Under Section 222(a) of the Tax Code, when may a collection proceeding occur without prior assessment?

• A. The refund is rejected by the BIR
• B. The return is false or fraudulent
• C. There is a failure to file
• D. The return is false or fraudulent or there is a failure to file

Answer: (D)

Collection can start without a prior assessment when the taxpayer’s return is false or fraudulent, or when there is a failure to file a return. In these situations there isn’t a reliable basis for an assessment because the return does not properly establish the tax liability, or no return exists at all. Because of that, the tax authority may proceed with collection actions to recover the tax due, with an assessment possibly following later if needed. This combination of scenarios is exactly why the option that includes either condition—false or fraudulent or there is a failure to file—best matches the rule. The other choices don’t cover both situations or misfocus on refunds or a single condition, so they aren’t as accurate.