Deficiency in Initial and Annual Firearms License Fees Payment

July 6, 1959 BIR RULING NO. 340-59 6th Indorsement Respectfully returned to the Regional Director, B.I.R., Regional District No. 3, Manila, the within papers bearing on the internal revenue case of Mr. Chua Ching Hong, 652 Gandara, Manila, involving the sum of P137.50 representing deficiency initial and annual firearms license fees form 1946 to 1950, with the information that the aforesaid tax is still collectible pursuant to the provisions of section 332(a) of the Tax Code which allows the government ten (10) years from the discovery of the failure or omission to pay the tax within which to assess the same, in cases where tax return has not been filed. There are instances, as in the case of income tax, in which the Code requires the filing of a return under penalty of criminal prosecution. In such cases, failure to file return would deprive the guilty party of the benefits under section 331, that is, the Collector of Internal Revenue may make the corresponding assessment within ten (10) years, as prescribed in section 332(a), aside from his criminal liability. When there is explicit provision imposing the duty to file a return, and penalizing non-compliance therewith, but, the tax is such that its amount cannot be ascertained without data pertinent thereto, the Commissioner of Internal Revenue may by appropriate regulations require the filing of the necessary returns. In any event, with or without such regulations, it is to the interest of the taxpayer to file said return, if he wishes to avail himself of the benefits of section 331. If, this notwithstanding, he does not file a return, then as assessment may be made within the time stated in section 332(a). Moreover, the absence of a legal provision imposing the duty to file a return does not negate the necessity of such return in order that section 331 could be applied. This was the ruling of the Supreme Court in the case of Bisaya Land Transportation Co., Inc., vs. Commissioner of Internal Revenue, G.R. No. L-12100 & G.R. No. L-11812, promulgated on May 29, 1959. Furthermore, taxpayer's payment of his firearms license fees for the years 1948, 1949 and 1950 is not in the nature of a "list", "schedule" or "return" commonly required by tax statutes and, therefore, does not constitute a report or information containing the necessary and sufficient data required by law to enable the Commissioner of Internal Revenue to make the assessment of the tax in question. aisadc (SGD.) JOSE ARAAS Commissioner of Internal Revenue