Dealing with Local Taxes

Like real estate tax, all other local taxes accrue on January 1 of each year but can be paid in quarterly installments. They are assessed every 5 years from the date they become due, and after the 5-year period, the LGU can't bring an action for the collection of taxes, fees and charges. In case of fraud, however, an assessment can be made within 10 years from the date the fraud was discovered.

The 5-year prescriptive period will be suspended in the following instances:

1.) The treasurer is legally prevented from making the assessment or collection

2.) The taxpayer requests for a reinvestigation and executes a written waiver before the expiry of the 5-year period

3.) The taxpayer is out of the country or can't be found

There are actually 2 prescriptive periods: 1 for assessment and 1 for collection, which means that after there was an assessment, the LGU still has another 5 years to collect.

LGU Remedies

Against a delinquent taxpayer, an LGU has 2 remedies that it can resort to either simultaneously or concurrently at its discretion: judicial (filing of a court case) or administrative, which takes the form of either a dsitraint of personal property or a levy on real property.

Taxpayer's Remedies

1.) File a written protest within 60 days from receipt of the assessment

2.) File a written claim for tax refund or credit within 2 years from date of payment or within 2 years from when the taxpayer becomes entitled to a refund or credit (such as when there is a favorable judgment)

No case/proceeding shall be entertained in any court after the close of the 2-year period. Failure to file the protest of appeal on time will make the assessment conclusive and unappealable. For more info, read this article.