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    BIR Tax Assessment Process - Outline

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    Nicole Aldrianne Omega
    1. The BIR tax assessment process begins with the taxpayer filing a return. The BIR then has the ability to investigate the taxpayer's books and records for up to 180/240 days. 2. After investigation, the BIR issues notices to the taxpayer including a preliminary assessment notice and final assessment notice. The taxpayer has the ability to respond and protest these notices. 3. If the dispute is not resolved, the Commissioner of Internal Revenue issues a decision that the taxpayer can appeal first to the Court of Tax Appeals and ultimately the Supreme Court.

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    BIR Tax Assessment Process - Outline

    Uploaded by

    Nicole Aldrianne Omega
    64 views2 pages
    1. The BIR tax assessment process begins with the taxpayer filing a return. The BIR then has the ability to investigate the taxpayer's books and records for up to 180/240 days. 2. After investigation, the BIR issues notices to the taxpayer including a preliminary assessment notice and final assessment notice. The taxpayer has the ability to respond and protest these notices. 3. If the dispute is not resolved, the Commissioner of Internal Revenue issues a decision that the taxpayer can appeal first to the Court of Tax Appeals and ultimately the Supreme Court.

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    1. The BIR tax assessment process begins with the taxpayer filing a return. The BIR then has the ability to investigate the taxpayer's books and records for up to 180/240 days. 2. After investigation, the BIR issues notices to the taxpayer including a preliminary assessment notice and final assessment notice. The taxpayer has the ability to respond and protest these notices. 3. If the dispute is not resolved, the Commissioner of Internal Revenue issues a decision that the taxpayer can appeal first to the Court of Tax Appeals and ultimately the Supreme Court.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    64 views2 pages

    BIR Tax Assessment Process - Outline

    Uploaded by

    Nicole Aldrianne Omega
    1. The BIR tax assessment process begins with the taxpayer filing a return. The BIR then has the ability to investigate the taxpayer's books and records for up to 180/240 days. 2. After investigation, the BIR issues notices to the taxpayer including a preliminary assessment notice and final assessment notice. The taxpayer has the ability to respond and protest these notices. 3. If the dispute is not resolved, the Commissioner of Internal Revenue issues a decision that the taxpayer can appeal first to the Court of Tax Appeals and ultimately the Supreme Court.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    BIR Tax Assessment Process

    Tax Assessment - a written notice and demand made by the BIR on the taxpayer for the settlement of a due tax liability that is there definitely set and fixed.

    Modes of Service
    1. Personal service * Service to the tax agent/practitioner, who is appointed by the taxpayer, shall be deemed service to the taxpayer. (RR 18-2013)
    2. Service by mail * Receipt of the notices by unauthorized personnel cannot be deemed receipt by the taxpayer. (Mannasoft Technology Corporation v. CIR, CTA (Third Division) Case No. 8745, January 13, 2017)
    3. Substituted delivery

    BIR Period of Assessment (FAN must be issued)


    General Rule Exception
    Three (3) years from: Ten (10) years from discovery in case of:
    • deadline for filing the return if filed on or before the deadline • false return
    • date of filing the return if filed late • fraudulent return
    • date of amendment if return is amended • failure to file return
    *Taxpayer may waive in writing the prescription period of assessment.

    3.
    2. Letter of Authority 6. Formal Demand Letter
    1. Taxpayer (TP) files Investigation/examination 5. Preliminary Assessment
    (LOA) / eLOA with Audit 4. Notice of Discrepancy (FDL) / Final Assessment
    return of TP's books and Notice (PAN)
    Checklist Notice (FAN)
    accounting records
    served w/in 30 days from issue date 180/240 days from issuance of LOA TP explains his side w/in 5 days TP replies w/in 15 days from receipt of PAN issued w/in 15 days from reply to
    submit documents w/in 30 days PAN
    discussion of discrepancy w/in 30 TP protests w/in 30 days from
    days from receipt of notice receipt of FAN

    TP fails/refuses to submit docs w/in 10 days from receipt of LOA

    2.1 First Notice

    issued 10 days after receipt of first notice

    2.2 Second and Final Notice

    issued 10 days after receipt of second and final notice

    2.3 Subpoena Duces Tecum


    (SDT)

    2.4 Criminal Action


    7. Final Decision on 9. Judicial Appeal to Court 10. Judicial Appeal to 11. Petition for Review on
    8. Commissioner of Internal
    Disputed Assessment of Tax Appeals (CTA) Court of Tax Appeals Certiorari to the Supreme
    Revenue (CIR) Decision
    (FDDA) Division (CTA) En Banc Court (SC)

    CIR's authorized representative has CIR has 180 days to decide TP files motion for TP files motion for Final decision
    180 days to decide judicial appeal to CTA Division reconsideration/new trial w/in 15 reconsideration/new trial w/in 15
    administrative appeal to CIR w/in w/in 30 days from receipt of days days
    30 days decision TP appeals w/in 15 days from TP appeals w/in 15 days from
    judicial appeal to CTA w/in 30 days receipt of decision receipt of decision
    from receipt of decision

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