Tax Law
Philippine tax law is among the most procedurally demanding areas of practice — where missed deadlines are fatal, where the sequence of responses to BIR issuances is strictly governed by the Tax Code and BIR regulations, and where the difference between a well-prepared protest and a poorly drafted one can determine whether a client pays millions in disputed assessments or walks away with the assessment cancelled.
Guzman Acain LLP advises corporations and individuals on Philippine tax compliance, dispute resolution, and litigation — from routine BIR compliance to contested assessments before the Court of Tax Appeals. We also advise high-net-worth individuals and families on estate planning, succession, and asset structuring under Philippine law.
We handle the full BIR audit defense cycle:
- Letter of Authority (LOA) — initial document submission, representation before BIR examining officers, and legal objections to the scope of examination
- Reply to Preliminary Assessment Notice (PAN) — factual and legal response to the BIR’s initial assessment findings
- Protest of Formal Assessment Notice (FAN) — the critical filing that keeps the assessment under dispute; must be filed within 30 days of receipt
- Request for Reconsideration vs. Request for Reinvestigation — strategic choice with significant consequences for the timeline and the CTA appeal period
- Final Decision on Disputed Assessment (FDDA) — the BIR’s final word; triggers the 30-day window to elevate to the CTA
- Compromise Settlement — negotiated resolution under Section 204 of the NIRC for assessments that are better settled than litigated
Warrant of Distraint and Levy (WDL) Defense
A Warrant of Distraint and Levy is one of the BIR’s most aggressive collection tools — authorizing the seizure of a taxpayer’s personal property, receivables, and real property to satisfy a tax assessment. We defend clients against WDL enforcement, including:
- Premature WDL issuance — a WDL issued before the assessment is final and executory is void; we challenge premature WDLs before the CTA through petitions for injunction
- Opposition to levy proceedings — legal objections to the validity of the assessment underlying the WDL
- Injunction petitions before the CTA — to suspend BIR collection action pending resolution of the tax dispute
- Lifting of garnishments — on bank accounts and receivables subject to distraint
Court of Tax Appeals (CTA) Litigation
- Appeals from FDDA within 30 days of receipt
- Petitions for Review of BIR collection actions
- Tax refund claims — including VAT refund petitions under Section 112 of the NIRC
- Customs disputes and tariff classification cases
- Criminal tax cases filed by the BIR before the CTA
Tax Compliance Advisory
- Annual income tax, VAT, percentage tax, withholding tax, and documentary stamp tax compliance
- BIR registration and bookkeeping requirements for new business entities
- Tax treaty relief applications for cross-border transactions and payments to non-residents
- Transfer pricing documentation for related-party transactions
- Expanded withholding tax compliance for corporate clients
- Tax implications of TRAIN Law (RA 10963) on individual and corporate taxpayers
Transactional Tax
- Tax structuring for mergers, acquisitions, and corporate reorganizations
- Documentary stamp tax (DST) on share transfers and real estate transactions
- Capital gains tax planning for property dispositions
- VAT implications of asset vs. share deal structures
- Tax due diligence for corporate transactions
Private Wealth & Estate Planning
We advise high-net-worth individuals and families on the legal aspects of wealth preservation and transfer under Philippine law — with particular attention to succession planning, cross-border asset exposure, and confidentiality.
Estate Planning
Philippine succession law governs the transfer of a decedent’s estate — including mandatory legitime shares for compulsory heirs that cannot be reduced by will. Effective estate planning works within these constraints to achieve the client’s objectives while minimizing estate tax exposure.
Our estate planning services include:
- Last Will and Testament — drafting, execution requirements, and notarization; holographic and notarial wills
- Living Trusts — for asset protection and seamless transfer outside of probate
- Advance directives — for health care and financial decisions in the event of incapacity
- Pre-nuptial and post-nuptial agreements — property regime elections and their tax implications
- Gifting strategies — utilizing donor’s tax exemptions and the annual exclusion for tax-efficient wealth transfer during the client’s lifetime
Estate Tax
Under the TRAIN Law (RA 10963), the Philippine estate tax is a flat 6% on the net taxable estate — a significant simplification from the prior graduated rates. For estates with Philippine assets, proper valuation, deduction documentation, and timely filing of the estate tax return (within one year of death, extendable) are critical to avoiding penalties and surcharges.
We advise on:
- Estate tax return preparation and filing
- Valuation of estate assets — including real property, shares of stock, and business interests
- Maximizing allowable deductions under the NIRC
- Estate tax amnesty compliance where applicable
- Extrajudicial settlement of estate for uncomplicated estates with adult heirs in agreement
Donor’s Tax
Strategic lifetime gifting can significantly reduce the eventual estate tax burden on a family’s wealth. Under the TRAIN Law, donor’s tax is a flat 6% on donations exceeding Php 250,000 per calendar year. We advise on gifting programs, donation of real property, and the tax implications of transfers to family corporations and trusts.
Succession Planning for Family Businesses
For family-owned corporations and closely-held businesses, the death of a controlling shareholder creates immediate legal and tax consequences — including estate tax on the shares, potential disputes among heirs, and governance disruption. We advise on:
- Shareholder agreements with buy-sell provisions triggered by death
- Family corporation structuring for succession efficiency
- Voting trust arrangements
- Inter-generational transfer strategies that preserve business continuity
Probate & Estate Administration
When a decedent leaves a will, probate proceedings before the RTC are required to admit the will and authorize the executor to distribute the estate. For intestate estates, letters of administration must be obtained. We handle:
- Petition for Probate of Will
- Petition for Letters of Administration (intestate)
- Petition for Partition and Issuance of New Titles
- Extrajudicial Settlement of Estate with Deed of Partition
- Publication requirements and BIR clearance for estate settlement
Asset Protection
For clients with exposure to litigation risk — business owners, professionals, and executives — we advise on legal structures for protecting assets from future creditors within the bounds of Philippine law, including:
- Property regime structuring for married couples
- Use of family corporations and holding companies
- Reputational risk and financial privacy advisory
FAQs
Contact a lawyer immediately. The LOA triggers a strict examination timeline and your responses at every stage — including what documents you submit and what objections you raise — will affect your options throughout the audit and any subsequent dispute. Do not submit documents to the BIR without legal advice on what to produce and what to withhold.
Yes — but you must file a written protest within 30 days of receipt of the FAN. This deadline is non-extendable and jurisdictional. If the 30-day period lapses without a protest, the assessment becomes final, executory, and demandable. Call us immediately upon receipt of any BIR assessment notice.
If the assessment underlying the WDL is still disputed — or if the WDL was issued prematurely before the assessment became final — you have grounds to challenge it. A petition for injunction before the Court of Tax Appeals can suspend BIR collection action. The window for filing is short; contact us immediately.
Under the NIRC as amended by the TRAIN Law, the estate tax return must be filed within one year from the date of death. An extension of up to 30 days may be granted by the BIR Commissioner for meritorious reasons. Failure to file on time results in surcharges, interest, and compromise penalties.
Even with compulsory heirs — children and a surviving spouse who are entitled to their legitime by law — a will is valuable because it allows you to: designate the executor of your estate, specify how the free portion (the estate beyond the legitime) is distributed, make specific bequests of particular assets to particular heirs, and provide for charitable donations. Without a will, the entire estate is distributed by intestate succession under the Civil Code, which may not reflect your wishes.
Foreign nationals generally cannot own Philippine land directly, but may hold condominium units (subject to the 40% foreign ownership limit in a condominium project) and may hold shares in a Philippine corporation that owns land — subject to the foreign equity restrictions applicable to land-owning corporations under the Constitution and the Foreign Investments Act. We advise on compliant structures for foreign clients with Philippine real estate interests.
All consultations are confidential and protected by attorney-client privilege. Tax matters are time-sensitive — if you have received a BIR assessment notice or a Warrant of Distraint and Levy, contact us immediately.
📞 +63 (02) 8403.3478
📞 Emergency: +63 998 845 0704
