— Recovery of tax erroneously or illegally collected.
SEC. 306. — Recovery of tax erroneously or illegally
collected. — No suit or proceeding shall be maintained in any court for the
recovery of any national internal revenue tax hereafter alleged to have been
erroneously or illegally assessed or collected, or of any penalty claimed to
have been collected without authority, or of any sum alleged to have been
excessive or in any manner wrongfully collected, until a claim for refund or
credit has been duly filed with the Commissioner; but such suit or proceeding
may be maintained, whether or not such tax penalty, or sum has been paid under
protest or duress. In any case, no such suit or proceeding shall be begun after
the expiration of two years from the date of payment of the tax or penalty
regardless of any supervening cause that may arise after payment: Provided,
however, That the Commissioner may, even without a written claim therefor,
refund or credit any tax, where on the face of the return upon which payment was
made, such payment appears clearly to have been erroneously paid.
— Form and mode of proceeding in actions arising under this Code.
SEC. 308. — Form and mode of proceeding in actions
arising under this Code. — Civil and criminal actions and proceedings
instituted in behalf of the Government under the authority of this Code or other
law enforced by the Bureau of Internal Revenue shall be brought in the name of
the Government of the Philippines and shall be conducted by the provincial or
city fiscal, or the Solicitor-General, or by the legal officers of the Bureau of
Legal Internal Revenue deputized by the Secretary of Justice, but no civil and
criminal actions for the recovery of taxes or the enforcement of any fine,
penalty, or forfeiture under this Code shall be begun without the approval of
the Commissioner of Internal Revenue.
SEC. 309. — Authority of Commissioner to make compromises
and to refund taxes. The Commissioner may:
Compromise any civil case arising under this code or other laws or part of
laws administered by the Bureau of Internal Revenue when there is reasonable
doubt as to the validity of the claim against the taxpayer or where the
financial position of the taxpayer demonstrates a clear inability to pay the
assessed tax; or any criminal case other than one involving the commission of
fraud by the taxpayer before that case is filed in Court.
Abate the payment of any tax that appears to be unjustly or excessively
assessed or the unpaid portion of the assessed tax or any liability in respect
thereof, if under the rules and regulations to be recommended by the
Commissioner with the approval of the Secretary of Finance, the administration
and collection costs involved do not warrant the collection of the amount due.
Credit or refund taxes erroneously or illegally received, or penalties
imposed without authority; refund the value of internal revenue stamps when they
are returned in good condition by the purchaser, and, in his discretion, redeem
or change unused stamps that have been rendered unfit for use and refund their
value upon proof of destruction. No credit or refund of taxes or penalties shall
be allowed unless the taxpayer files in writing with the Commissioner a claim
for credit or refund within two years after the payment of the tax or penalty.
— Remedy for enforcement of statutory penal provisions.
SEC. 311. — Remedy for enforcement of statutory penal
provisions. — The remedy for enforcement of statutory penalties of all
sorts shall be by criminal or civil action, as the particular situation may
require, subject to approval of the Commissioner of Internal Revenue.
— Nature and extent of tax lien.
SEC. 315. — Nature and extent of tax lien.—If any
person, corporation, partnerships, joint-account (cuenta en participation),
association, or insurance company liable to pay an internal revenue tax,
neglects or refuses to pay the same after demand, the amount shall be a lien in
favor of the Government of the Philippines from the time when the assessment was
made by the Commissioner of Internal Revenue until paid, with interest,
penalties, and costs that may accrue in addition thereto upon all property and
rights to property belonging to the tax payer: Provided, That this lien shall
not be valid against any mortgagee, purchaser, or judgment creditor until notice
of such lien shall be filed by the Commissioner in the office of the register of
deeds of the province or city where the property of the taxpayer is situated or
located.
— Remedies for the collection of delinquent taxes.
SEC. 316. — Remedies for the collection of delinquent
taxes. — The civil remedies for the collection of internal revenue taxes,
fees, or charges, and any increment thereto resulting from delinquency shall be
(a), by distraint of goods, chattels, or effects, and other personal property of
whatever character, including stocks and other securities, debts, credits, bank
accounts, and interest in and rights to personal property, and by levy upon real
property and interest in or rights to real property; and (b) by civil or
criminal action. Either of these remedies or both simultaneously may be pursued
in the discretion of the authorities charged with the collection of such taxes:
Provided, however, That the remedies of distraint and levy shall not be availed
of where the amount of tax involved is not more than one hundred pesos.
The judgment in the criminal case shall not only impose the penalty but shall
also order payment of the taxes subject of the criminal case as finally decided
by the Commissioner of Internal Revenue.
The Bureau of Internal Revenue shall advance the amounts needed to defray
costs of collection by means of civil or criminal action, including the
preservation or transportation of personal property distrained and the
advertisement and sale thereof as well as of real property and improvements
thereon.
— Forfeiture to Government for want of bidding.
SEC. 328. — Forfeiture to Government for want of
bidding. — Incase there is no bidder for real property exposed for sale as
hereinabove provided or if the highest bid is for an amount insufficient to pay
the taxes, penalties, and costs, the Internal Revenue Officer conducting the
sale shall declare the property forfeited to the Government in satisfaction of
the claim in question and within two days thereafter shall make a return of his
proceedings and the forfeiture which shall be spread upon the records of his
office. It shall be the duty of the Register of Deeds concerned upon
registration with his office of any such declaration of forfeiture to transfer
the title of the property forfeited to the Government without the necessity of
an order from a competent Court.
Within one year from the date of such forfeiture the taxpayer, or any one for
him, may redeem said property by paying to the Commissioner or the latter's
Collection Agent the full amount of the taxes and penalties, together with
interest thereon and the costs of sale; but if the property be not thus
redeemed, the forfeiture shall become absolute.
— Exceptions as to period of limitation of assessment and collection of taxes.
SEC. 332. — Exceptions as to period of limitation of
assessment and collection of taxes. — (a) In the case of a false or
fraudulent return with intent to evade tax or of a failure to file a return, the
tax may be assessed, or a proceeding in court for the collection of such tax may
be begun without assessment, at any time within ten years after the discovery of
the falsity, fraud, or ommission: Provided, That, m a fraud assessment which has
become final and executory, the fact of fraud shall be judicially taken
cognizance of in the civil or criminal action for the collection thereof-
(b) Where before the expiration of the time prescribed in the preceding
section for the assessment of the tax, both the Commissioner of Internal Revenue
and the taxpayer have consented in writing to its assessment after such time-,
the tax may he assessed at any time prior to the expiration of the period agreed
upon. The period so agreed upon may be extended by subsequent agreements in
writing, made before the expiration of the period previously agreed upon.
(c) Where the assessment of any internal revenue tax has been made within the
period of limitation above-prescribed, such tax may be collected by distraint or
levy or by a proceeding in court, but only if begun (1) within five years after
the assessment of the tax, or (2) prior to the expiration of any period for
collection agreed upon in writing by the Commissioner of Internal Revenue and
tile taxpayer before the expiration of such five-year period. The period so
agreed upon may be extended by subsequent agreements in writing made before the
expiration of the period previously agreed upon.
— Suspension of running of statute.
SEC. 333. — Suspension of running of statute. — The
running of the statute of limitations provided in Section 331 or 332 on the
making of assessment and the beginning of distraint or levy or a proceeding in
court for collection, in respect of any deficiency, shall be suspended for the
period during which the Commissioner of Internal Revenue is prohibited from
making the assessment or beginning distraint or levy or a proceeding in court
and for sixty days thereafter; when the taxpayer requests for a reinvestigatoin
which is granted by the Commissioner when the taxpayer cannot be located in the
address given by him in the return filed upon which a tax is being assessed or
collected: Provided, That, if the taxpayer informs the Commissioner of Internal
Revenue of any change in address, the statute will not be suspended; when the
warrant of distraint and levy is duly served upon the taxpayer, his authorized
representative, or a member of his household with sufficient discretion, and no
property could be located; and when the taxpayer is out of the Philippines.
— Preservation of books of accounts, and other accounting records.
SEC. 337. — Preservation of books of accounts, and other
accounting records. — All the books of accounts, including the subsidiary
books, and other accounting records, of corporations, partnerships, or persons
shall be preserved by them for a period of at least five years from the last
entry in each books and shall be subject to examination and inspection only once
in a taxable year during that five- year period by internal revenue officers,
except in cases of fraud, irregularity or mistake as determines by the
Commissioner, or unless the taxpayer requests otherwise, in which case, another
examination and inspection may be made. Examination and inspection of books of
accounts and other accounting records shall be done only in the taxpayer’s
office or place of business or in the office of the Bureau of Internal Revenue.
All corporations, partnerships, or persons, that retire from business shall,
within ten days from the date of retirement or within such period of time as may
be allowed by the Commissioner of Internal Revenue in special cases, submit
their books of accounts, including the subsidiary books and other accounting
records, to the Commissioner or any of his deputies foe examination, after which
they shall be returned. Corporation and partnerships contemplating dissolution
must notify the Commissioner of Internal Revenue and shall not be dissolved
until cleared of any tax liability.
— Supplying of taxpayer account number.
SEC. 337-A. — Supplying of taxpayer account number.
— Any person required under the authority of this Code to make, render, or file
a return, statement, or other document shall be supplied with or assigned a
taxpayer account number which he shall include in such return, statement or
document filed with the Commissioner for his proper identification for tax
purposes.
Only one account number shall be given a person required to have one, and any
person who shall secure more than one account number shall be criminally liable
under the provisions of Section 352 of this Code.
Source: Official Gazette of the Republic of the Philippines — Philippine laws are public documents (works of the government).
