Question & AnswerQ&A (Republic Act No. 5203)
Republic Act No. 5203 is an Act to amend certain sections of Title IX of the National Internal Revenue Code regarding civil remedies for the collection of taxes.
The Revenue District Officer if the amount does not exceed five thousand pesos; the Revenue Regional Director if the amount exceeds five thousand pesos but does not exceed twenty thousand pesos; and the Commissioner of Internal Revenue if the amount exceeds twenty thousand pesos.
Goods, chattels, effects, personal property including stocks, other securities, debts, credits, bank accounts, and interests in and rights to personal property can be seized and distrained.
Distraint shall be made not earlier than three months nor later than six months from the receipt of the demand for payment of delinquent taxes.
A report on any distraint must be submitted within ten days from receipt of the warrant by the distraining officer to the Revenue District Officer, the Revenue Regional Director, and the Commissioner of Internal Revenue.
An internal revenue officer prepares a duly authenticated certificate showing the taxpayer and the amounts due; the levy is effected by writing a description of the property on the certificate, mailed to the Register of Deeds, the delinquent taxpayer, or their agent.
If the personal property is insufficient, the levy on real property must be executed within thirty days after the distraint of personal property.
The property must be advertised for at least thirty days, including posting notices in public places and publication once a week for three weeks in a general circulation newspaper. The advertisement contains details of the tax due, sale time, location, taxpayer, and property description.
The excess proceeds shall be turned over to the owner of the property after the satisfaction of the claim and related costs.
Yes, the taxpayer may discontinue all proceedings at any time before the day fixed for the sale by paying the taxes, penalties, and interest due.
The collection agent, with approval by the Revenue District Officer, may advance funds from collections to defray the costs of collection including preservation, transportation, advertisement, and sale of personal and real property.