Remedies Flashcards
(10 cards)
BIR has the power to issue subpoena against a TP
True
BIR
D. Effect and administer the supervisory and police powers conferred upon it by the tax code or other special laws
In this case, they can actually administer oaths in relation to tax issues. They can also ask for certain documents by issuing subpoenas duces tecum and ad testificandum
CIR may delegate the power to compromise a tax liability of 1M, inclusive of 500k surcharges & penalties
TRUE
Authority to enter into compromise:
- Regional evaluation board, in case the assessment involves Basic Deficiency Tax (BDT) of Php 500,000 or less and minor violations discovered by regional and district officials.
It will require the approval of the regional evaluation board (meaning at the level of the revenue director of the BIR) for as long as the BDT is 500,000 or less, then they can enter into a compromise.
Decisions of the CIR on a request for a tax ruling shall be originally appealed to the CTA
(diff. from revenue regulation) - go to court
FALSE
POWERSSPECIFIC TO THECOMMISSIONER OFINTERNAL REVENUE(CIR)
- Power to Interpret the tax code and other laws (Exclusive and Original Jurisdiction) This only pertains to Specific Interpretation, one that addresses the needs of a specific tax payer.
Specific Interpretation: vested to the CIR: Go to CIR for tax ruling-> unsatisfied-> Sec of Finance
General Interpretation: vested to Secretary of Finance with the recommendation of CIR
a TP who receives a LOA may amend his tax return provided that the same si made within 3 years from the filinf of the same
FALSE
GR: you cannot withdraw the return, you can only amend. But the amendment has to happen within 3 years from the date of filing of the return involved
[AND]
TP is not subjected to any audit or investigation
absent both, you cannot AMEND
The BlR may inquire into the bank deposit of a taxpayer who filed an application for compromise without need of such taxpayer’s consent.
FALSE
The BIR must be able to secure the waiver of the taxpayer and it has to be written otherwise the BIR cannot inquire into the bank deposit.
An individual taxpayer who filed his income tax return beyond April 15 may be assessed by the BIR within 3 years from the date of such taxpayer’s actual filing of return.
TRUE
- Filed Return: before Apr. 15; reckoning period is still Apr. 15
- Filed Return: beyond Apr. 15; reckoning period is the actual date of filing
aranas: whichever is later
- A tax fraud case not yet filed in court may still be subject of a compromise.
False
Compromise is prohibited in Criminal tax fraud cases
For the reason that there is fraud. There is an integrity issue. You have to pay the consequences of your fraudulent action.
In a tax protest case, a taxpayer has the option to [[wait for the decision of the BIR]] despite the lapse of 180 days from the submission of supporting documents
(speaking of request for reinvestigation).
TRUE
sec 228 last par.
Protesting of Assessment- If the protest is denied in whole or in part, [or] is not acted upon within one hundred eighty (180) days from submission of documents, the taxpayer adversely affected by the decision or inaction MAY appeal to the CTA within thirty (30) days from receipt of the said decision, or from the lapse of one hundred eighty (180)-day period; otherwise, the decision shall become final, executory and demandable.
A taxpayer should file an appeal with the Court of Tax Appeals and need not wait for the decision of the BIR on his claim for REFUND if the two-year period reckoned from the date of payment is about to lapse.
TRUE
TN: for erroneous payment not excessive input VAT
Q: How do you claim for a refund?
A. Must be in writing;
B. File within 2 years from date of payment
C. Show Proof of Payment
The taxpayer should not wait for the decision of the CIR: both the claim for refund and subsequent appeal must be filed within the 2-year period, since the 2-year period covers the administrative (claim for refund) and the judicial remedies.
- A taxpayer’s books of accounts may be kept in Spanish language.
TRUE (234)
Language in which Books are to be Kept; Translation.- All such corporations, companies, partnerships or persons shall keep the books or records mentioned in Section 232 hereof in a native language, English or Spanish.
