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.