TAX REMEDIES

Question 1

seizure by the government of personal property, tangible or intangible, to enforce the payment
of taxes to be followed by its public sale of such property, if the taxpayer fails to pay voluntarily.

Answer 1

DISTRAINT

Question 2

there is taking of possession of the personal property out of the taxpayer into that of the government;

Answer 2

ACTUAL DISTRAINT

Question 3

the owner is merely prohibited from disposing of his property.

Answer 3

CONSTRUCTIVE DISTRAINT

Question 4

same act of seizure but in this case, it is seizure of real property, interest in or rights to such property
in order to enforce payment of taxes. As in the distraint of personal property, the real property under levy shall be sold in a public sale, if the taxes involved are not voluntarily paid following such levy.

Answer 4

LEVY

Question 5

a divestiture of property without compensation, in consequence of a default or offense. In
case of chattels and removal of fixtures of any sort, forfeiture is enforced by seizure and sale or destruction of the specific forfeited property. The forfeiture of real property is enforced by a judgment of condemnation and sale in a legal action or proceeding, civil or criminal, as the case may require.

Answer 5

FORFEITURE

Question 6

a legal claim or charge on property either real or personal established by law as a security in
default of the payment of taxes. The tax, together with interest, penalties and cost that may accrue in
addition thereto is a lien upon all property and rights to property belonging to the taxpayer.

Answer 6

TAX LIEN

Question 7

Filing of performance bond to secure the payment of taxes or compliance with certain provisions of tax laws and regulations. This may be required by the BIR for the issuance of a tax clearance.

Answer 7

REQUIRING THE FILING BONDS

Question 8

Before a license to engage in trade or
business or occupation or to practice a profession can be issued to a person, partnership, association or
corporation, he must submit to the officer issuing such license or permit, proof that he has filed his
income tax return during the preceding year and that income taxes due have been paid thereon.

Answer 8

REQUIRING PROOF OF FILING INCOME TAX RETURNS.

Question 9

-knowingly and fraudulently evades the payment of any internal revenue tax or
- willfully refuses to pay such tax and its accessory penalties after the decision on the tax liability rendered by the Commissioner of Internal Revenue, or the CTA or any competent judicial tribunal shall have become final and executor, is subject to deportation. The penalty of deportation is not a bar to any proceeding taken by the government to enforce collection of tax delinquency.

Answer 9

DEPORTATION OF ALIENS

Question 10

After the assessment made by the Commissioner of Internal Revenue has become final and executory for failure of the taxpayer to dispute the same and appeal the disputed assessment to the Court of Tax Appeals, the government may institute civil actions to collect internal revenue taxes in the Regional Trial Court and the Metropolitan Trial Court, City and
municipal courts.

Answer 10

INSPECTION OF BOOKS OF ACCOUNTS
JUDICIAL ACTION*
a. Civil Action

Question 11

maybe pursued by the authorities for the collection of delinquent taxes. An assessment of a tax deficiency is not necessary to a criminal prosecution for tax evasion. The crime is complete when the violator has knowingly and willfully filed a fraudulent return or neglected to file a return with intent to evade the tax. If the taxpayer is acquitted, the government may still collect the tax in a civil action, because the payment of a tax is an obligation imposed by statute and does not arise from a criminal act.

Answer 11

INSPECTION OF BOOKS OF ACCOUNTS
JUDICIAL ACTION*
a. CRIMINAL ACTION