Practice question
A treasurer discovers deliberate concealment intended to evade a local business tax. Eight years after discovery, the treasurer assesses it. The taxpayer argues that more than five years have elapsed since the tax originally became due. Assume the fraud is proved and no other defect exists. Which rule governs?
- The assessment necessarily fails because fraud is irrelevant
- The period starts only upon the taxpayer’s consent
- The ten-year assessment period from discovery governs
- No period applies once fraud is alleged
- The ordinary NIRC three-year period must replace the LGC
Legal references
- https://lawphil.net/statutes/repacts/ra1991/ra_7160_1991.html — RA 7160, section 194, periods of assessment and collection
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