Based on the Affidavit of the Commissioner of Internal Revenue (CIR), an Information for failure to file income tax return under Section 255 of the National Internal Revenue Code (NIRC) was filed by the Department of Justice (DOJ) with the Manila Regional Trial Court (RTC) against XX, a Manila resident.
XX moved to quash the Information on the ground that the RTC has no jurisdiction in view of the absence of a formal deficiency tax assessment issued by the CIR.
Is a prior assessment necessary before an Information for violation of Section 255 of the NIRC could be filed in court? Explain. (4%)
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No, a prior assessment is not necessary before filing an Information for violation of Section 255 of the NIRC. Under Secs. 205 and 222(a), NIRC, and Ungab v. Cusi, a criminal tax prosecution is a
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Quick check
Is a prior formal tax assessment notice necessary before filing a criminal Information under Section 255 of the NIRC?
Prior assessment notice is unnecessary because criminal failure to file under Section 255 is complete upon willful omission.
Which Supreme Court decision established that prior tax assessment is not required before criminal prosecution for tax violations?
Ungab v. Cusi established that prior tax assessment is not a condition precedent to criminal tax prosecution.
Under Section 222(a) of the NIRC, when may judicial proceedings for tax violations be instituted without prior assessment?
Section 222(a) authorizes court proceedings without prior assessment in cases of willful failure to file or fraud.
What must the prosecution prove to establish a violation of Section 255 of the NIRC for failure to file a return?
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How is a criminal prosecution for tax offenses classified under Section 205 of the Tax Code?
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Learn more about these topics
1. Criminal Tax Prosecution
Under Section 205 and Section 222(a) of the National Internal Revenue Code, a criminal prosecution for violation of tax laws is an independent collection remedy. As established in Ungab versus Cusi, the crime of willfully failing to file an income tax return under Section 255 is complete at the moment the taxpayer intentionally omits filing the required return within the statutory deadline.
2. Assessment Waiver Exception
While a formal assessment notice is a prerequisite for administrative tax collection, it is not a jurisdictional condition precedent to criminal tax prosecution. In cases involving fraudulent returns or willful failure to file tax returns, Section 222(a) permits the institution of judicial proceedings in court without a prior assessment notice from the Bureau of Internal Revenue.
3. Trial Court Jurisdiction
Regional Trial Courts possess jurisdiction over criminal information filed under Section 255 of the Tax Code when the principal tax deficiency does not exceed statutory threshold amounts under Court of Tax Appeals rules. Because the criminal offense of non-filing is complete upon willful omission, the trial court validly acquires jurisdiction over the accused without requiring a prior final demand or assessment.