TAX ADMINISTRATION AND ENFORCEMENT

Question 1

Who are agents of thecommissioner?

Answer 1

Under Sec. 12 of the 1997 NIRC, the
following are constituted as agents of the Commissioner:
a. The Commissioner of Customs and his
subordinates with respect to the
collection of national internal revenue
taxes on imported goods;
b. The head of the appropriate government
office and his subordinates with respect
to the collection of energy tax; and
c. Banks duly accredited by the
Commissioner with respect to receipt
of payments of internal revenue taxes
authorized to be made through banks.

Question 2

What is the rule of No Estoppel Against the Government”

Answer 2

It is a settled rule of law that in the performance of its governmental functions, the state cannot be estopped by the neglect of its agents and officers. Nowhere is it more true than in the field of taxation (CIR vs. Abad, et. al., L- 19627, June 27, 1968). Estoppel does not apply to preclude the subsequent findings on taxability (Ibid.)

Question 3

Nature and Kinds of Assessments

Answer 3

Self-assessment
Deficiency Assessment
Illegal and Void Assessments-
Erroneous Assessment

Question 4

The law authorizes the Commissioner to
assess taxes on the basis of the best evidence obtainable in the following cases

Answer 4

1. if a person fails to file a return or other document at the time prescribed by law;
   or
2. he willfully or otherwise files a false or fraudulent return or other document.

Question 5

What is. Best Evidence Obtainable

Answer 5

Best Evidence Obtainable refers to any
data, record, papers, documents, or any evidence gathered by internal revenue officers from government offices or agencies, corporations, employers, clients or patients, tenants, lessees, vendees and from all other sources, with whom the taxpayer had previous transactions or from
whom he received any income, after ascertaining that a report required by law as basis for the assessment of any internal revenue tax has not been filed or when there is reason to believe that any such report is false, incomplete or erroneous.

Question 6

When shall the commissioner terminate the tax period?

Answer 6

when it ‘
shall come to his knowledge:
a. That the taxpayer is retiring from business subject to tax;
b. That he intends to leave the Philippines or remove his property therefrom;
c. That the taxpayer hides or conceals his property; or
d. That he performs any act tending to obstruct the proceedings for the collection of the tax for the past or current quarter or year or to render the same totally or partly ineffective unless
such proceedings are begun
immediately.