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All Jurisprudence based

0 tracked cards Commercial and Taxation Laws

Zenith Industries, Inc., a domestic corporation, filed its 2018 corporate income tax return on May 5, 2019 (the due date was April 15, 2019). On February 10, 2023, the BIR issued a Notice of Deficiency for 2018 taxes. The taxpayer timely filed a protest within 30 days after receipt on March 12, 2023. (a) Identify the prescriptive period for the BIR to assess deficiency taxes in this scenario. (b) Determine whether the February 10, 2023 assessment is timely or prescribed, showing your calculations. (c) If Zenith Industries, Inc. had not timely filed a protest within 30 days after receipt (e.g., protest filed on March 25, 2023), would prescription be interrupted? Explain.

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Ten-year prescriptive period applies due to alleged fraud; the February 10, 2023 assessment is timely. Three years from the date of filing the return (May 5, 2019) ending May 5, 2022; the February 10, 2023 assessment is prescribed; a timely protest within 30 days cannot interrupt since it was filed after the prescriptive period. If there is no protest within 30 days, prescription would be interrupted; however, since the protest was timely within the prescriptive window, prescription remains interrupted until final resolution. Prescription is tolled for the entire audit period, so the February 10, 2023 assessment is timely.

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