Under Sec. 222(a) of the NIRC, what triggers extending the period to assess to 10 years?

Under Sec. 222(a) of the NIRC, what triggers extending the period to assess to 10 years?

• A. A valid waiver of the prescriptive period
• B. A simple administrative extension by BIR
• C. A presidential decree
• D. A finding of false or fraudulent return with intent to evade tax

Answer: (D)

The period to assess can be extended to ten years only when the tax authority has found that a return is false or fraudulent with the intent to evade tax. This rule recognizes that fraud undermines the tax system and requires a longer window for the government to investigate and collect. In practice, ordinary extensions or waivers don’t automatically trigger the ten-year rule; the specific finding of a fraudulent return with intent to evade tax is needed. A simple administrative extension or a presidential decree isn’t the mechanism for this ten-year extension.

The period to assess can be extended to ten years only when the tax authority has found that a return is false or fraudulent with the intent to evade tax. This rule recognizes that fraud undermines the tax system and requires a longer window for the government to investigate and collect.

In practice, ordinary extensions or waivers don’t automatically trigger the ten-year rule; the specific finding of a fraudulent return with intent to evade tax is needed. A simple administrative extension or a presidential decree isn’t the mechanism for this ten-year extension.