BIR Ruling

October 10, 1972 Mr. Ramon C. Ditching Lizlop Bldg., Rizal Street Bacolod City S i r : This refers to your letter dated May 18, 1972 requesting opinion as to whether the 5-year prescriptive period for the collection of the tax begins from the date of the assessment or from the due date of payment stated in the assessment notice. In reply, I have the honor to inform you that the five-year prescriptive period for the collection of internal revenue taxes begins from the date of assessment of the tax, pursuant to Section 332(c) of the Tax Code which reads as follows: "SEC. 332. . . . "(c) Where the assessment of any internal revenue tax has been made within the period of limitation above-prescribed such tax may be collected by distraint or levy or by a proceeding in court, but only if begun (1) within five years after the assessment of the tax , or (2) prior to the expiration of any period for collection agreed upon in writing by the Commissioner of Internal Revenue and the taxpayer before the expiration of such five-year period. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon." (Emphasis supplied) Accordingly, the five-year period within which to collect the estate and inheritance taxes in question began from February 20, 1963 which is the date of assessment of said taxes. cdtech Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue