Article 73p. 73

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

the assessment was made by the Commissioner until

paid, with interests, penalties, and costs that may accrue

in addition thereto upon all property and rights to

property belonging to the taxpayer: Provided, That this

lien shall not be valid against any mortgagee, purchaser

or judgment creditor until notice of such lien shall be

filed by the Commissioner in the office of the Register of

Deeds of the province or city where the property of the

taxpayer is situated or located.

SEC. 220. Form and Mode of Proceeding in Actions

Arising under this Code. - Civil and criminal actions and

proceedings

instituted

in behalf of the Government

under the authority of this Code or other law enforced by

the Bureau of Internal Revenue shall be brought in the

name of the Government of the Philippines and shall be

conducted by legal officers of the Bureau of Internal

Revenue but no civil or criminal action for the recovery of

taxes or the enforcement of any fine, penalty or forfeiture

under this Code shall be filed in court without the

approval of the Commissioner.

SEC. 221. Remedy for Enforcement of Statutory Penal

Provisions. - The remedy for enforcement of statutory

penalties of all sorts shall be by criminal or civil action, as

the

particular

situation

may require, subject to the

approval of the Commissioner.

SEC. 222. Exceptions as to Period of Limitation of

Assessment and Collection of Taxes. -

(a) In the case of a false or fraudulent return with

intent to evade tax or of failure to file a return, the

tax may be assessed, or a proceeding in court for the

collection

of

such

tax

may

be

filed

without

assessment, at any time within ten (10) years after

the

discovery

of

the

falsity,

fraud or omission:

Provided, That in a fraud assessment which has

become final and executory, the fact of fraud shall

be judicially taken cognizance of in the civil or

criminal action for the collection thereof.

(b) If before the expiration of the time prescribed in

Section 203 for the assessment of the tax, both the

Commissioner and the taxpayer have agreed in

writing to its assessment after such time, the tax

may be assessed within the period agreed upon. The

period

so

agreed

upon

may

be

extended

by

subsequent written agreement made before the

expiration of the period previously agreed upon.

(c)

Any

internal

revenue

tax

which

has

been

assessed

within

the

period

of

limitation

as

prescribed in paragraph (a) hereof may be collected

by distraint or levy or by a proceeding in court within

five (5) years following the assessment of the tax.

(d)

Any

internal

revenue

tax,

which

has

been

assessed within the period agreed upon as provided

in paragraph (b) hereinabove, may be collected by

distraint or levy or by a proceeding in court within

the

period

agreed

upon

in

writing before the

expiration of the five (5) -year period. The period so

agreed

upon

may

be extended by subsequent

written agreements made before the expiration of

the period previously agreed upon.

(e)

Provided,

however,

That

nothing

in

the

immediately preceding and paragraph (a) hereof

shall be construed to authorize the examination and

investigation or inquiry into any tax return filed in

accordance with the provisions of any tax amnesty

law or decree.

SEC.

223.

Suspension

of

Running

of

Statute

of

Limitations. - The running of the Statute of Limitations

provided in Sections 203 and 222 on the making of

assessment and the beginning of distraint or levy a

proceeding in court for collection, in respect of any

deficiency, shall be suspended for the period during

which the Commissioner is prohibited from making the

assessment or beginning distraint or levy or a proceeding

in court and for sixty (60) days thereafter; when the

taxpayer requests for a reinvestigation which is granted

by the Commissioner; when the taxpayer cannot be

located in the address given by him in the return filed

upon which a tax is being assessed or collected: Provided,

that, if the taxpayer informs the Commissioner of any

change

in

address,

the

running

of

the

Statute

of

Limitations will not be suspended; when the warrant of

distraint or levy is duly served upon the taxpayer, his

authorized representative, or a member of his household

with sufficient discretion, and no property could be

located; and when the taxpayer is out of the Philippines.

SEC. 224. Remedy for Enforcement of Forfeitures. - The

forfeiture of chattels and removable fixtures of any sort

shall be enforced by the seizure and sale, or destruction,

of the specific forfeited property. The forfeiture of real

property

shall

be

enforced

by

a

judgment

of

condemnation and sale in a legal action or proceeding,

civil or criminal, as the case may require.

SEC. 225. When Property to be Sold or Destroyed. -

Sales of forfeited chattels and removable fixtures shall be

effected, so far as practicable, in the same manner and

under the same conditions as the public notice and the

time and manner of sale as are prescribed for sales of

personal property distrained for the non-payment of

taxes.

Distilled

spirits,

liquors,

cigars,

cigarettes,

other

manufactured products of tobacco, and all apparatus

used I or about the illicit production of such articles may,

upon

forfeiture,

be

destroyed

by

order

of

the

Commissioner,

when

the

sale

of

the

same

for

consumption or use would be injurious to public health

or prejudicial to the enforcement of the law.

All other articles subject to excise tax, which have been

manufactured or removed in violation of this Code, as

well as dies for the printing or making of internal revenue

stamps and labels which are in imitation of or purport to

be lawful stamps, or labels may, upon forfeiture, be sold or

destroyed in the discretion of the Commissioner.

Forfeited property shall not be destroyed until at least

twenty (20) days after seizure.

SEC. 226. Disposition of funds Recovered in Legal

Proceedings

or

Obtained

from

Forfeitures.

-

all

judgments and monies recovered and received for taxes,

costs, forfeitures, fines and penalties shall be paid to the

Commissioner or his authorized deputies as the taxes

themselves

are

required to be paid, and except as

specially provided, shall be accounted for and dealt with

the same way.

SEC. 227. Satisfaction of Judgment Recovered Against

any Internal Revenue Officer. - When an action is

brought against any Internal Revenue officer to recover

damages by reason of any act done in the performance of

official duty, and the Commissioner is notified of such

action

in

time

to make defense against the same,

through the Solicitor General, any judgment, damages or

costs recovered in such action shall be satisfied by the

Commissioner, upon approval of the Secretary of Finance,

or if the same be paid by the person used shall be repaid

or reimbursed to him.

No such judgment, damages, or costs shall be paid or

reimbursed

in

behalf

of

a

person

who

has

acted

negligently or in bad faith, or with willful oppression.

CHAPTER III PROTESTING AN ASSESSMENT,

REFUND, ETC.

SEC.

228.

Protesting

of

Assessment.

-

When

the

Commissioner or his duly authorized representative finds

that proper taxes should be assessed, he shall first notify

the taxpayer of his findings: Provided, however, That a

pre-assessment

notice

shall

not

be required in the

following cases:

(a) When the finding for any deficiency tax is the

result of mathematical error in the computation of

the tax as appearing on the face of the return; or

© Compiled by RGL

73 of 201