TAX REVIEWER

TITLE V OTHER PERCENTAGE TAXES 1. On Persons Exempt from Value-added Tax (VAT)-- 3% of gross quarterly sales or re e!pts" ex ept ooperat!#es ($e . 11%) &. On 'omest! (arr!ers and )eepers of *arages -- 3% of quarterly gross re e!pts ex ept+ o,ners of an!mal dra,n & ,-eeled #e-! les and .an as ($e . 11/) 0n omput!ng t-e per entage tax" t-e follo,!ng s-all .e ons!dered t-e m!n!mum quarterly gross re e!pts !n ea - part! ular ase+ 1eepney for -!re 2an!la and ot-er !t!es P&"344 Pro#!n !al 1"&44 Pu.l! ut!l!ty .us 5ot ex eed!ng 34 passengers P3"%44 634 .ut 7 84 passengers %"444 Ex eed!ng 84 passengers /"&44 Tax!s 2an!la and ot-er !t!es P3"%44 Pro#!n !al &"344 (ar for -!re (,!t- -auffeur) P3"444 (ar for -!re (,!t-out -auffeur) P1"944 3. On 0nternat!onal (arr!ers a) 0nternat!onal a!r arr!ers do!ng .us!ness !n t-e P-!ls. -- 3% of quarterly gross re e!pts. .) 0nternat!onal s-!pp!ng arr!ers do!ng .us!ness !n t-e P-!ls. -- 3%) of quarterly gross re e!pts. ($e . 119) 3. :ran -!ses a) on rad!o and;or tele#!s!on .road ast!ng ompan!es ,-ose annual gross re e!pts of t-e pre ed!ng year does not ex eed P142 --3% .) on ele tr! " gas and ,ater ut!l!t!es -- &% ($e . 11<) 8. O#erseas '!spat -" 2essage or (on#ersat!on Or!g!nat!ng from t-e P-!ls. a) .y telep-one" telegrap-" tele,r!ter" ex -ange-- 14% .) ,!reless and ot-er ommun! at!on equ!pment ser#! es-14% paya.le .y t-e person pay!ng for t-e ser#! es rendered pa!d to t-e person render!ng t-e ser#! es ,-o !s requ!red to olle t and pay t-e tax ,!t-!n t,enty (&4) days after t-e end of ea - quarter Exempt!ons+ a) 2essages transm!tted .y t-e go#ernment .) '!plomat! ser#! es ) Pu.l! 0nternat!onal Organ!=at!ons ) 5e,s $er#! es ($e . 1&4)

TAX REVIEWER
%. >an?s and 5on-.an? :!nan !al 0ntermed!ar!es on gross re e!pts der!#ed from sour es ,!t-!n t-e P-!ls.+ ($e . 1&1) on !nterest" omm!ss!ons and d!s ounts from lend!ng a t!#!t!es as ,ell as !n ome from f!nan !al leas!ng" on t-e .as!s of rema!n!ng matur!t!es $-ort-term matur!ty (not !n ex ess of & years) 8% 2ed!um-term matur!ty (o#er & years .ut not more t-an 3) 3% @ong-term matur!ty O#er 3 years .ut not ex eed!ng / 1% O#er / years 4% On d!#!dends 4% On royalt!es" rentals of property" real or personal" prof!ts from ex -ange and all ot-er !tems treated as gross !n ome 8% /. :!nan e (ompan!es ($e . 1&&) a) gross re e!pts der!#ed .y all f!nan e ompan!es" as ,ell as .y ot-er f!nan !al !ntermed!ar!es not perform!ng quas!-.an?!ng fun t!ons do!ng .us!ness !n t-e P-!l!pp!nes" from !nterest" d!s ounts and all ot-er !tems treated as gross !n ome -8% .) !nterests" omm!ss!ons and d!s ounts from lend!ng a t!#!t!es" as ,ell as !n ome from f!nan !al leas!ng" s-all .e taxed on t-e .as!s of t-e rema!n!ng matur!t!es $-ort-term matur!ty (not !n ex ess of & years) 8% 2ed!um-term matur!ty (o#er & years .ut not ex eed!ng 3) 3% @ong-term matur!ty -- O#er 3 years .ut not ex eed!ng / 1% O#er / years 4% 9. @!fe 0nsuran e Prem!ums -- 8% of total prem!um olle ted ($e . 1&3) ex ept purely ooperat!#e asso !at!ons; prem!ums refunded ,!t-!n % mont-s <. Agents of :ore!gn 0nsuran e (ompan!es -- 14% of total prem!ums ($e . 1&3) 14. Amusement Taxes (% of gross re e!pts) ($e .1&8) a) (o ?p!ts --19% .) a.arets" n!g-t or day lu.s -- 19 % ) .ox!ng ex-!.!t!ons -- 14% ex ept .ox!ng ex-!.!t!ons ,-ere!n Aorld or Or!ental (-amp!ons-!ps !n any d!#!s!on !s at sta?e pro#!ded at least one of t-e ontenders for Aorld or Or!ental (-amp!ons-!p !s a !t!=en of t-e P-!l!pp!nes and t-e ex-!.!t!ons are promoted .y a !t!=en;s of t-e P-!l!pp!nes or .y a orporat!on or asso !at!on at least s!xty per ent (%4%) of t-e ap!tal of ,-! - !s o,ned .y su - !t!=ensB d) profess!onal .as?et.all --18% e) 1a!-Ala! and ra etra ?s !rrespe t!#e of ,-et-er or not any amount !s -arged for adm!ss!on -- 34% gross receipts-em.ra es all t-e re e!pts of t-e propr!etor;operator;lessee of t-e amusement pla e 11. Tax on A!nn!ngs ($e . 1&%) a) -orse ra es -- 14% of ,!nn!ngs .ased on t-e a tual amount pa!d to -!m for e#ery ,!nn!ng t! ?et after dedu t!ng t-e ost of t-e t! ?et .) ,!nn!ngs from dou.le" fore ast;qu!nella and tr!fe ta .ets-- 3% . o,ners of ,!nn!ng ra e -orses -- 14%

TAX REVIEWER
1&. Tax on $ale" >arter or Ex -ange of $-ares of $to ? A. @!sted and Traded t-roug- t-e @o al $to ? Ex -ange -- 1;& of 1% of t-e gross sell!ng pr! e >. 0n!t!al Pu.l! Offer!ng of losely -eld orp. of t-e s-ares of sto ? sold" .artered" ex -anged or ot-er,!se d!sposed !n a ordan e ,!t- t-e proport!on of s-ares of sto ? sold" .artered" ex -anged or ot-er,!se d!sposed to t-e total outstand!ng s-ares of sto ? after t-e l!st!ng !n t-e lo al sto ? ex -ange+ (% of gross sell!ng pr! e; gross #alue !n money) Cp to &8% DDDDDDDDDDDD.3% O#er &8% .ut not o#er 33 1;3% DDD&% O#er 33 1;3% DDDDDDDDDDD1% --- tax !mposed s-all .e pa!d .y t-e !ssu!ng orporat!on !n pr!mary offer!ng or .y t-e seller !n se ondary offer!ng 'CLOSELY HELD CORPORATION' -- any orporat!on at least 84% !n #alue of t-e outstand!ng ap!tal sto ? or at least 84% of t-e total om.!ned #ot!ng po,er of all lasses of sto ? ent!tled to #ote !s o,ned d!re tly or !nd!re tly .y or for not more t-an &4 !nd!#!duals Rules in deter ining !"et"er # corpor#tion is closel$ "eld% 1. $to ? o,ned d!re tly or !nd!re tly .y or for a orporat!on" partners-!p" estate or trust -- ons!dered as .e!ng o,ned proport!onately .y !ts s-are-olders" partners or .enef! !ar!es &. :am!ly and Partners-!p O,ners-!ps -- An !nd!#!dual s-all .e ons!dered as o,n!ng t-e sto ? o,ned" d!re tly or !nd!re tly" .y or for -!s fam!ly" or .y or for -!s partner (EEfam!ly of an !nd!#!dualE only -!s .rot-ers and s!sters (,-ole or -alf-.lood)" spouse" an estors and l!neal des endants) 3. An opt!on to a qu!re sto ? s-all .e ons!dered as o,ners-!p of su - sto ? 3. (onstru t!#e O,ners-!p as A tual O,ners-!p (. Feturn on (ap!tal *a!ns Feal!=ed from $ale of $-ares of $to ?s. 1. Feturn on (ap!tal *a!ns Feal!=ed from $ale of $-ares of $to ? @!sted and Traded !n t-e @o al $to ? Ex -ange a) duty of e#ery sto ? .ro?er ,-o effe ted t-e sale su.Ge t to t-e tax !mposed -ere!n to olle t t-e tax and rem!t t-e same to t-e >ureau of 0nternal Fe#enue ,!t-!n f!#e (8) .an?!ng days from t-e date of olle t!on and to su.m!t to t-e se retary of t-e sto ? ex -ange" of ,-! - -e !s a mem.er" a true and omplete return &. Feturn on Pu.l! Offer!ngs of $-ares of $to ? a) pr!mary offer!ng -- t-e orporate !ssuer s-all f!le t-e return and pay t-e orrespond!ng tax ,!t-!n 34 days from t-e date of l!st!ng of t-e s-ares of sto ? !n t-e lo al sto ? ex -ange .) se ondary offer!ng - 8 .an?!ng days from t-e date of olle t!on ($e . 1&/) PFO(E'CFE+ ($e . 1&9) 0. :!l!ng of returns and payment of per entage taxes A Persons @!a.le to Pay Per entage Taxes s-all+ 1) f!le a quarterly return of t-e amount of -!s gross sales" re e!pts or earn!ngs &) pay t-e tax due ,!t-!n &8 days after t-e end of ea - taxa.le quarter

TAX REVIEWER
>. Person Fet!r!ng from >us!ness su.Ge t to per entage tax s-all+ 1) not!fy t-e nearest !nternal re#enue off! er &) f!le -!s return and 3) pay t-e tax due ,!t-!n &4 days after los!ng -!s .us!ness (.Ex ept!ons -- (omm!ss!oner may pres r!.e+ 1) t!me for f!l!ng t-e return at !nter#als ot-er t-an t-e t!me pres r!.ed ons!der!ng+ a) #olume of sales .) f!nan !al ond!t!on ) adequate measures of se ur!ty d) su - ot-er rele#ant !nformat!on requ!red &) manner and t!me of payment of per entage taxes !n lud!ng a s -eme of tax prepayment. 00. A-ere to :!le -- Ex ept as t-e (omm!ss!oner ot-er,!se perm!ts" a) ,!t- t-e aut-or!=ed agent .an? .) Fe#enue '!str! t Off! er ) (olle t!on Agent or d) duly aut-or!=ed Treasurer of t-e !ty or mun! !pal!ty ,-ere sa!d .us!ness or pr!n !pal pla e of .us!ness !s lo ated TITLE VI EXCISE TAXES ON CERTAIN GOODS &oods su'(ect to e)cise t#)% *Sec+ ,-./ 1. goods manufa tured or produ ed !n t-e P-!l!pp!nes for domest! sale or onsumpt!on or for any ot-er d!spos!t!on and to t-!ngs !mported &. !mposed !n add!t!on to t-e #alue-added tax - 0inds o1 e)cise t#) 1. $PE(0:0( TAH ( taxes !mposed .ased on ,e!g-t or #olume apa !ty or any ot-er p-ys! al un!t of measurement &. A' VA@OFE2 TAH ( tax !mposed .ased on sell!ng pr! e or ot-er spe !f!ed #alue of t-e good 2iling o1 Return #nd P#$ ent o1 E)cise T#) on DO3ESTIC Products *Sec+ ,45/ Persons Li#'le --f!le a separate return for ea - pla e of produ t!on sett!ng fort-+ 1. t-e des r!pt!on of produ ts &. quant!ty or #olume of produ ts to .e remo#ed 3. tax .ase 3. tax due TAHA>@E AFT0(@E !nd!genous petroleum" natural gas or l!quef!ed natural gas exported produ ts PEF$O5$ @0A>@E f!rst .uyer" pur -aser or transferee for lo al sale;transfer;.arter o,ner;lessee; on ess!ona!re; operator of t-e m!n!ng la!m domest! produ ts remo#ed o,ner or person -a#!ng possess!on from pla e of produ t!on ,;o t-ereof

TAX REVIEWER
payment of tax Ti e 1or 2iling o1 Return #nd P#$ TAHA>@E AFT0(@E lo ally manuf. petroleum produ ts and !nd!genous petroleum ent o1 t"e T#) AIE5 PAJ2E5T 2A'E A;!n 14 days from date of remo#al of su - prods. from 1;1;<9 to 1une 34K <9 ,;!n 8 days from date of remo#al of su - produ ts for t-e per!od of 1uly 1" K<9 to 'e . 31 K<9 .efore remo#al from pla e of produ t!on from 1an 1 K<< and t-ereafter upon remo#al of su - produ ts from lo al!ty ,-ere m!ned or extra ted f!le a return and pay t-e tax ,!t-!n 18 days after t-e end of t-e alendar quarter ,-en su - produ ts ,ere remo#ed pa!d .efore t-e!r remo#al from ustoms ustody

5onmetall! m!neral" m!neral produ ts" quarry resour es lo ally produ ed or extra ted metall! m!neral or m!neral produ ts for !mported m!neral or m!neral produ ts" ,-et-er metall! or nonmetall!

Pl#ce 1or 2iling o1 t"e Return #nd P#$ ent o1 t"e T#) a) any aut-or!=ed agent .an? .) Fe#enue (olle t!on Off! er ) duly aut-or!=ed (!ty or 2un! !pal Treasurer !n t-e P-!l!pp!nes. Deter in#tion o1 gross selling price 1or goods su'(ect to Ad 6#lore t#)% t"e price7 ex lud!ng VAT" at ,-! - goods are sold at ,-olesale !n t-e pla e of produ t!on or t-roug- sales agents to t-e pu.l! P#$ ent o1 E)cise T#)es on I3PORTED Articles Persons Li#'le% 1) o,ner or !mporter to t-e (ustoms Off! ers .efore t-e release of su - art! les from t-e ustoms -ouse" or &) .y t-e person ,-o !s found !n possess!on of art! les ,-! - are exempt from ex !se taxes ot-er t-an t-ose legally ent!tled to exempt!on -- tax-free art! les .roug-t or !mported !nto t-e P-!l!pp!nes .y persons" ent!t!es" or agen !es exempt from tax ,-! - are su.sequently sold" transferred or ex -anged !n t-e P-!l!pp!nes to non-exempt persons or ent!t!es -- t-e pur -asers or re !p!ents s-all .e ons!dered t-e !mporters" and s-all .e l!a.le for t-e duty and !nternal re#enue tax due on su - !mportat!on ($e . 131) I3PORTATION O2 CI&ARS7 CI&ARETTES7 DISTILLED SPIRITS *en. Fule+ e#en !f dest!ned for tax and duty free s-ops ( s-all .e su.Ge t to all appl! a.le taxes" dut!es" -arges" !n lud!ng ex !se taxes due Ex ept+ !gars and !garettes" d!st!lled sp!r!ts and ,!nes .roug-t d!re tly !nto t-e duly -artered or leg!slated freeports of t-e a) $u.! $pe !al E onom! and :reeport Lone" reated under FA 5o. /&&/B .) (agayan $pe !al E onom! Lone and :reeport" reated under FA 5o. /<&&B

TAX REVIEWER
) Lam.oanga (!ty $pe !al E onom! Lone" reated under FA 5o. /<43" and are not transs-!pped to any ot-er port !n t-e P-!l!pp!nes E8E3PTION OR CONDITIONAL TA892REE RE3O6AL O2 CERTAIN ARTICLES 1) 'omest! 'enatured Al o-ol a) not less t-an 194M proof .) su!ta.ly denatured and rendered unf!t for oral !nta?e exempt from ex !se tax on al o-ol produ ts .ut taxa.le under $e t!on 14%(A); VAT Ex ept+ 1. !f !t !s to .e used for mot!#e po,er-taxa.le (ex !se tax on petroleum produ ts) &. any al o-ol" pre#!ously rendered unf!t for oral !nta?e after denatur!ng .ut su.sequently rendered f!t for oral !nta?e after undergo!ng fermentat!on" d!lut!on" pur!f! at!on" or m!xture-taxa.le (ex !se tax on al o-ol produ ts)($e . 133) &) Petroleum Produ ts sold to t-e follo,!ng are exempt from ex !se tax+ a) 0nternat!onal arr!ers of P-!l!pp!ne or fore!gn reg!stry on t-e!r use or onsumpt!on outs!de t-e P-!l!pp!nes .) Exempt ent!t!es or agen !es o#ered .y tax treat!es" on#ent!ons and ot-er !nternat!onal agreements for t-e!r use or onsumpt!on . Ent!t!es ,-! - are .y la, exempt from d!re t and !nd!re t taxes ($e . 138) E8CISE TA8 ON ALCOHOL PROD:CTS (Nrates to .e !n reased .y 1&% on 1an.1" &444) ($e . 131-133) TAHA>@E AFT0(@E TAH FATE 0. (a) '!st!lled $p!r!ts P9.44 per proof l!ter '!st!lled $p!r!ts produ ed !n a pot st!ll or P3.44 per proof l!ter ot-er s!m!lar pr!mary d!st!ll!ng apparatus .y a d!st!ller produ !ng not more t-an 144 l!ters;day" onta!n!ng not more t-an 84% of al o-ol .y #olume d!st!lled sp!r!ts produ ed from ra, taxed !n a ordan e ,!t- t-e mater!als ot-er t-an t-ose !n (a) net reta!l pr! e per .ottle /84 ml. #olume apa !ty (ex lud!ng ex !se tax and VAT) as follo,s+ less t-an P&84 -P/8;proof l!ter P&84 - P%/8 --P184;proof l!ter 2ore t-an P%/8 -- P344;proof l!ter med! !nal preparat!ons" fla#or!ng same tax as su -!ef extra ts" and all ot-er preparat!ons" !ngred!ent ex ept to!let preparat!ons" of ,-! -" ex lud!ng ,ater" d!st!lled sp!r!ts form t-e -!ef !ngred!ent 00. A!nes $par?l!ng ,!nes; -ampagnes P844 or less --P144 2ore t-an regardless of proof" !f t-e net reta!l pr! e P844-- P344 per .ottle (ex lud!ng t-e ex !se tax and t-e #alue-added tax)

TAX REVIEWER
$t!ll ,!nes onta!n!ng 13% of al o-ol .y #olume or less $t!ll ,!nes onta!n!ng more t-an 13% .ut not more t-an &8% of al o-ol .y #olume :ort!f!ed ,!nes onta!n!ng more t-an &8% of al o-ol .y #olume 000. :ermented @!quor on .eer" lager .eer" ale" porter and ot-er fermented l!quors ex ept tu.a" .as!" tapuy and s!m!lar domest! fermented l!quors P1&.44 P&3.44 same as d!st!lled sp!r!ts 1. net reta!l pr! e per l!ter of #olume apa !ty !s less t-an P13.84 -- P%.18; l!ter &. net reta!l pr! e P13.84 - P&&.44 --P<.18;l!ter 3. net reta!l pr! e !s more t-an P&&.44 -P1&.18;l!ter

TAHA>@E AFT0(@E 0. To.a o Produ ts+ a) t,!sted .y -and or redu ed !nto a ond!t!on to .e onsumed !n any manner ot-er t-an t-e ord!nary mode of dry!ng and ur!ng .) prepared or part!ally prepared ,!t- or ,!t-out t-e use of any ma -!ne or !nstruments or ,!t-out .e!ng pressed or s,eetened ) f!ne- ut s-orts and refuse" s raps" l!pp!ngs" utt!ngs" stems and s,eep!ngs of to.a o to.a o spe !ally prepared for -e,!ng so as to .e unsu!ta.le for use !n any ot-er manner 00. (!gars (!garettes Pa ?ed .y Iand (!garettes Pa ?ed .y 2a -!ne (ex lud!ng t-e ex !se tax and t-e #alue-added tax)

TAH FATE P4./8;?!logram

P4.%4;?!logram P1.44; !gar P4.34;pa ? 1. net reta!l pr! e !s o#er P14.44;pa ? -- P1&.44;pa ? &. net reta!l pr! e ex eeds P%.84 .ut does not ex eed P14.44;pa ? -- P9.44;pa ? 3. net reta!l pr! e P8.44 .ut does not ex eed P%.84;pa ? -P8.44;pa ? 3. net reta!l pr! e !s .elo, P8.44;pa ? -P1.44;pa ?

TAX REVIEWER
Inspection 2ee 1 pa!d .y t-e ,-olesaler" manufa turer" produ er" o,ner or operator of redry!ng plant !mmed!ately .efore remo#al from t-e esta.l!s-ment & !n ase of !mported leaf to.a o and !ts produ ts" to .e pa!d .y t-e !mporter .efore remo#al from ustomsE ustody P4.84;t-ousand !gars or fra t!on t-ereof P4.14;t-ousand !garettes or fra t!on t-ereof P4.4&;?!logram of leaf to.a o or fra t!on t-ereof P4.43;?!logram or fra t!on t-ereof" of s rap and ot-er manufa tured to.a o E8CISE TA8 ON PETROLE:3 PROD:CTS TAHA>@E AFT0(@E @u.r! at!ng o!ls and greases Pro essed gas Aaxes and petrolatum 'enatured al o-ol to .e used for mot!#e po,er 5ap-t-a" regular gasol!ne and ot-er s!m!lar produ ts of d!st!llat!on @eaded prem!um gasol!ne Cnleaded prem!um gasol!ne A#!at!on tur.o Get fuel )erosene )erosene" ,-en used as a#!at!on fuel" '!esel fuel o!l" and on s!m!lar fuel o!ls -a#!ng more or less t-e same generat!ng po,er @!quef!ed petroleum gas @!quef!ed petroleum gas used for mot!#e po,er Asp-alts >un?er fuel o!l" and on s!m!lar fuel o!ls -a#!ng more or less t-e same generat!ng po,er TAH FATE P3.84;l!ter and ?g of #ol apa !ty or ,t P4.48; l!ter of #olume apa !ty P3.84;?!logram P4.48;l!ter of #olume apa !ty P3.94; per l!ter of #olume apa !ty P8.38;l!ter of #olume apa !ty P3.38;l!ter of #olume apa !ty P3.%/;l!ter of #olume apa !ty P4.%4;l!ter of #olume apa !ty same tax on a#!at!on tur.o Get fuel P1.%3;l!ter of #olume apa !ty P4.44;l!ter equ!#alent rate as t-e ex !se tax on d!esel fuel o!l P4.8%;?!logram P4.34;l!ter of #olume apa !ty

E8CISE TA8 ON 3ISCELLANEO:S ARTICLES 1. Automo.!les Eng!ne '!spla ement (!n .) *asol!ne '!esel Cp to 1%44 Cp to 1944 1%41 - &444 1941 O &344 &441 - &/44 &341 O 3444 &/41 or o#er 3441 or o#er

Tax Fate 18% 38% 84% 144%

TAX REVIEWER
a) Automo.!les a qu!red for use .y persons or ent!t!es operat!ng ,!t-!n t-e freeport =one -- exempt 1) Pro#!ded" t-at ut!l!ty #e-! les of reg!stered =one enterpr!ses" ,-! - are !nd!spensa.le !n t-e ondu t and operat!ons of t-e!r .us!ness" su - as del!#ery tru ?s and argo #ans ,!t- gross #e-! le ,e!g-t a.o#e t-ree (3) metr! tons may .e allo,ed unrestr! ted use outs!de t-e freeport =one &) Pro#!ded" furt-er" #e-! les o,ned .y tour!st-or!ented enterpr!ses ut!l!=ed ex lus!#ely for t-e purpose of transport!ng tour!sts !n tour!sm-related a t!#!t!es" and ser#! e #e-! les of freeport reg!stered enterpr!ses and exe ut!#es" su - as ompany ser#! e ars and expatr!atesE and !n#estorsE automo.!les .roug-t !n t-e name of su enterpr!ses" may .e used outs!de t-e freeport =one for su - per!ods as may .e pres r!.ed .y t-e 'epartments of :!nan e" and Trade and 0ndustry" t-e >ureau of (ustoms and t-e :reeport aut-or!t!es on erned" ,-! - !n no ase s-all ex eed 13 days; mont3) tour!st .uses and ars" ser#! e #e-! les of reg!stered freeport enterpr!ses and ompany ser#! e ars used for more t-an an aggregate per!od of 13 days;montouts!de of t-e freeport =one ( t-e o,ner or !mporter s-all pay t-e orrespond!ng ustoms dut!es" taxes and -arges 3) personally-o,ned #e-! les of res!dents" !n lud!ng lease-olders of res!den es !ns!de t-e freeport =one" ---use of su - #e-! les outs!de of t-e freeport =one --s-all .e deemed an !ntrodu t!on !nto t-e P-!l!pp!ne ustoms terr!tory --su - !ntrodu t!on s-all .e deemed an !mportat!on !nto t-e P-!l!pp!nes --s-all su.Ge t su - #e-! les to ustoms dut!es" taxes and -arges" !n lud!ng ex !se tax due on su - #e-! le .) 5on-essent!al *oods -- &4% .ased on t-e ,-olesale pr! e or t-e #alue of !mportat!on used .y t-e >ureau of (ustoms 1) All goods ommonly or ommer !ally ?no,n as --Ge,elry (real or !m!tat!on) --pearls --pre !ous and sem!-pre !ous stones and !m!tat!ons --goods made of" or ornamented" mounted or f!tted ,!t-" pre !ous metals or !m!tat!ons t-ereof --!#ory (not !n lud!ng surg! al and dental !nstruments" s!l#er-plated ,ares" frames or mount!ngs for spe ta les or eyeglasses" and dental gold or gold alloys and ot-er pre !ous metals used !n f!ll!ng" mount!ng or f!tt!ng of t-e teet-) --opera glasses and lorgnettes &) Perfumes and to!let ,aters 3) Ja -ts and ot-er #essels !ntended for pleasure or sports E8CISE TA8 ON 3INERAL PROD:CTS 1. 2!neral Produ ts a) On oal and o?e -- P14.44;metr! ton .) On all nonmetall! m!nerals and quarry resour es -- &% .ased on t-e a tual mar?et #alue of t-e gross output t-ereof at t-e t!me of remo#al (!f lo ally extra ted or produ ed) or t-e #alue used .y t-e >ureau of (ustoms !n determ!n!ng tar!ff and ustoms dut!es" net of ex !se tax and #alue-added tax ( !n t-e ase of !mportat!on) ) ) lo ally extra ted natural gas and l!quef!ed natural gas &%

TAX REVIEWER
d) On all metall! m!nerals --(opper and ot-er metall! m!nerals On t-e 1st 3 years upon t-e effe t!#!ty of FA //&< 1% On t-e 3t- and 8t- years 1P% On t-e %t- year and t-ereafter &% --*old and -rom!te &% e) On !nd!genous petroleum -- 3% of t-e fa!r !nternat!onal mar?et pr! e TITLE VII DOCUMENTARY STAMP TAX A. AIAT !s a '$TQ 0t !s a tax on do uments" !nstruments R paper e#!den !ng t-e a eptan e" ass!gnment" sale or transfer of an o.l!gat!on" r!g-t" or property !n !dent t-ereto. 0. 5ATCFE of '$T 0t !s an ex !se tax .e ause !t !s really !mposed on t-e transa t!on t-an on t-e do ument. 0t !s pa!d only on e. T-e l!a.!l!ty to t-e tax and t-e amount t-ereof are determ!ned from t-e fa e of t-e do ument !tself.

TAX REVIEWER
00. AIO are t-e persons l!a.le+ (M I S A T) T-e ones 1) M a?!ng &) I ssu!ng 3) S !gn!ng 3) A ept!ng 8) T ransfer!ng t-e do ument" !nstrument or paper 000. 'O(C2E5T$ $C>1E(T TO TAH (orporate do uments 0nsuran e pol! !es $pe !al ontra ts (ert!f! ates Ot-er ass!gnments and rene,als (ommer !al do uments 'eeds of sale 2ar!t!me do uments @uxur!es

A. (OFPOFATE 'O(C2E5T$ 1) Or!g!nal !ssue of s-ares of sto ? (s1/8) (a) (ost of !mpos!t!on !s .orne .y t-e orporat!on or!g!nally !ssu!ng t-e sto ? ert!f! ate (.) Fe#enue 2emorandum (!r ular S3/-</ T-e do umentary stamp tax on or!g!nal !ssues of ert!f! ates of sto ? as pro#!ded under $e t!on 1/8 of t-e Tax (ode atta -es upon a eptan e of t-e sto ?-olderKs su.s r!pt!on !n t-e ap!tal sto ? of a orporat!on regardless of t-e p-ys! al !ssuan e and del!#ery to t-e sto ?-older of t-e ert!f! ate of sto ? e#!den !ng -!s sto ?-old!ng. T-erefor" taxes a rue at t-e t!me t-e s-ares are !ssued. 2ean!ng of t-e term Tor!g!nal !ssueU !s - po!nt at ,-! - t-e sto ?-older a qu!res and may exer !se attr!.utes of o,ners-!p o#er t-e sto ?s. ( ) P-!l. (onsol!dated (o onut 0ndustr!es # (0F" /4 $(FA && (ert!f! ates of sto ? temporar!ly su.Ge t to suspens!#e ond!t!ons s-all only .e l!a.le for '$T only ,-en released from sa!d ond!t!ons. :or t-en and only t-en s-all t-ey truly a qu!re any pra t! al #alue for t-e!r o,ners. (d) CIR ; He#ld Lu 'er Co p#n$7 14 $(FA 3/ A mere transfer of surplus to ap!tal and an !n rease !n stated #alue of t-e outstand!ng no par #alue s-ares does not onst!tute and !ssuan e of s-are and onsequently" no add!t!onal stamp tax !s due !n su !n rease. 2) On prox!es (s1<&) V >as!s+ ea - proxy do ument V Exempt!on+ prox!es !ssued at affe t!ng t-e affa!rs of asso !at!on" or orporat!on organ!=ed for rel!g!ous" -ar!ta.le or l!terary purposes.

TAX REVIEWER
>. (O22EF(0A@ 'O(C2E5T$ 1) 'e.entures and (ert!f! ates of !nde.tedness ($1/3) >as!s+ fa e #alue of do ument 2) >onds" de.entures" ert!f! ates of sto ? or !nde.tedness !ssued !n fore!gn ountr!es ($1//) >as!s+ f!xed tax as requ!red .y la, on s!m!lar !nstruments ,-en !ssued" sold or transferred !n t-e P-!l!pp!nes. 0ssued !n any fore!gn ountry .ut sold or transferred !n t-e P-!l!pp!nes 3) (ert!f! ates of prof!ts or !nterest !n property or a umulat!ons ($1/9) >as!s+ fa e #alue 4) >an? (-e ?s" drafts" ert!f! ates of depos!t not .ear!ng !nterest" and ot-er !nstruments ($1/<) >as!s+ f!xed on ea - !nstrument t-e tax appl!es only to !nland .an? -e ?s" drafts" or ert!f! ates of depos!t not dra,!ng !nterest 5) All .onds" loan agreements" prom!ssory notes" .!lls of ex -ange" drafts" !nstruments and se ur!t!es !ssued .y t-e go#ernment or any of !ts !nstrumental!t!es" depos!t su.st!tute de.t !nstruments" ert!f! ates of depos!ts .ear!ng !nterest and ot-ers not paya.le on s!g-t or demand (s194) >as!s+ :a e #alue Exempt!ons+ a.) .an? notes !ssued for !r ulat!on ..) loan agreements and prom!ssory notes t-at aggregate of ,-! - does not ex eed P&84.44 exe uted .y an !nd!#!dual for -!s pur -ase" on !nstallment" of a -ouse" lot" motor" #e-! le" appl!an e or furn!ture" for -!s personal use or t-at of -!s fam!ly Fene,al !s also su.Ge t to dst Trene,alU postponement of t-e matur!ty of t-e o.l!gat!on dealt- ,!t-B an extens!on of t-e t!me !n ,-! - t-at o.l!gat!on may .e d!s -arged. Tax on rene,al s-all .e at t-e same rate as t-e tax on t-e or!g!nal do ument. 6) Cpon a eptan e of .!lls of ex -ange and ot-ers (s191) 'o ument taxa.le+ any .!ll or ex -ange or order for t-e payment of money purport!ng to .e dra,n !n t-e fore!gn ountry .ut paya.le !n t-e P-!l!pp!nes. >as!s+ :a e #alue 7) :ore!gn .!lls of ex -ange and letters of red!t (s19&) 'o ument taxa.le+ all fore!gn .!lls of ex -ange and letters of red!t dra,n !n .ut made paya.le outs!de t-e P-!l!pp!nes. >as!s+ fa e #alue ) Aare-ouse Fe e!pts (s19<) >as!s+ ea - ,are-ouse re e!pt Exempt!on+ ,are-ouse re e!pt !ssued to any one person !n any one alendar mont- o#er!ng property t-e #alue of ,-! - does not ex eed P&44. !) >!lls of lad!ng or re e!pts (s1<1) >as!s+ Value of t-e goods Exempt!ons+ -arter party" fre!g-t t! ?ets o#er!ng goods" mer -and!se or effe ts arr!ed as a ompan!ed .aggage of passengers on land and ,ater arr!ers pr!mar!ly engaged !n t-e transportat!on of passengers.

TAX REVIEWER

(. 05$CFA5(E PO@0(0E$ 1) @!fe !nsuran e pol! !es (s193) >as!s+ Amount !nsured .y an su - pol! y T-e tax !s olle t!.le not only on t-e or!g!nal pol! y .ut also upon rene,als 5o '$T !s due on !nsuran e pol! !es !ssued .y a P-!l. ompany to persons !n ot-er ountr!es. ($33"FF&%) T-e tax !s !mposed upon !ssuan e of t-e pol! y e#en !f at t-at t!me prem!um -ad not yet .een pa!d. 0f t-e pol! y !s an elled" no refund of t-e tax s-all .e made. 2) Property !nsuran e pol! !es (s193) >as!s+ Prem!um -arged 3) :!del!ty .onds and ot-er !nsuran e pol! !es (s198) >as!s+ Prem!um -arged 4) Pol! !es of annu!t!es and pre-need plans (s19%) Annu!ty - >as!s+ (ap!tal of t-e annu!ty Pre-need plans - >as!s+ Value or amount of t-e plan 5) 0ndemn!ty >onds (s 19/) >as!s+ Prem!um -arged Exempt!on+ su - as may .e requ!red !n legal pro eed!ngs (eg. 0nGun t!on" atta -ment) 6) (ert!f! ates (s199) ert!f! ate of damage or ot-er,!se !ssued .y any pu.l! off! !al !n pu.l! apa !ty for t-e purpose of g!#!ng !nfo or esta.l!s-!ng proof of fa t. >as!s+ ea - do ument '. 'EE'$ O: $A@E$ 1) $ales" agreements to sell" memoranda of sales" del!#er!es or transfer of due-.!lls" ert!f! ates of o.l!gat!on" or s-ares or ert!f! ates of sto ? (s1/%). >as!s+ Par #alue of due-.!ll" ert!f! ate of o.l!gat!on or sto ? &) 'eeds of sale and on#eyan es of real property (s1<%) >as!s+ Tax rate .ased on amount Property must .e lo ated !n t-e P-!l!pp!nes 'eeds of part!t!on R deeds of redempt!on" taxa.le E. $PE(0A@ (O5TFA(T$ 1) Po,ers of attorney (s1<3) >as!s+ :!xed tax rate Exempt!on+ (olle t!on of la!ms due from or a ru!ng to t-e go#ernment of t-e P-!l!pp!nes or t-e go#ernment of any pro#!n e" !ty or mun! !pal!ty. 2) @eases and ot-er -!r!ng agreement (s1<3) >as!s+ :!xed tax rate 3) 2ortgages" pledges and deeds of trust (s1<8) >as!s+ Tax rate .ased on amount transa t!ons must .e effe ted and onsummated ,!t-!n t-e P-!l!pp!nes tax !s .ased on t-e amount se ured and not on t-e #alue of property mortgaged

TAX REVIEWER
t-ere must .e an ex!st!ng de.t 4) 1a!-ala!" -orse ra e t! ?ets" lotto or ot-er aut-or!=ed num.ers games (s1<4) >as!s+ ea - t! ?et :. 2AF0T02E 'O(C2E5T$ (-arter part!es and s!m!lar !nstrument (s1</) 1. V. EHE2PT0O5$: (SIC"AGOW) SO@E C$E - (ert!f!ed op!es and ot-er ert!f! ates pla ed upon do uments" !nstruments" and papers .y t-e nat!onal" pro#!n !al" !ty or mun! !pal go#ernments made !n t-e !nstan e and for t-e sole use of some ot-er .ran - of t-e nat!onal" pro#!n !al" !ty or mun! !pal go#ernments *OVEF52E5T R I5'0*E5T 'O(C2E5T$ :0@E' 05 (OCFT - Papers and do uments f!led !n ourts .y or for t-e nat!onal" pro#!n !al" !ty or mun! !pal go#ernments" aff!da#!ts of poor persons for t-e purpose of pro#!ng po#erty CO2PC@$OFJ I5:OF2AT0O5 :OF $TAT0$T0(A@ PCFPO$E$ - $tatements and ot-er ompulsory !nformat!on requ!red of persons or orporat!ons .y t-e rules and regulat!ons of t-e nat!onal" pro#!n !al !ty or mun! !pal!ty go#ernment ex lus!#ely for stat!st! al purposes and ,-! - are ,-olly for t-e use of t-e .ureau !n ,-! - t-ey are f!led" and not at t-e !nstan e or for t-e use or .enef!t of t-e person f!l!ng t-em "FATEF5A@;>E5E:0(0AFJ OF*A50LAT0O5 05$CFA5(E PO@0(0E$ O: A55C0T0E$ - Pol! !es of !nsuran e of annu!t!es made .y a fraternal or .enef! !ary so !ety" order" asso !at!on or ooperat!#e ompany" operated on t-e lodge system or lo al ooperat!on plan and organ!=ed and ondu ted solely .y t-e mem.ers t-ereof for t-e ex lus!#e .enef!t of ea - mem.er and not for prof!t (EFT0:0(ATE$ O: TIE A$$E$$E' VA@CE O: @A5'$ 5OT EH(EE'05* P&44 - (ert!f! ates of t-e assessed #alue of lands not ex eed!ng P&44 !n #alue assessed" furn!s-ed .y t-e pro#!n !al" !ty or mun! !pal treasure to appl! ants for reg!strat!on of t-e t!tle to land. (EFT0:0(ATE$ O: OATI$ A'2050$TEFE' TO A5J GOVEF52E5T O::0(0A@ 05 I0$ O::0(0A@ (APA(0TJ - (ert!f! ates of oat-s adm!n!stered to any go#ernment off! !al !n -!s off! !al apa !ty or of a ?no,ledgment .y any go#ernment off! !al !n t-e performan e of -!s off! !al dut!es" ,r!tten appearan e !n any ourt .y any go#ernment off! !al !n -!s off! !al apa !ty. (EFT0:0(ATE$ O: TIE A'2050$TFAT0O5 O: OATI$ :OF PAPEF ACTIE5T0(0TJ - (ert!f! ates of t-e adm!n!strat!on of oat-s to a person as to t-e aut-ent! !ty of a paper requ!red to .e f!led !n ourt .y any person" ,-et-er t-e pro eed!ngs .e !#!l or r!m!nal WF0TTE5 APPEAFA5(E$ - Ar!tten appearan es !n any ourt .y any go#ernment off! !al !n -!s off! !al apa !ty

&. 3.

3.

8.

%.

/.

9.

V0. PAJ2E5T O: 'O(C2E5TAFJ $TA2P TAH A. AIO are requ!red to a ompl!s- and f!le a dst 'E(@AFAT0O5 under >0F :orm &444 1) Any person l!a.le to pay dst on a taxa.le do ument;transa t!on ,-en tax due !s 6P&44. &) Any Fe#enue (olle t!on Off! er" duly aut-or!=ed to sell loose dstKs 3) Any person aut-or!=ed to use '$T 2eter!ng 2a -!ne >. AIE5 to f!le FETCF5

TAX REVIEWER
1) ,!t-!n 14 days after lose of mont- ,-en taxa.le do ument ,as (m!sat. see 000) &) ,!t-!n 8 days after lose of ea - ,ee? for Fe#enue (olle t!on Off! ers 3) ea - t!me ds are pur -ased for reload!ng" for dst meter!ng ma -!ne aut-or!=ed persons AIE5 to PAJ 1) general rule+ s!multaneous ,!t- f!l!ng of return &) ex ept!on+ pur -ase and a tual aff!xture A tual $tamp!ng $ystem+ loose do umentary stamps (onstru t!#e $tamp!ng $ystem+ onstru t!#e aff!xture pr!nt!ng t-roug- a '$ meter!ng ma -!ne AIEFE to :0@E;PAJ 1) aut-or!=ed agent .an? ,!t-!n t-e Gur!sd! t!on of t-e re#enue d!str! t off! e -a#!ng Gur!sd! t!on o#er t-e res!den e or pr!n !pal pla e of .us!ness of t-e taxpayer &) re#enue d!str! t off! er" olle t!on agent or -!s duly aut-or!=ed treasurer of t-e !ty or mun! !pal!ty !n ,-! - t-e taxpayer -as -!s legal res!den e or pr!n !pal pla e of .us!ness A::0HTCFE 1) 0n general+ '$ !s aff!xed on t-e or!g!nal opy of t-e do ument &) Ex ept!on+ dupl! ate opy ,-en t-e same -as .een su.st!tuted and used !n pla e of t-e or!g!nal :A0@CFE TO $TA2P TAHA>@E 'O(C2E5T 1) ,!ll not render t-e do ument #o!d &) .ut do ument annot .e+ 3) re orded !n go#ernment off! es 3) annot .e a epted !n e#!den e !n ourt PE5A@TJ &8% sur -arge plus &4% !nterest per annum 'CTJ O: 5OTAFJ PC>@0( 5ot to add -!s Gurat or a ?no,ledgment to any do ument su.Ge t to do umentary stamp tax unless t-e proper do umentary stamps are aff!xed t-ereto and an elled.

(.

'.

E.

:.

*. I.

LINCOLN PHILIPPINE LI"E #$ CA (GR 118043, July 23, 1998) "%&'$( @!n oln !s a domest! orp. engaged !n l!fe !nsuran e .us!ness. 0n 1<93" !t !ssued 84"444 s-ares as d!#!dends" ,!t- par #alue of P144 or a total of P82. @!n oln pa!d '$T on ea - ert!f! ate .ased on !ts par #alue. I$$)*+ A-at !s t-e proper .as!s of '$T" par #alue or .oo? #alue of t-e s-aresQ H*+,( T-ere !s no .as!s to treat sto ? d!#!dends as a d!st!n t lass from ord!nary s-ares of sto ? s!n e W&&3 of t-e 50F( merely d!st!ngu!s-es ert!f! ates of sto ? R not t-e s-ares t-emsel#es as one ,!t- par #alue and one ,!t-out. T-ere !s t-erefore no reason for determ!n!ng t-e a tual #alue of su - d!#!dends for purposes of '$T !f t-e ert!f! ates !nd! ate a par #alue. T-e tax !s le#!ed upon t-e spe !f! transa t!ons ,-! g!#es r!se to t-e or!g!nal !ssuan e .ut on t-e pr!#!lege of !ssu!ng ert!f! ates of sto ?.

TAX REVIEWER

PHIL- HOME ASSURANCE #$ CA (GR 119446, Jan 21, 1999) "%&'$+ Pet!t!oners are domest! orps. engaged !n t-e !nsuran e .us!ness. T-ey la!m a refund on t-e '$T t-ey pa!d for !nsuran e pol! !es t-ey !ssued. T-ey ma!nta!n t-at s!n e t-e prem!ums on t-e pol! !es ,ere not pa!d" t-ey are ons!dered as ne#er to -a#e ta?en effe t pursuant to t-e 0nsuran e (ode R t-erefore" no '$T ,ere due t-ereon. I$$)*+ Aas '$T properly le#!edQ H*+,+ JE$. '$T !s le#!ed on t-e exer !se of t-e pr!#!lege exe ut!ng spe !f! !nstruments" and must .e pa!d upon t-e !ssuan e of t-e !nstruments" ,!t-out regard to ,-et-er t-e ontra ts ,-! - ga#e r!se to t-em are res !ss!.le" #o!d" #o!da.le or unenfor ea.le. TITLE VIII REMEDIES 0. (!#!l Femed!es for (olle t!on .y t-e *o#ernment+ ($e . &48) 1. '!stra!nt of goods" -attels or effe ts &. @e#y upon real property and !nterest t-ere!n 3. (!#!l or r!m!nal a t!on One or all of t-e remed!es may .e pursued s!multaneously !n t-e d!s ret!on of re#enue aut-or!t!es '!stra!nt or le#y 5OT a#a!led of ,-ere t-e amount of tax !n#ol#ed !s 5OT 2OFE t-an P144 Pres r!pt!#e Per!ods+ 1) Assessment of Tax @!a.!l!ty (a) 3 years from t-e last day pres r!.ed .y la, for f!l!ng ,-en return !s f!led+ 1. .efore t-e last day pres r!.ed .y la, or &. on t-e last day pres r!.ed .y la, (.) 3 years from f!l!ng of return ,-en t-e return !s f!led .eyond t-e per!od pres r!.ed .y la, ($e . &43) ( ) 14 years after t-e d!s o#ery of t-e fals!ty" fraud or om!ss!on !n ase of+ 1. false or fraudulent return ,!t- !ntent to e#ade tax" or &. fa!lure to f!le a return ($e . &&& a) T-e follo,!ng are o#ered .y t-e general rule ($e . &43)+ false return-f!led ,!t- no !ntent to e#ade tax fraudulent return-f!led ,!t- !ntent to e#ade tax (d) ,!t-!n t-e per!od agreed upon" ,-en .efore t-e exp!rat!on of t-e per!od !n $e . &43 for t-e assessment of tax" .ot- t-e (omm!ss!oner and t-e taxpayer -a#e agreed !n ,r!t!ng to !ts assessment after su - t!me. $u - per!od agreed upon

TAX REVIEWER
may .e extended .y ,r!tten agreement .efore t-e exp!rat!on of t-e pre#!ous per!od. ($e .&&& .)

&) (olle t!on of Tax @!a.!l!ty (a) 3 years from assessment (a ord!ng to Atty. >aXe=) 8 years from assessment (a ord!ng to A.ella;A.!og;$arm!ento .oo?) (.) 8 yrs from assessment !n ase of a false or fraudulent return or fa!lure to f!le a return ( ) !n ase of an agreed pd. for assessment" olle t!on s-all .e ,!t-!n t-e pd. agreed upon !n ,r!t!ng .efore t-e exp!rat!on of t-e 8 yr. Pd. ($e . &&& "d) $uspens!on of Pres r!pt!#e Per!ods+ ($e . &&3) 1) Per!ods suspended+ (a) per!ods for assessment !n $e . &43 and &&& (.) .eg!nn!ng of d!stra!nt or le#y ( ) pro eed!ng !n ourt for olle t!on &) *rounds for suspens!on of pres r!pt!#e per!ods Y F @OP& Z a) (omm!ss!oner !s Pro-!.!ted from ma?!ng t-e assessment or .eg!nn!ng d!stra!nt or le#y or a pro eed!ng !n ourt and for %4 days t-ereafter .) Taxpayer requests for Fe!n#est!gat!on ,-! - !s granted ) Taxpayer annot .e @o ated !n t-e address g!#en !n t-e return f!led" .ut !f t-e taxpayer !nforms t-e (omm!ss!oner of a -ange !n address t-e pres r!pt!#e per!od ,!ll not .e suspended d) A-en t-e ,arrant !s ser#ed upon t-e taxpayer and no Property ould .e lo ated e) A-en t-e taxpayer !s Out of t-e P-!ls. A-en may taxes .e omprom!sedQ Y V0( Z 1. A reasona.le dou.t as to t-e Val!d!ty of t-e la!m aga!nst t-e taxpayer ex!stsB or &. T-e f!nan !al pos!t!on of t-e taxpayer demonstrates a lear 0na.!l!ty to pay t-e assessed tax. ($e . &43 A) 3. (r!m!nal #!olat!ons EH(EPT+ a) t-ose already f!led !n ourt .) t-ose !n#ol#!ng fraud ($e &43 >) @!m!tat!ons for omprom!se of tax l!a.!l!ty+ ($e . &43 A) 1. 2!n!mum omprom!se rate+ a) 0n ase of f!nan !al !n apa !ty" 14% of .as! assessed tax .) 0n ot-er ases" 34% of .as! assessed tax &. $u.Ge t to appro#al of E#aluat!on >oard ( omposed of (omm!ss!oner and 3 'eputy (omm!ss!oners)+ a) ,-en .as! tax !n#ol#ed ex eeds P1"444"444 or .) ,-ere t-e settlement offered !s less t-an t-e pres r!.ed m!n!mum rates A-en may taxes .e a.ated or an elledQ Y C1 Z 1. T-e tax or any port!on t-ereof appears to .e CnGustly or ex ess!#ely assessedB or &. T-e adm!n!strat!on and olle t!on osts !n#ol#ed do not 1ust!fy t-e olle t!on of t-e

TAX REVIEWER
amount due ($e . &43 >)

(onstru t!#e '!stra!nt (only for personal property)+ 1) A-en may t-!s o urQ (RIRHO) a) taxpayer !s Ret!r!ng from any .us!ness su.Ge t to tax .) taxpayer !s Intend!ng to lea#e t-e P-!l. or to Remo#e -!s property t-erefrom ) taxpayer H!des or on eals -!s property d) taxpayer performs any a t tend!ng to O.stru t t-e pro eed!ngs for olle t!on of any tax due 2) Pro edure (a) Fequ!re t-e taxpayer or any person -a#!ng ontrol of t-e property to 1. s!gn a re e!pt o#er!ng property d!stra!ned &. o.l!gate -!mself to preser#e t-e same !nta t and unaltered 3. not to d!spose of t-e property !n any manner" ,!t-out t-e aut-or!ty of t-e (omm!ss!oner (.) A-ere taxpayer or person !n possess!on refuses to s!gn+ 1. d!stra!n!ng off! er s-all prepare a l!st of t-e property d!stra!ned &. !n t-e presen e of & ,!tnesses" lea#e a opy !n t-e prem!ses ,-ere t-e property !s lo ated ($e . &4%) '!stra!nt of Personal Property AIO 2AJ E::E(T '0$TFA05T A2OC5T 05VO@VE' (omm!ss!oner or -!s duly aut-or!=ed 0n ex ess of representat!#e P1"444"444 Fe#enue '!str! t Off! er P1"444"444 or less 1) Property $!e=ed or '!stra!ned a) goods" -attels" effe ts and ot-er personal property b) !n lud!ng sto ?s and ot-er se ur!t!es" de.ts" red!ts" .an? a ounts" !nterests !n and r!g-ts to personal property &) Feport on t-e '!stra!nt a) .y t-e d!stra!n!ng off! er 1. su.m!tted ,!t-!n 14 days from re e!pt of t-e ,arrant &. su.m!tted to t-e Fe#enue '!str! t Off! er and to t-e Fe#enue Feg!onal '!re tor .) .y t-e Fe#enue Feg!onal '!re tor- onsol!dated report" as may .e requ!red .y t-e (omm!ss!oner 3) T-e order of '!stra!nt may .e l!fted .y t-e (omm!ss!oner or -!s representat!#e ($e . &4/ A) 3) Pro edure (a) *oods" effe ts" -attels and ot-er personal property 1. a opy of an a ount of t-e property d!stra!ned" s!gned .y t-e off! er" s-all .e left e!t-er from t-e o,ner or t-e person from ,-om t-e property ,as ta?en or at t-e d,ell!ng or pla e of .us!ness of su - person and ,!t- someone of su!ta.le age and d!s ret!on &. statement of t-e sum demanded

TAX REVIEWER
3. t!me and pla e of sale

(.) $to ?s and ot-er $e ur!t!es 1. ser#!ng a opy of t-e ,arrant upon t-e taxpayer A5' upon t-e pres!dent" manager" treasurer or ot-er respons!.le off! er of t-e !ssu!ng orporat!on" ompany" asso !at!on ( ) 'e.ts and (red!ts 1. lea#!ng a opy of t-e ,arrant ,!t- t-e person o,!ng t-e de.ts or -a#!ng !n -!s possess!on su - red!ts or -!s agent &. ,arrant s-all .e suff! !ent aut-or!ty to pay t-e (omm!ss!oner t-e amount of su - de.ts or red!ts (d) >an? a ounts (garn!s-ment) 1. ser#e a ,arrant of garn!s-ment upon t-e taxpayer A5' upon t-e pres!dent" manger" treasurer or ot-er respons!.le off! er of t-e .an? &. .an? s-all turn o#er to t-e (omm!ss!oner so mu - of t-e .an? a ounts as may .e suff! !ent ($e . &49) @e#y on Feal Property 1. A-en exer !sed+ .efore" s!multaneously or after t-e d!stra!nt of personal property .elong!ng to t-e taxpayer &. Pro edure+ (a) !nternal re#enue off! er s-all prepare a duly aut-ent! ated ert!f! ate s-o,!ng t-e name of taxpayer" amounts of tax and penalty due. Enfor ea.le t-roug-out t-e P-!l!pp!nes (.) off! er s-all ,r!te upon t-e ert!f! ate a des r!pt!on of t-e property upon ,-! le#y !s made ( ) ,r!tten not! e of le#y s-all .e ma!led or ser#ed upon 1. t-e Feg!ster of 'eeds ,-ere t-e property !s lo ated and &. t-e taxpayer or agent;manager of t-e .us!ness !n respe t to t-e tax l!a.!l!ty or to t-e o upant of t-e property (d) 0f personal property of taxpayer !s not suff! !ent to sat!sfy t-e tax due" le#y on real property s-all pro eed ,!t-!n 34 days after d!stra!nt (e) Feport on le#y 1. .y le#y!ng off! er !. su.m!tted ,!t-!n 14 days from re e!pt of ,arrant !!. su.m!tted to t-e (omm!ss!oner or -!s representat!#e &. .y t-e Fe#enue Feg!onal '!re tor-- onsol!dated report" as may .e requ!red .y t-e (omm!ss!oner (f) T-e ,arrant may .e l!fted .y t-e (omm!ss!oner or -!s representat!#e Tax @!en+ super!or to Gudgment la!m of pr!#ate property atta -es not only from t-e t!me t-e ,arra.t ,as ser#ed >CT from t-e t!me tax ,as due and demanda.le 1. 5ature-- a l!en !n fa#or of t-e *o#ernment of t-e P-!l!pp!nes ,-en a person l!a.le to pay a tax negle ts or fa!ls to do so upon demand &. 'urat!on-l!en ex!sts from t-e t!me assessment !s made .y t-e (omm!ss!oner unt!l

TAX REVIEWER
pa!d" ,!t- !nterests" penalt!es and osts t-at may a rue !n add!t!on t-ereto 3. Extent-upon all property and r!g-ts to property .elong!ng to t-e taxpayer 3. Effe t!#!ty aga!nst t-!rd persons-only ,-en not! e of su - l!en !s f!led .y t-e (omm!ss!oner !n t-e Feg!ster of 'eeds !n t-e pro#!n e; !ty ,-ere t-e property !s s!tuated ($e . &1<) (!#!l and (r!m!nal A t!ons+ 1. >roug-t !n t-e name of t-e *o#ernment of t-e P-!l!pp!nes &. (ondu ted .y legal off! ers of t-e >0F 3. 0n ase of a t!ons for re o#ery of taxes or enfor ement of a f!ne" penalty or forfe!ture" must .e f!led ,!t- t-e appro#al of t-e (omm!ss!oner ($e . &&4) :orfe!ture( ($e . &&3-&&8) Io, enfor ed $ale (-attels and $e!=ure" sale or 1udgment of Femo#a.le f!xtures destru t!on of spe !f! ondemnat!on and sale forfe!ted property !n a legal a t!on" !#!l or r!m!nal Feal Property 0n t-e same manner and under t-e same ond!t!ons as sales of personal property d!stra!ned '!st!lled $p!r!ts" Cpon forfe!ture" may .e destroyed .y l!quors" !gars" order of t-e t-e sale (omm!ss!oner ,-ere !garettes manuf. may .e -ealt- or !nGur!ous to pu.l! to la, Produ ts of to.a o preGud! !al enfor ement and apparatus used for t-e!r produ t!on Ot-er art! les Cpon forfe!ture may .e su.Ge t to ex !se tax sold or destroyed at t-e ,-! - -a#e .een d!s ret!on of t-e manuf. Or remo#ed (omm!ss!oner Nforfe!ted !n #!olat!on of t-!s property s-all not .e (odeB d!es for destroyed unt!l at least pr!nt!ng or ma?!ng &4 days from se!=ure fa?e re#enue stamps and la.els 00. Femed!es of a Taxpayer 1. Adm!n!strat!#e a) protest of assessment .) la!m for refund &. 1ud! !al Fel!ef Fequ!s!tes of a #al!d assessment+ 1. !n ,r!t!ng 2. must state t-e fa ts and la, upon ,-! - !t !s .ased ($e . &&9) )!nds of Assessment+ 1. Post Feport!ng not! e-0n!t!al f!nd!ngs are presented and d!s ussed ,!t- t-e taxpayerB

TAX REVIEWER
!nformal onferen e an .e -eld &. Pre-assessment 5ot! e

0nstan es ,-ere a pre-assessment not! e 5EE' 5OT .e g!#en+ (MET DC) a) ,-en t-e f!nd!ng for def! !en y tax !s a result of Mat-emat! al error !n t-e omputat!on of tax appear!ng on t-e fa e of t-e returnB or .) D!s repan y !s determ!ned .et,een t-e tax ,!t--eld and t-e amount a tually rem!tted .y t-e ,!t--old!ng agent ) a taxpayer ,-o opted to la!m a refund or tax red!t ,as determ!ned to -a#e Carr!ed o#er and appl!ed t-e amount aga!nst su eed!ng tax l!a.!l!t!es d) Ex !se tax -as not .een pa!d e) an art! le lo ally pur -ased or !mported .y an exempt person -as .een sold" traded or Transferred to non-exempt persons 1. :!nal Assessment (Fe#enue Fegulat!on 5o. 1&-98 and $e . &&9) Npls. read Fe#enue Fegulat!on 5o. 1&-98 for t-e pro edure of assessment Protest of Assessment+ 1. :!le a request for re!n#est!gat!on or re ons!derat!on ,!t-!n 34 days from re e!pt of t-e assessment request for re!n#est!gat!on-a plea for re-e#aluat!on of an assessment on t-e .as!s of ne,ly d!s o#ered or add!t!onal e#!den e t-at a taxpayer !ntends to present !n t-e re!n#est!gat!on. 0n#ol#es a quest!on of fa t or la, or .ot-. request for re ons!derat!on-a plea for re-e#aluat!on of t-e assessment on t-e .as!s of ex!st!ng re ords ,!t-out need of add!t!onal e#!den e. 0n#ol#es a quest!on of fa t or la, or .ot-. (Fe#enue Fegulat!on 5o. 1&-98) &. A!t-!n %4 days from f!l!ng of protest" all rele#ant support!ng do uments s-ould -a#e .een su.m!tted" ot-er,!se" t-e assessment s-all .e ome :05A@ ( annot .e appealed). ($e . &&9) Appeal of Protest to t-e (TA (1ud! !al Fel!ef)+ ($e . &&9) 1. *rounds+ a) !f t-e protest !s den!ed !n ,-ole or !n part or .) !s not a ted upon ,!t-!n 194 days from su.m!ss!on of do uments &. Appellate (ourt+ (ourt of Tax Appeals 3. Per!od to appeal+ a) ,!t-!n 34 days from re e!pt of de !s!on deny!ng t-e protest or .) 34 days from t-e lapse of 194 day per!od 3. Effe t of fa!lure to appeal+ t-e de !s!on s-all .e f!nal" exe utory and demanda.le Part!es Ent!tled to Fefund *eneral Fule+ T-e person ent!tled to as? for a refund !s t-e taxpayer ,-o pa!d t-e same. Ex ept!ons+ (ase A-o !s ent!tled to as? 5otes for refund

TAX REVIEWER
A-ere tax -as T-e taxpayer (e#en !f .een s-!fted tax -as .een a tually s-!fted .y t-e taxpayer to -!s ustomers as !n sales tax an e#en !f t-e tax -as .een .!lled as a separate !tem !n t-e !n#o! e ((0F #s Amer! an Fu..er) A-ere payer !s not t-e taxpayer (e.g. t-eater o,ners ,-o pa!d !llegal mun! !pal taxes .!lled to and olle ted from t-eater goers) A-ere payer !s ,!t--old!ng agent T-eater goers are not ent!tled to la!m refund of su - taxes (2ed!na #s (!ty of >agu!o) >e ause t-e sales tax !s !mposed d!re tly on t-e seller as an o upat!on tax for sell!ng On e re o#ered" t-e seller must -old t-e refunded taxes !n trust for t-e !nd!#!dual pur -asers ,-o ad#an ed payment t-ereof and ,-ose name must appear on -!s re ords

A!t--old!ng agent [Taxpayer[ !s any person ((0F #s Pro ter R su.Ge t to tax !mposed .y t-!s *am.le) t!tle (!n ome tax). T-e ,!t--old!ng agent !s d!re tly and !ndependently l!a.le for t-e orre t amount of tax t-at s-ould .e ,!t--eld" and of def! !en y assessments" sur -arges and penalt!es A-ere donorEs 'onee !s t-e proper tax ,as assumed party to la!m refund of .y donee t-e donorEs tax (e#en !f t-e tax ,as ad#an ed .y t-e donor) A-en may taxes .e refunded or red!tedQ 1. Taxes refunded or red!ted+ (EPW./SU0) a) Taxes *rroneously or !llegally re e!#ed .) Penalt!es !mposed ,!t-out aut-or!ty ) Any sum alleged to -a#e .een ex ess!#ely or !n any manner 1./ngfully olle ted d) Fefund t-e #alue of !nternal re#enue $tamps ,-en returned !n good ond!t!on .y t-e pur -aser e) Fedeem or -ange unused stamps rendered )0f!t for use and refund t-e!r #alue upon proof of destru t!on" !n t-e d!s ret!on of t-e (omm!ss!oner &. Pro edure for red!t;refund a) taxpayer f!les !n ,r!t!ng ,!t- t-e (omm!ss!oner a la!m for red!t or refund .) f!led ,!t-!n & yrs after t-e payment of t-e tax or penalty ) a return f!led s-o,!ng an o#erpayment s-all .e ons!dered a ,r!tten la!m for red!t or refund 3. $u!t or pro eed!ng for refund a) a la!m for refund or red!t -as .een f!led ,!t- t-e (omm!ss!oner

TAX REVIEWER
.) t-e su!t may .e ma!nta!ned ,-et-er or not su - tax;penalty;sum -as .een pa!d under protest ) !n any ase" su!t must .e f!led ,!t-!n & yrs. from date of payment of t-e tax;penalty regardless of any super#en!ng ause t-at may ar!se after payment d) t-e (omm!ss!oner may" e#en ,!t-out a ,r!tten la!m" refund or red!t a tax" ,-ere on t-e fa e of t-e return upon ,-! - payment ,as made" payment appears to .e erroneous. ($e . &43 ( " &&<) 3. Tax (red!t (ert!f! ate a) may .e appl!ed aga!nst any !nternal re#enue tax" ex ept ,!t--old!ng taxes .) or!g!nal opy !s surrendered to t-e re#enue off! er ) no tax refund ,!ll .e g!#en result!ng from a#a!lment of !n ent!#es granted .y la, ,-ere no a tual payment ,as made ($e . &43 () 8. :orfe!ture of as- refund;tax red!t a) :orfe!ture of refund !n fa#or of t-e go#ernment ,-en a refund -e ? or ,arrant rema!ns un la!med or un as-ed ,!t-!n 8 yrs. from date of ma!l!ng or del!#ery .) :orfe!ture of Tax (red!t-a tax red!t ert!f! ate ,-! - rema!ns unut!l!=ed after 8 yrs. from date of !ssue" s-all .e !n#al!d" C5@E$$ re#al!dated. ($e . &34) (ommen ement of &-year per!od under $e . &43(3) and &&< (ase &-year per!od starts from 5otes 0f t-e tax soug-t :rom date tax ,as pa!d to .e refunded !s *CIR ; 6ictori#s 3illing/ !llegally or erroneously olle ted 0f t-e tax !s pa!d :rom date of t-e last or f!nal T-ere !s no payment !n !nstallment or !nstallment or payment *CIR unt!l t-e ,-ole;ent!re only !n part ;s Prieto< CIR ; P#l#nc#/ tax l!a.!l!ty !s fully pa!d 0f t-e taxpayer :rom on#ers!on of t-e 2erely ma?!ng a merely made a depos!t to payment *:nion depos!t !s not depos!t &#r ent ; Coll/ equ!#alent to payment unt!l t-e amount !s a tually appl!ed to t-e spe !f! purpose for ,-! - !t ,as depos!ted 0f tax -as .een :rom date !t falls de at t-e A taxpayer ,-o ,!t--eld from end of t-e taxa.le year ontr!.utes to t-e sour e (t-roug- *&i''s ;s CIR/ Ie !s ,!t--old!ng tax system t-e ,!t--old!ng deemed to -a#e pa!d -!s tax performs and tax system) l!a.!l!ty ,-en t-e same falls ext!ngu!s-es -!s tax due at t-e end of t-e o.l!gat!on for t-e year taxa.le year *Aguil#r ;s on erned. 0n ot-er CA/ ,ords" -e !s pay!ng -!s tax l!a.!l!t!es for t-at year. (orporate At t-e earl!est" on t-e date 0t !s only t-en t-at t-e taxpayer of t-e f!l!ng of t-e adGusted orporat!on an f!nal return *ACCPA as erta!n ,-et-er !t In;est ent ;s CA/ T-e &-yr made prof!ts or

TAX REVIEWER
per!od pro#!ded !n $e &&< s-ould .e omputed from t-e t!me of f!l!ng of t-e AdGusted Feturn or Annual 0TF and f!nal payment of !n ome tax *CIR ;s T38 S#les/ :rom t-e date t-e taxpayer .e omes ent!tled to refund and not from t-e date of payment *CIR ;s Don Pedro Centr#l A=uc#rer#/ !n urred losses !n !ts .us!ness operat!ons

0f tax ,as not erroneously or !llegally pa!d .ut t-e taxpayer .e ame ent!tled to refund .e ause of super#en!ng !r umstan es

>efore t-e r!g-t to refund or red!t ar!ses" t-ere !s a.solutely no .as!s to f!le a la!m ,!tt-e (0F or ommen e a su!t !n ourt

A t!on to (ontest :orfe!ture of (-attel+ ($e .&31) >E:OFE TIE $A@E A:TEF TIE $A@E Per!od to f!le anyt!me .efore sale or A!t-!n % mont-s from t-e destru t!on of property sale Party aga!nst t-e person se!=!ng t-e t-e person se!=!ng t-e ,-om t-e property or -a#!ng property or -a#!ng a t!on !s f!led possess!on t-ereof possess!on t-ereof (ause of EnGo!n t-e sale Fe o#er net pro eeds A t!on real!=ed at t-e sale AddKl. Feqt. :!le a .ond 1ur!sd! t!on of t-e (ourt of Tax Appeals+ 1. 'e !s!ons of t-e (omm!ss!oner of 0nternal Fe#enue !n ases !n#ol#!ng d!sputed assessments" refunds of !nternal re#enue taxes" fees or ot-er -arges;penalt!es !mposed" or ot-er matters ar!s!ng under t-e 50F( or any la, adm!n!stered .y t-e >0F &. 'e !s!ons of t-e (omm!ss!oner of (ustoms !n ases !n#ol#!ng l!a.!l!ty for ustoms dut!es" fees or ot-er money -argesB se!=ure" detent!on of release of property affe tedB f!nes" forfe!tures or ot-er penalt!es !mposed !n relat!on t-eretoB or ot-er matters ar!s!ng under t-e (ustoms @a, or ot-er la, adm!n!stered .y t-e >ureau of (ustoms (FA 11&8 as amended .y FA 338/) $ale of Personal Property '!stra!ned and of Feal Property @e#!ed upon ($e t!ons &4<--&1%) '0$TFA05T O: PEF$O5A@ PFOPEFTJ 0. Ad#ert!sement;5ot! e A-en made Ad#ert!sement per!od+ &4 days Io, made @EVJ O: PFOPEFTJ FEA@

,!t-!n &4 days after t-e le#y ad#ert!sement per!od s-all .e at least 34 days A not! e s-all .e ex-!.!ted post!ng a not! e at t-e ma!n !n not less t-an & pu.l! entran e of t-e

TAX REVIEWER
pla es !n t-e mun! !pal!ty; !ty ,-ere d!stra!nt !s madeB one pla e s-all .e at t-e off! e of t-e 2ayor mun! !pal; !ty .u!ld!ng A5' !n a pu.l! ; onsp! uous pla e !n t-e d!str! t ,-ere t-e property !s lo ated .) pu.l! at!on" on e a ,ee? for 3 ,ee?s !n a ne,spaper of general !r ulat!on !n t-e mun! !pal!ty; !ty ,-ere t-e property !s lo ated a)amount of tax and penalt!es due .) name of taxpayer aga!nst ,-om taxes are le#!ed ) s-ort des r!pt!on of t-e property to .e sold After t-e per!ods for post!ng and pu.l! at!on -a#e .een ompl!ed ,!tat t-e ma!n entran e of t-e mun! !pal .u!ld!ng or !ty -all or on t-e prem!ses to .e sold as t-e not! e of sale s-all spe !fy

(ontents

t!me and pla e of sale art! les d!stra!ned

00. $ale T!me of $ale

A-ere made

s-all not .e less t-an &4 days after not! e to t-e o,ner or possessor of t-e property A5' pu.l! at!on or post!ng of not! e At t-e pla e f!xed !n t-e not! e

Io, made

a) off! er s-all sell t-e property at a pu.l! au t!on to t-e -!g-est .!dder for as- or" ,!t- t-e appro#al of t-e (omm!ss!oner" t-rougduly l! ensed ommod!ty or sto ? ex -anges .) 0n ase of sto ?s and ot-er se ur!t!es" t-e off! er s-all exe ute a .!ll of sale ,-! -e s-all del!#er to t-e .uyer and a opy furn!s-ed to t-e !ssu!ng orporat!on. T-e !ssu!ng orporat!on s-all ma?e a orrespond!ng entry !n !ts .oo?s and !f requ!red to do so" !ssue ne, ert!f! ates of sto ? Ex ess;Fes!du a)Fes!due o#er and a.o#e e of property ,-at !s requ!red to .e pa!d sold (tax due and expenses) s-all .e turned o#er to t-e o,ner of t-e property sold. .)Expenses -argea.le

0n ase t-e pro eeds of t-e sale ex eeds t-e la!m and ost of sale" t-e ex ess s-all .e turned o#er to t-e o,ner of t-e property

TAX REVIEWER
s-all !n lude a tual expanses of se!=ure and preser#at!on of property pend!ng sale. made !n ,r!t!ng ,!t-!n & days" .y t-e off! er ma?!ng t-e sale" su.m!tted to t-e (omm!ss!oner.

Feport of $ale

a) ,!t-!n 8 days after t-e sale" a return made .y t-e off! er ma?!ng t-e sale s-all .e entered !n t-e re ords of t-e Fe#enue (olle t!on Off! er" Fe#enue '!str! t Off! er and Fe#. Feg. '!re tor .) Fe#enue (olle t!on Off! er s-all del!#er to t-e pur -aser a ert!f! ate from -!s re ords s-o,!ng+ !. pro eed!ngs of sale !!. des r!pt!on of property sold !!!. name of pur -aser !#. amount of taxes" penalt!es and !nterest 000. Felease of 0f pr!or to t-e sale" all proper At any t!me .efore t-e day Property to .e -arges are pa!d to t-e f!xed for t-e sale" t-e sold off! er ondu t!ng t-e sale" taxpayer may d!s ont!nue t-e property s-all .e t-e sale .y pay!ng taxes" restored to t-e o,ner. penalt!es and !nterest due 0V. :orfe!ture;Pur -ase .y go#ernment A-en made a),-en t-e .!d for t-e no .!dder or -!g-est .!d !s property dur!ng t-e sale !s !nsuff! !ent to pay t-e not equal to t-e amount of amount due tax or .)t-e .!d !s less t-an t-e a tual mar?et #alue of t-e goods offered for sale Io, made (omm!ss!oner or -!s a) re#enue off! er representat!#e may ondu t!ng sale s-all pur -ase t-e property !n de lare t-e property .e-alf of -e 5at!onal forfe!ted to t-e go#ernment *o#ernment for t-e amount !n sat!sfa t!on of t-e la!m due t-ereon .) ,!t-!n & days from forfe!ture" off! er s-all ma?e a return of t-e pro eed!ngs ) Feg!ster of 'eeds" upon reg!strat!on of de larat!on of forfe!ture s-all transfer t!tle of t-e property to t-e go#ernment Fedempt!on ,!t-!n 1 year from date of forfe!ture redeemed .y t-e taxpayer or anyone !n -!s .e-alf effe ted .y pay!ng to t-e (omm!ss!oner or

TAX REVIEWER
Fe#enue (olle t!on Off! er t-e full amount of taxes" penalt!es plus !nterest and osts of sale !f no redempt!on made" forfe!ture !s a.solute a)Pu.l! Au t!on--not! e g!#en of sale for not less t-an &4 days .)Pr!#ate sale an .e made ,!t- pr!or appro#al from t-e $e . Of :!nan e )0n e!t-er ase" pro eeds of sale s-all .e depos!ted ,!t- t-e 5at!onal Treasury One year from date of sale N o,ner s-all not .e depr!#ed of possess!on of property sold and s-all .e ent!tled to !n ome t-ereof unt!l t-e exp!rat!on of t-e per!od for redempt!on 'el!nquent taxpayer or anyone for -!m a) pay to t-e Fe#enue '!str! t Off! er t-e amount of taxes" penalt!es and !nterest t-ereon from date of del!nquen y to date of sale .) pay also !nterest on pur -ase pr! e at t-e rate of 18% p.a. form date of pur -ase to date of redempt!on a) del!#ery of t-e ert!f! ate !ssued to t-e pur -aser .) ert!f! ate of redempt!on from t-e Fe#enue '!str! t Off! er ) property redeemed s-all .e free from l!en of su - taxes and penalt!es

Fesale

a)2ay .e resold .y t-e (omm!ss!oner or -!s deputy and .) pro eeds rem!tted to t-e 5at!onal Treasury and a ounted for as !nternal re#enue

V. Fedempt!on of Property $old Per!od of redempt!on

A-o may redeem Pro edure

F!g-ts of Person redeem!ng t-e property

CIR #$ CA2 CTA 3 4IR (GR 117254, Jan 21, 1999) "%&'$( On Apr!l &" 1<9%" Paramount f!led !ts Annual 0TF. 0t pre#!ously pa!d an amount represent!ng !ts quarterly !n ome tax. T-e amount pa!d ,as greater t-an t-e !n ome tax due on t-e return. T-us ParamountEs return s-o,ed a refunda.le amount. On Apr!l 13" 1<99" >P0" as ParamountEs @!qu!dator" f!led a letter la!m!ng refund.

TAX REVIEWER
I$$)*( A-en ,!ll .e t-e &-yr pres r!pt!#e per!od refund la!ms ommen e" from Apr!l &" 1<9% ,-en t-e Annual 0TF ,as f!led or Apr!l 18" 1<9%" ,-en t-e AdGustment Feturn ould st!ll .e f!led ,!t-out !n urr!ng delay !n under W/4 (.) of t-e 50F(Q H*+,( W&34 of t-e 50F( pro#!des for a &-yr pres r!pt!#e per!od to .e ounted [ from t-e date of payment of tax[ for a t!ons for refund of orporate !n ome tax. T-us" t-e &-yr per!od s-ould .e re ?oned from t-e a tual f!l!ng of t-e AdGustment Feturn or Annual 0TF" .e ause at t-!s po!nt" !t an .e determ!ned ,-et-er t-ere -as .een an o#erpayment of tax. T-us" t-e la!m for refund -as already pres r!.ed. P4C/5 #$ CIR (GR 112024, Jan 28, 1999) "%&'$( P>(om f!led !ts quarterly 0TF for t-e 1 st R &nd qtrs. of 1<98. @ater" !t suffered losses and reported a net loss for 1<98 R 1<9%. Io,e#er" !t earned rent for ,-! taxes ,ere pre#!ously ,!t--eld .y t-e!r lessees. On Aug 1<9/" !t requested for a tax red!t represent!ng tax o#erpayments !n t-e 1st R &nd qtrs of 1<98. On 1uly 1<99" !t also la!med refund of t-e red!ta.le taxes ,!t--eld from t-e 1<98 R 1<9% rentals. I$$)*( Ao5 P>(om" rely!ng on F2( S/-98 -ang!ng t-e pres r!pt!#e per!od for tax refunds from & to 14 yrs. !s .arred .y pres r!pt!on. H*+,( JE$. Taxes are t-e l!fe.lood of t-e nat!on" t-us t-e modes to enfor e olle t!on s-ould .e summary R rarely !nterfered ,!t-. :rom t-e same perspe t!#e" la!ms for refund s-ould .e exer !sed ,!t-!n t-e t!me f!xed .y la, !n order not to unduly delay t-e >0F !n !ts olle t!on fun t!ons. W&&< of t-e 50F( pro#!des for a &-yr pres r!pt!#e pd. T-e re#enue regulat!on on t-e ot-er -and" ,as .eyond t-e pro#!s!ons of t-e la,. An erroneous !nterpretat!on of t-e la, does not #est a taxpayer ,!t- a s-!eld aga!nst Gud! !al a t!on. T-us P>(om ,as already .arred from f!l!ng !ts la!m. CIR #$ 4" GOODRICH (GR 104171, Feb. 24, 1999) "%&'$( T-e >0F assessed a def! !en y donorEs tax aga!nst >: *oodr! - for a sale of land !t on luded more t-an % yrs. earl!er. *oodr! - la!ms t-at t-e >0FEs r!g-t to olle t -as pres r!.ed" -a#!ng gone .eyond t-e 8-yr per!od pres r!.ed .y W331 of t-e 50F(. I$$)*( Ao5 (0FEs r!g-t to olle t -as pres r!.edQ H*+,( 0t !s lear t-at t-e assessments ,ere !ssued .eyond t-e 8-year pres r!pt!#e per!od. :or t-e purpose of safeguard!ng taxpayers from any unreasona.le exam!nat!on" !n#est!gat!on or assessment" our tax la,s pro#!des a statute of l!m!tat!on !n t-e olle t!on of taxes. >e!ng a remed!al measure" t-e la, on pres r!pt!on s-ould .e l!.erally onstrued !n order to afford su - prote t!on. TITLE X STATUTORY O""ENSES AND PENALTIES C6%7'*. I 8 ADDITIONS TO THE TAX Add!t!ons to t-e tax are+ 1. (!#!l Penalt!es a) &8% of t-e amount due for F0'TB .) 84% of t-e tax or t-e def! !en y tax for ,!llful negle t to f!le or false or fraudulent return ,!llfully made. ) 0nterest - &4% per annum on any unpa!d amount of tax or su - -!g-er rate as

TAX REVIEWER
may .e pres r!.ed .y t-e rules and regulat!ons. &. :rom t-e date pres r!.ed for payment unt!l t-e amount !s fully pa!d. a) 'ef! !en y 0nterest .) 'el!nquen y 0nterest ) 0nterest on Extended Payment 3. 'ate of not! e and demand unt!l !t !s pa!d. a) :a!lure to f!le erta!n 0nformat!on Feturns P 1"444 for ea - fa!lure .ut not ex eed!ng P &8"444 dur!ng a alendar yr. .) :a!lure of ,!t--old!ng agent to (olle t and Fem!t tax. Penalty+ Amt. of tax not ,!t--eld" or not a ounted for and rem!tted plus ot-er penalt!es. ) :a!lure of ,!t--old!ng agent to Fefund ex ess ,!t--old!ng tax. Penalty+ Amount of refund ,-! - ,as not refunded to t-e employee result!ng from t-e any ex ess of t-e amount ,!t--eld o#er t-e tax a tually due on t-e!r return. *eneral Pro#!s!ons 1) T-e add!t!ons to t-e tax or def! !en y tax apply to all taxes" fees and -arges !mposed !n t-!s (ode. &) T-e amount so added to t-e tax s-all .e olle ted at t-e same t!me" !n t-e same manner and as part of t-e tax. 3) 0f t-e ,!t--old!ng agent !s t-e *o#ernment or any of !ts agen !es" pol!t! al su.d!#!s!ons or !nstrumental!t!es" or a go#ernment-o,ned or - ontrolled orporat!on" t-e employee respons!.le for t-e ,!t--old!ng and rem!ttan e of t-e tax s-all .e personally l!a.le for t-e add!t!ons to t-e tax. 3) T-e term \personK" !n ludes an off! er or employee of a orporat!on ,-o as su off! er" employee or mem.er !s under a duty to perform t-e a t !n respe t of ,-! t-e #!olat!on o urs. 1. Ci;il Pen#lties ($e . &39) A) Penalty+ &8% of t-e amount due" !n add!t!on to t-e tax requ!red to .e pa!d. 0n ase of t-e follo,!ng+ (RIDT) (lets get RID of Tax) a) :a!lure to f!le any Return and pay t-e tax on t-e date pres r!.edB or .) :!l!ng a return ,!t- an Internal re#enue off! er ot-er t-an t-ose ,!t- ,-om t-e return !s requ!red to .e f!led" unless ot-er,!se aut-or!=ed .y t-e (omm!ss!onerB or ) :a!lure to pay t-e Def! !en y tax ,!t-!n t-e t!me pres r!.ed for !ts payment !n t-e not! e of assessmentB or d) :a!lure to pay on or .efore t-e date pres r!.ed for !ts payment+ 1. t-e full or part of t-e amount of Tax s-o,n on any return requ!red to .e f!ledB &. t-e full amount of tax due for ,-! - no return !s requ!red to .e f!led. B) Penalty+ 84% of t-e tax or of t-e def! !en y tax" !n ase any payment -as .een made on t-e .as!s of a return .efore t-e d!s o#ery of t-e fals!ty or fraud. 0n ase of+ ("9"%) a) A!llful negle t to "9le t-e return ,!t-!n t-e per!od pres r!.edB or .) "%lse or fraudulent return !s ,!llfully made" !n ase any payment -as .een made on t-e .as!s of su - return .efore t-e d!s o#ery of t-e fals!ty or fraud.

TAX REVIEWER
Pri # 1#cie e#!den e of a false or fraudulent return as determ!ned .y t-e (omm!ss!oner pursuant to t-e rules and regulat!ons promulgated .y t-e $e . of :!nan e+ 1. su.stant!al underde larat!on of taxa.le sales" re e!pts or !n ome - fa!lure to report sales" re e!pts or !n ome !n an amount ex eed!ng 34% of t-at de lared per return &. su.stant!al o#erstatement of dedu t!ons - la!m of dedu t!ons !n an amount ex eed!ng 34% of a tual dedu t!ons

-+ Interest ($e . &3<) A) T-ere s-all .e assessed and olle ted an 0nterest at &4% per annum on any unpa!d amount of tax >) or -!g-er rate pres r!.ed .y rules and regulat!ons from t-e date pres r!.ed for payment unt!l t-e amount !s fully pa!d. () from t-e date pres r!.ed for !ts payment unt!l t-e full payment. (a) 'ef! !en y Interest !n t-e tax due (.) 'el!nquen y Interest+ 9 0n ase of fa!lure to pay+ 1. tax due on any return requ!red to .e f!led" or &. tax due for ,-! - no return !s requ!red" or 3. A def! !en y tax" or any sur -arge or !nterest t-ereon on t-e due date appear!ng !n t-e not! e and demand of t-e (omm!ss!oner. ') !nterest s-all form part of t-e tax. 0nterest on Extended Payment+ 1) any person ,-o !s qual!f!ed and ele ts to pay t-e tax on !nstallment .ut fa!ls to pay t-e tax" or any !nstallment" or any part on or .efore t-e date pres r!.edB or &) ,-ere t-e (omm!ss!oner -as aut-or!=ed an extens!on of t!me ,!t-!n ,-! - to pay a tax or a def! !en y tax or any part t-ereof" 3) from t-e date of not! e and demand unt!l !t !s pa!d. 4+ 2#ilure to 2ile Cert#in In1or #tion Returns ($e . &84) A) Penalty+ P 1"444 for ea - fa!lure >) T-e aggregate amount for all su - fa!lure s-all not ex eed P &8"444 dur!ng a alendar year () Cpon not! e and demand .y t-e (omm!ss!oner ') Cnless !t !s s-o,n t-at su - fa!lure !s due to reasona.le ause and not to ,!llful negle t. 0n t-e ase of ea - fa!lure to f!le+ 1) !nformat!on returnB &) statement or l!stB 3) ?eep any re ordB 3) supply any !nformat!on E) requ!red .y t-!s (ode or .y t-e (omm!ss!oner on t-e date pres r!.ed t-ereof. >+ 2#ilure o1 # ?it""olding Agent to Collect #nd Re it T#) ($e . &81) A) Penalty+ Amount of t-e tax not ,!t--eld" or not a ounted for and rem!tted plus ot-er penalt!es. >) @!a.le only upon on#! t!on 0n ase of t-e follo,!ng+ 1. Any person requ!red to ,!t--old" a ount for" and rem!t any taxB or

TAX REVIEWER
&. A-o ,!llfully fa!ls to ,!t--old su - tax" or a ount for and rem!t su - taxB or 3. A!ds or a.ets !n any manner to e#ade any su - tax or t-e payment t-ereof"

@+ 2#ilure o1 # ?it""olding Agent to Re1und E)cess ?it""olding T#)+ ($e .&8&) A) Penalty+ Amount of refund ,-! - ,as not refunded to t-e employee result!ng from any ex ess of t-e amount ,!t--eld o#er t-e tax a tually due on t-e!r return plus ot-er penalt!es. 0n ase+ Any employer;,!t--old!ng agent fa!ls or refuses to refund ex ess ,!t--old!ng tax. CHAPTER II 8 CRIMES2 OTHER O""ENSES AND "OR"EITURES (r!mes+ 1. Attempt to e#ade or defeat tax. &. :a!lure to f!le return" supply orre t and a urate !nformat!on" pay tax" ,!t--old and rem!t tax and refund ex ess taxes ,!t--eld on ompensat!on. 3. Penal l!a.!l!ty of orporat!on. 3. Penal l!a.!l!ty for ma?!ng false entr!es" re ords" or reports" or us!ng fals!f!ed or fa?e a ounta.le forms. 8. Cnla,ful pursu!t of .us!ness. %. 0llegal olle t!on of fore!gn payments. /. Cnla,ful possess!on of !garette paper !n .o..!ns or rolls" et . 9. Cnla,ful use of denatured al o-ol. <. $-!pment or remo#al of l!quor or to.a o produ ts under false name or .rand or as an !m!tat!on of any ex!st!ng or ot-er,!se ?no,n produ t name or .rand. 14. Cnla,ful possess!on or remo#al of art! les su.Ge t to ex !se tax ,!t-out payment of t-e tax. 11. :a!lure or refusal to !ssue re e!pts or sales or ommer !al !n#o! es" #!olat!ons related to t-e pr!nt!ng of su - re e!pts or !n#o! es and ot-er #!olat!ons. 1&. Offenses relat!ng to stamps. 13. :a!lure to o.ey summons. 13. 'e larat!ons under penalt!es of perGury. Ot-er r!mes and offenses+ 1. 2!sde larat!on or m!srepresentat!on of manufa turers su.Ge t to ex !se tax. &. :orfe!ture of property used !n unl! ensed .us!ness or d!es used for pr!nt!ng false stamps" et . 3. :orfe!ture of goods !llegally stored or remo#ed. &ener#l Pro;isions ($e . &83) 1. Any person on#! ted of a r!me under t-!s (ode !s l!a.le for t-e payment of t-e tax and !s su.Ge t to t-e penalt!es !mposed -ere!n. &. Payment of t-e tax due after appre-ens!on !s not a #al!d defense !n any prose ut!on for #!olat!on of any pro#!s!on of t-!s (ode or !n any a t!on for t-e forfe!ture of untaxed art! les. 3. A person !s l!a.le !n t-e same manner as t-e pr!n !pal ,-en -e+ a) ,!llfully a!ds or a.ets !n t-e omm!ss!on of a r!me penal!=ed -ere!n or

TAX REVIEWER
.) auses t-e omm!ss!on of any su - offense .y anot-er. 3. 0f t-e offender !s not a !t!=en of t-e P-!l!pp!nes+ a) -e s-all ser#e t-e senten eB and .) deported !mmed!ately after ser#!ng t-e senten e ,!t-out furt-er pro eed!ngs for deportat!on. 8. 0f -e !s a pu.l! off! er or employee+ a) t-e max!mum penalty pres r!.ed for t-e offense s-all .e !mposedB and .) -e s-all .e d!sm!ssed from t-e pu.l! ser#! e and perpetually d!squal!f!ed from -old!ng any pu.l! off! e" to #ote to part! !pate !n any ele t!on. %. 0f t-e offender !s a (ert!f!ed Pu.l! A ountant" -!s ert!f! ate as a (ert!f!ed Pu.l! A ountant s-all" upon on#! t!on" .e automat! ally re#o?ed or an elled. /. 0n t-e ase of asso !at!ons" partners-!ps or orporat!ons" t-e penalty s-all .e !mposed on t-e partner" pres!dent" general manager" .ran - manager" treasurer" off! er-!n- -arge" and employees respons!.le for t-e #!olat!on. 9. T-e f!nes to .e !mposed for any #!olat!on of t-e pro#!s!ons of t-!s (ode s-all+ a) not .e lo,er t-an t-e f!nes !mposed -ere!n or .) t,! e t-e amount of taxes" !nterests and sur -arges due from t-e taxpayer" ,-! -e#er !s -!g-er. Atte pt to E;#de or De1e#t T#)+ ($e . &83) A. Penalty" upon on#! t!on+ :!ne - P34"444 or 144"444B and 0mpr!sonment - & to 3 yearsB Plus ot-er penalt!es ?"o is li#'le+ Any person ,-o ,!llfully attempts !n any manner to e#ade or defeat any tax or t-e payment t-ereof. A. T-e on#! t!on or aqu!ttal o.ta!ned under t-!s $e t!on s-all not .e a .ar to t-e f!l!ng of a !#!l su!t for t-e olle t!on of taxes. 2#ilure to 2ile Return7 Suppl$ Correct #nd Accur#te In1or #tion7 P#$ T#)7 ?it""old #nd Re it T#) #nd Re1und E)cess T#)es ?it""eld on Co pens#tion+ ($e . &%3) A. Penalty" upon on#! t!on+ :!ne - P14"444 or moreB and 0mpr!sonment - 1 to 14 yearsB Plus ot-er penalt!es Person li#'le+ Any person requ!red+ 1. to pay any tax" &. ma?e a return" 3. ?eep any re ord" or 3. supply orre t and a urate !nformat!on" O11ense+ ,!llfully fa!ls to 1. pay tax" &. ma?e a return" 3. ?eep t-e re ord" 3. supply su - orre t and a urate !nformat!on" 8. ,!t--old or rem!t taxes ,!t--eld" %. refund taxes ,!t--eld on ompensat!on" at t-e t!me or t!mes requ!red. >. Penalty" upon on#! t!on+ :!ne - P14"444 - &4"444B and 0mpr!sonment - 1 to 3 yearsB Plus ot-er penalt!es Person li#'le+ Any person ,-o+ 1. attempts to ma?e !t appear for any reason t-at -e or anot-er -as !n fa t f!led a return

TAX REVIEWER
or statement" or &. a tually f!les a return or statement and su.sequently ,!t-dra,s t-e same return or statement after se ur!ng t-e off! !al re e!#!ng seal or stamp of re e!pt of an !nternal re#enue off! e ,-ere!n t-e same ,as a tually f!led. Pen#l Li#'ilit$ o1 Corpor#tions ($e &8%) A. Penalty" upon on#! t!on+ :!ne - P84"444 - 144"444B 0n add!t!on to t-e penalt!es !mposed upon t-e respons!.le orporate off! ers" partners" or employees. ?"o is li#'le+ 1. Any orporat!on" &. asso !at!on or 3. general o-partners-!ps l!a.le for any of t-e a ts or om!ss!ons penal!=ed under t-!s (ode. Pen#l Li#'ilit$ 1or 3#Aing 2#lse Entries+ Records or Reports7 or :sing 2#lsi1ied or 2#Ae Account#'le 2or s ($e . &8/) A. Penalty" upon on#! t!on for ea - a t or om!ss!on+ :!ne - P84"444 - 144"444B and 0mpr!sonment - & to % yearsB 1) Offender !s a (ert!f!ed Pu.l! A ountant" -!s ert!f! ate s-all .e automat! ally re#o?ed or an elled upon on#! t!on. &) 0n t-e ase of fore!gners" on#! t!on under t-!s (ode s-all result !n -!s !mmed!ate deportat!on after ser#!ng senten e" ,!t-out furt-er pro eed!ngs for deportat!on. ?"o is li#'le+ 1) Any f!nan !al off! er or &) 0ndependent (ert!f!ed Pu.l! A ountant engaged to exam!ne and aud!t .oo?s of a ounts of taxpayers under $e .&3& (A)and 3) Any person under -!s d!re t!on. O11ense+ ("VC) ( om.!ne :!del V. Famos ,!t- :!del (astro equals :!del V. (astro t-us :V() 1) A!llfully "als!f!es any report or statement .ear!ng on any exam!nat!on or aud!t &) Fenders a report" !n lud!ng ex-!.!ts" statements" s -edules or ot-er forms of a ountan y ,or? ,-! - -as not .een Ver!f!ed .y -!m personally or under -!s super#!s!on or .y a mem.er of -!s f!rm or .y a mem.er of -!s staff !n a ordan e ,!t- sound aud!t!ng pra t! es" or 3) Cert!f!es f!nan !al statements of a .us!ness enterpr!se onta!n!ng an essent!al m!sstatement of fa ts or omm!ss!on !n respe t of t-e transa t!ons" taxa.le !n ome" dedu t!on and exempt!on of -!s l!entB or >. Any person ,-o (NOO"TANMER) rearranged to ("OOTMAN REN) 1) Not an !ndependent (ert!f!ed Pu.l! A ountant or a f!nan !al off! er a ord!ng to $e . &3& (>)" exam!nes and aud!ts .oo?s of a ounts of taxpayersB or &) Offers to s!gn and ert!fy f!nan !al statements ,!t-out aud!tB or 3) Offers any taxpayer t-e use of a ount!ng .oo??eep!ng re ords for !nternal re#enue purposes not !n onform!ty ,!t- t-e requ!rements pres r!.ed" or 3) )no,!ngly ma?es any "alse entry or enters any false or f! t!t!ous name !n t-e .oo?s of a ounts or re ords ment!oned !n t-e pre ed!ng paragrap-sB or 8) )eeps T,o (&) or more sets of su - re ords or .oo?s of a ountsB or %) (omm!ts an A t or om!ss!on" !n #!olat!on of t-e pro#!s!ons of t-!s $e t!onB /) :a!ls to ?eep t-e .oo?s of a ounts or re ords ment!oned !n $e t!on &3& !n a Nat!#e language" Engl!s- or $pan!s-" or to ma?e a true and omplete translat!on as requ!red !n $e t!on &33 of t-!s (ode" or ,-ose .oo?s of a ounts or re ords

TAX REVIEWER
?ept !n a nat!#e language" Engl!s- or $pan!s-" and found to .e at Mater!al #ar!an e ,!t- .oo?s or re ords ?ept .y -!m !n anot-er languageB or 9) A!llfully attempts !n any manner to E#ade or defeat any tax !mposed under t-!s (ode" or ?no,!ngly uses fa?e or fals!f!ed Re#enue off! !al re e!pts" @etters of Aut-or!ty" ert!f! ates aut-or!=!ng reg!strat!on" Tax (red!t (ert!f! ates" Tax (red!t 2emoranda and ot-er a ounta.le form. :nl#!1ul Pursuit o1 Business+ ($e . &89) ?"o is li#'le+ 1. Any person ,-o arr!es on any .us!ness for ,-! - !n annual reg!strat!on fee !s !mposed ,!t-out pay!ng t-e tax as requ!red .y la,. Penalty" upon on#! t!on for ea - a t or om!ss!on+ :!ne - P8"444 &4"444B and 0mpr!sonment - % mont-s to & yearsB &. A person engaged !n t-e .us!ness of d!st!ll!ng" re t!fy!ng" repa ?!ng" ompound!ng or manufa tur!ng any art! le su.Ge t to ex !se tax. Penalty" upon on#! t!on for ea - a t or om!ss!on+ :!ne - P34"444 84"444B and 0mpr!sonment - 1 to & yearsB Illeg#l Collection o1 2oreign P#$ ents ($e . &8<) Penalty" upon on#! t!on for ea - a t or om!ss!on+ :!ne - P&4"444 - 84"444B and 0mpr!sonment - 1 to & yearsB ?"o is li#'le #nd o11ense+ Any person ,-o+ 1) )no,!ngly underta?es t-e olle t!on of fore!gn payments under $e . %/ ,!t-out a l! ense or &) A!t-out omply!ng ,!t- t-e !mplement!ng rules and regulat!ons. :nl#!1ul Possession o1 Cig#rette P#per in Bo''ins or Rolls7 Etc+ ($e . &%4) Penalty" upon on#! t!on for ea - a t or om!ss!on+ :!ne - P&4"444 - 144"444B and 0mpr!sonment - % years 1 day to 1& yearsB ?"o is li#'le+ 1. Any person &. 0mporter 3. manufa turer of !gar or !garettes O11ense+ Possess!on ,!t-out t-e orrespond!ng aut-or!ty !ssued .y t-e (omm!ss!oner of+ 1. !garette paper !n .o..!ns or rolls" &. !garette t!pp!ng paper or !garette f!lter t!ps" :nl#!1ul :se o1 Den#tured Alco"ol+ *$e . &%1) Penalty" upon on#! t!on for ea - a t or om!ss!on+ :!ne - P&4"444 - 144"444B and 0mpr!sonment - % years 1 day to 1& yearsB ?"o is li#'le+ Any person ,-o+ 1. :or t-e purpose of manufa tur!ng any .e#erage" use denatured al o-ol or al o-ol spe !ally denatured to .e used for mot!#e po,er or &. A!t-dra,n under .ond for !ndustr!al uses or al o-ol ?no,!ngly m!srepresented to .e denatured to .e unf!t for oral !nta?e or 3. ,-o ?no,!ngly sells or offers for sale su - preparat!ons onta!n!ng as an !ngred!ent su - al o-ol. 3. Cnla,fully re o#er or attempt to re o#er .y d!st!llat!on or ot-er pro ess any denatured al o-ol or 8. A-o ?no,!ngly sells or offers for sale" on eals or ot-er,!se d!sposes of al o-ol

TAX REVIEWER
as re o#ered or red!st!lled. S"ip ent or Re o;#l o1 LiCuor or To'#cco Products under 2#lse N# e or Br#nd or #s #n I it#tion o1 #n$ E)isting or Ot"er!ise 0no!n Product N# e or Br#nd+ *$e . &%&) Penalty" upon on#! t!on for ea - a t or om!ss!on+ :!ne - P&4"444 - 144"444B and 0mpr!sonment - % years 1 day to 1& yearsB

?"o is li#'le+ Any person ,-o+ 1. s-!ps &. transports 3. remo#es O11ense+ s-!pment" transportat!on or remo#al of+ 1. sp!r!tuous" ompounded or fermented l!quors" &. ,!nesBor 3. any manufa tured produ ts of to.a o under any ot-er t-an t-e proper name or .rand ?no,n to t-e trade as des!gnat!ng t-e ?!nd and qual!ty of t-e ontents of t-e as?" .ottle or pa ?age onta!n!ng t-e same or as an !m!tat!on of any ex!st!ng or ot-er,!se ?no,n produ t name or .rand or auses su - a t to .e done. :nl#!1ul Possession or Re o;#l o1 Articles Su'(ect to E)cise T#) ?it"out P#$ ent o1 t"e T#)+ ($e . &%3) ?"o is li#'le+ Any person ,-o+ o,ns and;or found !n possess!on. O11ense+ o,ners-!p and;or possess!on of+ 1. Art! les su.Ge t to ex !se tax t-at -as not .een pa!d or &. Tax-exempt art! les ot-er t-an t-ose to ,-om t-ey are legally !ssued. A1. 0mported Art! les Penalty+ Appra!sed #alue of t-e art! le" !n lud!ng dut!es and taxes. (determ!ned !n a ordan e ,!t- t-e Tar!ff and (ustom (ode) P1"444 and less 2ore t-an 1"444 - 84"444 2ore t-an 84"444 - 184"444 2ore t-an 184"444

:!ne And

0mpr!sonment

P 1"444 - &"444 P 14"444 - &4"444 P 34"444 - %4"444 P 84"444 - 144"444

%4 - 144 days & - 3 years 3 - % years 14 - 1& years

A&. @o ally 2anufa tured Art! les Penalty+ :!ne - 5ot less t-an 14 t!mes t-e amount of ex !se tax due .ut less t-an P844. 0mpr!sonment - & to 3 yearsB A-o !s l!a.le+ 1. Any manufa turer" &. o,ner or 3. person !n -arge of any art! le su.Ge t to ex !se tax. 3. any person ,-o ?no,!ngly a!ds or a.ets !n t-e remo#al or 8. any person ,-o on eals t-e art! le after !llegal remo#al O11ense+

TAX REVIEWER
1. remo#es or &. allo,s or 3. auses t-e unla,ful remo#al of any art! le from t-e pla e of produ t!on or .onded ,are-ouse" and t-e ex !se tax -as not .een pa!d at t-e t!me and !n t-e manner requ!red" and 1. ?no,!ngly a!ds or a.ets !n t-e remo#al of su - art! les or &. on eals t-e same after !llegal remo#al Penalty+ for t-e f!rst offense" :!ne - P 1"444 or moreB and 0mpr!sonment - 1to & yearsB T-e mere unexpla!ned possess!on of art! les su.Ge t to ex !se tax" t-e tax on ,-! - -as not .een pa!d !n a ordan e ,!t- la," s-all .e pun!s-a.le under t-!s $e t!on. 2#ilure or Re1us#l to Issue Receipts or S#les or Co erci#l In;oices7 6iol#tions Rel#ted to t"e Printing o1 Suc" Receipts or In;oices #nd Ot"er 6iol#tions+ *Sec+ -D>/ Penalty" upon on#! t!on for ea - a t or om!ss!on+ :!ne - P 1"444 - 84"444B and 0mpr!sonment - & to 3 yearsB ?"o is li#'le" O11enses+ A. Any person ,-o" .e!ng requ!red under $e t!on &3/ to !ssue re e!pts or sales or ommer !al !n#o! es. R*&*97'$ (R"M) 1. "a!ls or refuses to !ssue su - re e!pts or !n#o! es" or &. !ssue re e!pts or !n#o! es t-at do not truly Refle t and;or onta!n all t-e !nformat!on requ!red to .e s-o,n t-ere!n" or 3. use Mult!ple or dou.le re e!pts or !n#o! es. 3. Any person ,-o omm!ts any of t-e a ts enumerated -ereunder+ P.90'90: ; (WUM) 1. Pr!nt!ng of re e!pts or sales ommer !al !n#o! es W!t-out aut-or!ty from t-e >ureau of 0nternal Fe#enueB or &. Pr!nt!ng of dou.le or Mult!ple sets of !n#o! es or re e!ptsB or 3. Pr!nt!ng of Unnum.ered re e!pts or sales or ommer !al !n#o! es" not .ear!ng+ 3. t-e name" 8. .us!ness style" %. Taxpayer 0dent!f! at!on 5um.er" and /. .us!ness address of t-e person or ent!ty. O11enses Rel#ting to St# ps+ ($e . &%8) Penalty" upon on#! t!on+ :!ne - P &4"444 - 84"444B and 0mpr!sonment - 3 to 9 yrsB A-o !s l!a.le;Offenses+ Any person ,-o omm!ts any of t-e a ts enumerated (4CCD") 1. 2a?!ng" !mport!ng" sell!ng" us!ng or possess!ng ,!t-out express aut-or!ty from t-e (omm!ss!oner" any D!e for pr!nt!ng or ma?!ng stamps" la.els" tags or play!ng ardsB &. Eras!ng t-e Can ellat!on mar?s of any stamp pre#!ously used" or alter!ng t-e ,r!tten f!gures or letters or an ellat!on mar?s on !nternal re#enue stampsB 3. Possess!ng "alse" ounterfe!t" restored or altered stamps" la.els or tags or aus!ng t-e omm!ss!on of any su - offense .y anot-erB 3. $ell!ng or offer!ng for sale any 4ox or pa ?age onta!n!ng art! les su.Ge t to ex !se tax ,!t- false" spur!ous or ounterfe!t stamps or la.els or sell!ng from any su - fraudulent .ox" pa ?age or onta!ner as aforement!onedB or 8. *!#!ng a,ay or a ept!ng from anot-er" or sell!ng" .uy!ng or us!ng Conta!ners on ,-! - t-e stamps are not ompletely destroyed.

TAX REVIEWER
2#ilure to O'e$ Su ons+ ($e . &%%) Penalty" upon on#! t!on+ :!ne - P 8"444 - 14"444B and 0mpr!sonment - 1 to & yrsB ?"o is li#'le+ Any person ,-o .e!ng duly summoned 1. to appear to test!fy" or &. to appear and produ e .oo?s of a ounts" re ords" memoranda or ot-er papers" or 3. to furn!s- !nfo. as requ!red under t-e pert!nent pro#!s!ons of t-!s (ode. O11ense+ negle ts to appear or to produ e su - .oo?s or a ounts" re ords" memoranda or ot-er papers" or to furn!s- su - !nformat!on. Decl#r#tion under Pen#lties o1 Per(ur$+ ($e . &%/) Pen#lt$" upon on#! t!on+ PerGury under t-e Fe#!sed Penal (ode. Any de larat!on" return and ot-er statements requ!red under t-!s (ode" s-all" !n l!eu of an oat-" onta!n a ,r!tten statement t-at t-ey are made under t-e penalt!es of perGury. ?"o is li#'le+ Any person ,-o ,!llfully f!les a de larat!on" return or statement onta!n!ng !nformat!on ,-! - !s not true and orre t as to e#ery mater!al matter. Ot"er Cri es #nd O11enses+ ($e . &%9) A. 3isdecl#r#tion or 3isrepresent#tion o1 3#nu1#cturers Su'(ect to E)cise T#)+ ?"o is li#'le+ Any manufa turer O11ense+ 2!sde lares !n t-e s,orn statement or !n t-e sales !n#o! e" any pert!nent data or !nformat!on. Pen#lt$+ $ummary an ellat!on or ,!t-dra,al of t-e perm!t to engage !n .us!ness as a manufa turer of art! les su.Ge t to ex !se tax. >. 2or1eiture o1 Propert$ :sed in :nlicensed Business or Dies :sed 1or Printing 2#lse St# ps7 Etc+ Pen#lt$+ :orfe!ture 1. All -attels" ma -!nery" and remo#a.le f!xtures of any sort used !n t-e unl! ensed produ t!on of art! les su.Ge t to ex !se tax. &. '!es and ot-er equ!pment used for t-e pr!nt!ng or ma?!ng of any !nternal re#enue stamp" la.el or tag ,-! - !s !n !m!tat!on of or purports to .e a la,ful stamp" la.el or tag. (. 2or1eiture o1 &oods Illeg#ll$ Stored or Re o;ed+ Pen#lt$+ :orfe!ture O11ense+ 1. All art! les su.Ge t to ex !se tax s-ould not .e stored or allo,ed to rema!n !n a d!st!llery" d!st!llery ,are-ouse" .onded ,are-ouse or ot-er pla e ,-ere made" after t-e tax t-ereon -as .een pa!d. &. Art! les ,!t-dra,n from any su - pla e or from ustoms ustody or !mported !nto t-e ountry ,!t-out t-e payment of t-e requ!red tax. CHAPTER III 8 PENALTIES IMPOSED ON PU4LIC O""ICERS 1. &. 3. 3. 8. V!olat!ons omm!tted .y go#ernment enfor ement off! ers. Cnla,ful d!#ulgen e of trade se rets. Cnla,ful !nterest of re#enue la, enfor ers !n .us!ness. V!olat!on of ,!t--old!ng tax pro#!s!ons. Penalty for fa!lure to !ssue and exe ute ,arrant. itted '$ &o;ern ent En1orce ent O11icers+ ($e . &%<)

1. 6iol#tions Co

TAX REVIEWER
Penalty" upon on#! t!on+ :!ne - P 84"444 - 144"444B and 0mpr!sonment - 14 to 18 yearsB Add!t!onal penalty+ Perpetual d!squal!f! at!on to -old pu.l! off! e" to #ote" and to part! !pate !n any pu.l! ele t!on Any !nternal re#enue off! er for ,-! - a pri # 1#cie ase of gra#e m!s ondu t -as .een esta.l!s-ed s-all" after due not! e and -ear!ng of t-e adm!n!strat!#e ase and su.Ge t to (!#!l $er#! e @a,s" .e '!sm!ssed from t-e re#enue ser#! e.

*ra#e m!s ondu t- def!ned !n t-e (!#!l $er#! e @a," !n ludes t-e+ 1) !ssuan e of fa?e letters of aut-or!ty and re e!pts" &) forgery of s!gnature" 3) usurpat!on of aut-or!ty and 3) -a.!tual !ssuan e of unreasona.le assessments. ?"o is li#'le+ 1) E#ery off! !al" agent" or employees of t-e >ureau of 0nternal Fe#enue or &) Any ot-er agen y of t-e *o#ernment -arged ,!t- t-e enfor ement of t-e pro#!s!ons of t-!s (ode." ,-o !s gu!lty of any of t-e offenses enumerated. O11ense+ 2emory A!d+ E:FEF(V:F0P or YV0P ( :F :EFEFZ (#!p s! fat-er ferrer) 1) Extort!on or ,!llfull oppress!on t-roug- t-e use of -!s off! e or ,!llful oppress!on and -arassment of a taxpayer ,-o refused" de l!ned" turned do,n or reGe ted any of -!s offers spe !f!ed !n paragrap- (d) t-ereofB &) )no,!ngly demand!ng or re e!#!ng any :ee" ot-er or greater sums t-an are aut-or!=ed .y la, or re e!#!ng any fee" ompensat!on or re,ard" ex ept as .y la, pres r!.ed" for t-e performan e of any dutyB 3) A!llfully negle t!ng to g!#e Fe e!pts" as .y la, requ!red" for any sum olle ted !n t-e performan e of duty or ,!llfully negle t!ng to perform any ot-er dut!es enGo!ned .y la,B 3) Offer!ng or underta?!ng to a ompl!s-" f!le or su.m!t a report or assessment on a taxpayer ,!t-out t-e appropr!ate Exam!nat!on of t-e .oo?s of a ounts or tax l!a.!l!ty" or 8) Offer!ng or underta?!ng to su.m!t a Feport or assessment less t-an t-e amount due t-e *o#ernment for any ons!derat!on or ompensat!on" or %) (onsp!r!ng or ollud!ng ,!t- anot-er or ot-ers to defraud t-e re#enues or ot-er,!se #!olate t-e pro#!s!ons of t-!s (odeB /) 5egle t!ng or .y des!gn perm!tt!ng t-e V!olat!on of t-e la, .y any ot-er personB 9) 2a?!ng or s!gn!ng any :alse entry or entr!es !n any .oo?" or ma?!ng or s!gn!ng any false ert!f! ate or returnB <) Allo,!ng or onsp!r!ng or ollud!ng ,!t- anot-er to allo, t-e unaut-or!=ed Fetr!e#al" ,!t-dra,al or re all of any return" statement or de larat!on after t-e same -as .een off! !ally re e!#ed .y t-e >ureau of 0nternal Fe#enue. 14) Ia#!ng ?no,ledge or 0nformat!on of any #!olat!on of t-!s (ode or of any fraud omm!tted on t-e re#enues olle t!.le .y t-e >ureau of 0nternal Fe#enue" fa!lure to report su - ?no,ledge or !nformat!on to t-e!r super!or off! er" or fa!lure to report as ot-er,!se requ!red .y la,B and 11) A!t-out t-e aut-or!ty of la," demand!ng or a ept!ng or attempt!ng to olle t" d!re tly or !nd!re tly" as Payment or ot-er,!se any sum of money or ot-er t-!ng of #alue for t-e omprom!se" adGustment or settlement of any -arge or ompla!nt for any #!olat!on or alleged #!olat!on of t-!s (ode. &. :nl#!1ul Di;ulgence o1 Tr#de Secrets+ ($e . &/4)

TAX REVIEWER
Penalty" upon on#! t!on+ :!ne - P 84"444 - 144"444B or 0mpr!sonment - & to 8 years or .ot-B ?"o is li#'le+ any off! er or employee of t-e >ureau of 0nternal Fe#enue. O11ense+ '!#ulges to any person or ma?es ?no,n !n any ot-er t-an may .e pro#!ded .y la, !nformat!on" ?no,ledge of ,-! - ,as a qu!red .y -!m !n t-e d!s -arge of -!s off! !al dut!es" regard!ng t-e+ 1) .us!ness" !n ome" or estate of any taxpayer" &) t-e se rets" operat!on" style or ,or?" or apparatus of any manufa turer or produ er" or 3) onf!dent!al !nformat!on regard!ng t-e .us!ness of any taxpayer. Ex ept as pro#!ded !n $e t!on /1 of t-!s (ode and $e t!on &% of Fepu.l! A t 5o. %399. 4+ :nl#!1ul Interest o1 Re;enue L#! En1orcers in Business+ ($e . &/1) Penalty" upon on#! t!on for ea - a t or om!ss!on+ :!ne - P 8"444 - 14"444B or 0mpr!sonment - & years 1 day to 3 years or .ot-B ?"o is li#'le+ Any !nternal re#enue off! er. O11ense+ ,-o !s or s-all .e ome !nterested" d!re tly or !nd!re tly+ 1. 0n t-e manufa ture" sale or !mportat!on of any art! le su.Ge t to ex !se tax or &. 0n t-e manufa ture or repa!r or sale" of any d!e for pr!nt!ng" or ma?!ng stamps" or la.els s-all" 3. 6iol#tion o1 ?it""olding T#) Pro;ision+ ($e . &/&) Penalty" upon on#! t!on for ea - a t or om!ss!on+ :!ne - P 8"444 - 84"444B or 0mpr!sonment - % mont-s 1 day to & years or .ot-B ?"o is li#'le+ E#ery off! er or employee ,-o !s -arged ,!t- t-e duty to dedu t and ,!t--old ,!t- any !nternal re#enue tax and rem!t t-e same" of+ 1. t-e *o#ernment or &. any of !ts agen !es and !nstrumental!t!es" 3. !ts pol!t! al su.d!#!s!ons" 3. go#ernment-o,ned or - ontrolled orporat!ons" !n lud!ng t-e >$P. O11ense+ :a!l!ng or aus!ng t-e fa!lure to 1. dedu t and ,!t--old any !nternal re#enue taxB &. rem!t taxes dedu ted and ,!t--eld ,!t-!n t-e t!me pres r!.edB and 3. f!le return or statement ,!t-!n t-e t!me pres r!.ed" or render!ng or furn!s-!ng a false fraudulent return or statement requ!red. @+ Pen#lt$ 1or 2#ilure to Issue #nd E)ecute ?#rr#nt+ ($e . &/3) Pen#lt$+ Automat! d!sm!ssal from t-e ser#! e after due not! e of -ear!ng. ?"o is li#'leEO11ense+ Any off! !al ,-o 1. :a!ls to !ssue or exe ute t-e ,arrant of d!stra!nt or le#y ,!t-!n t-!rty (34) days after t-e exp!rat!on of t-e t!me pres r!.ed !n $e t!on &4/ or &. 0s found gu!lty of a.us!ng t-e exer !se t-ereof .y ompetent aut-or!ty. CHAPTER IV 8 OTHER PENAL PROVISIONS 1. Penalty for se ond and su.sequent offenses &. V!olat!ons of ot-er pro#!s!ons of t-!s ode or rules and regulat!ons !n general. 3. Penalty for sell!ng" transferr!ng" en um.er!ng or !n any ,ay d!spos!ng of property pla ed under onstru t!#e d!stra!nt. 3. :a!lure to surrender property pla ed under d!stra!nt and le#y.

TAX REVIEWER
8. %. /. 9. <. Pro ur!ng unla,ful d!#ulgen e of trade se rets. (onf! at!on and forfe!ture of pro eeds or !nstruments of r!me. $u.s!d!ary penalty. Pres r!pt!on for #!olat!ons of any pro#!s!on of t-!s ode. 0nformerKs re,ard to persons !nstrumental !n t-e d!s o#ery of #!olat!ons of t-e 50F( and !n t-e d!s o#ery and se!=ure of smuggled goods.

1. Pen#lt$ 1or Second #nd Su'seCuent O11enses+ ($e . &/3) O11ense+ Fe!n !den e Pen#lt$+ 2ax!mum of t-e penalty pres r!.ed for t-e offense. &. 6iol#tion o1 Ot"er Pro;isions o1 t"is Code or Rules or Regul#tions in &ener#l+ ($e . &/8) Pen#lt$+ upon on#! t!on for ea - a t or om!ss!on+ :!ne+ not more t-an P 1"444 or 0mpr!sonment+ not more t-an % mont-s" or .ot?"o is li#'leEO11ense+ Any person ,-o #!olates+ 1. any pro#!s!on of t-!s (ode or &. any rule or regulat!on promulgated .y t-e 'epartment of :!nan e. for ,-! - no spe !f! penalty !s pro#!ded .y la,. 4+ Pen#lt$ 1or Selling7 Tr#ns1erring7 Encu 'ering or in #n$ !#$ disposing o1 propert$ Pl#ced under Constructi;e Distr#int+ ($e . &/%) Pen#lt$+ upon on#! t!on for ea - a t or om!ss!on+ :!ne+ not less t-an t,! e t-e #alue of t-e property .ut not less t-an P 8"444 or 0mpr!sonment+ & yrs 1 day - 3 yrs or .ot?"o is li#'le+ Any taxpayer" ,-ose property -as .een pla ed under onstru t!#e d!stra!nt. O11ense+ A!t-out t-e onsent of t-e (omm!ss!oner+ 1. ,-o sells" &. transfers" 3. en um.ers or 3. !n any ,ay d!sposes of sa!d property" or any part t-ereof. >+ 2#ilure to Surrender Propert$ Pl#ced under Distr#int #nd Le;$+ ($e . &//) Pen#lt$+ upon on#! t!on for ea - a t or om!ss!on+ :!ne+ P 8"444 or more or 0mpr!sonment+ % mont-s 1 day - & years" or .ot Also l!a.le !n -!s o,n person and estate+ sum equal to t-e #alue of t-e property or r!g-ts not surrendered .ut not ex eed!ng t-e amount of t-e taxes (!n lud!ng penalt!es and !nterest) toget-er ,!t- osts and !nterest " from t-e date of su ,arrant. ?"o is li#'le+ Any person -a#!ng !n -!s possess!on or under -!s ontrol any property or r!g-ts to property" upon ,-! - a ,arrant of onstru t!#e d!stra!nt or a tual d!stra!nt and le#y -as .een !ssued. O11ense+ :a!lure or refusal to surrender any of su - property or r!g-ts upon demand .y t-e (omm!ss!oner or any of -!s deput!es exe ut!ng su - ,arrant. Cnless su - property or r!g-t !s" at t-e t!me of su - demand" su.Ge t to an atta -ment or exe ut!on under any Gud! !al pro ess. @+ Procuring :nl#!1ul Di;ulgence o1 Tr#de Secrets+ ($e . &/9)

TAX REVIEWER
Penalty+ upon on#! t!on for ea - a t or om!ss!on+ :!ne+ not more t-an P &"444 or 0mpr!sonment+ % mont-s - 8 years" or .ot?"o is li#'le+ 1. Any person ,-o auses or pro ures an off! er or employee of t-e >ureau of 0nternal Fe#enue to d!#ulge any onf!dent!al !nformat!on regard!ng t-e .us!ness" !n ome or !n-er!tan e of any taxpayer" ?no,ledge of ,-! - ,as a qu!red .y -!m !n t-e d!s -arge of -!s off! !al dut!es" and ,-! - !t !s unla,ful for -!m to re#eal" and &. Any person ,-o pu.l!s-es or pr!nts !n any manner ,-ate#er" not pro#!ded .y la," any !n ome" prof!t" loss or expend!ture appear!ng !n any !n ome tax return. D+ Con1isc#tion F 2or1eiture o1 t"e Proceeds or Instru ents o1 Cri e+ ($e . &/<) 0n add!t!on to t-e penalty !mposed !n T!tle H+ t-e same s-all arry ,!t- !t t-e onf!s at!on and forfe!ture !n fa#or of t-e *o#ernment of+ 1. t-e pro eeds of t-e r!me or &. #alue of t-e goods" and 3. t-e !nstruments or tools ,!t- ,-! - t-e r!me ,as omm!tted. Art! les ,-! - are not su.Ge t of la,ful ommer e s-all .e destroyed. T-e follo,!ng ,!ll also .e onf!s ated and forfe!ted+ 1. 0nstruments or tools used !n t-e !ll! !t a t .elong to a t-!rd person" after due not! e and -ear!ng !n a separate pro eed!ng !f su - t-!rd person leased" let" -artered or ot-er,!se entrusted t-e same to t-e offender. &. 0n ase t-e lessee su.leased" or t-e .orro,er" -arterer" or trustee allo,ed to use of t-e !nstruments or tools to t-e offender. 3. Property of ommon arr!ers s-all .e su.Ge t to forfe!ture ,-en t-e o,ner or operator of sa!d ommon arr!er ,as" at t-e t!me of t-e !llegal a t" a onsent!ng party or pr!#y t-ereto. Cnless su - property !s used !n t-e transa t!on of t-e!r .us!ness as su - ommon arr!er A!t-out preGud! e to t-e o,nerEs r!g-t of re o#ery aga!nst t-e offender !n a !#!l or r!m!nal a t!on. /. Su'sidi#r$ Pen#lt$+ ($e . &94) Penalty+ su.s!d!ary personal l!a.!l!ty+ 1 day for ea - P 9.84 su.Ge t to t-e rules esta.l!s-ed !n Art! le 3< of t-e Fe#!sed Penal (ode. ?"o is li#'le+ 1. Person on#! ted for #!olat!on of t-!s (ode &. Ias no property to meet t-e f!ne !mposed upon -!m .y t-e ourt" or 3. 0s una.le to pay su - f!ne. G+ Prescription 1or 6iol#tions o1 #n$ Pro;isions o1 t"is Code+ ($e . &91) Per!od+ 8 years. Per!od .eg!ns to run+ 1. On t-e day of t-e omm!ss!on of t-e #!olat!on of t-e la, and &. 0f t-e same .e not ?no,n at t-e t!me+ from t-e d!s o#ery and t-e !nst!tut!on of Gud! !al pro eed!ngs for !ts !n#est!gat!on and pun!s-ment. 0t !s !nterrupted ,-en pro eed!ngs are !nst!tuted aga!nst t-e gu!lty person. 0t s-all .eg!n to run aga!n !f t-e pro eed!ngs are d!sm!ssed for reasons not onst!tut!ng Geopardy.

TAX REVIEWER
T-e term of pres r!pt!on s-all not run ,-en t-e offender !s a.sent from t-e P-!l!pp!nes.

<. 0nformerEs Fe,ard to Persons 0nstrumental !n t-e '!s o#ery of V!olat!ons of t-e 5at!onal 0nternal Fe#enue (ode and t-e '!s o#ery and $e!=ure of $muggled *oods. ($e . &9&) A. :or V!olat!ons of t-e 5at!onal 0nternal Fe#enue (ode. Fe,ard+ 14% of t-e re#enues" sur -arges or fees re o#ered and;or f!ne or penalty !mposed and olle ted or P1"444"444 per ase" ,-! -e#er !s lo,er. A-ere t-e offender -as offered to omprom!se and -!s offer -as .een a epted+ $ame amount of re,ard s-all .e g!#en to t-e !nformer. 5o re#enue" sur -arges or fees a tually re o#ered or olle ted - 5o re,ard. A-o may a#a!l+ Any person" ex ept an !nternal re#enue off! !al or employee" or -!s relat!#e ,!t-!n t-e s!xt- degree of onsangu!n!ty. A ts ne essary+ 1. #oluntar!ly g!#es def!n!te and s,orn !nformat!on" &. not yet !n t-e possess!on of t-e >ureau of 0nternal Fe#enue" 3. lead!ng to t-e d!s o#ery of frauds upon t-e !nternal re#enue la,s and #!olat!ons of any of t-e pro#!s!ons t-ereof" 3. t-ere.y result!ng !n t-e re o#ery of re#enues" sur -arges and fees and;or t-e on#! t!on of t-e gu!lty party and;or t-e !mpos!t!on of any f!ne or penalty. 0nformat!on s-all not refer to a ase already pend!ng or pre#!ously !n#est!gated or exam!ned .y t-e (omm!ss!oner or any of -!s deput!es" agents or exam!ners or t-e $e retary of :!nan e or any of -!s deput!es or agents. :or '!s o#ery and $e!=ure of $muggled *oods. Fe,ard+ (as- re,ard 14% of t-e fa!r mar?et #alue of t-e smuggled and onf!s ated goods or P1"444"444 per ase" ,-! -e#er !s lo,er. T-e as- re,ards of !nformers su.Ge t to !n ome tax" olle ted as a f!nal ,!t--old!ng tax" at t-e rate of 14%. A-o may a#a!l+ Persons !nstrumental !n t-e d!s o#ery and se!=ure of smuggled goods. Pro-!.!ted from la!m!ng !nformerEs re,ard+ 1. all pu.l! off! !als" ,-et-er !n um.ent or ret!red" &. ,-o a qu!red t-e !nformat!on !n t-e ourse of t-e performan e of t-e!r dut!es 3. dur!ng t-e !n um.en y Purpose+ To en ourage t-e pu.l! to extend full ooperat!on !n erad! at!ng smuggl!ng. REVE !E "E"#RA $!" #R$ER #. 57%2000 &rounds 1or t"e suspension or te por#r$ closure o1 'usiness% #/ 1#ilure to issue receipt or in;oices '$ # 6AT9registered or registr#'le t#)p#$er< '/ 1#ilure to 1ile # ;#lue9#dded t#) return< c/ underst#te ent o1 t#)#'le s#les or receipts '$ 45H or ore o1 t"e correct # ount in t"e c#se o1 # 6AT9registered or registr#'le t#)p#$er< #nd

TAX REVIEWER
d/ 1#ilure to register+ T"e reco end#tion 1or t"e suspension or te por#r$ closure o1 'usiness !ill "#;e to 'e supported !it" docu ent#r$ proo1 speci1ied in t"e Order+

LOCAL GOVERNMENT TAXATION CHAPTER 1 8 GENERAL PROVISIONS Po,er to (reate $our es of Fe#enue Ea - lo al go#ernment un!t -as t-e po,er to+ 1. reate !ts o,n sour es of re#enue and &. le#y taxes" fees" and -arges su.Ge t to t-e pro#!s!ons -ere!n" ons!stent ,!t- t-e .as! pol! y of lo al autonomy. ($e . 1&<) $u - taxes" fees" and -arges s-all a rue ex lus!#ely to t-e lo al go#ernment un!ts. :undamental Pr!n !ples. T-e fundamental pr!n !ples go#ern!ng t-e exer !se of t-e tax!ng and ot-er re#enuera!s!ng po,ers of @*Cs are (U(EP)<)+)LIP)+ (a) Taxat!on s-all .e Un!form !n ea - lo al go#ernment un!tB (.) Taxes" fees" -arges and ot-er !mpos!t!ons s-all (EP)<)L)+ 1) .e Equ!ta.le and .ased as far as pra t! a.le on t-e taxpayerEs a.!l!ty to payB &) .e le#!ed and olle ted only for Pu.l! purposesB 3) not .e un<ust" ex ess!#e" oppress!#e" or onf!s atoryB 3) not .e ontrary to La," pu.l! pol! y" nat!onal e onom! pol! y" or !n t-e restra!nt of tradeB ( ) T-e olle t!on of lo al taxes" fees" -arges and ot-er !mpos!t!ons s-all !n no ase .e Let to any pr!#ate personB (d) T-e re#enue olle ted s-all Inure solely to t-e .enef!t of t-e lo al go#ernment un!t le#y!ng t-e tax" fee" -arge or ot-er !mpos!t!on unless ot-er,!se spe !f! ally pro#!ded -ere!nB and" (e) Ea - lo al go#ernment un!t s-all" as far as pra t! a.le" e#ol#e a Progress!#e system of taxat!on. ($e . 134) @o al Tax!ng Aut-or!ty. T-e po,er to tax !s exer !sed .y t-e sanggun!an of t-e @*C on erned t-roug- an appropr!ate ord!nan e. ($e . 13&) (ommon @!m!tat!ons on t-e Tax!ng Po,ers of @*Cs @*Cs annot le#y+ Y 0'E(TA]>EV]TFE@E>0 Z or (CADET8VI4E8LI4ERTE) (a) In ome tax" ex ept on .an?s and ot-er f!nan !al !nst!tut!onsB (.) Do umentary stamp taxB ( ) Estate Tax" !n-er!tan e" g!fts" lega !es and ot-er a qu!s!t!ons mort!s ausa" ex ept as ot-er,!se pro#!dedB (d) Customs dut!es" reg!strat!on fees of #essel and ,-arfage on ,-ar#es" tonnage dues" and all ot-er ?!nds of ustoms fees" -arges and dues" ex ept ,-arfage on ,-ar#es

TAX REVIEWER
onstru ted and ma!nta!ned .y t-e lo al go#ernment un!t on ernedB (e) Taxes" fees" and -arges and ot-er !mpos!t!ons upon goods arr!ed !nto or out of" or pass!ng t-roug-" t-e terr!tor!al Gur!sd! t!ons of lo al go#ernment un!ts !n t-e gu!se of -arges for ,-arfage" tolls for .r!dges or ot-er,!se" (f) Taxes" fees or -arges on %gr! ultural and aquat! produ ts ,-en sold .y marg!nal farmers or f!s-ermenB (g) Taxes on .us!ness enterpr!ses ert!f!ed to .y t-e 4oard of 0n#estments as p!oneer or non-p!oneer for a per!od of % and 3 years" respe t!#ely from t-e date of reg!strat!onB (-) Ex !se taxes on art! les enumerated under t-e nat!onal 0nternal Fe#enue (ode" as amended" and taxes" fees or -arges on petroleum produ tsB (!) Per entage or VAT on sales" .arters or ex -anges or s!m!lar transa t!ons on goods or ser#! es ex ept as ot-er,!se pro#!dedB (G) Taxes on t-e gross re e!pts of Transportat!on ontra tors and persons engaged !n t-e transportat!on of passengers or fre!g-t .y -!re and ommon arr!ers .y a!r" land or ,ater" ex ept as pro#!ded !n t-e (odeB (?) Taxes on prem!ums pa!d .y ,ay or R*!nsuran e or retro ess!onB (l) Taxes" fees or -arges for t-e reg!strat!on of motor #e-! les and for t-e !ssuan e of all ?!nds of L! enses or perm!ts for t-e dr!#!ng t-ereof" ex ept tr! y lesB (m) Taxes" fees" or ot-er -arges on P-!l!pp!ne produ ts a tually Exported" ex ept as ot-er,!se pro#!dedB (n) Taxes" fees" or -arges" on (ountrys!de and 4arangay >us!ness Enterpr!ses and ooperat!#es duly reg!stered under F.A. %914 and F.A. %<39 ((ooperat!#e (ode of t-e P-!l!pp!nes)B and (o) Taxes" fees or -arges of any ?!nd on t-e 5at!onal *o#ernment" !ts agen !es and Instrumental!t!es" and lo al go#ernment un!ts. Pro#!n es (see -art) Pro#!n es (refers to @o al *o#t. Pro#!s!ons on Tax) $PE(0:0( PFOV0$0O5$ O5 TIE TAH05* A5' OTIEF FEVE5CE-FA0$05* POAEF$ O: @O(A@ *OVEF52E5T C50T$ Pro#!n es Type of Tax Tax on Transfer of Feal Property O,ners-!p. T-e pro#!n e may !mpose a tax on t-e sale " donat!on" .arter" or on any ot-er mode of transferr!ng o,ners-!p or t!tle of real property. Tax on >us!ness of Pr!nt!ng and Pu.l! at!on. T-e pro#!n e may !mpose a tax on t-e .us!ness of persons engaged !n t-e pr!nt!ng and;or pu.l! at!on of .oo?s" ards" posters" leaflets" -and.!lls" ert!f! ates" re e!pts" pamp-lets" and ot-ers of s!m!lar nature. :ran -!se Tax. 5ot,!t-stand!ng any exempt!on granted .y any la, or ot-er spe !al la," t-e pro#!n e may !mpose a tax on .us!nesses enGoy!ng a fran -!se. Fate 5ot more t-an 84% of t-e 1% of t-e total ons!derat!on or of t-e fa!r mar?et #alue" ,-! -e#er !s -!g-er 5ot ex eed!ng 84% of 1% of t-e gross annual re e!pts for t-e pre ed!ng alendar year.

Ex ept!ons $ale" transfer or otof real property pur 5o. %%8/ ((AF@).

5ot ex eed!ng 84% of 1% of t-e gross annual re e!pts for t-e pre ed!ng alendar year" ,!t-!n !ts terr!tor!al Gur!sd! t!on.

5e,ly started .us!n s-all not ex eed 1;& ap!tal !n#estment. $ referen es" pres r! 'E($ s-all .e exe tax. 5e,ly started .us!n s-all not ex eed 1;& ap!tal !n#estment.

TAX REVIEWER
Tax on $and" *ra#el and Ot-er ^uarry Fesour es. T-e pro#!n e may le#y and olle t taxes on ord!nary stones" sand" gra#el" eart-" and ot-er quarry resour es extra ted from pu.l! lands or from t-e .eds of seas" la?es" r!#ers" streams" ree?s" and ot-er pu.l! ,aters ,!t-!n !ts terr!tor!al Gur!sd! t!on. 5ot more t-an 14% of fa!r mar?et #alue !n t-e lo al!ty

Profess!onal Tax. T-e pro#!n e may le#y an annual profess!onal tax on ea - person engaged !n t-e exer !se or pra t! e of -!s profess!on requ!r!ng go#ernment exam!nat!on. To .e pa!d on or .efore t-e 31st day of 1anuary. Any person f!rst .eg!nn!ng to pra t! e a profess!on after t-e montof 1anuary must" -o,e#er" pay t-e full tax .efore engag!ng t-ere!n.

At su - amount and reasona.le lass!f! at!on as t-e sanggun!ang panlala,!gan may determ!ne .ut s-all !n no ase ex eed P344.44.

Profess!onals employed !n t-e go# .e exempt from tt-!s tax.

Amusement Tax. T-e pro#!n e may le#y an 5ot more t-an 34% of t-e gross amusement tax to .e olle ted from t-e re e!pts from adm!ss!on fees. propr!etors" lessees" or operators of t-eaters" !nemas" on ert -alls" !r uses" .ox!ng stad!a" and ot-er pla es of amusement

T-e -old!ng of ope dramas" re !tals" pa ex-!.!t!ons" flo,er s programs" l!terary a presentat!ons" ex ep s!m!lar on erts s-al

Annual :!xed Tax :or E#ery 'el!#ery Tru ? or Van Amount of 2anufa turers or Produ ers" A-olesalers of" P844.44. 'ealers" or Feta!lers !n" (erta!n Produ ts. T-e pro#!n e may le#y an annual f!xed tax for e#ery tru ? or any #e-! le used .y manufa turers" produ ers" ,-olesalers" dealers or reta!lers !n t-e del!#ery of d!st!lled sp!r!ts" soft dr!n?s" !gars and !garettes" and ot-er produ ts as may .e determ!ned .y t-e sanggun!an" to sales outlets" or onsumers" ,-et-er d!re tly or !nd!re tly" ,!t-!n t-e pro#!n e.

not

ex eed!ng

2un! !pal!t!es Tax on >us!ness T-e mun! !pal!ty may !mpose taxes on t-e follo,!ng+ a. On manufa turers" assem.lers" repa ?ers" pro essors" .re,ers" d!st!llers" re t!f!ers" and ompounders of l!quors" d!st!lled sp!r!ts" and ,!nes or manufa turers of any art! le of ommer e of ,-ate#er ?!nd or nature.

TAX REVIEWER
.. On ,-olesalers" d!str!.utors" or dealers !n any art! le of ommer e of ,-ate#er ?!nd or nature. . On exporters" and on manufa turers" m!llers" produ ers" ,-olesalers" d!str!.utors" dealers or reta!lers of t-e follo,!ng essent!al ommod!t!es (RW CLAPS C)+ 1. R! e and ornB &. W-eat or assa#a flour" meat" da!ry produ ts" lo ally manufa tured" pro essed or preser#ed food" sugar" salt and ot-er agr! ultural" mar!ne" and fres- ,ater produ ts" ,-et-er !n t-e!r or!g!nal state or notB 3. Coo?!ng o!l and oo?!ng gasB 3. Laundry soap" detergents" and med! !neB 8. Agr! ultural !mplements" equ!pment and post--ar#est fa !l!t!es" fert!l!=ers" pest! !des and ot-er farm !nputsB %. Poultry feeds and ot-er an!mal feedsB /. S -ool suppl!esB and 9. Cement. d. On reta!lers e. On ontra tors and ot-er !ndependent ontra tors f. On .an?s and ot-er f!nan !al !nst!tut!ons" g. On peddlers engaged !n t-e sale of any mer -and!se or art! le of ommer e -. On any .us!ness" ,-! - t-e sanggun!an on erned may deem proper to tax. :or .us!nesses su.Ge t to t-e ex !se" #alue-added or per entage tax" t-e tax rate s-all not ex eed &% of gross sales of t-e pre ed!ng alendar year. Fates of Tax ,!t-!n t-e 2etropol!tan 2an!la Area s-all not ex eed .y 84% t-e max!mum rates pres r!.ed for a--. ($e . 133) T-e tax !s paya.le for e#ery separate or d!st!n t esta.l!s-ment or pla e ,-ere .us!ness !s ondu ted. ($e . 13%) T-e mun! !pal!ty may !mpose and olle t su - reasona.le fees and -arges on .us!ness and o upat!on ex ept profess!onal taxes reser#ed for pro#!n es. ($e 13/) 2un! !pal!t!es s-all -a#e t-e ex lus!#e aut-or!ty to grant f!s-ery pr!#!leges !n t-e mun! !pal ,aters. T-e sanggun!an may+ a. *rant f!s-ery pr!#!leges to ere t f!s- orrals" oysters" or ot-er aquat! .eds or .angus fry areas 1. 'uly reg!stered organ!=at!ons and ooperat!#es of marg!nal f!s-ermen s-all -a#e t-e preferent!al r!g-tB &. T-e sanggun!an may requ!re a pu.l! .!dd!ng pursuant to an ord!nan e for t-e grant of su - pr!#!legeB 3. A.sent of su - orgs. and oops or t-e!r fa!lure to exer !se t-e!r preferent!al r!g-t" ot-er part!es may part! !pate !n t-e pu.l! .!dd!ng .. *rant t-e pr!#!lege to gat-er" ta?e or at - .angus fry" pra,n fry or fry of ot-er spe !es and f!s- from t-e mun! !pal ,aters .y nets or ot-er f!s-!ng gears to marg!nal f!s-ermen free of rental or fee . 0ssue l! enses for t-e operat!on of f!s-!ng #essels of t-ree (3) tons or less. ($e . 13<) $!tus of t-e Tax. :or purposes of olle t!on of t-e taxes under $e t!on 133 (tax on .us!ness)" .us!nesses ma!nta!n!ng or operat!ng .ran - or sales outlet else,-ere s-all re ord t-e sale !n t-e .ran - or sales outlet ma?!ng t-e sale or transa t!on" and t-e tax t-ereon s-all a rue

TAX REVIEWER
and s-all .e pa!d to t-e mun! !pal!ty ,-ere su - .ran - or sales outlet !s lo ated. 0n ase t-ere !s no .ran - or sales outlet !n t-e !ty or mun! !pal!ty ,-ere t-e sale made" t-e sale s-all .e re orded !n t-e pr!n !pal off! e and t-e taxes due s-all a rue and .e pa!d to su - !ty or mun! !pal!ty. T-e follo,!ng sales allo at!on for sales re orded !n t-e pr!n !pal off! e of .us!nesses ,!tfa tor!es" proGe t off! es" plants" and plantat!ons+ 34% of all sales re orded !n t-e pr!n !pal off! e s-all .e taxa.le .y t-e !ty or mun! !pal!ty ,-ere t-e pr!n !pal off! e !s lo atedB and /4% of all sales re orded !n t-e pr!n !pal off! e s-all .e taxa.le .y t-e !ty or mun! !pal!ty ,-ere t-e fa tory" proGe t off! e" plant" or plantat!on !s lo ated. A-ere t-e plantat!on lo ated at a pla e ot-er t-an t-e pla e ,-ere t-e fa tory !s lo ated" t-e a.o#e ment!oned /4% s-all .e d!#!ded as follo,s+ %4% to t-e !ty or mun! !pal!ty ,-ere t-e fa tory !s lo atedB and 34% to t-e !ty or mun! !pal!ty ,-ere t-e plantat!on !s lo ated. A-ere t-ere are & or more fa tor!es" proGe t off! es" plants" or plantat!ons lo ated !n d!fferent lo al!t!es" t-e a.o#e ment!oned /4% s-all .e s-all .e prorated among t-e lo al!t!es ,-ere t-e fa tor!es" proGe t off! es" plants" and plantat!ons are lo ated !n proport!on to t-e!r respe t!#e #olumes of produ t!on dur!ng t-e per!od for ,-! - t-e tax !s due. ($e . 184) (!t!es T-e !ty may le#y t-e taxes" fees" and -arges ,-! - t-e pro#!n e or mun! !pal!ty may !mpose. T-e tax rates t-at t-e !ty may le#y may ex eed t-e max!mum rates allo,ed for t-e pro#!n e or mun! !pal!ty .y not more t-an 84% ex ept t-e rates of profess!onal and amusement taxes. ($e . 181) >arangays $ ope of Tax!ng Po,ers. - T-e .arangays may le#y t-e follo,!ng taxes and -arges" ,-! - s-all ex lus!#ely a rue to t-em+ (TO4S) (a) Taxes - On stores or reta!lers ,!t- f!xed .us!ness esta.l!s-ments ,!t- gross sales of re e!pts of t-e pre ed!ng alendar year of P84"444.44 or less for !t!es and P34"444.44 or less" !n t-e ase of mun! !pal!t!es" rate _ not ex eed!ng 1% on gross sales or re e!pts. (.) Ser#! e :ees or (-arges for ser#! es rendered !n onne t!on ,!t- t-e regulat!ons or t-e use of .arangay-o,ned propert!es or ser#! e fa !l!t!es su - as palay" opra" or to.a o dryers. ( ) 4arangay (learan e. - 5o !ty or mun! !pal!ty may !ssue any l! ense or perm!t for any .us!ness or a t!#!ty unless a learan e !s f!rst o.ta!ned from t-e .arangay ,-ere su - .us!ness or a t!#!ty !s lo ated or ondu ted. (d) Ot-er fees and (-arges. - T-e .arangay may le#y reasona.le fees and -arges+ (CR4) 1. On ommer !al .reed!ng of f!g-t!ng Co ?s and o ?p!tsB &. On pla es of Re reat!on ,-! - -arge adm!ss!on feesB and 3. On 4!ll.oards" s!gn.oards" neon s!gns" and outdoor ads. ($e . 18&) (ommon Fe#enue-Fa!s!ng Po,ers of @*Cs ($e s. 183-188) (SPT)

TAX REVIEWER
a. Ser#! e :ees and (-arges for ser#! es rendered .. Pu.! Ct!l!ty (-arges for t-e operat!on of pu.l! ut!l!t!es o,ned" operated and ma!nta!ned .y @*Cs ,!t-!n t-e!r Gur!sd! t!on. . Toll :ees or (-arges for t-e use of any pu.l! road" p!er" or ,-arf" ,ater,ay" .r!dge" ferry or tele ommun! at!on system funded and onstru ted .y t-e @*C on erned. Ex ept!ons+ 1. off! ers and enl!sted men of t-e A:P and P5P on m!ss!on" &. post off! e personnel del!#er!ng ma!l" 3. p-ys! ally--and! apped" and d!sa.led !t!=ens ,-o are s!xty-f!#e (%8) years or older. (ommun!ty Tax (!t!es or mun! !pal!t!es may le#y a ommun!ty tax ($e . 18%) 0nd!#!duals @!a.le to (ommun!ty Tax. - Y IER Z a. In-a.!tant of t-e P-!l!pp!nes .. E!g-teen years of age or o#er . Regularly employed on a ,age or salary .as!s for at least 34 onse ut!#e ,or?!ng days dur!ng any alendar year" or ,-o !s engaged !n .us!ness or o upat!on" or ,-o o,ns real property ,!t- an aggregate assessed #alue of P1"444.44 or more" or ,-o !s requ!red .y la, to f!le an !n ome tax return Fate _ P8.44 and an annual add!t!onal tax of P1.44 for e#ery P1"444.44 of !n ome regardless of ,-et-er from .us!ness" exer !se of profess!on or from property ,-! - !n no ase s-all ex eed P8"444.44. 0n t-e ase of -us.and and ,!fe" t-e tax !mposed s-all .e .ased upon t-e total property o,ned .y t-em and t-e total gross re e!pts or earn!ngs der!#ed .y t-em. ($e . 18/) 1ur!d! al Personal!t!es ($e . 189) (orporat!ons" no matter -o, reated or organ!=ed" ,-et-er domest! or res!dent fore!gn" engaged !n or do!ng .us!ness !n t-e P-!l!pp!nes are also l!a.le to pay an annual ommun!ty tax. Fate _ P844.44 and an annual add!t!onal tax" ,-! - s-all ex eed P14"444.44 !n a ordan e ,!t- t-e follo,!ng s -edule+ a. :or e#ery P8"444.44 ,ort- of real property !n t-e P-!l!pp!nes o,ned .y !t dur!ng t-e pre ed!ng year .ased on t-e #aluat!on used for t-e payment of real property tax P&.44B and .. :or e#ery P8"444.44 of gross re e!pts der!#ed .y !t from !ts .us!ness !n t-e P-!l!pp!nes dur!ng t-e pre ed!ng year - P&.44. T-ose exempt from t-e ommun!ty tax are+ 1. '!plomat! and onsular representat!#esB and &. Trans!ent #!s!tors ,-en t-e!r stay does not ex eed 3 mont-s. Pla e of Payment - pla e of res!den e of t-e !nd!#!dual" or !n t-e pla e ,-ere t-e pr!n !pal off! e of t-e Gur!d! al ent!ty !s lo ated. ($e . 1%4) T!me for Payment - a rues on t-e 1 st day of 1an. of ea - year ,-! - s-all .e pa!d not

TAX REVIEWER
later t-an t-e last day of :e.. of ea - year Penalt!es for 'el!nquen y. - An !nterest of &3% per annum from t-e due date unt!l !t !s pa!d s-all .e added on t-e amount due. A ommun!ty tax ert!f! ate may also .e !ssued to any person or orporat!on not su.Ge t to t-e ommun!ty tax upon payment of P1.44. ($e . 1%&)

$e . 1%3. Presentat!on of (ommun!ty Tax (ert!f! ate On (erta!n O as!ons. 0nd!#!dual a. A-en an !nd!#!dual su.Ge t to t-e ommun!ty tax a ?no,ledges any do ument .efore a notary pu.l! " .. ta?es t-e oat- of off! e upon ele t!on or appo!ntment to any pos!t!on !n t-e go#ernment ser#! eB . re e!#es any l! ense" ert!f! ate or perm!t from any pu.l! aut-or!tyB pays any tax or feeB d. re e!#es any money from any pu.l! fundB e. transa ts ot-er off! !al .us!nessB or f. re e!#es any salary or ,age from any person or orporat!on. T-e ommun!ty tax ert!f! ate s-all not .e requ!red !n t-e reg!strat!on of a #oter. (orporat!on a. re e!#es any l! ense" ert!f! ate" or perm!t from any pu.l! aut-or!ty" .. pays any tax or fee" . re e!#es money from pu.l! funds" or d. transa ts ot-er off! !al .us!ness. T-e !ty or mun! !pal treasurer deput!=es t-e .arangay treasurer to ommun!ty tax !n t-e!r respe t!#e Gur!sd! t!ons. olle t t-e

T-e pro eeds of t-e ommun!ty tax a tually and d!re tly olle ted .y t-e !ty or mun! !pal treasurer s-all a rue ent!rely to t-e general fund of t-e !ty or mun! !pal!ty on erned. Pro eeds of t-e ommun!ty tax olle ted t-roug- t-e .arangay treasurers s-all .e apport!oned as follo,s+ ($e . 1%3) 84% a rues to t-e general fund of t-e !ty or mun! !pal!ty on ernedB and 84% a rues to t-e .arangay ,-ere t-e tax !s olle ted. PROVINCE O" 4ULACAN #$ CA (299 &'RA 442) "%&'$( T-e Pro#!n e passed an Ord!nan e !mpos!ng a 14% tax on t-e #alue of stones" sand and ot-er quarry resour es from pu.l! lands. T-e Pro#!n !al Treasurer le#!ed upon Fepu.l! (ement P&.82 for !ts extra t!on of resour es from pr!#ate land. I$$)*( 'oes t-e pro#!n e -a#e aut-or!ty to le#y t-e taxQ

TAX REVIEWER
H*+,( 5O. Alt-oug- W19% of t-e @*( aut-or!=es mun! !pal orps. to le#y taxes ot-er t-an t-ose spe !f! ally enumerated t-ere!n" t-e su.Ge t ord!nan e ,as qu!te spe !f! a.out t-e fa t t-at t-e taxa.le art! les must ome from pu.l! land. 2oreo#er" a pro#!n e may not le#y ex !se taxes on art! les already taxed .y t-e 50F(. T-e urrent tax ode already !mposes a tax on A@@ quarry resour es" regardless of or!g!n" -en e" t-e Pro#!n e may no longer !mpose any add!t!onal amounts from Fepu.l! (ement. REAL PROPERTY TAXATION I- CHARACTERISTIC O" REAL PROPERTY TAX + = DAPIL > 1. D!re t tax on t-e o,ners-!p of real property &. Ad Valorem tax. T-e #alue !s .ased on t-e tax .ase 3. Proport!on - t-e tax !s al ulated on t-e .as!s of a erta!n per entage of t-e assessed 3. Ind!#!s!.le s!ngle o.l!gat!on 8. Lo al Tax

#alue

II- PROPERTIES LIA4LE UNDER REAL PROPERTY TAX A ord!ng to t-e @o al *o#ernment (ode" Feal Property l!a.le for Feal Prop tax are+ 1. @and" &. >u!ld!ngs 3. 2a -!nery and 3. Ot-er !mpro#ements not ot-er,!se exempted under sa!d ode ($e &3&" @*() 5ote+ Although the term real property has not been expressly defined in the LGC, early decisions of the Supreme Court in Mindanao Bus Co. v City Assessor of Cagayan de ro, ! SC"A #$%& Board of Assessment Appeals v Meralco, ''$ ()*L +,-& Manila .lectric Co. v Board of Assessment Appeals, '/ SC"A !-0 seem to suggest that Art 1'2 of the Civil Code could also be controlling. 000. CLASSI"ICATION O" LAND for purposes of assessment $e &19 (a) =CARMITS> 1. Commer !al &. Agr! ultural 3. Res!dent!al 3. M!neral 8. Industr!al %. T!m.erland /. Spe !al 0V. SPECIAL CLASSES O" REAL PROPERTY (se &1%" @*() =HCS LG> 1. HO$P0TA@$ &. CC@TCFA@ and S(0E5T0:0( purposes 3. o,ned and used .y LO(A@ AATEF '0$TF0(T$ 3. GO((s render!ng essent!al pu.l! ser#! es !n t-e supply and d!str!.ut!on of ,ater and;or generat!on or transm!ss!on of ele tr! po,er. V. PROPERTIES EXEMPT from real property tax ($e . &33) =RC WEC> 1. o,ned .y t-e REPC>@0( of t-e PI0@$ or !ts pol!t! al su.d!#!s!ons ex ept+ ,-en .enef! !al use -as .een granted to a taxa.le person

TAX REVIEWER
&. C-ar!ta.le !nst!tut!ons" -ur -es" parsonages" on#ents t-ereto" mosques" nonprof!t or rel!g!ous emeter!es" .u!ld!ngs and !mpro#ements a tually d!re tly and ex lus!#ely used for rel!g!ous" -ar!ta.le or edu at!onal purposes. 3. 2a -!nery and Equ!pment a tually" d!re tly" and ex lus!#ely used .y lo al Water d!str! ts and *O((s engaged !n t-e supply and d!str!.ut!on of ,ater and;or generat!on and transm!ss!on of ele tr! po,er 3. Feal property o,ned .y duly reg!stered Cooperat!#es under FA %<39 8. 2a -!nery R equ!pment for pollut!on ontrol and En#!ronment prote t!on Exempt!ons pre#!ously granted" (not fall!ng ,!t-!n t-e a.o#e enumerat!on) are ,!t-dra,n.

VI- "UNDAMENTAL PRINCIPLES IN A$$*$$5*0' REAL PROP TAXES (A.' 1! ) =CUANE> 1. CCFFE5T and fa!r mar?et #alue !s t-e .as!s of appra!sal &. UNI"ORMITY !n lass!f! at!on !n ea - lo al go#Kt un!t s-ould .e o.ser#ed 3. A(TCA@ C$E of t-e property s-ould .e t-e .as!s of lass!f! at!on 3. appra!sal" assessment" le#y and olle t!on s-ould NOT >E @ET to any pr!#ate person. 8. E^C0TA>@E appra!sal and assessment STEP 1 8 DECLARATION O" REAL PROPERTY 1. 'e lared .y O,ner or Adm!n!strator ($e &4&-&43) 0: ne,ly a qu!red property a. f!les ,!t- assessor ,!t-!n %4 'AJ$ from date of transfer a .. $AOF5 statement onta!n!ng :2V and des r!pt!on of property 0: !mpro#ement on real property a. f!le ,;!n %4 'AJ$ upon omplet!on or o upat!on (,-! -e#er !s earl!er) .. $AOF5 statement onta!n!ng :2V and des r!pt!on of property &. 'e lared .y Pro#!n !al ; (!ty ; 2un! !pal Assessor ($e &43) AIE5 only ,-en t-e person under $e &4& refuses or fa!ls to ma?e t-e de larat!on ,!t-!n t-e pres r!.ed t!me 5o oat- !s requ!red NOTE: IF FILING FOR EXEMPTION (Sec 206) AIAT person la!m!ng exempt!ons must f!le ,!t- assessor suff! !ent do umentary e#!den e to support la!m AIE5 ,!t-!n 34 days from t-e date of 'E(@AFAT0O5 of property 0: requ!red e#!den e !s not su.m!tted ,!t-!n 34 days" t-e property ,!ll .e l!sted as taxa.le !n t-e roll 0: pro#en to .e tax-exempt" property ,!ll .e dropped from t-e roll NOTE: IF PROPERTY DECLARED FOR THE FIRST TIME ($e . &&&) 0f de lared for 1st t!me" real property s-all .e assessed for .a ? taxes a. for not more t-an 14 yrs pr!or to t-e date of !n!t!al assessment .. taxes s-all .e omputed on t-e .as!s of appl! a.le s -edule of #alues !n for e dur!ng t-e orrespond!ng per!ods

$TEP &+ @0$T05* O: FEA@ PFOPEFTJ 05 TIE A$$E$$2E5TFO@@$

TAX REVIEWER
($e &48" &4/) $TEP 3+ APPFA0$A@ A5' VA@CAT0O5 O: FEA@ PFOPEFJ ($e &1&-&13" &&3-&&8) Io, to determ!ne :a!r 2ar?et Value. :OF @A5' 1. Assessor of t-e pro#; !ty ;mun g!#es summons to o,ners of affe ted propert!es &. Assessor prepares a s -edule of :2V for d!fferent lasses of propert!es 3. $anggun!an ena ts an ord!nan e 3. t-e s -edule of :2V !s pu.l!s-ed or posted :OF 2A(I05EFJ 1. :or >rand 5e, ma -!nery + :2V !s a qu!s!t!on ost &. 0n all ot-er ases+ :2V _ Fema!n!ng e o. l!fe H Fepla ement ost Est!mated e o. l!fe $TEP 3+ 'ETEF205E A$$E$$E' VA@CE ($e &19) Pro edure 1. ta?e t-e s -edule of :2V &. Assessed #alue _ :2V H Assessment le#el 3. Tax _ Assessed #alue H Tax rate $TEP 8+ PAJ2E5T A5' (O@@E(T0O5 O: TAH AIE5 1anuary 1 of e#ery year ($e &3%) tax s-all onst!tute as super!or l!en ($e &3%) IOA a. .as! real prop tax !n 3 equal !nstallments (2ar 31"1un 34"$ep 34" 'e 31) .. spe !al le#y - go#erned .y ord!nan e NOTE: INTEREST for LATE PAYMENT - t,o per ent (&%) ea - mont- on unpa!d amt. unt!l t-e del!nquent amt !s pa!d. - pro#!ded !n no ase s-all t-e total !nterest ex eed t-!rty-s!x (3%) mont-s NOTE: FOR ADVANCE !" PROMPT PAYMENT a) ad#an e payment -d!s ount not ex eed!ng &4% of annual tax ($e &81" @*() .) prompt payment -d!s ount not ex eed!ng 14% of annual tax due(Art 33& 0FF)

AIO (O@@E(T$ T-e pro#!n !al" !ty" mun! !pal or .arangay treasurer PEF0O' A0TI05 AI0(I TO (O@@E(T ($e &/4). ,!t-!n f!#e (8) yrs from t-e date t-ey .e ome due ,!t-!n ten (14) yrs. from d!s o#ery of fraud" !n ase t-ere !s fraud or !ntent to e#ade Per!od of pres r!pt!on s-all .e $C$PE5'E' ,-en + ($e &/4" @*() 1. lo al treasurer !s legally pre#ented to olle t tax &. t-e o,ner of prop requests for re!n#est!gat!on and ,r!tes a ,a!#er .efore exp!rat!on of per!od to olle t 1. t-e o,ner of t-e prop !s out of t-e ountry or annot .e lo ated FE2E'0E$ 05 FEA@ PFOPEFTJ TAHAT0O5

TAX REVIEWER
A. FE2E'0E$ O: TAHPAJEF 1. PAJ2E5T C5'EF PFOTE$T ($e &8&) - f!le protest ,!t- pro#" !ty" or mun. treasurer on erned - !nd! ate amount ontested - annotate on tax re e!pt Tpa!d under protestU - A!t-!n 34 days" onf!rm protest !n ,r!t!ng stat!ng grounds t-erefor - treasurer s-all de !de protest ,!t-!n %4 days 'O5T :OF*ET`+ 5o protest s-all .e enterta!ned unless TIE TAH 0$ :0F$T PA0'```` 0: PFOTE$T 'E(0'E' 05 :AVOF of taxpayer" amount may e!t-er .e a. refunded or . appl!ed as tax red!t 0: 'E50E' or 5OT 'E(0'E' A0TI05 %4 'AJ$ >J TFEA$CFEF" a. taxpayer may appeal to .oard of assessment appeal or .. a#a!l of remed!es under (- 3 t!tle & >oo? 00 (@o al >oard of Assessment Appeals and (entral >oard of Assessment Appeals) &. FE:C5' 05 (A$E O: EH(E$$0VE (O@@E(T0O5 ($e &83) :!le a ,r!tten la!m for refund ,!t-!n t,o (&) years from date taxpayer !s ent!tled t-ereto >. FE2E'0E$ O: *OVEF52E5T Femed!es may .e enfor ed e!t-er t-roug- adm!n!strat!#e or Gud! !al a t!on or .ot-" alternat!#e or s!multaneously. Cse or non-use of one remedy s-all not .e a .ar aga!nst t-e ot-er ($e &89) 1. A'2050$TFAT0VE A. @e#y on Feal property ($e &89 and &8<) >. $ale of Feal Property ($e &%4) (. @o al *o#ernmentKs @!en ($e &8%) '. :urt-er '!stra!nt or @e#y ($e &%8) &. 1C'0(0A@ ($e &%%)- !#!l a t!on f!led .y t-e lo al treasurer ,!t-!n 8 yrs. from due date (. (O5'O5AT0O5 and FE20$$0O5 T-e PFE$0'E5T may rem!t or redu e real prop tax !n any pro#; !ty; mun !f -e deems t-at PC>@0( 05TEFE$T so requ!res ($e &//) TIE $A5**C50A5 on erned may (O5'O5E or FE'C(E t-e tax !n ases ,-ere a. t-ere !s a general fa!lure of rops .. su.stant!al de rease !n t-e pr! e of produ ts . alam!ty ($e &/%) .y an ord!nan e - passed .efore 1an 1 of any year and - upon re ommendat!on of t-e @o al '!saster (oord!nat!ng (oun !l APPEA@$ 05 FEA@ PFOPEFTJ TAHAT0O5 OA5EF OF PEF$O5 A0TI @E*A@ 05TEFE$T :!les ,!t-!n %4 days 1. Ar!tten Pet!t!on under Oat&. A!t- $upport!ng 'o uments

TAX REVIEWER
A!t-!n %4 days @O(A@ >OAF' O: A$$E$$2E5T APPEA@$ (@>AA $-ould de !de ,!n 1&4 'AJ$ from re e!pt of pet!t!on) A!t-!n 34 days (E5TFA@ >OAF' O: A$$E$$2E5T APPEA@$ A!t-!n 18 days $CPFE2E (OCFT