VIII — REMEDIES
"CHAPTER I — REMEDIES IN GENERAL
202. Final Deed to Purchaser. — In case the taxpayer shall
not redeem the property as herein provided, the Revenue District
Officer shall, as grantor, execute a deed conveying to the purchaser
so much of the property as has been sold, free from all liens of
any kind whatsoever, and the deed shall succinctly recite all the
proceedings upon which the validity of the sale depends.
203. Period of Limitation Upon Assessment and Collection. —
Except as provided in Section 222, internal revenue taxes shall
be assessed within three (3) years after the last day prescribed
by law for the filing of the return, and no proceeding in court
without assessment for the collection of such taxes shall be begun
after the expiration of such period: Provided, That in a case where
a return is filed beyond the period prescribed by law, the three
(3)-year period shall be counted from the day the return was filed.
For purposes of this Section, a return filed before the last day
prescribed by law for the filing thereof shall be considered as
filed on such last day.
204. Authority of the Commissioner to Compromise, Abate and Refund
or Credit Taxes. — The Commissioner may —
Compromise the payment of any internal revenue tax, when:
A reasonable doubt as to the validity of the claim against the taxpayer
The financial position of the taxpayer demonstrates a clear inability
to pay the assessed tax.
compromise settlement of any tax liability shall be subject to the
following minimum amounts:
cases of financial incapacity, a minimum compromise rate equivalent
to ten percent (10%) of the basic assessed tax; and
other cases, a minimum compromise rate equivalent to forty percent
(40%) of the basic assessed tax.
the basic tax involved exceeds One million pesos (P1,000,000) or
where the settlement offered is less than the prescribed minimum
rates, the compromise shall be subject to the approval of the Evaluation
Board which shall be composed of the Commissioner and the four (4)
Abate or cancel a tax liability, when:
The tax or any portion thereof appears to be unjustly or excessively
The administration and collection costs involved do not justify
the collection of the amount due.
criminal violations may be compromised except: (a) those already
filed in court, or (b) those involving fraud.
Credit or refund taxes erroneously or illegally received or penalties
imposed without authority, refund the value of internal revenue
stamps when they are returned in good condition by the purchaser,
and, in his discretion, redeem or change unused stamps that have
been rendered unfit for use and refund their value upon proof of
destruction. No credit or refund of taxes or penalties shall be
allowed unless the taxpayer files in writing with the Commissioner
a claim for credit or refund within two (2) years after the payment
of the tax or penalty: Provided, however, That a return filed showing
an overpayment shall be considered as a written claim for credit
Tax Credit Certificate validly issued under the provisions of this
Code may be applied against any internal revenue tax, excluding
withholding taxes, for which the taxpayer is directly liable. Any
request for conversion into refund of unutilized tax credits may
be allowed, subject to the provisions of Section 230 of this Code:
Provided, That the original copy of the Tax Credit Certificate showing
a creditable balance is surrendered to the appropriate revenue officer
for verification and cancellation: Provided, further, That in no
case shall a tax refund be given resulting from availment of incentives
granted pursuant to special laws for which no actual payment was
Commissioner shall submit to the Chairmen of the Committee on Ways
and Means of both the Senate and House of Representatives, every
six (6) months, a report on the exercise of his powers under this
Section, stating therein the following facts and information, among
others: names and addresses of taxpayers whose cases have been the
subject of abatement or compromise; amount involved; amount compromised
or abated; and reasons for the exercise of power: Provided, That
the said report shall be presented to the Oversight Committee in
Congress that shall be constituted to determine that said powers
are reasonably exercised and that the Government is not unduly deprived
II — CIVIL REMEDIES FOR COLLECTION OF TAXES
205. Remedies for the Collection of Delinquent Taxes. — The
civil remedies for the collection of internal revenue taxes, fees,
or charges, and any increment thereto resulting from delinquency
By distraint of goods, chattels, or effects, and other personal
property of whatever character, including stocks and other securities,
debts, credits, bank accounts, and interest in and rights to personal
property, and by levy upon real property and interest in or rights
to real property; and
By civil or criminal action.
of these remedies or both simultaneously may be pursued in the discretion
of the authorities charged with the collection of such taxes: Provided,
however, that the remedies of distraint and levy shall not be availed
of where the amount of tax involved is not more than One hundred
judgment in the criminal case shall not only impose the penalty
but shall also order payment of the taxes subject of the criminal
case as finally decided by the Commissioner.
Bureau of Internal Revenue shall advance the amounts needed to defray
costs of collection by means of civil or criminal action, including
the preservation or transportation of personal property distrained
and the advertisement and sale thereof, as well as of real property
and improvements thereon.
206. Constructive Distraint of the Property of a Taxpayer. —
To safeguard the interest of the Government, the Commissioner may
place under constructive distraint the property of a delinquent
taxpayer or any taxpayer who, in his opinion, is retiring from any
business subject to tax, or is intending to leave the Philippines
or to remove his property therefrom or to hide or conceal his property
or to perform any act tending to obstruct the proceedings for collecting
the tax due or which may be due from him.
constructive distraint of personal property shall be effected by
requiring the taxpayer or any person having possession or control
of such property to sign a receipt covering the property distrained
and obligate himself to preserve the same intact and unaltered and
not to dispose of the same in any manner whatever, without the express
authority of the Commissioner.
case the taxpayer or the person having the possession and control
of the property sought to be placed under constructive distraint
refuses or fails to sign the receipt herein referred to, the revenue
officer effecting the constructive distraint shall proceed to prepare
a list of such property and, in the presence of two (2) witnesses,
leave a copy thereof in the premises where the property distrained
is located, after which the said property shall be deemed to have
been placed under constructive distraint.
207. Summary Remedies. —
Distraint of Personal Property. — Upon the failure of the
person owing any delinquent tax or delinquent revenue to pay the
same at the time required, the Commissioner or his duly authorized
representative, if the amount involved is in excess of One million
pesos (P1,000,000), or the Revenue District Officer, if the amount
involved is One million pesos (P1,000,000) or less, shall seize
and distraint any goods, chattels, or effects, and the personal
property, including stocks and other securities, debts, credits,
bank accounts, and interests in and rights to personal property
of such persons in sufficient quantity to satisfy the tax, or charge,
together with any increment thereto incident to delinquency, and
the expenses of the distraint and the cost of the subsequent sale.
report on the distraint shall, within ten (10) days from receipt
of the warrant, be submitted by the distraining officer to the Revenue
District Officer, and to the Revenue Regional Director: Provided,
That the Commissioner or his duly authorized representative shall,
subject to rules and regulations promulgated by the Secretary of
Finance, upon recommendation of the Commissioner, have the power
to lift such order of distraint: Provided, further, That a consolidated
report by the Revenue Regional Director may be required by the Commissioner
as often as necessary.
Levy on Real Property. — After the expiration of the time
required to pay the delinquent tax or delinquent revenue as prescribed
in this Section, real property may be levied upon, before, simultaneously
or after the distraint of personal property belonging to the delinquent.
To this end, any internal revenue officer designated by the Commissioner
or his duly authorized representative shall prepare a duly authenticated
certificate showing the name of the taxpayer and the amounts of
the tax and penalty due from him. Said certificate shall operate
with the force of a legal execution throughout the Philippines.
shall be effected by writing upon said certificate a description
of the property upon which levy is made. At the same time, written
notice of the levy shall be mailed to or served upon the Register
of Deeds of the province or city where the property is located and
upon the delinquent taxpayer, or if he be absent from the Philippines,
to his agent or the manager of the business in respect to which
the liability arose, or if there be none, to the occupant of the
property in question.
case the warrant of levy on real property is not issued before or
simultaneously with the warrant of distraint on personal property,
and the personal property of the taxpayer is not sufficient to satisfy
his tax delinquency, the Commissioner or his duly authorized representative
shall, within thirty (30) days after execution of the distraint,
proceed with the levy on the taxpayer's real property.
ten (10) days after receipt of the warrant, a report on any levy
shall be submitted by the levying officer to the Commissioner or
his duly authorized representative: Provided, however, That a consolidated
report by the Revenue Regional Director may be required by the Commissioner
as often as necessary: Provided, further, That the Commissioner
or his duly authorized representative, subject to rules and regulations
promulgated by the Secretary of Finance, upon recommendation of
the Commissioner, shall have the authority to lift warrants of levy
issued in accordance with the provisions hereof.
208. Procedure for Distraint and Garnishment. — The officer
serving the warrant of distraint shall make or cause to be made
an account of the goods, chattels, effects or other personal property
distrained, a copy of which, signed by himself, shall be left either
with the owner or person from whose possession such goods, chattels,
or effects or other personal property were taken, or at the dwelling
or place of business of such person and with someone of suitable
age and discretion, to which list shall be added a statement of
the sum demanded and note of the time and place of sale.
and other securities shall be distrained by serving a copy of the
warrant of distraint upon the taxpayer and upon the president, manager,
treasurer or other responsible officer of the corporation, company
or association, which issued the said stocks or securities.
and credits shall be distrained by leaving with the person owing
the debts or having in his possession or under his control such
credits, or with his agent, a copy of the warrant of distraint.
The warrant of distraint shall be sufficient authority to the person
owning the debts or having in his possession or under his control
any credits belonging to the taxpayer to pay to the Commissioner
the amount of such debts or credits.
accounts shall be garnished by serving a warrant of garnishment
upon the taxpayer and upon the president, manager, treasurer or
other responsible officer of the bank. Upon receipt of the warrant
of garnishment, the bank shall turn over to the Commissioner so
much of the bank accounts as may be sufficient to satisfy the claim
of the Government.
209. Sale of Property Distrained and Disposition of Proceeds. —
The Revenue District Officer or his duly authorized representative,
other than the officer referred to in Section 208 of this Code shall,
according to rules and regulations prescribed by the Secretary of
Finance, upon recommendation of the Commissioner, forthwith cause
a notification to be exhibited in not less than two (2) public places
in the municipality or city where the distraint is made, specifying
the time and place of sale and the articles distrained. The time
of sale shall not be less than twenty (20) days after notice to
the owner or possessor of the property as above specified and the
publication or posting of such notice. One place for the posting
of such notice shall be at the Office of the Mayor of the city or
municipality in which the property is distrained.
the time and place fixed in such notice, the said revenue officer
shall sell the goods, chattels, or effects, or other personal property,
including stocks and other securities so distrained, at public auction,
to the highest bidder for cash, or with the approval of the Commissioner,
through duly licensed commodity or stock exchanges.
the case of stocks and other securities, the officer making the
sale shall execute a bill of sale which he shall deliver to the
buyer, and a copy thereof furnished the corporation, company or
association which issued the stocks or other securities. Upon receipt
of the copy of the bill of sale, the corporation, company or association
shall make the corresponding entry in its books, transfer the stocks
or other securities sold in the name of the buyer, and issue, if
required to do so, the corresponding certificates of stock or other
residue over and above what is required to pay the entire claim,
including expenses, shall be returned to the owner of the property
sold. The expenses chargeable upon each seizure and sale shall embrace
only the actual expenses of seizure and preservation of the property
pending the sale, and no charge shall be imposed for the services
of the local internal revenue officer or his deputy.
210. Release of Distrained Property Upon Payment Prior to Sale.
— If at any time prior to the consummation of the sale all
proper charges are paid to the officer conducting the sale, the
goods or effects distrained shall be restored to the owner.
"SECTION 211. Report of Sale to Bureau of Internal Revenue.
— Within two (2) days after the sale, the officer making the
same shall make a report of his proceedings in writing to the Commissioner
and shall himself preserve a copy of such report as an official
212. Purchase by Government at Sale Upon Distraint. — When
the amount bid for the property under distraint is not equal to
the amount of the tax or is very much less than the actual market
value of the articles offered for sale, the Commissioner or his
deputy may purchase the same in behalf of the National Government
for the amount of taxes, penalties and cost due thereon.
so purchased may be resold by the Commissioner or his deputy, subject
to the rules and regulations prescribed by the Secretary of Finance,
the net proceeds therefrom shall be remitted to the National Treasury
and accounted for as internal revenue.
213. Advertisement and Sale. — Within twenty (20) days after
levy, the officer conducting the proceedings shall proceed to advertise
the property or a usable portion thereof as may be necessary to
satisfy the claim and cost of sale; and such advertisement shall
cover a period of at least thirty (30) days. It shall be effectuated
by posting a notice at the main entrance of the municipal building
or city hall and in a public and conspicuous place in the barrio
or district in which the real estate lies and by publication once
a week for three (3) weeks in a newspaper of general circulation
in the municipality or city where the property is located. The advertisement
shall contain a statement of the amount of taxes and penalties so
due and the time and place of sale, the name of the taxpayer against
whom taxes are levied, and a short description of the property to
be sold. At any time before the day fixed for the sale, the taxpayer
may discontinue all proceedings by paying the taxes, penalties and
interest. If he does not do so, the sale shall proceed and shall
be held either at the main entrance of the municipal building or
city hall, or on the premises to be sold, as the officer conducting
the proceedings shall determine and as the notice of sale shall
five (5) days after the sale, a return by the distraining or levying
officer of the proceedings shall be entered upon the records of
the Revenue Collection Officer, the Revenue District Officer and
the Revenue Regional Director. The Revenue Collection Officer, in
consultation with the Revenue District Officer, shall then make
out and deliver to the purchaser a certificate from his records,
showing the proceedings of the sale, describing the property sold,
stating the name of the purchaser and setting out the exact amount
of all taxes, penalties and interest: Provided, however, That in
case the proceeds of the sale exceeds the claim and cost of sale,
the excess shall be turned over to the owner of the property.
Revenue Collection Officer, upon approval by the Revenue District
Officer may, out of his collection, advance an amount sufficient
to defray the costs of collection by means of the summary remedies
provided for in this Code, including the preservation or transportation
in case of personal property, and the advertisement and subsequent
sale, both in cases of personal and real property including improvements
found on the latter. In his monthly collection reports, such advances
shall be reflected and supported by receipts.
214. Redemption of Property Sold. — Within one (1) year from
the date of sale, the delinquent taxpayer, or any one for him, shall
have the right of paying to the Revenue District Officer the amount
of the public taxes, penalties, and interest thereon from the date
of delinquency to the date of sale, together with interest on said
purchase price at the rate of fifteen percent (15%) per annum from
the date of purchase to the date of redemption, and such payment
shall entitle the person paying to the delivery of the certificate
issued to the purchaser and a certificate from the said Revenue
District Officer that he has thus redeemed the property, and the
Revenue District Officer shall forthwith pay over to the purchaser
the amount by which such property has thus been redeemed, and said
property thereafter shall be free from the lien of such taxes and
owner shall not, however, be deprived of the possession of the said
property and shall be entitled to the rents and other income thereof
until the expiration of the time for its redemption.
215. Forfeiture to Government for Want of Bidder. — In case
there is no bidder for real property exposed for sale as hereinabove
provided or if the highest bid is for an amount insufficient to
pay the taxes, penalties and costs, the Internal Revenue Officer
conducting the sale shall declare the property forfeited to the
Government in satisfaction of the claim in question and within two
(2) days thereafter, shall make a return of his proceedings and
the forfeiture which shall be spread upon the records of his office.
It shall be the duty of the Register of Deeds concerned, upon registration
with his office of any such declaration of forfeiture, to transfer
the title of the property forfeited to the Government without the
necessity of an order from a competent court.
"Within one (1) year from the date of such forfeiture, the
taxpayer, or any one for him, may redeem said property by paying
to the Commissioner or the latter's Revenue Collection Officer the
full amount of the taxes and penalties, together with interest thereon
and the costs of sale, but if the property be not thus redeemed,
the forfeiture shall become absolute.
216. Resale of Real Estate Taken for Taxes. — The Commissioner
shall have charge of any real estate obtained by the Government
of the Philippines in payment or satisfaction of taxes, penalties
or costs arising under this Code or in compromise or adjustment
of any claim therefor; and said Commissioner may, upon the giving
of not less than twenty (20) days notice, sell and dispose of the
same at public auction, or with the prior approval of the Secretary
of Finance, dispose of the same at private sale. In either case,
the proceeds of the sale shall be deposited with the National Treasury,
and an accounting of the same shall be rendered to the Chairman
of the Commission on Audit
217. Further Distraint or Levy. — The remedy by distraint
of personal property and levy on realty may be repeated if necessary
until the full amount due, including all expenses, is collected.
218. Injunction not Available to Restrain Collection of Tax. —
No court shall have the authority to grant an injunction to restrain
the collection of any national internal revenue tax, fee or charge
imposed by this Code.
219. Nature and Extent of Tax Lien. — If any person, corporation,
partnership, joint-account (cuentas en participacion), association
or insurance company liable to pay an internal revenue tax, neglects
or refuses to pay the same after demand, the amount shall be a lien
in favor of the Government of the Philippines from the time when
the assessment was made by the Commissioner until paid, with interests,
penalties, and costs that may accrue in addition thereto upon all
property and rights to property belonging to the taxpayer: Provided,
That this lien shall not be valid against any mortgagee, purchaser
or judgment creditor until notice of such lien shall be filed by
the Commissioner in the office of the Register of Deeds of the province
or city where the property of the taxpayer is situated or located.
220. Form and Mode of Proceeding in Actions Arising under this Code.
— Civil and criminal actions and proceedings instituted in
behalf of the Government under the authority of this Code or other
law enforced by the Bureau of Internal Revenue shall be brought
in the name of the Government of the Philippines and shall be conducted
by legal officers of the Bureau of Internal Revenue but no civil
or criminal action for the recovery of taxes or the enforcement
of any fine, penalty or forfeiture under this Code shall be filed
in court without the approval of the Commissioner.
221. Remedy for Enforcement of Statutory Penal Provisions. —
The remedy for enforcement of statutory penalties of all sorts shall
be by criminal or civil action, as the particular situation may
require, subject to the approval of the Commissioner.
222. Exceptions as to Period of Limitation of Assessment and Collection
of Taxes. —
In the case of a false or fraudulent return with intent to evade
tax or of failure to file a return, the tax may be assessed, or
a proceeding in court for the collection of such tax may be filed
without assessment, at any time within ten (10) years after the
discovery of the falsity, fraud or omission: Provided, That in a
fraud assessment which has become final and executory, the fact
of fraud shall be judicially taken cognizance of in the civil or
criminal action for the collection thereof.
If before the expiration of the time prescribed in Section 203 for
the assessment of the tax, both the Commissioner and the taxpayer
have agreed in writing to its assessment after such time, the tax
may be assessed within the period agreed upon. The period so agreed
upon may be extended by subsequent written agreement made before
the expiration of the period previously agreed upon.
Any internal revenue tax which has been assessed within the period
of limitation as prescribed in paragraph (a) hereof may be collected
by distraint or levy or by a proceeding in court within five (5)
years following the assessment of the tax.
Any internal revenue tax, which has been assessed within the period
agreed upon as provided in paragraph (b) hereinabove, may be collected
by distraint or levy or by a proceeding in court within the period
agreed upon in writing before the expiration of the five (5)-year
period. The period so agreed upon may be extended by subsequent
written agreements made before the expiration of the period previously
Provided, however, That nothing in the immediately preceding Section
and paragraph (a) hereof shall be construed to authorize the examination
and investigation or inquiry into any tax return filed in accordance
with the provisions of any tax amnesty law or decree.
223. Suspension of Running of Statute of Limitations. — The
running of the Statute of Limitations provided in Sections 203 and
222 on the making of assessment and the beginning of distraint or
levy or a proceeding in court for collection, in respect of any
deficiency, shall be suspended for the period during which the Commissioner
is prohibited from making the assessment or beginning distraint
or levy or a proceeding in court and for sixty (60) days thereafter;
when the taxpayer requests for a reinvestigation which is granted
by the Commissioner; when the taxpayer cannot be located in the
address given by him in the return filed upon which a tax is being
assessed or collected: Provided, That, if the taxpayer informs the
Commissioner of any change in address, the running of the Statute
of Limitations will not be suspended; when the warrant of distraint
or levy is duly served upon the taxpayer, his authorized representative,
or a member of his household with sufficient discretion, and no
property could be located; and when the taxpayer is out of the Philippines.
224. Remedy for Enforcement of Forfeitures. — The forfeiture
of chattels and removable fixtures of any sort shall be enforced
by the seizure and sale, or destruction, of the specific forfeited
property. The forfeiture of real property shall be enforced by a
judgment of condemnation and sale in a legal action or proceeding,
civil or criminal, as the case may require.
225. When Property to be Sold or Destroyed. — Sales of forfeited
chattels and removable fixtures shall be effected, so far as practicable,
in the same manner and under the same conditions as the public notice
and the time and manner of sale as are prescribed for sales of personal
property distrained for the non-payment of taxes.
spirits, liquors, cigars, cigarettes, other manufactured products
of tobacco, and all apparatus used in or about the illicit production
of such articles may, upon forfeiture, destroyed by order of the
Commissioner, when the sale of the same for consumption or use would
be injurious to public health or prejudicial to the enforcement
of the law.
other articles subject to excise tax, which have been manufactured
or removed in violation of this Code, as well as dies for the printing
or making of internal revenue stamps and labels which are in imitation
of or purport to be lawful stamps, or labels may, upon forfeiture,
be sold or destroyed in the discretion of the Commissioner.
property shall not be destroyed until at least twenty (20) days
226. Disposition of Funds Recovered in Legal Proceedings or Obtained
from Forfeitures. — All judgments and monies recovered and
received for taxes, costs, forfeitures, fines and penalties shall
be paid to the Commissioner or his authorized deputies as the taxes
themselves are required to be paid, and except as specially provided,
shall be accounted for and dealt within the same way.
227. Satisfaction of Judgment Recovered Against any Internal Revenue
Officer. — When an action is brought against any Internal
Revenue Officer to recover damages by reason of any act done in
the performance of official duty, and the Commissioner is notified
of such action in time to make defense against the same, through
the Solicitor General, any judgment, damages or costs recovered
in such action shall be satisfied by the Commissioner, upon approval
of the Secretary of Finance, or if the same be paid by the person
sued shall be repaid or reimbursed to him.
such judgment, damages, or costs shall be paid or reimbursed in
behalf of a person who has acted negligently or in bad faith, or
with willful oppression.
III — PROTESTING AN ASSESSMENT, REFUND, ETC.
228. Protesting of Assessment. — When the Commissioner or
his duly authorized representative finds that proper taxes should
be assessed, he shall first notify the taxpayer of his findings:
Provided, however, That a preassessment notice shall not be required
in the following cases:
When the finding for any deficiency tax is the result of mathematical
error in the computation of the tax as appearing on the face of
the return; or
When a discrepancy has been determined between the tax withheld
and the amount actually remitted by the withholding agent; or
When a taxpayer who opted to claim a refund or tax credit of excess
creditable withholding tax for a taxable period was determined to
have carried over and automatically applied the same amount claimed
against the estimated tax liabilities for the taxable quarter or
quarters of the succeeding taxable year; or
When the excise tax due on excisable articles has not been paid;
When an article locally purchased or imported by an exempt person,
such as, but not limited to, vehicles, capital equipment, machineries
and spare parts, has been sold, traded or transferred to non-exempt
taxpayers shall be informed in writing of the law and the facts
on which the assessment is made; otherwise, the assessment shall
a period to be prescribed by implementing rules and regulations,
the taxpayer shall be required to respond to said notice. If the
taxpayer fails to respond, the Commissioner or his duly authorized
representative shall issue an assessment based on his findings.
assessment may be protested administratively by filing a request
for reconsideration or reinvestigation within thirty (30) days from
receipt of the assessment in such form and manner as may be prescribed
by implementing rules and regulations. Within sixty (60) days from
filing of the protest, all relevant supporting documents shall have
been submitted; otherwise, the assessment shall become final.
"If the protest is denied in whole or in part, or is not acted
upon within one hundred eighty (180) days from submission of documents,
the taxpayer adversely affected by the decision or inaction may
appeal to the Court of Tax Appeals within thirty (30) days from
receipt of the said decision, or from the lapse of the one hundred
eighty (180)-day period; otherwise, the decision shall become final,
executory and demandable.
229. Recovery of Tax Erroneously or Illegally Collected. —
No suit or proceeding shall be maintained in any court for the recovery
of any national internal revenue tax hereafter alleged to have been
erroneously or illegally assessed or collected, or of any penalty
claimed to have been collected without authority, or of any sum
alleged to have been excessively or in any manner wrongfully collected,
until a claim for refund or credit has been duly filed with the
Commissioner; but such suit or proceeding may be maintained, whether
or not such tax, penalty, or sum has been paid under protest or
any case, no such suit or proceeding shall be filed after the expiration
of two (2) years from the date of payment of the tax or penalty
regardless of any supervening cause that may arise after payment:
Provided, however, That the Commissioner may, even without a written
claim therefor, refund or credit any tax, where on the face of the
return upon which payment was made, such payment appears clearly
to have been erroneously paid.
230. Forfeiture of Cash Refund and of Tax Credit. —
Forfeiture of Refund. — A refund check or warrant issued in
accordance with the pertinent provisions of this Code, which shall
remain unclaimed or uncashed within five (5) years from the date
the said warrant or check was mailed or delivered, shall be forfeited
in favor of the Government and the amount thereof shall revert to
the general fund.
Forfeiture of Tax Credit. — A tax credit certificate issued
in accordance with the pertinent provisions of this Code, which
shall remain unutilized after five (5) years from the date of issue,
shall, unless revalidated, be considered invalid, and shall not
be allowed as payment for internal revenue tax liabilities of the
taxpayer, and the amount covered by the certificate shall revert
to the general fund.
Transitory Provision. — For purposes of the preceding Subsection,
a tax credit certificate issued by the Commissioner or his duly
authorized representative prior to January 1, 1998, which remains
unutilized or has a creditable balance as of said date, shall be
presented for revalidation with the Commissioner or his duly authorized
representative or on before June 30, 1998.
231. Action to Contest Forfeiture of Chattel. — In case of
the seizure of personal property under claim of forfeiture, the
owner desiring to contest the validity of the forfeiture may, at
any time before sale or destruction of the property, bring an action
against the person seizing the property or having possession thereof
to recover the same, and upon giving proper bond, may enjoin the
sale; or after the sale and within six (6) months, he may bring
an action to recover the net proceeds realized at the sale.