Application of Prescriptive Period for the Assessment and Collection of Internal Revenue Taxes

April 10, 1990 BIR RULING NO. 056-90 203 223 000-00 056-90 Gentlemen : This refers to your letter dated November 29, 1989 stating that your client, a domestic corporation duly organized under Philippine laws, is filing its income tax returns on a fiscal year basis ending November 30; and that the corporation's income tax return for the fiscal year ending November 30, 1984 was filed on March 15, 1985. cdt Based on the foregoing, you request a ruling as to whether or not the prescriptive period of three years for the assessment and collection of internal revenue taxes be applied to your client's November 30, 1984 income tax return. In reply, please be informed that pursuant to Revenue Memorandum Circular No. 33-84 clarifying B.P. Blg. 700 which amended Sections 203 and 223 of the National Internal Revenue Code, as amended, the three-year prescriptive period for assessment shall apply to assessments issued on or after April 5, 1984 for taxable years beginning January 1, 1984; thus, for taxable years that began prior to January 1, 1984, the 5-year prescriptive period shall govern. Since as represented, your client's taxable year ended on November 30, 1984, then its taxable year is understood to have began prior to January 1, 1984. Such being the case, your client's income tax return for fiscal year ending November 30, 1984, which was filed on March 15, 1985, is still governed by the 5-year prescriptive period which started to run from March 16, 1985. cdta Very truly yours, (SGD.) JOSE U. ONG Commissioner