The BIR issude in 2010 a final assessment notice and demand letter against X Corporation covering deficiency income tas for the year 2008 in the amount of P10 Million. X Corporation earlier requested the advice of a lawyer on whether or not it should file a request for reconsideration or a request for reinvestigation. The lawyer said it does not matter wheteher the protest files against the assessment is a request for reconsideration or a request for reinvestigation, because it has same consequences or implications.
a) What are the differences between a request for reconsideration and a request for reinvestigation? (5%)
b) Do you agree with the advice of the lawyer? Explain your answer (5%)
Suggested answer only. Not an official answer and not legal advice.
a) Reconsideration evaluates existing records, while reinvestigation requires new evidence. b) No, I disagree with the lawyer. Under RR No. 12-99 and Sec. 223, NIRC, reconsideration relies on existing records and
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Quick check
What is the primary distinction between a request for reconsideration and a request for reinvestigation?
Reconsideration is based on existing records, whereas reinvestigation involves new evidence.
Within how many days from filing a request for reinvestigation must a taxpayer submit supporting documents?
The taxpayer has sixty days from filing a request for reinvestigation to submit supporting evidence under Section 228.
What is the effect of a granted request for reinvestigation on the BIR's period to collect deficiency taxes?
Under Section 223 of the NIRC, a granted request for reinvestigation suspends the prescriptive period for collection.
Does filing a request for reconsideration suspend the running of the prescriptive period for BIR tax collection?
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What happens if a taxpayer fails to submit supporting documents within sixty days after filing a request for reinvestigation?
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Learn more about these topics
1. Request for Reconsideration
Under Revenue Regulations No. 12-99 and Section 228 of the Tax Code, a request for reconsideration is a plea for re-evaluation of a deficiency tax assessment based on existing administrative records and evidence already submitted. It does not involve the presentation of newly discovered evidence or additional documentation. Furthermore, filing a request for reconsideration does not suspend or toll the statutory prescriptive period for the Bureau of Internal Revenue to collect deficiency taxes.
2. Request for Reinvestigation
A request for reinvestigation is a petition for re-evaluation of a tax assessment based on newly discovered or additional evidence that the taxpayer intends to submit. To prevent the assessment from becoming final and executory, the taxpayer must submit all supporting documents within sixty days from filing the protest. Unlike a reconsideration, a granted request for reinvestigation suspends the running of the statutory prescriptive period for tax collection under Section 223 of the NIRC.
3. Distinctions and Consequences
The legal distinction between a request for reconsideration and a request for reinvestigation lies in their evidentiary requirements and impact on tax collection prescription. Advising a taxpayer that both protests produce identical consequences is legally erroneous. Failing to submit supporting evidence within sixty days in a reinvestigation causes the assessment to become final, whereas a request for reconsideration requires no new evidence but allows collection prescription to run against the government.