Batas Pambansa Blg. 700




BATAS PAMBANSA Blg. 700 An Act Amending Sections 318 and 319 of the National Internal Revenue Code, as Amended, So as to Reduce the Period of Limitation for Assessment of Internal Revenue Taxes from Five (5) to Three (3) Years Section 1. Section 318 of the National Internal Revenue Code, as amended, is hereby amended to read as follows: "Sec. 318. Period of limitation upon assessment and collection. Except as provided in the succeeding section, internal revenue taxes shall be assessed within three years after the last day prescribed by law for the filing of the return, and no proceeding in court without assessment for the collection of such taxes shall be begun after the expiration of such period: Provided, That in a case where a return is filed beyond the period prescribed by law, the three-year period shall be counted from the day the return was filed. For the purposes of this section, a return filed before the last day prescribed by law for the filing thereof shall be considered as filed on such last day." Section 2. Section 319 of the same Code is hereby amended to read as follows: "Sec. 319. Exceptions as to period of limitation of assessment and collection of taxes. (a) In the case of a false or fraudulent return with intent to evade tax or a failure to file a return, the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time within ten years after the discovery of the falsity, fraud, or omission: Provided, That in a fraud assessment which has become final and executory, the fact of fraud shall be judicially taken cognizance of in the civil or criminal action for the collection thereof. "(b) If before the expiration of the time prescribed in the preceding section for the assessment of the tax, both the Commissioner and the taxpayer have agreed in writing to its assessment after such time, the tax may be assessed within the period agreed upon. The period so agreed upon may be extended by subsequent written agreements made before the expiration of the period previously agreed upon.1âwphi1 "(c) Any internal revenue tax which has been assessed within the period of limitation above-prescribed may be collected within three years following the assessment of the tax. "(d) Any internal revenue tax which has been assessed within the period agreed upon as provided in paragraph (b) hereinabove may be collected by distraint or levy or by a proceeding in court within the period agreed upon in writing before the expiration of the three-year period. The period so agreed upon may be extended by subsequent written agreements made before the expiration of the period previously agreed upon.1âwphi1 "(e) Provided, however, That nothing in the immediately proceeding section and paragraph (a) hereof shall be construed to authorize the examination and investigation or inquiry into any tax returns filed in accordance with the provisions of any tax amnesty law or decree." Section 3. The period of limitation herein prescribed shall apply to assessments of internal revenue taxes beginning taxable year 1984.1âwphi1 Approved: April 5, 1984 The Lawphil Project - Arellano Law Foundation