Gonzalo Nava v CIR; G.R. No. L-19470; 30 Jan 1965

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Petitioner on 15 May 1951 filed his income tax return and paid half of the tax due assessed that same date by the CIR, leaving a balance which he offered on two occasions to pay out of his backpay. The CIR rejected both offers. On 30 March 1955, respondent issued a deficiency income tax assessment notice inclusive of petitioner’s balance from the 1950 income tax return plus surcharge. However, petitioenr claims to have learned of the revised assessment for the first time on 19 December 1956.

Whether or not the government’s right to collect the balance has prescribed.

YES. It being undisputed that an original assessment of Nava’s 1950 income tax return was made on 15 May 1951, and no valid and effective notice of the re-assessment having been made against the petitioner after that date, it is evident that the re-assessment expired on 15 May 1956. Since the notice of said deficiency income tax was effectively made on 19 December 1956 at the earliest, the judicial action to collect any deficiency tax on Nava’s 1950 income tax return has already prescribed under Section 332 (c) of the Tax Code, it having been found by the Tax Appeals court that said return was not false or fraudulent.

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