Tax Remedies

Question 1

Enumerate taxremedies of the government

Answer 1

Administrative
1. Distraint of Personal Property
2. Levy of Real Property
3. Tax Lien
4. Compromise
5. Forfeiture
6. Other , Administrative Remedies

II. Judicial
1. Civil Action
2. Criminal Action

Question 2

What is distraint?

Answer 2

Seizure by the government of personal property, tangible or intangible, to enforce the payment of taxes, to be followed by its public sale, if the taxes are not voluntarily paid.

Question 3

What are the kinds of distraint?

Answer 3

a. Actual – There is taking of possession ‘’ of personal property out of the taxpayer into that of the government.
In case of intangible property. Taxpayer is also diverted of the power of control over the property

b. Constructive – The owner is merely , prohibited from disposing of his personal property.

Question 4

What are the requisites for distraint?

Answer 4

1. Taxpayer is delinquent in the payment of tax.
2. Subsequent demand for its payment.
3. Taxpayer must fail to pay delinquent tax at time required.
4. Period with in to assess or collect has not yet prescribed.
    In case of constructive distraint, requisite no. 1 is not essential (see Sec. 206 TC)

Question 5

Distinguish actual from constructive distraint

Answer 5

Made on the property of a delinquent
May be made on the property of any taxpayer.
taxpayer whether delinquent or not

There is actual taking or possession of the property
Taxpayer is merely of the prohibited from disposing of his property.

Effected by having a list of the distraint property or by service or warrant
Effected by requiring the taxpayer to sign a ‘ receipt of the property or by leaving a list of garnishment.

An immediate step for collection of taxes where amount due is definite
Such immediate step is not necessary; tax due may not be definite or it is being questioned

Question 6

Grounds of Constructive Distraint

Answer 6

1. Taxpayer is retiring from any business subject to tax.
2. Taxpayer is intending to leave the Philippines; or
3. To remove his property there from.
4. Taxpayer hides or conceals his property.
5. Taxpayer acts tending to obstruct collection proceedings.