- Petitioner
- Republic
- Respondent
- Lim de Yu
- Citation
- G.R. No. L-17438
- Court
- Court of First Instance of Cotabato to Court of Appeals to Supreme Court (SC)
- Division
- En Banc
- Ponente
- Makalintal, J.
- Decided
- April 30, 1964
Summary
The Republic filed a collection suit against Rita Lim de Yu for deficiency income taxes covering 1948-1953. The Supreme Court ruled that while fraud was alleged, it was not proven, making the general five-year limitation period applicable. The Court held that deficiency assessments for 1948-1950 were time-barred as they were made after the five-year period had expired, and the waiver signed in 1956 could not revive already prescribed claims. However, the waiver validly extended the limitation period for 1951-1952, while 1953 was still within the original five-year period. The Court distinguished between assessment and collection periods, ruling that the government had five years from the 1958 assessment to file suit. The decision modified the lower court's dismissal, ordering payment of deficiency taxes for 1951-1953 totaling P26,182.00 plus surcharge and interest, establishing important precedent on tax limitation periods and waiver validity.