Tax Exemption of Japanese Company Acting as Sales Representative

December 1, 1959 BIR RULING NO. 621-59 1st Indorsement Returned to the Regional Director, BIR Regional District No. 4, Quezon City, the entire docket bearing on the case of Mrs. Natividad Narcelles. It appears that Mrs. Narcelles was engaged in the bakery business during the years 1945 and 1946. On February 5, 1948, the sum of P78.63 was assessed against her for fixed and percentage taxes, surcharge and compromise. Subsequently, on February 19, 1948, the said taxpayer requested to pay the same in three (3) installments, which was granted on April 29, 1948. For reasons known only to the taxpayer the aforesaid request was not complied. Again, on July 7, 1948 (in a hand written letter) the taxpayer compromised to pay just P50.00 in five (5) equal installments. Then, finally on August 9, 1949, the taxpayer paused for another bid to settle the said assessment by requesting to pay it from the back-pay of her sister. Thereafter, her whereabouts could not be ascertained but presently, the Bureau found her to be living at Project 7, Quezon City. The question now posed is whether or not the right of the Government to enforce collection of the tax had prescribed. Since five years from the date of assessment or from the request of the taxpayer for payment had already elapsed, the right of the government to enforce collection of the tax had prescribed, pursuant to sections 331 and 332 of the Tax Code. (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue