Sample Protest Letter Tax Assessment Philippines Here

Comprehensive Report on Protesting a Tax Assessment in the Philippines: Sample Letter and Legal Framework

Structure of a Sample Protest Letter

A valid protest letter must be written, under oath, and contain specific information. Below is a detailed breakdown.

8. Practical Tips for Taxpayers

1. Consult a tax lawyer or CPA – especially for large assessments or complex legal issues (e.g., prescription, fraud).
2. Do not ignore the FLD/FAN – non-response leads to collection remedies (bank levy, garnishment, distraint, civil/criminal cases).
3. Request for a reconsideration if you have no new evidence; reinvestigation if you do.
4. Secure a waiver of the statute of limitations – if the BIR asks you to sign one, be careful; it extends the assessment period.
5. Monitor the 180-day BIR decision period – file a CTA appeal if the BIR is delaying.

4. Essential Contents of a Valid Protest Letter

A valid protest must:

1. Be in writing and addressed to the BIR Revenue District Officer (RDO) or the Commissioner.
2. State the taxpayer’s name, TIN, and address.
3. Identify the assessment: Refer to the Letter of Authority (LOA), FLD/FAN number, and tax period.
4. Clearly state the disputed amount and the grounds for protest (e.g., double taxation, improper disallowance of expenses, wrong tax base, prescription, absence of taxable income).
5. Include a statement of the relief sought (e.g., cancellation of the assessment, reduction of deficiency, or modification).
6. Be sworn to (affidavit of protest) – some BIR offices require notarization.
7. Be accompanied by supporting documents (e.g., financial statements, receipts, contracts, prior tax returns).
8. Be filed within the 30-day reglementary period – counted from actual receipt of the FLD/FAN. Proof of receipt (e.g., BIR stamp, registered mail receipt) is critical.

V. What Happens Next? (The Process)

1. Filing: Print the letter in three (3) copies. File the original with the Assessor’s Office and keep two receiving copies (one for you, one for "file" or the Treasurer).
2. Hearing: The Local Board of Assessment Appeals (LBAA) or the Assessor may call for a hearing. Bring your original documents.
3. Decision: The Assessor must resolve the protest.
   • If Approved: They will issue a new Tax Declaration and you pay the correct lower amount.
   • If Denied: You have 30 days from receipt of the denial to appeal to the Local Board of Assessment Appeals (LBAA).
4. Further Appeal: If the LBAA denies the appeal, you may elevate the case to the Central Board of Assessment Appeals (CBAA) and eventually the Courts.

Sample Protest Letter: Tax Assessment Philippines

Below is a comprehensive, customizable template. Replace bracketed placeholders with your actual details. This letter is designed for a Request for Reinvestigation (with new evidence). If you are filing a request for reconsideration, omit the section about new evidence and focus on legal errors. sample protest letter tax assessment philippines

[Your Company Letterhead, if applicable] Date: [Date of writing, e.g., October 20, 2023]

Attention: The Regional Director Bureau of Internal Revenue Revenue Region No. [e.g., 8 – Manila] Revenue District Office No. [e.g., 39 – South Quezon City] [Address of RDO] Comprehensive Report on Protesting a Tax Assessment in

Re: Protest and Request for Reinvestigation of Assessment Notice No. [Insert Assessment Notice Number], dated [Date of Assessment], for Taxable Year [Year]

Dear Sir/Madam:

I, [Your Full Name] , of legal age, Filipino citizen, a sole proprietor/resident citizen, with office address at [Your Complete Business Address] , and Taxpayer Identification Number (TIN) [Your TIN] , after having been duly sworn in accordance with law, hereby state that:

On [Date you received the assessment] , I received Formal Letter of Demand and Assessment Notice No. [Number] , dated [Date of BIR letter] , from your office, assessing me for alleged deficiency [Income Tax / VAT / Percentage Tax / Withholding Tax – specify] for the taxable year [Year] in the total amount of PHP [Total Amount] , inclusive of surcharges and interest. Consult a tax lawyer or CPA – especially

I respectfully PROTEST the aforesaid assessment and request a REINVESTIGATION on the following grounds:

2. Legal Basis for Protesting a Tax Assessment

The primary legal framework is found in the National Internal Revenue Code (NIRC) of 1997, as amended (Republic Act No. 8424, later amended by RA 10963 – TRAIN Law, RA 11346, and RA 11494 – Bayanihan 2, among others). Key provisions include:

• Section 228 (NIRC): Protests on assessments – requires the BIR to inform taxpayers of the factual and legal bases of the assessment. The taxpayer may protest within 30 days from receipt of the FLD/FAN.
• Revenue Regulations (RR) No. 12-99, as amended (particularly RR 18-2013 and RR 5-2020) – outlines the procedural requirements for protests, including docketing, submission of supporting documents, and appeal to the Court of Tax Appeals (CTA).

4. The "Verification" Requirement

• Critique of Template: The template above is signed by the taxpayer. However, under Revenue Regulations No. 12-2018 and RR 12-99, a protest should technically be sworn to (Verification and Non-Forum Shopping) if you want it to be airtight, especially if it escalates to the Commissioner or the Court of Tax Appeals.
• Recommendation: While a simple signed letter works for the RDO level, adding a Jurats (Subscribed and Sworn to before a Notary Public) makes the document stronger and harder for the BIR to dismiss on technicalities.