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Monday, August 9, 2010

Collection of Taxes: Prescription

TAXATION QUESTION 2001


May the collection of taxes be barred by prescription? Explain your answer.

SUGGESTED ANSWER:          
Yes. The collection of taxes may be barred by prescription. The prescriptive periods for collection of taxes are governed by the tax law imposing the tax. However, if the tax law does not provide for prescription, the right of the government to collect taxes becomes imprescriptible. 

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