On May 15, 2009, La Manga Trading Corporation received a deficiency business tax assessment of P1,500,000.00 from the Pasay City Treasurer. On June 30, 2009, the corporation contested the assessment by filing a written protest with the City Treasurer.
On October 10, 2009, the corporation received a collection letter from the City Treasurer, drawing it to file on October 25, 2009 an appeal against the assessment before the Pasay Regional Trial Court (RTC).
Was the protest of the corporation filed on time? Explain. (3%)
Was the appeal with the Pasay RTC filed on time? Explain. (3%)
Suggested answer only. Not an official answer and not legal advice.
a) Yes, the protest was filed on time. b) No, the appeal with the RTC was filed out of time. Under Sec. 195, LGC, a taxpayer may protest an assessment within 60 days from receipt. The treasurer
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Quick check
Within how many days from receipt of a local tax assessment must a taxpayer file a written protest with the local treasurer under Section 195 of the LGC?
Section 195 of the Local Government Code grants the taxpayer sixty days from receipt of assessment to file a protest.
How many days does a local treasurer have to decide a written protest filed by a taxpayer under the Local Government Code?
Under Section 195 of the LGC, the local treasurer has sixty days from filing to render a decision.
What is the remedy of a taxpayer if the local treasurer fails to decide a tax protest within sixty days?
Inaction by the local treasurer is deemed a denial, giving the taxpayer thirty days from lapse to appeal to the RTC.
In La Manga Trading Corporation's case, why was the appeal filed with the Pasay Regional Trial Court on October 25, 2009 considered out of time?
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Which judicial court has original jurisdiction over appeals from the denial of a local tax protest by a local treasurer?
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Learn more about these topics
1. Local Tax Protest
Under Section 195 of the Local Government Code, a taxpayer served with a notice of local tax assessment has sixty days from receipt to file a written protest with the local treasurer. If the taxpayer fails to protest within this sixty-day period, the local tax assessment becomes final, executory, and unappealable.
2. Treasurer Inaction Period
The local treasurer has sixty days from the date of filing of the protest to decide the assessment. If the local treasurer fails to render a decision within sixty days, the protest is deemed denied by statutory inaction, giving the taxpayer thirty days to appeal before the court of competent jurisdiction.
3. Judicial Appeal Period
From the receipt of the treasurer's denial or upon the expiration of the treasurer's sixty-day period to decide, the taxpayer has thirty days to file an appeal with the Regional Trial Court. Missing this thirty-day reglementary period renders the local tax assessment final, conclusive, and legally enforceable through local tax collection remedies.