The effects of fraud with regards to taxation are as follows:
Civil fraud results in the imposition of the 50% surcharge while Criminal fraud involves the imposition of penal sanctions by the Regional Trial Court or the Court of Tax Appeals (CTA), depending on the amount of basic tax, upon conviction.
The power of the Commissioner to assess the tax is extend to ten (10) years from date of discovery of the falsity or fraud;
Cases involving fraud cannot be the subject of compromise; and
Suspension and temporary closure of the business operations of a taxpayer.
