Collection Procedures and Tax Remedies P3

Question 1

Remedies for the Collection of Delinquent Accounts

Answer 1

By Distraint
By Levy
By Civil or Criminal Action

Question 2

refers to the seizure of the personal property, tangible and intangible, by the government for the satisfaction of a delinquent account

____ of goods, chattels, and other personal properties of whatever character, including stocks and other securities, debts, credits, bank accounts and interest in and right to personal properties

Answer 2

Distraint

Question 3

refers to the seizure of the real properties by the
government for the satisfaction of a delinquent account

_____ upon real property and interest in or rights to real property

Answer 3

Levy

Question 4

A ________ is an authority given to the Head or Chief of a Collecting Office to go after the properties (personal and real) of a delinquent taxpayer to enforce the collection of his tax liabilities.

Answer 4

Warrant of Distraint and/or Levy (BIR Form 1301)

Question 5

Any official who fails to issue or execute the WDL within _______ days after the expiration of the time prescribed in Section 207, NIRC, 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 (Section 273, NIRC).

Answer 5

thirty (30)

Question 6

_____ is filed by the Chief, Collection Division with the Register of Deeds/Assessor’s Office of the city or province where the real property of the delinquent taxpayer is located in order to validate the legal claim or the charge by the government against him.

Answer 6

Notice of Tax Lien

Question 7

Officers Authorized to Distraint Personal Properties

Commissioner or his duly authorized representative

Answer 7

In excess of Php 1M

Question 8

Officers Authorized to Distraint Personal Properties

Chief, Collection Division

Answer 8

Less than Php 1M

Question 9

Actual distraint of personal property involves the _____ of the personal property (tangible or intangible) of the delinquent taxpayer to partially satisfy his/her tax obligation

Answer 9

CONSTRUCTIVE SEIZURE

Question 10

______ is issued to safeguard the interest of the government when a delinquent taxpayer or any taxpayer who, in the opinion of the commissioner, is intending to:
 retire from a business subject to tax
 leave the Philippines
 transfer his properties outside of the Philippines
 hide or conceal his properties
 perform any act to obstruct the proceedings to collect
the tax

Answer 10

Constructive Distraint

Question 11

T or F

There is no definite tax due in constructive distraint.

Answer 11

T

Question 12

BIR Form 2801

Answer 12

Memorandum Receipt

Question 13

Liability of Persons whose Personal Property is Placed Under Constructive Distraint

Answer 13

a) Fined in the amount of not less than twice the
value of the property (but not less than Php
5,000.00)

b) Imprisoned for not less than two (2) years and (1) one
day but not more than (4) four years

Question 14

It is a proceeding in the nature of attachment wherein the credits, properties or effects of a delinquent taxpayer in the hands of a third party may be made to satisfy the collection of his tax liabilities being enforced by a warrant of the Bureau of Internal Revenue.

Answer 14

Warrant of Garnishment

Question 15

Failure to Surrender Property Placed Under Distraint and Levy

Any person who fails or refuses to surrender any of such property or right shall be liable in his own person and his estate to the government in a sum equal to the value of the property or rights not to surrender but not exceeding the amount of the taxes (including penalties and interest) for the collection of which such warrant had been issued, together with cost and interest if any, from the date of such warrant. In addition, such person shall, upon conviction for each act or omission, be punished by a fine of _________, or _______ or both [Section 277, NIRC].

Answer 15

not less than five thousand pesos (Php 5,000.00), or suffer imprisonment of not less than six (6) months and one (1) day but not more than two (2) years or both

Question 16

refers to the written notice of the seizure of a real property by the CIR addressed to the City/Municipal Assessor in the case of untitled real properties. It is addressed to the Register of Deeds of the city or province where it is situated in the case of titled real properties, for annotation of the same at the back of the Tax Declaration (TD) or at the back of the title, in order to enforce collection of the delinquent taxes due from a taxpayer (BIR Form 2802-A).

Answer 16

Notice of Levy

Question 17

T or F

Real property may be levied upon BEFORE, SIMULTANEOUSLY or AFTER the distraint of personal property of the delinquent taxpayer to enforce collection of his tax liability (Section 207 (B), NIRC).

Answer 17

T

Question 18

A _______ showing the name of the taxpayer and the amount of the tax and penalty due from him shall be prepared by any internal revenue officer designated by the Commissioner or his authorized representative. Said certificate shall operate with the force of a legal execution throughout the Philippines (Section 207 (B), NIRC/BIR Form 2802-A).

Answer 18

Duly authenticated certificate (Notice of Levy)

Question 19

 In case the Notice of Levy on real property is not issued before or simultaneously with the Warrant of Distraint on personal property and the personal property is not sufficient to satisfy the tax delinquency, the Commissioner or his authorized representative shall proceed with the levy on real property within _____ days after the execution of the Warrant of Distraint (Section 207 (B), NIRC).

Answer 19

thirty (30)

Question 20

Report on the service of the Notice of Levy shall be submitted within _____ days after the same was served (Section 207 (B), NIRC).

Answer 20

ten (10)

Question 21

Real properties under _______ shall not be subjected to levy (example: real properties of a bank under receivership shall not be subjected to levy).

***However, the BIR may file a third party claim on these real properties.

Answer 21

CUSTODIA LEGIS or property held in trust

Question 22

T of F

The real property should be clearly described on the Notice of Levy. A mistake or confusion on the description of the real property and the name of the owner of the said real property will void the auction sale.

Answer 22

T

Question 23

Within ______ days after levy, the case officer shall advertise the real property or a usable portion thereof as may be necessary to satisfy the tax liability (Section 213, NIRC).

Answer 23

twenty (20)

Question 24

The case officer shall make an ocular inspection of the levied real property to identify the same with certainty. The ocular inspection report shall include the following:

Answer 24

a. Picture of the real property
b. Location plan
c. Status of the property (example: planted rice with
residential house)

Question 25

The advertisement of the auction sale shall cover a period of at least ______ days.

Answer 25

thirty (30)

Question 26

The Notice of Sale shall be published ________ weeks in a newspaper of general circulation in the municipality or City where the real property is located. Notice of Sale, together with the guidelines of the auction sale, shall, likewise, be posted at the bulletin boards of the municipal building or City Hall and in public and conspicuous place in the locality, as well as in the bulletin boards of the concerned revenue district officer and the Collection Division (Section 213, NIRC).

Answer 26

once a week for three (3)

Question 27

T or F

At anytime before the fixed date for the sale, the levying officer may discontinue all proceedings when the taxpayer pays the tax liability.

***If the taxpayer settles his tax liability when the Notice of Sale (NOS) was already published in the newspaper, he should refund to the BIR the cost of publication.

Answer 27

T

Question 28

T or F

Procedures in Transferring the Title of Forfeited
Real Properties to the Republic of the Philippines

**This procedure is done after ONE (1) YEAR of REDEMPTION period and given that the taxpayer did not redeem the forfeited properties

Answer 28

T