Practice question
In an ordinary assessment case, the BIR sends demand letters during the collection period but serves no warrant of distraint or levy and initiates no judicial collection before expiry. No other qualifying proceeding, suspension or extension exists. It argues that the letters alone necessarily satisfy commencement under QL Development. Which is correct?
- The letters necessarily stop prescription forever.
- The letters alone do not replace the qualifying collection commencement described in the decision.
- A new letter automatically creates a new assessment year.
- Every letter counts as a filed court complaint.
- Prescription never applies if the taxpayer receives mail.
Legal references
- CIR v. CTA Second Division and QL Development, Inc., G.R.258947, March29 2022, main decision; https://lawphil.net/judjuris/juri2022/mar2022/gr_258947_2022.html
- NIRC Sections203 and222(c); https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
Answer this question in flashcards to review your response and continue practicing.