Republic v.

Lim (16 SCRA 584)

Facts:
Lim Tian Teng Sons and Co is a domestic corporation assessed by the CIR with
deficiency income taxes. LTTS and Co requested an investigation of its 1952 income
tax liability. The CIR did not make a reply and instead referred the case to the Solicitor
General for collection by judicial action.

LTTS wrote a letter to the CIR reiterating its request for reinvestigation and a letter to
the Solgen requesting that LTTS be allowed to submit explanation and supporting
documents relating to its tax liability. As a result, LTTS was informed that its request for
investigation will be granted provided it execute a waiver of the statute of limitation.
LTTS failed to sign the waiver despite the extension given by the CIR thus a case was
filed and the RTC held LTTS liable for the tax deficiency.

The CIR and LTTS appealed on ground that the RTC failed to impose 5% surcharge on
the part of CIR and the lack of jurisdiction of the lower court to entertain this case on the
ground that the CIR has not yet issued his final decision on its requests for
reinvestigation. It is LTTS’s stand that final decision of the Collector of Internal Revenue
on the disputed assessment is a condition precedent to the filing of an action in the
Court of First Instance for the collection of a tax.

Issue:
Whether or not the trial court has no jurisdiction over the case on the ground that the
CIR is yet to act on the request for investigation by LTTS.

Ruling:
This argument has no merit. The Collector of Internal Revenue is authorized to collect
delinquent internal revenue taxes either by distraint and levy or by judicial action or both
simultaneously. The only requisite before he can collect the tax is that he must first
assess the same within the time fixed by law. And in the case of a false or fraudulent
return with intent to evade the tax or of a failure to file a return, a proceeding in court for
the collection of such tax may be begun without assessment.

Nowhere in the Tax Code is the Collector of Internal Revenue required to rule first on a
taxpayer's request for reinvestigation before he can go to court for the purpose of
collecting the tax assessed

Republic v. Lim (16 SCRA 584)

Facts:
1. Lim Tian Teng Sons and Co is a domestic corporation assessed by the CIR
with deficiency income taxes.
2. LTTS and Co requested an investigation of its 1952 income tax liability. The
3. CIR did not make a reply and instead referred the case to the Solicitor
General for collection by judicial action.
 4. LTTS wrote a letter to the CIR reiterating its request for reinvestigation and
a letter to the Solgen requesting that LTTS be allowed to submit
explanation and supporting documents relating to its tax liability.
5. As a result, LTTS was informed that its request for investigation will be
granted provided it execute a waiver of the statute of limitation.
6. LTTS failed to sign the waiver despite the extension given by the CIR thus a
case was filed and the RTC held LTTS liable for the tax deficiency.
7. But because LTTS failed to sign the waiver, thus acase was file and the trial
court held ltts liable for deficience tax

The CIR and LTTS appealed on ground that the RTC failed to impose 5%
surcharge on the part of CIR and the lack of jurisdiction of the lower court to
entertain this case on the ground that the CIR has not yet issued his final
decision on its requests for reinvestigation. It is LTTS’s stand that final decision
of the Collector of Internal Revenue on the disputed assessment is a condition
precedent to the filing of an action in the Court of First Instance for the collection
of a tax.

Issue:
Whether or not the trial court has no jurisdiction over the case on the ground that
the CIR is yet to act on the request for investigation by LTTS.

Ruling:
This argument has no merit. The Collector of Internal Revenue is authorized to
collect delinquent internal revenue taxes either by distraint and levy or by judicial
action or both simultaneously. The only requisite before he can collect the tax is
that he must first assess the same within the time fixed by law.

And in the case of a false or fraudulent return with intent to evade the tax or of a
failure to file a return, a proceeding in court for the collection of such tax may be
begun without assessment.

Nowhere in the Tax Code is the Collector of Internal Revenue required to rule first
on a taxpayer's request for reinvestigation before he can go to court for the
purpose of collecting the tax assessed