Petronila Tupaz v Hon. Benedicto B. Ulep; G.R. No. 127777; 01 Oct 1999

in Legal Chyme by

On 16 July 1984, a notice of assessment was issued against El Oro Engravers Corporation finding it liable for deficiency corporate income tax for taxable year 1979. For failure to pay said tax liability, two informations were filed against petitioner and her husband as corporate officers of El Oro.

In her petition on certiorari, petitioner contended that the period of assessment for taxable year 1979 has prescribed, citing B. P. Blg. 700 which shortened the prescriptive period from five years to three years.

Whether or not the period of assessment has prescribed.

NO. B.P. Blg. 700, effective 05 April 1984, specifically states that the shortened period of three years shall apply to assessments and collections of internal revenue taxes beginning taxable year 1984. Assessments made on or after 05 April 1984 are governed by the five-year period if the taxes assessed covered taxable years prior to 01 January 1984.

The deficiency income tax under consideration is for taxable year 1979. Thus the period of assessment is still five years, under the old law. The income tax return was filed in April 1980. Hence the 16 July 1984 tax assessment was issued within the prescribed period of five years from the last day of filing the return or from the date the return is filed, whichever comes later.

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