Practice question
The BIR timely issued an ordinary deficiency assessment, which became final after no timely protest. It commenced no distraint, levy or judicial collection within the ordinary collection period, and no suspension or valid extension occurred. It then claims that finality overrides all prescription. Which is correct?
- Finality does not rescue collection commenced after the applicable period has expired.
- Failure to protest creates perpetual collection power.
- The taxpayer's silence extends collection automatically to twenty years.
- The BIR can choose a fresh starting date by renaming the same assessment.
- Every final assessment necessarily involves proven fraud.
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
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