Beware of Carrying Forward Credit Balances!

The recent RTF No. 03183-12-2026 has reaffirmed one of the most critical rules of our tax system, one that every accountant, auditor, and business owner should know inside and out.

Can SUNAT audit prescribed periods?

YES, but under a specific condition. The Tax Court has confirmed that the Tax Administration has the power to request information and review transactions from prescribed periods (in this case, fiscal years 2016 to 2018) only when such information is necessary to determine the correct tax liability for a non-prescribed fiscal year (such as Income Tax for 2019).

If you carry forward a credit balance that originated in a prescribed year, SUNAT has every right to demand that you prove the origin and accuracy of that balance. The statute of limitations for the year of origin does not validate a non-existent or incorrectly calculated balance!

Interruption of the Statute of Limitations

The taxpayer requested the statute of limitations be applied to the 2019 Income Tax. However, the Tax Court reminds us that the notification of a Payment Order interrupts the statute of limitations for demanding payment, and a new 4-year period begins to run the following day. If you submit your request before this new period expires, it will be declared unfounded.

(Pro Note: If you seek to request the statute of limitations for previous years (2016-2018), you cannot do so directly in this appeal against a Payment Order; you must initiate a first-instance non-contentious proceeding with SUNAT).

Special Installment Plan and Withdrawal

Under Legislative Decree No. 1634 (Special Installment Plan), taking advantage of this benefit for a debt that is being challenged before the Tax Court (such as the September 2021 advance payments) qualifies as an automatic withdrawal of the appeal. Upon approval of the installment plan, the Court concludes the contentious proceedings regarding said debt.