BIR Ruling No. 040-63

April 26, 1963 BIR RULING NO. 040-63 2nd Indorsement Returned, thru the Revenue Operations Head (Assessment), to the Chief, Narcotic Drugs Division, the papers bearing on the case of Mrs. Consolacion Alejo for nurse's occupation tax. It appears on record that Mrs. Alejo, a registered nurse by profession, failed to pay her privilege tax for the years 1957 to 1962, inclusive as a result to which an assessment (Demand Letter No ND-62-54 dated November 7, 1962) was issued requiring her to pay the amount of P300.00 plus a penalty of P60.00, or a total of P360.00. The taxpayer is willing to pay in installments, but requests that the tax for the year 1957 be excluded from the assessment on the ground of prescription in accordance with Section 331 of the Tax Code and that the penalty imposed be condoned. The request for a ruling on the case, however, is limited to the question of prescription. In a case, the Supreme Court had occasion to rule that upon failure of the taxpayer to make the return under Section 331 of the Tax Code, said taxpayer is deprived of the benefit of the prescriptive period therein, which is five years. Consequently, this Office can still validly make the assessment within the period provided for in the succeeding section (Section 332) which is ten years (Bisaya Land Transportation vs. The Collector of Internal Revenue, G.R. No. L-12100 and 11812, May 29, 1959). In view thereof, the tax liability of Mrs. Alejo for the year 1957 has not prescribed. aisadc (SGD.) JOSE B. LINGAD Acting Commissioner of Internal Revenue