CIR v Wyeth

12/16/1974 Notice
12/17/1974 Notice
Both received on 12/19/1974
1/17/1975 & 2/8/1975 dates of protest
BIR conducted a reinvestigation
12/10/1979 decision reduced the tax assessed
1/2/1980 decision received
1/18/1980 PFR before the CTA

2/7/1980 WDL issued

3/12/1980 WDL received

Is the assessment barred by prescription? For prescription of assessment cannot identify because factual
circumstances do not include what year involved and when was the return filed. Presumed regularity.

Is the government’s right to collect barred by prescription?

Right to collect – 3 year prescriptive period from date of assessment (Date when the assessment is sent to or mailed
to the TP not served; it is necessary that TP receives the same) Period to assess hanggang dun lang sa issuance.

When will there be collection?

a. when there’s a case filed in court or
b. when tax is administratively collected
Note: Tax is not validly collected administratively if the warrant is not served to TP. Service and issuance must be
done within the prescriptive period.

When was the assessment issued? 12/16/1974

Until /1977 period to collect
Prescribed naba issuance ng warrant nung 1980?
Reinvestigation granted because BIR conducted the same. The filing of reinvestigation tolled the running of the
prescriptive period.
12/17/1974 NOA – 2/8/1975 reinvestigated so may 2 months na
3 years minus 2 months stopped counting when reinvestigation granted.
Strat to run again when new assessment issued 12/10/1979; WDL 2/7/1980 2 months

3 years – 2 months + 2 months

Ruling: Although protest letter not identify as request for reinvestigation BIR treated them as such when it
conducted the same. Tolled prescriptive period.
Period ran again when BIR served final assessment on 1/2/1980.
WDL served on Wyteth on 3/12/1980 – only about 4 months of 5 year prescriptive period was used. (old Tax Code)

Upon submission of request for reconsideration or submission of relevant document after request for reinvestigation
– CIR has 180 days to act on the protest.