FLOWCHART OF TAX REMEDIES by Pierre Martin D.

Reyes Page 1 of 11

I. REMEDIES UNDER THE NATIONAL INTERNAL REVENUE CODE

A. Assessments (Section 228, NIRC) OPTIONS OF TAXPAYER
IF RECONSIDERATION 1. If CIR denies Protest:
180 days 30 days
NIC 15 days 30 days
Period within CIR or
Authorized Representative
to decide FDDA Petition for Review with
CTA Division
LOA PAN Reply FLD/ Protest
NOTE: Taxpayer may file a Motion for Reconsideration with the CIR but it shall not
FAN
IF REINVESTIGATION toll the 30-day period to appeal to the CTA.

60 days 180 days 2. If authorized representative denies Protest:

a. Follow Procedure in I(A)(1); or

b. File a Motion for Reconsideration with CIR

Period within CIR or 30 days 30 days
Submit authorized representative
Documents to decide

FDDA MR with CIR Petition for Review with

CTA Division

3. If CIR or authorized representative does not act within the 180-day

a. File a Petition for Review within 30 days; or
period:
30 days

Lapse of 180-day period Petition for Review with

(deemed a denial) CTA Division
b. Await for FDDA
Follow procedure in either I(A)(1) or I(A)(2).
FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes Page 2 of 11

B. Recovery of Erroneously or Illegally Collected Taxes and/or Penalties (Section 229, NIRC)
2 years

NOTE: Both the administrative and the judicial

claim must be filed within the two-year period.
Date of Payment Petition for
or Withholding of Review with
Tax CTA Division

File Administrative
Claim with CIR
(before Judicial
Claim)

C. VAT Refund/Credit (Section 112, NIRC) OPTIONS OF TAXPAYER

1. If CIR or authorized Representative denies claim:
30 days
2 years 90 days

Period to
Denial Petition for
decide
Close of the File Review with
Taxable Quarter Administrative NOTE: Prior to TRAIN, the CTA Division
Claim with CIR period to decide is 120
when the NOTE: Although Section 112 as amended by R.A.
days. 2. If inaction:
and submit No. 10963 (TRAIN) removed the remedy of the
relevant sales
complete 30 days taxpayer in case of inaction, R.A. No. 1125, as
were made documents amended, providing for the jurisdiction of the
CTA states that inaction involving refunds of
internal revenue taxes where the Tax Code
NOTE: Only the administrative claim must be provides a specific period of action shall be
filed within the two-year period. deemed a denial and may thus be elevated to the
Lapse of 90-day period Petition for
CTA Division.
Review with
CTA Division
FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes Page 3 of 11

II. REMEDIES UNDER THE LOCAL GOVERNMENT CODE

A. Local Business Tax

1. Assessment

1. If ≤ 2,000,000
60 days 60 days
30 days 15 days 30 days

Period to
Notice of Protest to decide
Assessment Local Denial by Appeal Appeal Petition
Treasurer LT or to MTC to RTC for
Lapse of Review
60 days to the
NOTE: Where an assessment is issued, the CTA en
taxpayer cannot choose to pay the assessment banc
and thereafter seek a refund at any time within
the full period of two years from the date of
payment. If refund is pursued, the taxpayer must 2. If ˃ P2,000,000
administratively question the validity or NOTE: The period to appeal shall be interrupted by a timely motion for new trial
correctness of the assessment in the 'letter claim 30 days or reconsideration. In any case, if the motion is denied, the movant has a fresh
30 days
for refund' within 60 days from receipt of the period of 15 days from receipt or notice of order denying or dismissing the
notice of assessment, and thereafter bring suit in motion for reconsideration within which to file the appeal. (Neypes Doctrine)
court within 30 days from either decision or
inaction by the local treasurer.
Denial by Appeal Petition
LT or to RTC for
Lapse of Review
60 days to the
CTA
Division
FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes Page 4 of 11

2. Refund
2 years
1. If ≤ P2,000,000

Follow procedure in II(A)(1).

Date of Appeal to
Payment of either MTC
Tax or RTC
2. If ˃ P2,000,000

File Claim for Refund Follow procedure in II(A)(2).

before Local
Treasurer

NOTE: Both the administrative and the judicial

claim must be filed within the two-year period.

3. Assail Tax Ordinance

30 days 60 days 30 days 15 days 15 days (extendible)

Period for the

Effectivity of Appeal to SOJ to decide Denial by Appeal Appeal to Appeal to
Tax Ordinance Secretary of SOJ or to the Court of Supreme
Justice lapse of RTC Appeals Court
60 days
NOTE: The period to appeal shall be interrupted by a timely motion for new trial
or reconsideration. In any case, if the motion is denied, the movant has a fresh
period of 15 days from receipt or notice of order denying or dismissing the
motion for reconsideration within which to file the appeal (Neypes Doctrine)
FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes Page 5 of 11

B. Real Property Tax

1. Assessment
a. Erroneous Assessment
30 days 60 days 60 days 120 days 30 days 30 days

Period to
Pay with Protest to decide Denial by Appeal Denial Appeal Adverse Petition
Protest Local LT or to LBAA by LBAA to the Decision of for
Treasurer Lapse of or Lapse CBAA the CBAA Review to
60 days the CTA
of 120-
en banc
days

b. Illegal Assessment

15 days 30 days

Issuance File Petition

of Illegal Injuncti for
Assessm on with Review
ent RTC to the
CTA
Division
FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes Page 6 of 11

2. Refund

2 years 60 days

If denied or inaction by the Local Treasurer

Period to Follow Procedure in II(B)(1).

Date of File Claim decide -
Payment with Local
Treasurer

NOTE: Only the administrative claim must be

filed within the two-year period.
FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes Page 7 of 11

III. REMEDIES UNDER THE CUSTOMS MODERNIZATION AND TARIFF ACT.

A. Assessments
1. If protest is sustained
15 days 30 days

The COC shall make the appropriate order and the entry reassessed, if necessary.

Period to 2. If protest is denied

Payment Protest to decide
under Commissioner 30 days
Protest of Customs
(COC)

NOTE: Assessment shall be deemed final within Denial by Petition for

15 days after receipt of the notice of assessment. the COC Review to
the CTA
Division

B. Refund
1. If the claim and application is for refund of duties.
12 months If the claim is denied If denied by the COC

30 days 30 days Follow procedure in III(A)(2).

Date of File Claim

payment with Bureau Period to
Denial Appeal to decide
NOTE: Only the administrative claim must be COC
filed within the 12-month period. The CMTA did
not specify the office within which to file the
claim for refund
FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes Page 8 of 11
2. If the claim and application is for refund of duties and taxes.

As to refund of the duties element

Follow procedure under III(B).

As to refund of internal revenue taxes element

Follow procedure under I(B).

Note: The Bureau of Customs shall cause the refund of internal revenue taxes after issuance of a certification from the CIR
granting claim for refund, whether wholly or partially.

C. Forfeiture

1. If importer is aggrieved by decision of District Collector 1. If importer aggrieved by decision of COC

15 days or 5 days 30 days or 15

Follow Procedure in III(A)(2).
if perishable days if perishable
goods 2. If no decision rendered (inaction)

The adverse decision of the District Collector is deemed affirmed.

Adverse Notice of The District Period Follow Procedure in III(A)(2).
decision Appeal to Collector for COC
of District District shall to decide
Collector Collector
transmit
records to
COC
FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes Page 9 of 11
2. If government is aggrieved by decision of the District Collector (Automatic Review)

30 days or 10
If no decision rendered within the said period or when a decision adverse to
5 days days if perishable
government is rendered by the COC involving goods with FOB or FCA value of
goods
P10,000,000.00

Period 5 days
Adverse Elevate Receipt of for COC
decision Records records by to decide
of District to CoC CoC NOTE: The decision of the SOF
Collector whether or not a decision was
COC Elevate rendered by the COC within 30 days,
records to or within 10 days in the case of
SoF perishable goods, from receipt of the
records, shall be final upon the
Bureau.

If importer aggrieved by decision of COC

Follow Procedure in III(A)(2).

3. If the importer is aggrieved by the decision of the Secretary of Finance on automatic review

30 days

Adverse Petition for

decision Review to
of SOF the CTA
Division
FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes Page 10 of 11

IV. APPELLATE REMEDIES IN THE COURT OF TAX APPEALS

15 days 15 days (extendible) 15 days 15 days (extendible)

Petition for Adverse MR of Adverse Petition Adverse MR of Adverse Petition for

Review Decision of CTA Div. Resolution for Decision of CTA-EB Resolution Review to the
before the the CTA Decision of the CTA Review the CTA-EB Decision of the CTA- Supreme
CTA Division or MNT before EB Court
Division Division
the CTA
En Banc

NOTE: A petition for review of a decision or resolution of the

CTA in Division must be preceded by the filing of a timely MR
or MNT with the Division. The filing of a MR or MNT, however,
with the CTA en banc is not mandatory.
FLOWCHART OF TAX REMEDIES by Pierre Martin D. Reyes Page 11 of 11

V. ASSAILING THE VALIDITY OF TAX LAWS, RULES AND REGULATIONS, AND OTHER ADMINISTRATIVE ISSUANCES

A. Tax Laws and Rules and Regulations (i.e. Revenue Regulations)

30 days

Tax Laws and Revenue Petition for

Regulations (i.e. Review with
Revenue Regulations) CTA Division

B. Other Administrative Issuances (i.e. Revenue memorandum orders, revenue memorandum circulars, or BIR rulings)

30 days 30 days

Other Administrative Review by Petition for

Issuances (i.e. Revenue Secretary of Review with
Finance CTA Division
memorandum orders,
revenue memorandum
circulars, or BIR rulings)