Case of Mr. Pio G. de Castro

April 17, 1959 BIR RULING NO. 196-59 1st Indorsement Returned to the Chief, Withholding Tax Unit, thru the Chief, Revenue Operations Executive (Assessment), the papers bearing on the case of Mr. Pio G. de Castro, with the following information: The general rule is that internal revenue taxes shall be assessed within five years after the returns were filed. From the date of assessment, the government has another five years within which to collect the tax or taxes due. In the case of the income tax, the same is assessed on the first day of May of the year following that when the return was filed, pursuant to section 51(a) of the Tax Code. It is, therefore, presumed that in the instant case assessment of the income tax was made on May 1, 1948. Such being the case, the government had five years from May 1, 1948 (date of assessment) within which to collect the income tax liability of Mr. Pio G. de Castro in the amount of P29.78. But since the government failed to collect the said amount on or before May 1, 1953, the right to collect the same has prescribed. However, it is suggested that Mr. de Castro be informed of his delinquency and the contemplated deduction thereof from his refund unless proof is presented that the former was previously settled. (SGD.) MELECIO R. DOMINGO Deputy Commissioner of Internal Revenue