TAXPAYER’S REMEDIES FROM ASSESSMENT OF LOCAL TAXES OTHER THAN REAL PROPERTY TAXES

What is the outcome Is protest made within the GRANTED of said protest YES prescribed period? NO

INACTION; NOT GRANTED

START

Local Treasurer* (LT) assess local taxes within 5 years from date they

become due or 10 years from discovery of fraud

Local Treasurer issues notice of

assessment

Taxpayer files written protest is

protest made within 60 days from receipt

of assessment

Assessment becomes final

Local Treasurer issues notice

cancelling partially/wholly the

assessment

END

Taxpayer appeals to court of competent jurisdiction (depending on

the value of the assessment) within 30 days from receipt of notice or

from lapse of 60 days

MTC

RTC

RTC

Appealable to CTA division if the RTC

exercised in its original jurisdictionAppealable to CTA

en banc if the RTC exercised its

appellate jurisdiction In case of an adverse decision, the taxpayer may file a motion

for reconsideration or new trail before the same Division within 15 days from receipt

In case of an adverse resolution, the

taxpayer may file a petition for review before the CTA en

banc within 15 days from receipt

The taxpayer adversely affected by the decision may file a

petition for review on certiorari before the Supreme Court

within 15 days from receipt

END

PROCEDURES FOR DISTRAINT AND LEVY FOR PURPOSES OF SATISFYING LOCAL TAXES

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JUDICIAL ACTION ADMINISTRATIVE ACTION

MTC

RTC

RTC

CTA DIVISION

CTA EN BANC

SUPREME COURT

DISTRAINT ON PERSONAL PROPERTY

LEVY OF REAL PROPERTY

END

A B

A. DISTRAINT ON PERSONAL PROPERTY

Property distrained disposed

YES Within 120 days from distraint? NO

A

Local Treasurer (LT) or his deputy, upon written notice, seizes sufficient personal property to satisfy the tax,

and other charges (Sec. 175)

LT issues a certificate which serves as warrant for the distraint of personal property. (Sec. 175)

Officer executing the distraint accounts for the

goods distrained. (Sec. 175)

Officer posts notice in office of the chief executive of the LGU** where the property is distrained and in at least 2 other public places

specifying the time and place of sale, and distrained goods. The time of sale shall not be less than 20 days after the notice. (Sec. 175)

If the owner the distraint personal property paid all

charges

The distrained personal property shall be restored to the owner

If there is failure to pay said tax due

Said distrained personal property will now be sold at

a public auction

It shall be considered as sold to the LGU for the amount of the assessment made by the Committee on Appraisal and

to the extent of the same amount

Officer sells the goods at public auction to the highest bidder for cash. Within 5 days, the local treasurer shall report sale to the local chief executive concerned

The proceeds thereof shall now be applied to the tax

dues/charge of said taxpayer

The exceeds thereof shall be returned to

the owner of the property sold

If the proceeds of the sale are insufficient, other property may be distrained until the full amount due, including all expenses, is

collected

Real property may be levied on before, simultaneously, or after the distraint of personal property (Sec. 176) until said tax, fee, or charge has been fully paid.

END

B. LEVY ON REAL PROPERTY

NO BUYER

BUYER OF PROPERTY

IF THERE IS REDEMPTION

NO REDEMPTION

the provincial, city or municipal treasurer, as the case may be, shall within thirty (30)

days after execution of the distraint, proceed with the levy on the taxpayer's

real property.

Levy shall be effected by writing upon said certificate the description of the property upon which levy is made. At the same time, written notice of the levy shall be mailed to or served

upon the assessor and the Register of Deeds of the province or city where the property is

located who shall annotate the levy on the tax declaration and certificate of title of the

property, respectively, and the delinquent taxpayer or, if he be absent from the

Philippines, to his agent or the manager of the business in respect to which the liability arose,

or if there be none, to the occupant of the property in question.

A report on any levy shall, within ten (10) days after receipt of the warrant, be submitted by the levying officer to

the sanggunian concerned.

Within thirty (30) days after the levy, the local treasurer shall proceed to publicly advertise for sale or auction the property or a usable portion thereof as may be necessary

to satisfy the claim and cost of sale; and such advertisement shall cover a period of at least thirty (30) days. It shall be effected by posting a notice at the main entrance of the municipal building or city hall, and in a

public and conspicuous place in the barangay where the real property is located, and by publication once a week

for three (3) weeks in a newspaper of general circulation in the province, city or municipality where the property is located. The advertisement shall contain the amount of

taxes, fees or charges, and penalties due thereon, and the time and place of sale, the name of the taxpayer against whom the taxes, fees, or charges are levied, and a short

description of the property to be sold.

If the taxpayer has already paid said taxes, fees, charges, penalties,

and interest

END

If the taxpayer has failed to pay said taxes, fees, charges, penalties, and

interest

Sale shall proceed

In case there is no bidder for the real property advertised for sale as provided herein, or if the

highest bid is for an amount insufficient to pay the taxes,

fees, or charges, related surcharges, interests, penalties and costs, the local treasurer

conducting the sale shall purchase the property in behalf

of the local government unit concerned to satisfy the claim

and within two (2) days thereafter shall make a report

of his proceedings

The said property shall now be subjected to resale. The

proceeds shall now accrue to the general fund of the LGU, and the excess thereof shall be returned to the owner of the sold property concerned

END

B

If the taxpayer pays the full amount of taxes, fees, charges, and related surcharges, interests, and penalties and the cost of the sale property thereafter shall be free from the lien of such taxes, fees, or charges, related surcharges, interests, and penalties.

The local treasurer shall make and deliver to the purchaser a certificate

of sale, showing the proceeding of the sale, describing the property sold,

stating the name of the purchaser and setting out the exact amount of all

taxes, fees, charges, and related surcharges, interests, or penalties,

and any excess thereof shall be returned to the owner

Upon payment to the local treasurer of the total

amount of taxes, fees, or charges, and related

surcharges, interests or penalties:

1. Shall invalidate the certificate of sale issued to the purchaser; and

2. owner is entitled to a certificate of redemption.

The provincial, city or municipal treasurer or his deputy, upon surrender by the purchaser of the certificate of sale previously issued to him, shall forthwith return to the latter the entire purchase price paid by him plus the interest of not more than two percent (2%) per month herein provided for, the portion of the cost of sale and other legitimate expenses incurred by him.

The property thereafter shall be free from the lien of such taxes, fees, or charges,

related surcharges, interests, and penalties.

B-1

NO REDEMPTION

IMPORTANT REMINDER:

The owner shall not, however, be deprived of the possession of said property and shall be entitled to the rentals and other income thereof until the expiration of the time allowed for its redemption.

B-1

In case the taxpayer fails to redeem the property as provided herein, the local treasurer shall execute a deed conveying to the purchaser so much of the property

as has been sold, free from liens of any taxes, fees, charges, related surcharges, interests, and penalties. The deed shall succinctly recite all the proceedings upon

which the validity of the sale depends.

END

CHALLENGING THE CONSTITUTIONALITY OF A TAX ORDINANCE

-Appeal the same to the Secretary of Justice within

30 days from the effectivity of said ordinance

-From an adverse decision or inaction by the Secretary,

the aggrieved party has 30 days to appeal the same

DATE OF EFFECTIVITY OF A TAX ORDINANCE

Secretary of Justice has to decide the issue

within 60 days

REGULAR COURTS

PREPARED BY: WILLIAM GACETA CARPENTERO