer's
real property.
"A report on any levy shall, within ten days after receipt of the
warrant, be submitted by the levying officer to the District Revenue
Officer, the Revenue Regional Director, and to the Commissioner of
Internal Revenue.
Sec. 3. A new section is hereby inserted between
sections three hundred twenty-four and three hundred twenty-five of the
National Internal Revenue Code to read as follows:
"Sec. 324-A. Penalty for failure to issue and execute
warrant. — Any official who fails to issue or execute the warrant of
distraint or levy within thirty days after the expiration of the time
prescribed in Section s three hundred eighteen and three hundred
twenty-four or who is found guilty of abusing the exercise thereof by
competent authority shall be automatically dismissed from the service
after due notice and hearing."
Sec. 4. Section three hundred and twenty-five is
hereby amended to read as follows:
"Sec. 325. Advertisement and sale. — Within twenty
days after levy, the officer conducting the proceedings shall proceed
to advertise the property or a usable portion thereof as may be
necessary to satisfy the claim and cost of sale; and such advertisement
shall cover a period of at least thirty days. It shall be effectuated
by posting a notice at the main entrance of the municipal building or
city hall and in a public and conspicuous place in the barrio or
district in which the real estate lies and by publication once a week
for three weeks in a newspaper of general circulation in the
municipality or city where the property is located. The advertisement
shall contain a statement of the amount of taxes and penalties so due
and the time and place of sale, the name of the taxpayer against whom
taxes are levied, and a short description of the property to be sold.
At any time before the day fixed for the sale, the taxpayer may
discontinue all proceedings by paying the taxes, penalties and
interest. If he does not do so, the sale shall proceed and shall be
held either at the main entrance of the municipal building or city
hall, or on the premises to be sold, as the officer conducting the
proceedings shall determine and as the notice of sale shall
specify.
"Within five days after the sale, a return by the distraining or
levying officer of the proceedings shall be entered upon the records of
the collection agent, the Revenue District Officer, the Revenue
Regional Director, and the Commissioner of Internal Revenue. The
collection agent, in consultation with the provincial or city municipal
treasurer, shall then make out and deliver to the purchaser a
certificate from his records, showing the proceedings of the sale,
describing the property sold, stating the name of the purchaser and
setting out the exact amount of all taxes, penalties and interest:
Provided, however, That in case the proceeds of the sale exceeds the
claim and cost of sale, the excess shall be turned over to the owner of
the property.
"The collection agent, upon approval by the Revenue District Officer
may, out of his collections, advance an amount sufficient to defray the
costs of collection by means of the summary remedies provided for in
the Code, including the preservation or transportation in case of
personal property, and the advertisement and subsequent sale, both in
cases of personal and real property including improvements found on the
latter. In his monthly collection report, such advances shall be
reflected and supported by receipts."
Sec. 5. This Act shall take effect upon its
approval.
Approved: June 15, 1968
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