Prescription of the Application of the BIR Refund

December 4, 1959 BIR RULING NO. 632-59 3rd Indorsement Returned to the Regional Director, B.I.R. Regional District No. 3, Manila. Opinion has been sought by that Office on the query below: "Opinion is respectfully requested whether or not the application of BIR Refund Check No. 42032 to the payment of the taxpayer's 1948 income tax delinquency by the Chief, Withholding Tax Section is valid, considering that on the date of application of payment no collection could have been made thru administrative and judicial remedies of the 1948 income tax delinquency on the ground that the tax liability was extinguished by prescription." In answer to the above query, it is informed that the application of the BIR refund check No. 42032 against the income tax liability of the taxpayer which has long prescribed is not valid. A prescribed tax is equivalent to no tax at all. Accordingly, it is wrong to apply a refundable amount against a tax liability which no longer existed. cdtech Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue