Article 74p. 74

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

(b)

When

a

discrepancy

has

been

determined

between the tax withheld and the amount actually

remitted by the withholding agent; or

(c) When a taxpayer who opted to claim a refund or

tax credit of excess creditable withholding tax for a

taxable period was determined to have carried over

and

automatically

applied

the

same

amount

claimed against the estimated tax liabilities for the

taxable

quarter

or

quarters

of

the

succeeding

taxable year; or

(d) When the excise tax due on excisable articles has

not been paid; or

(e) When the article locally purchased or imported

by an exempt person, such as, but not limited to,

vehicles, capital equipment, machineries and spare

parts,

has

been

sold,

traded

or

transferred

to

non-exempt persons.

The taxpayers shall be informed in writing of the law and

the facts on which the assessment is made; otherwise,

the assessment shall be void.

Within a period to be prescribed by implementing rules

and regulations, the taxpayer shall be required to respond

to

said notice. If the taxpayer fails to respond, the

Commissioner or his duly authorized representative shall

issue an assessment based on his findings.

Such assessment may be protested administratively by

filing a request for reconsideration or reinvestigation

within thirty (30) days from receipt of the assessment in

such

form

and

manner

as

may

be

prescribed

by

implementing rules and regulations. Within sixty (60)

days from filing of the protest, all relevant supporting

documents shall have been submitted; otherwise, the

assessment shall become final.

If the protest is denied in whole or in part, or is not acted

upon

within

one

hundred

eighty

(180)

days

from

submission

of

documents,

the

taxpayer

adversely

affected by the decision or inaction may appeal to the

Court of Tax Appeals within thirty (30) days from receipt

of the said decision, or from the lapse of one hundred

eighty (180)-day period; otherwise, the decision shall

become final, executory and demandable.

SEC. 229. Recovery of Tax Erroneously or Illegally

Collected. - no suit or proceeding shall be maintained in

any court for the recovery of any national internal revenue

tax hereafter alleged to have been erroneously or illegally

assessed or collected, or of any penalty claimed to have

been collected without authority, of any sum alleged to

have

been excessively or in any manner wrongfully

collected without authority, or of any sum alleged to have

been excessively or in any manner wrongfully collected,

until a claim for refund or credit has been duly filed with

the Commissioner; but such suit or proceeding may be

maintained, whether or not such tax, penalty, or sum has

been paid under protest or duress.

In any case, no such suit or proceeding shall be filed after

the expiration of two (2) years from the date of payment

of the tax or penalty regardless of any supervening cause

that may arise after payment: Provided, however, That the

Commissioner may, even without a written claim therefor,

refund or credit any tax, where on the face of the return

upon which payment was made, such payment appears

clearly to have been erroneously paid.

SEC. 230. Forfeiture of Cash Refund and of Tax Credit. -

(A) Forfeiture of Refund. - A refund check or warrant

issued in accordance with the pertinent provisions of this

Code, which shall remain unclaimed or uncashed within

five (5) years from the date the said warrant or check was

mailed or delivered, shall be forfeited in favor of the

Government and the amount thereof shall revert to the

general fund.

(B) Forfeiture of Tax Credit. - A tax credit certificate

issued in accordance with the pertinent provisions of this

Code, which shall remain unutilized after five (5) years

from the date of issue, shall, unless revalidated, be

considered invalid, and shall not be allowed as payment

for internal revenue tax liabilities of the taxpayer, and the

amount covered by the certificate shall revert to the

general fund.

(C)Transitory Provision. - For purposes of the preceding

Subsection,

a

tax

credit

certificate

issued

by

the

Commissioner or his duly authorized representative prior

to January 1, 1998, which remains unutilized or has a

creditable balance as of said date, shall be presented for

revalidation with the Commissioner or his duly authorized

representative or on before June 30, 1998.

SEC. 231. Action to Contest Forfeiture of Chattel. - In

case of the seizure of personal property under claim of

forfeiture, the owner desiring to contest the validity of the

forfeiture may, at any time before sale or destruction of

the property, bring an action against the person seizing

the property or having possession thereof to recover the

same, and upon giving proper bond, may enjoin the sale;

or after the sale and within six (6) months, he may bring

an action to recover the net proceeds realized at the sale.

TITLE IX COMPLIANCE REQUIREMENTS

(As amended by RA Nos. 9337 & 10021, 10963)

CHAPTER I KEEPING OF BOOKS OF ACCOUNTS

AND RECORDS

SEC. 232. Keeping of Books of Accounts. -

(A) Corporations, Companies, Partnerships or Persons

Required to Keep Books of Accounts. - All corporations,

companies, partnerships or persons required by law to

pay internal revenue taxes shall keep and use relevant

and

appropriate

set

of

bookkeeping

records

duly

authorized

by

the

Secretary

of

Finance wherein all

transactions and results of operations are shown and

from which all taxes due the Government may readily

and accurately be ascertained and determined any time

of

the

year: Provided, That corporations, companies,

partnerships

or

persons

whose

gross

annual

sales,

earnings, receipts or output exceed Three million pesos

(P3,000,000), shall have their books of accounts audited

and examined yearly by independent Certified Public

Accountants and their income tax returns accompanied

with a duly accomplished Account Information Form

(AIF) which shall contain, among others, information

lifted

from

certified

balance

sheets, profit and loss

statements,

schedules

listing

income-producing

properties and the corresponding income therefrom and

other relevant statements. (as amended by RA No 10963)

(B) Independent Certified Public Accountant Defined. -

The term ' Independent Certified Public Accountant ', as

used in the preceding paragraph, means an accountant

who possesses the independence as defined in the rules

and

regulations

of

the

Board

of

Accountancy

promulgated pursuant to Presidential Decree No. 692,

otherwise known as the Revised Accountancy Law.

SEC.

233.

Subsidiary

Books.

-

All

corporations,

companies, partnerships or persons keeping the books of

accounts mentioned in the preceding Section may, at

their option, keep subsidiary books as the needs of their

business

may

require:

Provided,

That

were

such

subsidiaries

are

kept,

they

shall

form

part

of

the

accounting system of the taxpayer and shall be subject to

the same rules and regulations as to their keeping,

translation, production and inspection as are applicable

to the journal and the ledger.

SEC. 234. Language in which Books are to be Kept;

Translation.

-

All

such

corporations,

companies,

partnerships or persons shall keep the books or records

mentioned in Section 232 hereof in native language,

English or Spanish: Provided, however, That if in addition

to said books or records the taxpayer keeps other books

or records in a language other than a native language,

English or Spanish, he shall make a true and complete

translation of all the entries in suck other books or records

© Compiled by RGL

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