Commercial and Taxation Laws › Taxation Law › Tax Remedies › Assessment Process
a. Procedural Due Process in Tax Assessments
Differences between PAN, FAN and FDDA
| PAN | FAN | FDDA |
| A communication issued by the Regional Assessment Division or by the CIR or his duly authorized representative informing the taxpayer who has been audited of the findings of the Revenue Officer following the review and evaluation of these findings | A declaration of deficiency taxes issued to a taxpayer who fails to respond to a PAN within the prescribed period, or whose reply is found to be without merit | Decision of the CIR or his duly authorized representative that states the facts and the law, rules and regulations or jurisprudence on which the decision is based; otherwise, it is void. |
| Shall be in writing and shall show in detail the facts and the law, rules and regulations or jurisprudence on which the proposed assessment is based; otherwise, the assessment is void. | The formal letter of demand and FAN shall state in detail the facts and the law, rules and regulations or jurisprudence on which the assessment is based; otherwise, the assessment is void. | |
| 15 days to reply | 30 days to file protest after receipt of FAN | Within 30 days from receipt of an FDDA issued by the CIR’s authorized representative, appeal either to the CTA or to the CIR; a CIR decision may be appealed to the CTA within 30 days from receipt. |
| Response is general due to shorter time. does not necessarily tackle specific findings | The protest must state its factual and legal grounds. If it requests reinvestigation, the taxpayer must submit supporting documents within 60 days from filing the protest. | |
| Filing of reply is directory | Filing of protest is mandatory | |
| Non-filing of reply will warrant issuance of Final Assessment Notice (FAN) | Failure to file protest to FAN will make the assessment final and executory and the taxpayer loses its right to seek judicial remedy. |