Collection Procedures and Tax Remedies P1 Flashcards
The statutory basis of the Commissioner of Internal Revenue’s powers is on ____, _____ and ______ of the NIRC as amended. Sections 2 and 6 (a) of the said code specifically states that the BIR may assess and collect all internal revenue taxes, fees and charges; enforcement of forfeiture and penalties; and execute all judgment in all cases decided by the Court of Tax Appeals (CTA) and other courts in its favor.
Title I, Title VIII and Title X
To Assess:
Except as provided in Section 222, Internal Revenue taxes shall be assessed within ______ years after 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 begin after the expiration of such period. (Section 203, NIRC).
three (3)
To Collect:
Any Internal Revenue tax which has been assessed within the period of limitation as prescribed in paragraph (a) of section 222 of the Tax Code may be collected by distraint or levy or by a proceeding in court within ______ years following the assessment of the tax [Section 222(c), NIRC].
five (5)
The running of the Statute of Limitations provided in Section 203 and 222 on the making of assessment and the beginning of distraint or levy or a proceeding in court for collection, in respect of any deficiency, shall be suspended for the period during which the Commissioner is prohibited from making the assessment or beginning distraint or levy or proceeding in court and for _____ days thereafter
sixty (60)
Exceptions to the Period of Limitation
Assessment of false and fraudulent returns with the intent to evade tax shall be assessed any time within____ years after the discovery of the falsity, fraud or omission.
ten (10)
Exceptions to the Period of Limitation
Any internal revenue tax which has been assessed within the period of limitation may be collected by distraint or levy or by proceeding in court within _____ years following the assessment of the tax.
five (5)
Exceptions to the Period of Limitation
Any internal revenue tax which has been assessed within the period agreed upon between the CIR and the taxpayer may be collected by distraint or levy or by a proceeding in court within _____ years following the assessment of the tax.
five (5)
Refers to the amount of tax due from a taxpayer who failed to pay the same within the time prescribed for its payment.
Account Receivable/Delinquent Account
AR/DA
Sources of AR/DA
I. Non-payment of tax due from Self-Assessed Taxes (SAT):
II. Non-payment of tax due from Unprotested Final Assessment Notice (FAN) or Final Decision on Disputed Assessment (FDDA)
Non-payment of tax due from Self-Assessed Taxes (SAT):
a) Dishonored check;
b) Tax due per return filed by taxpayers who failed to pay the same within the time prescribed for its payment; and
c) Non-payment of the 2nd installment due from individual taxpayers who availed of installment payments of income tax under Sec. 56 (A) (2) of the Tax Code, as amended.
Non-payment of tax due from Unprotested Final Assessment Notice (FAN) or Final Decision on Disputed Assessment (FDDA):
- Result of audit or compliance checks conducted pursuant to Return Processing System (RPS) assessment, pre-audit, short audit, package audit, assessment through Letter Notice (LN), and such other assessments issued in the course of verifying the level of tax payer’s compliance.
When should a Tax be Considered Delinquent?
a) Failure to file request for reinvestigation/ reconsideration within _____ days from receipt of the Final Assessment Notice (FAN);
thirty (30)
When should a Tax be Considered Delinquent?
b) Failure to submit documents in support of the request for reinvestigation within ____ days from filing of the request
sixty(60)
When should a Tax be Considered Delinquent?
c) Failure to appeal to the Court of Tax Appeals (CTA) within _____ days from receipt of the decision denying the request for reinvestigation/ reconsideration or in case of inaction on the part of the Bureau, from the lapse of the _____ days from the submission of the required documents;
thirty (30)
one hundred eighty (180)
When should a Tax be Considered Delinquent?
d) Failure to appeal CTA’s decision on the case with the higher court as a result of which the decision became _____
final and executory
When should a Tax be Considered Delinquent?
e) Decision/Resolution of the CTA/Supreme Court (SC) in favor of the BIR which became _______
final and executory
Meaning of “RACES” Collection Division
Receivable Accounts and Collection Enforcement Section
As per RMO 35-2019 dated July 8, 2019, ________ and ________ shall no longer be sent to the delinquent taxpayers.
Preliminary Collection Letter (PCL)
Final Notice Before Seizure (FNBS)
Meaning of “AMS” Collection Division
Arrears Management Section
Functions of Arrears Management Section
Enforcement Stage
- Identify/Classify/Prioritize
- Locating the actual/present address of the taxpayer
- Locate possible assets of the subject delinquent taxpayer
- Issuance of Warrant of Garnishment
- Issuance of Warrant of Distraint and/or Levy
- Garnishment/Seizure of personal and/or real properties
- Submit all the necessary reports to document all the actions taken.
Conversion and Disposal Stage
1. Final stage of the collection enforcement function
2. Conversion of seized and forfeited properties into cash and
remit the same to the coffers of the government
3. Keep track and provide analysis of AR/DA dockets being handled by the Arrears Management Section
Activities must be executed within ______ working days from
receipt of AR/DA docket/case
sixty (60)
Meaning of FAMU
Forfeited Assets Management Unit
Function of FAMU under Collection Service
In-charge of conversion and disposal of absolutely forfeited properties of Arrears Management Section of the Revenue Regions within Mega Metro Manila (RRs 4-9A & B)
Monitors the conversion and disposal of absolutely forfeited properties of the Arrears Management Section of the Revenue Regions outside Mega Metro Manila
In order to account and track all AR/DAs, all concerned offices handling AR/DAs are required to submit MONTHLY _____, including the Inventory List of AR/DAs as prescribed under RMO No. 22- 2015.
The _______ are the sources of information stored in AR/DA database maintained in Excel file by the Accounts Receivable Monitoring Division (ARMD).
General Control Ledger (GCL) report
Meaning of ARMS
Accounts Receivable Management System
a web- based system that enables the establishment of accurate AR/DAs database covering all concerned BIR offices for easy monitoring/tracking and timely generation of the required correspondences and reports.
*The Bureau is currently maintaining both manual and on-line reporting and monitoring of AR/DA until such time that ____is fully functional.
Accounts Receivable Management System (ARMS)
A _______ is a record of the case
tax docket
Suspension of Running of
Statute of Limitations
- for the period during which the Commissioner is prohibited from making the assessment or beginning distraint or levy or proceeding in court and for sixty (60) days thereafter;
- when the taxpayer requests for a reinvestigation which is granted by the Commissioner;
- when the taxpayer cannot be located in the address given by him in the return filed upon which a tax is being assessed or collected: Provided, That, if the taxpayer informs the Commissioner of any change in address, the running of the Statute of Limitations will not be suspended;
- when the warrant of distraint or levy is duly served upon the taxpayer, his authorized representative,
or a member of his household with sufficient discretion, and no property could be located; - and when the taxpayer is out of the Philippines
BIR Form 1302
Warrant of Garnishment (WG)
BIR Form 1306
Declaration of Forfeiture of Real Property (DOFRP)
BIR Form 2801
Constructive Seizure of Personal Property
CSOPP
BIR Form 2802
Notice of Actual Seizure of Personal Property (NASOPP)
BIR Form 2802-A
Notice of Levy (NOL)
BIR Form 2803
Notice of Sale (NOS) – (for seized personal property)
Notice of Sale (NOS) – [for levied real property]
