Question & AnswerQ&A (BATAS PAMBANSA BLG. 700)
The period of limitation for the assessment of internal revenue taxes is three (3) years after the last day prescribed by law for filing the return, or from the day the return was filed if it was filed late.
Returns filed before the last day prescribed by law are considered filed on the last day prescribed by law for the purpose of computing the three-year period of limitation.
In cases of false or fraudulent returns with intent to evade tax, or failure to file a return, the tax may be assessed or collected anytime within ten (10) years after discovery of the falsity, fraud, or omission.
Yes, the period can be extended if both the Commissioner of Internal Revenue and the taxpayer agree in writing before the expiration of the limitation period. This written agreement can be further extended by subsequent written agreements.
Any internal revenue tax assessed within the limitation period may be collected by distraint, levy, or court proceedings within three (3) years following the assessment.
Generally, no. No proceeding in court without assessment for collection shall be begun after the expiration of the three-year period, except for cases involving fraud or failure to file return.
The law prohibits the examination, investigation, or inquiry into tax returns filed in accordance with any tax amnesty law or decree.
The provisions for the period of limitation for assessment apply to internal revenue tax assessments beginning taxable year 1984.
If the return is filed beyond the due date, the three-year period for assessment starts from the day the return was actually filed.
In a fraud assessment which has become final and executory, the fact of fraud shall be judicially taken cognizance of in civil or criminal action for the collection of the tax.