Test Your Knowledge on Crucial Tax Provisions

Provisions on Deed Execution, Assessment and Collection Periods, and Commissioner's Authority to Compromise, Abate, and Refund or Credit Taxes

• The Revenue District Officer shall execute a deed conveying sold property to the purchaser if the taxpayer does not redeem it, free from all liens.
• Internal revenue taxes must be assessed within three years after the last day prescribed for filing the return; no court proceeding without assessment for tax collection can be initiated after this period.
• The three-year period is counted from the day the return was filed if it is filed beyond the prescribed period.
• The Commissioner may compromise the payment of internal revenue tax if there is reasonable doubt about the claim's validity or if the taxpayer is financially incapable of paying the assessed tax.
• The compromise settlement of any tax liability is subject to a minimum rate of 10% of the basic assessed tax for financial incapacity and 40% for other cases.
• An Evaluation Board composed of the Commissioner and four Deputy Commissioners must approve the compromise if the basic tax exceeds one million pesos or if the settlement offered is less than the prescribed minimum rates.
• The Commissioner may abate or cancel a tax liability if the tax or any portion thereof appears to be unjustly or excessively assessed or if the administration and collection costs do not justify the collection of the amount due.
• All criminal violations may be compromised except those already filed in court or those involving fraud.
• The Commissioner may credit or refund taxes erroneously or illegally received or penalties imposed without authority, refund the value of internal revenue stamps, and redeem or change unused stamps that have been rendered unfit for use and refund their value upon proof of destruction.
• No credit or refund of taxes or penalties shall be allowed unless the taxpayer files a claim for credit or refund within two years after payment of the tax or penalty, except for a return filed showing an overpayment, which is considered as a written claim for credit or refund.
• A Tax Credit Certificate may be applied against any internal revenue tax, excluding withholding taxes, for which the taxpayer is directly liable.
• The Commissioner must submit every six months to the Chairmen of the Committee on Ways and Means of both the Senate and the House of Representatives a report on the exercise of his powers under this Section, including names and addresses of taxpayers whose cases have been the subject of abatement or compromise, amount involved, amount compromised or abated, and reasons for the exercise of power, among others.

Provisions on Deed Execution, Assessment and Collection Periods, and Commissioner's Authority to Compromise, Abate, and Refund or Credit Taxes

• The Revenue District Officer shall execute a deed conveying sold property to the purchaser if the taxpayer does not redeem it, free from all liens.
• Internal revenue taxes must be assessed within three years after the last day prescribed for filing the return; no court proceeding without assessment for tax collection can be initiated after this period.
• The three-year period is counted from the day the return was filed if it is filed beyond the prescribed period.
• The Commissioner may compromise the payment of internal revenue tax if there is reasonable doubt about the claim's validity or if the taxpayer is financially incapable of paying the assessed tax.
• The compromise settlement of any tax liability is subject to a minimum rate of 10% of the basic assessed tax for financial incapacity and 40% for other cases.
• An Evaluation Board composed of the Commissioner and four Deputy Commissioners must approve the compromise if the basic tax exceeds one million pesos or if the settlement offered is less than the prescribed minimum rates.
• The Commissioner may abate or cancel a tax liability if the tax or any portion thereof appears to be unjustly or excessively assessed or if the administration and collection costs do not justify the collection of the amount due.
• All criminal violations may be compromised except those already filed in court or those involving fraud.
• The Commissioner may credit or refund taxes erroneously or illegally received or penalties imposed without authority, refund the value of internal revenue stamps, and redeem or change unused stamps that have been rendered unfit for use and refund their value upon proof of destruction.
• No credit or refund of taxes or penalties shall be allowed unless the taxpayer files a claim for credit or refund within two years after payment of the tax or penalty, except for a return filed showing an overpayment, which is considered as a written claim for credit or refund.
• A Tax Credit Certificate may be applied against any internal revenue tax, excluding withholding taxes, for which the taxpayer is directly liable.
• The Commissioner must submit every six months to the Chairmen of the Committee on Ways and Means of both the Senate and the House of Representatives a report on the exercise of his powers under this Section, including names and addresses of taxpayers whose cases have been the subject of abatement or compromise, amount involved, amount compromised or abated, and reasons for the exercise of power, among others.