What Are The Effects Of Fraud?

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.

Effects of Fraud

With regards to the types of tax fraud cases, taxpayers should be reminded of the effects of fraud as follows:

1. Civil fraud results in the imposition of the 50% surcharge, to be imposed by the BIR;
2. Criminal fraud involves the imposition of penal sanctions to be imposed by the Regional Trial Court or the CTA, depending of the amount of basic tax, upon conviction;
3. The power of the Commissioner to assess the tax is extended to ten (10) s from the date of discovery of the falsity or fraud.
4. Cases involving fraud cannot be the subject of compromise;
5. The fact of fraud shall be judicially taken cognizance of in the civil or criminal action for the collection of a fraud assessment that has become final and executory on the administration level;
6. Suspension and temporary closure of the business operations of a taxpayer...