Taxation Tax Collection Period to Collect No need for a final

and executory assessment

In January 1957, the Collector of Internal Revenue (CIR) made an

assessment against Lim Tian Teng Sons and Co., Inc. (LTTSCI)
demanding from the latter payment of P15k in taxes inclusive of
surcharge. In the same month, LTTSCI requested for a
reinvestigation with a request to produce supporting evidence. The
CIR did not reply however he remanded the case to the Solicitor
General (SG) who did not grant a reinvestigation but rather
reiterated the content of the assessment. In September 1958, the
CIR filed a tax collection suit against LTTSCI with the Court of First
Instance of Cebu. LTTSCI assailed the collection suit on the ground
that the CIR cannot commence collection without a final and
executory assessment notice. It alleged that the assessment notice
issued in January 1957 has not yet become final and executory
because of the failure of the CIR to act on the protest.
ISSUE: Whether or not LLTSCI I correct.
HELD: No. Nowhere in the Tax Code is the CIR required to rule first
on a taxpayers request for reinvestigation before he can go to
court for the purpose of collecting the tax assessed. Ruling on the
protest is not a condition precedent for the commencement of tax
collection. The CIR is authorized to collect delinquent internal
revenue taxes either by distraint and levy or by judicial action or
both simultaneously. The only requisite before he can collect the
tax is that he must first assess the same within the time fixed by
law and this was complied with in the case at bar. The Supreme
Court notes that in the case of a false or fraudulent return with
intent to evade the tax or of a failure to file a return, a proceeding
in court for the collection of such tax may be begun without
assessment.