Article 70p. 70

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

the taxpayer has his legal residence or principal place of

business.

(D) Exception. - In lieu of the foregoing provisions of this

Section, the tax may be paid either through purchase and

actual affixture; or by imprinting the stamps through a

documentary stamp metering machine, on the taxable

document, in the manner as may be prescribed by rules

and regulations to be promulgated by the Secretary of

Finance, upon recommendation of the Commissioner.

SEC. 201. Effect of Failure to Stamp Taxable Document.

- An instrument, document or paper which is required by

law to be stamped and which has been signed, issued,

accepted or transferred without being duly stamped,

shall not be recorded, nor shall it or any copy thereof or

any record of transfer of the same be admitted or used in

evidence in any court until the requisite stamp or stamps

are affixed thereto and cancelled.

No notary public or other office authorized to administer

oaths shall add this jurat or acknowledgment to any

document subject to documentary stamp tax unless the

proper documentary stamps are affixed thereto and

cancelled.

TITLE VIII REMEDIES

CHAPTER I REMEDIES IN GENERAL

SEC. 202. Final Deed to Purchaser. - In case the taxpayer

shall not redeem the property as herein provided, the

Revenue District Officer shall, as grantor, execute a deed

conveying to the purchaser so much of the property as

has been sold, free from all liens of any kind whatsoever,

and the deed shall succinctly recite all the proceedings

upon which the validity of the sale depends.

SEC. 203. Period of Limitation Upon Assessment and

Collection. - Except as provided in Section 222, internal

revenue taxes shall be assessed within three (3) years

after the last day prescribed by law for the filing of the

return, and no proceeding in court without assessment

for the collection of such taxes shall be begun after the

expiration of such period: Provided, That in a case where a

return is filed beyond the period prescribed by law, the

three (3)-year period shall be counted from the day the

return was filed. For purposes of this Section, a return

filed before the last day prescribed by law for the filing

thereof shall be considered as filed on such last day.

SEC.

204.

Authority

of

the

Commissioner

to

Compromise, Abate and Refund or Credit Taxes. -

The Commissioner may -

(A) Compromise the payment of any internal revenue tax,

when:

(1) A reasonable doubt as to the validity of the claim

against the taxpayer exists; or

(2)

The

financial

position

of

the

taxpayer

demonstrates a clear inability to pay the assessed

tax.

The compromise settlement of any tax liability shall be

subject to the following minimum amounts:

For

cases

of

financial

incapacity,

a

minimum

compromise rate equivalent to ten percent (10%) of

the basic assessed tax; and

For

other

cases,

a

minimum

compromise

rate

equivalent

to

forty

percent

(40%)

of

the basic

assessed tax.

Where the basic tax involved exceeds One million pesos

(P1,000.000) or where the settlement offered is less than

the prescribed minimum rates, the compromise shall be

subject to the approval of the Evaluation Board which

shall be composed of the Commissioner and the four (4)

Deputy Commissioners.

(B) Abate or cancel a tax liability, when:

(1) The tax or any portion thereof appears to be

unjustly or excessively assessed; or

(2) The administration and collection costs involved

do not justify the collection of the amount due.

All criminal violations may be compromised except:

(a) those already filed in court, or (b) those involving

fraud.

(C) Credit or refund taxes erroneously or illegally received

or penalties imposed without authority, refund the value

of internal revenue stamps when they are returned in

good condition by the purchaser, and, in his discretion,

redeem

or

change

unused

stamps that have been

rendered unfit for use and refund their value upon proof

of destruction. No credit or refund of taxes or penalties

shall be allowed unless the taxpayer files in writing with

the Commissioner a claim for credit or refund within two

(2) years after the payment of the tax or penalty: Provided,

however, That a return filed showing an overpayment

shall be considered as a written claim for credit or refund.

A Tax Credit Certificate validly issued under the provisions

of this Code may be applied against any internal revenue

tax, excluding withholding taxes, for which the taxpayer is

directly liable. Any request for conversion into refund of

unutilized tax credits may be allowed, subject to the

provisions of Section 230 of this Code: Provided, That the

original copy of the Tax Credit Certificate showing a

creditable balance is surrendered to the appropriate

revenue officer for verification and cancellation: Provided,

further, That in no case shall a tax refund be given

resulting from availment of incentives granted pursuant

to special laws for which no actual payment was made.

The Commissioner shall submit to the Chairmen of the

Committee on Ways and Means of both the Senate and

House of Representatives, every six (6) months, a report

on the exercise of his powers under this Section, stating

therein

the

following

facts

and information, among

others: 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: Provided, That the said

report shall be presented to the Oversight Committee in

Congress that shall be constituted to determine that said

powers

are

reasonably

exercised

and

that

the

Government is not unduly deprived of revenues.

CHAPTER II CIVIL REMEDIES FOR COLLECTION

OF TAXES

SEC. 205. Remedies for the Collection of Delinquent

Taxes. - The civil remedies for the collection of internal

revenue taxes, fees or charges, and any increment thereto

resulting from delinquency shall be:

(a) By distraint of goods, chattels, or effects, and

other

personal

property

of

whatever

character,

including stocks and other securities, debts, credits,

bank accounts and interest in and rights to personal

property, and by levy upon real property and interest

in rights to real property; and

(b) By civil or criminal action.

Either of these remedies or both simultaneously may be

pursued in the discretion of the authorities charged with

the collection of such taxes: Provided, however, That the

remedies of distraint and levy shall not be availed of

where the amount of tax involve is not more than One

hundred pesos (P100).

The judgment in the criminal case shall not only impose

the penalty but shall also order payment of the taxes

subject of the criminal case as finally decided by the

Commissioner.

The

Bureau

of

Internal

Revenue

shall

advance

the

amounts needed to defray costs of collection by means of

civil or criminal action, including the preservation or

transportation of personal property distrained and the

© Compiled by RGL

70 of 201