PRESCRIPTIVE PERIODS

A. Imprescriptibility of taxes
As a rule, taxes are imprescriptible as they are the lifeblood of the government. However, tax statutes may provide for
statute of limitations.
Exceptions:
1. Section 222
- GR: Section 203  internal revenue taxes:
- 3 years, after the last day prescribed by law for the filing of the return or if filed beyond, from the
day the return was filed
~ XPN: there is period agreed upon (CIR & taxpayer)
- to: assess
- ♥ then: 5 years, after assessment or after the period agreed upon, to:
 levy (real prop)/distraint (personal prop)/file court action
- XPN: false or fraudulent return with intent to evade tax or of failure to file a return
- 10 years, after the discovery of the falsity, fraud or omission
*note: government has 2 options
- to: - assess and proceed to ♥; or
- file court action for collection without assessment
- running is suspended if:
- CIR is legally prevented from assessing or undertaking levy/distraint/court action
- taxpayer requests reinvestigation + granted by CIR
- taxpayer is abroad
- taxpayer whereabouts are unknown
- the property subject to levy/distraint could not be located
2. Section 430, RA No. 10863 (Customs Modernization and Tariff Act)
- GR: 3 years, from the final payment of duties and taxes, or upon completed post clearance audit, the assessment shall
be conclusive upon all parties
- XPNs: - fraud; goods were not released from customs
3. Section 194, LGC
- GR: Local taxes, fees, or charges
- 5 years, from date they became due
~ XPN: 10 years, fraud - to: - assess
- then: 5 years, after assessment - to: - collect by administrative or judicial action
- running is suspended if:
- treasurer is legally prevented from assessing
- taxpayer requests reinvestigation + waiver before expiration
- taxpayer is abroad or whereabouts are unknown
4. Section 270, LGC
- GR: Real Property Tax (RPT)
- 5 years, from date they became due
~ XPN: 10 years, fraud
- to: collect by administrative or judicial action
(no more assessment first, as compared to Section 194 above)
- running is suspended if:
- treasurer is legally prevented from assessing
- owner of property or person having legal interest requests reinvestigation + waiver before expiration
- owner of property or person having legal interest is abroad or whereabouts are unknown
B. Sections 203, 222, 223
1. False v. Fraudulent Return
false return merely implies a deviation from the truth or fraudulent return is intentional and deceitful
fact whether intentional or not with the aim of evading the correct tax due
*(Aznar v. Commissioner, L-20569, 58 SCRA 529)
2. Section 248(B): prima facie evidence of a false or fraudulent return
- substantial under declaration of taxable sales/receipts/income
- substantial overstatement of deduction
- if either of the 2 above exceeded 30% of actual, taxpayer shall be liable