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Prescription period to assess 2019 & prior years Letter of Authority Deficiency Taxes plus 420 d

0 Views· 11/26/23
Aryel Narvasa
Aryel Narvasa
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There can be several negative effects of extending the right of the Bureau of Internal Revenue (BIR) to assess taxes. Some of these effects include:

Increased burden on taxpayers: Extending the right of the BIR to assess taxes can create additional administrative and financial burdens for taxpayers, as they may have to spend more time and resources to prepare and file additional tax returns or to respond to additional tax assessments.

Uncertainty and Lack of Clarity: Extending the right of the BIR to assess taxes may create uncertainty and lack of clarity for taxpayers, as they may not know what tax laws and regulations apply to their situation or how to comply with them.

Inefficiency and Bureaucracy: Extending the right of the BIR to assess taxes can also increase inefficiency and bureaucracy within the BIR, as the agency may have to process and review more tax returns and assessments, which can lead to delays and backlogs.

Inadequate resources: If the BIR does not have adequate resources to handle the increased workload, it may result in inefficiency and poor service quality which could affect the taxpayers and the BIR's ability to fulfill its mandate.

Unfairness and discrimination: Extending the right of the BIR to assess taxes can create opportunities for unfairness and discrimination, as taxpayers who are not aware of the additional assessments or who are unable to respond to them may be unfairly penalized.

It is important to note that the BIR should have proper guidelines, regulations, and procedures in place to ensure that the tax assessments are done fairly and efficiently, and that the taxpayers are given an opportunity to dispute any assessments that they believe are unjustified.
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