Philippines Insolvency Legal Distinctions

Summary

Under the Financial Rehabilitation and Insolvency Act (FRIA) in the Philippines, individuals who are solvent but face cash flow issues can propose a payment plan through suspension of payment. In contrast, businesses like corporations and partnerships must pursue rehabilitation proceedings to restructure their finances. This distinction is due to the different financial complexities and needs of individuals versus businesses. In legal terms, vulnerability refers to exposure to harm or exploitation, while a reasonable expectation of privacy is a legal concept protecting privacy in certain situations. Admissions in original complaints can be used as evidence but are not conclusive. In criminal cases, admissions are subject to stricter rules. Electronic data messages, documents, and signatures are legally recognized under specific criteria in the Philippines.

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Under the Financial Rehabilitation and Insolvency Act (FRIA) in the Philippines, the legal remedy of **suspension of payment** is specifically for **solvent but illiquid individual debtors** (natural persons). **Juridical entities** like corporations and partnerships facing financial distress must pursue **rehabilitation proceedings** instead. This distinction exists due to the differing nature, complexity, and potential impact of financial difficulties experienced by individuals versus businesses. Suspension of payment offers a temporary reprieve for individuals to propose a payment plan, while rehabilitation provides a more comprehensive framework for restructuring the often more complex finances of businesses. MAKE THIS SIMPLE LANGUAGE
Under the Financial Rehabilitation and Insolvency Act (FRIA) in the Philippines:
- Suspension of Payment: Allows individuals who can pay debts but have cash flow issues to propose a payment plan.
- Rehabilitation Proceedings: Helps businesses like corporations and partnerships reorganize their finances.
This distinction exists because individuals and businesses have different financial needs.
how can i understand the term "vulnerability"?
In legal terms, "vulnerability" often refers to being in a state where one is exposed to the risk of harm or exploitation. This can relate to financial situations, personal safety, or legal positions where an individual or entity may be at a disadvantage. Is there a specific context you're interested in?
what do you mean by this phrase "reasonable expectation of privacy "
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The phrase "reasonable expectation of privacy" refers to the legal concept that an individual can expect privacy in certain situations or places, such as their home or personal communications. This expectation is protected by law, and if violated, it may constitute an invasion of privacy.
collection, recording, organization,* storage, updating or modification, retrieval, consultation, use, consolidation, blocking, erasure or destruction of data. CAPITALIZE THE VERB FORM
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Certainly! Here are the verbs capitalized:
- COLLECTION
- RECORDING
- ORGANIZATION
- STORAGE
- UPDATING OR MODIFICATION
- RETRIEVAL
- CONSULTATION
- USE
- CONSOLIDATION
- BLOCKING
- ERASURE
- DESTRUCTION
Let me know if there's anything else I can assist you with!
If a plaintiff says something in their first version of the lawsuit that admits a certain fact, but then they file a revised version (amended complaint) that changes or contradicts that fact, the defendant can still point to what the plaintiff said originally. However, the plaintiff is no longer automatically stuck with their first statement and can try to explain or disprove it with new evidence in the amended case. The original admission is just treated as something they said outside of the current official court document. This rule promotes fairness and allows parties to correct errors or refine their legal positions as a case develops. SIMPLIFY
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If a plaintiff admits something in their first lawsuit but changes it in a revised version, the defendant can highlight the original statement. The plaintiff can, however, clarify or counter it with new evidence in the updated case. This rule helps ensure fairness and allows error correction and legal position refinement.
If a plaintiff admits something in their first lawsuit but changes it in a revised version, the defendant can highlight the original statement. The plaintiff can, however, clarify or counter it with new evidence in the updated case. CONVERT INTO LEGAL ENGLISH
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Here's the statement converted into legal English:
If a plaintiff concedes a fact in the initial complaint but alters this stance in an amended pleading, the defendant may reference the original admission. However, the plaintiff is entitled to address or contest it with new evidence in the revised complaint, facilitating equitable proceedings and allowing for rectification and refinement of legal positions.
If a plaintiff concedes a fact in the initial complaint but alters this stance in an amended pleading, the defendant may reference the original admission. However, the plaintiff is entitled to address or contest it with new evidence in the revised complaint, facilitating equitable proceedings and allowing for rectification and refinement of legal positions. CHANGE ACCORDING TO THE LANGUAGE REVISED CIVIL PROCEDURE
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In the revised civil procedure, if a plaintiff admits a fact in their initial complaint but changes it in an amended complaint, the defendant can refer to the original admission. The plaintiff can contest or clarify it with new evidence in the amended complaint, ensuring fairness and allowing for legal position refinement.
Admissible as Evidence: While not conclusive, the admissions in the original complaint can still be presented by the defendant as evidence against the plaintiff. The court will then weigh this evidence along with any explanations or contradictory evidence offered by the plaintiff. Give a case sample on this:
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Here's a hypothetical case example:
In a breach of contract lawsuit, the plaintiff initially admitted in the original complaint that they received the goods from the defendant but later claimed in the amended complaint that the goods were never delivered. The defendant can present the original admission as evidence to challenge the plaintiff's revised statement. The court will consider both the original admission and any explanations or contradictory evidence provided by the plaintiff to determine the credibility of the claims.
The rule states that when a plaintiff files an amended complaint, any admissions they made in their original complaint lose their status as judicial admissions. Instead, these prior admissions are downgraded to extrajudicial admissions. ARE THIS RULE, APPLIES TO CRIMINAL CASES?
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In criminal cases, the rules about admissions can differ significantly from civil cases. Generally, admissions in criminal cases are often subject to stricter rules due to the potential impact on a defendant's rights. It's important to consult a legal expert for specific guidance related to criminal procedure. Is there anything else you'd like to know?
Legal Recognition of Electronic Data Messages, Documents, and Signatures formulate hypothetical questions on this
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Here are some hypothetical questions regarding the legal recognition of electronic data messages, documents, and signatures:
*. How does Philippine law define electronic signatures, and what criteria must they meet to be legally recognized?
*. Are electronic documents considered valid legal evidence in Philippine courts, and what are the requirements for their admissibility?
*. What safeguards are in place to ensure the authenticity and integrity of electronic data messages in legal proceedings?
*. How has the Electronic Commerce Act influenced the use of electronic signatures in contractual agreements within the Philippines?
Feel free to ask if you need more information on any of these topics!
Commonwealth Act No. * as amended by R.A. No. * or the Public Service Act CAN YOU PROVIDE ME QUESTIONS THAT POSSIBLY WILL BE ASKED IN * BAR EXAM
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Here are some hypothetical questions that might be asked in the * Philippine Bar Exam regarding Commonwealth Act No. * as amended by R.A. No. * or the Public Service Act:
*. How does the Public Service Act define "public service" and what are the implications for foreign ownership in the sector?
*. What changes have been introduced in the regulation of public utilities under the amended Public Service Act?
*. How does the amendment affect the classification of industries as public services and utilities?
*. What are the legal consequences for violations of the provisions under the amended Public Service Act?
Let me know if you need more detailed information on any of these questions!
Concept: Taxation is the inherent power of a sovereign state, exercised through its legislature, to impose burdens or charges upon persons, properties, or rights within its jurisdiction for public purposes. It is a way by which the government raises revenue to finance its operations and provide essential public services. INHERENT MEANS EVEN WITHOUT A LAW? HOW TO RECONCILE THIS STATMENT WITH "EXERCISE THROUGHT ITS LEGILATURE"?
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Taxation is considered an inherent power because it is a fundamental ability of a sovereign state to govern and fund itself. However, exercising this power is typically done through laws created by the legislature. This ensures that taxation is applied fairly and systematically, aligning with legal procedures and public policy.
MEANING OF INHERENT POWER?
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Inherent power refers to the fundamental authority possessed by a government or entity that does not need to be granted by law. It is an essential capability that exists naturally, such as a state's power to tax, regulate, or enforce laws.
WHAT DOES NOT NEED TO BE GRANTED BY LAW? WHAT POWER? THE POWER TO TAX?
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The power to tax is considered an inherent power of the state, meaning it is a fundamental authority that exists naturally and does not need to be granted by law. However, the exercise of this power is typically regulated through laws created by the legislature to ensure fairness and adherence to legal procedures.
WHAT IS IN MY MIND, THE POWER TO TAX IS GRANTED BY CONGRESS
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The power to tax is an inherent power of the state, meaning it naturally exists and does not need specific laws to grant it. However, Congress exercises this power by passing tax laws to ensure it is applied fairly and systematically. Do you have any specific questions about taxation or related legal issues in Western Visayas?
Definition: Taxation can be defined as the act of levying a tax by the government on its inhabitants or their property. It is the process or system by which contributions are exacted by the sovereign from the persons and property within its jurisdiction for the support of the government and for all public needs. SIMPLIFY
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Simplified Definition: Taxation is when the government collects money from people and their property. This money supports government operations and public services.
a. The classification is based on substantial distinctions. b. It is germane to the purpose of the law. c. It is not limited to existing conditions only. d. It applies equally to all members of the same class. help me to understand this elements of reasonble classificaiton
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Here's a simplified explanation of the elements of reasonable classification:
- Substantial Distinctions: The classification must be based on genuine differences between groups.
- Purpose of the Law: The classification must relate directly to the law's purpose.
- Not Limited to Existing Conditions: It should accommodate future circumstances and changes.
- Equal Application: It must apply equally to all within the same group or class.
Let me know if you need more clarity or have other questions!
Substantial Distinctions: The classification must be based on genuine differences between groups. - Purpose of the Law: The classification must relate directly to the law's purpose. - Not Limited to Existing Conditions: It should accommodate future circumstances and changes. - Equal Application: It must apply equally to all within the same group or class. PROVIDE ME AN EXAMPLE
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An example of reasonable classification could be a law that provides tax exemptions only for small businesses with annual revenue below a certain threshold. This classification is based on substantial distinctions (small vs. large businesses), relates directly to the law's purpose (supporting small businesses), accommodates future changes (business growth), and applies equally to all qualifying small businesses.
Substantial Distinctions: The classification must be based on genuine differences between groups. - Purpose of the Law: The classification must relate directly to the law's purpose. - Not Limited to Existing Conditions: It should accommodate future circumstances and changes. - Equal Application: It must apply equally to all within the same group or class. illustrate each with a case law
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Here are some case laws illustrating the elements of reasonable classification:
*. Substantial Distinctions: In *Loving v. Virginia*, the classification of racial groups was deemed unconstitutional as it didn't serve a legitimate purpose.
*. Purpose of the Law: In *Railway Express Agency v. New York*, a classification related directly to traffic safety.
*. Not Limited to Existing Conditions: In *Griggs v. Duke Power Co.*, the law accommodated future changes by prohibiting discriminatory practices.
*. Equal Application: In *Brown v. Board of Education*, the equal application principle highlighted the unconstitutionality of segregated schools.
Let me know if you have more questions!
Substantial Distinctions: The classification must be based on genuine differences between groups. - Purpose of the Law: The classification must relate directly to the law's purpose. - Not Limited to Existing Conditions: It should accommodate future circumstances and changes. - Equal Application: It must apply equally to all within the same group or class. ILLUSTRATE BY GIVING A CASE LAW ON TAX
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Here's an example of reasonable classification in tax law:
*. Substantial Distinctions: *Regan v. Taxation with Representation of Washington* – Tax exemptions for veterans' organizations were based on genuine differences between groups, serving a legitimate purpose.
*. Purpose of the Law: *U.S. v. Maryland Savings-Share Insurance Corp.* – Classification related directly to the state's interest in promoting thrift and savings.
*. Not Limited to Existing Conditions: *Northwestern States Portland Cement Co. v. Minnesota* – Adapted to future business changes and interstate commerce.
*. Equal Application: *Welch v. Helvering* – Ensured equal application of tax deductions among taxpayers in similar situations.
Let me know if you need further details!
Substantial Distinctions: The classification must be based on genuine differences between groups. - Purpose of the Law: The classification must relate directly to the law's purpose. - Not Limited to Existing Conditions: It should accommodate future circumstances and changes. - Equal Application: It must apply equally to all within the same group or class. ILLUSTRATE BY GIVING A CASE LAW ON TAX IN THE PHILIPPINES
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In the Philippines, a relevant case illustrating reasonable classification in tax law is *CIR vs. Mitsubishi Corporation* (G.R. No. *, *).
- Substantial Distinctions: Differentiation between resident and non-resident foreign corporations for tax purposes.
- Purpose of the Law: To ensure fair taxation aligned with business presence in the Philippines.
- Not Limited to Existing Conditions: Adaptable to changes in business operations.
- Equal Application: Applies equally to all foreign corporations within each category.
Feel free to ask if you'd like more information!
What specific knowledge areas do you consider most critical to effectively perform your duties at your current rank. * please answer this I am a Chief of Police
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As a Chief of Police, the following knowledge areas are critical for effectively performing your duties:
- Leadership Skills: Managing and inspiring the police force.
- Criminal Law and Procedure: Understanding legal frameworks and enforcement.
- Crisis Management: Handling emergencies and public safety.
- Community Policing: Building trust and collaboration with the community.
- Ethical Standards: Upholding integrity and accountability.
If you have any specific questions or need further information, feel free to ask!
What appropriate operational skills should be prioritized in your level of training?
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For a Chief of Police, prioritizing operational skills involves focusing on:
- Leadership and Management: Guiding the police force effectively.
- Communication: Engaging with the community and stakeholders.
- Problem Solving: Addressing complex situations efficiently.
- Strategic Planning: Developing proactive policing strategies.
- Technological Proficiency: Utilizing modern tools for law enforcement.
If you have any specific questions about these areas or need more details, feel free to ask!
What challenges do you frequently encounter in performing your operational functions? emphasize the undiscipline patrolman
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As a Chief of Police, challenges with undisciplined patrolmen may include:
- Lack of Adherence to Protocols: Patrolmen might not follow established procedures, leading to operational inefficiencies.
- Accountability Issues: Difficulty in tracking and ensuring patrolmen are accountable for their actions.
- Training Gaps: Insufficient training might result in misunderstandings of duties.
- Morale and Motivation: Maintaining high morale and motivation among patrolmen can be challenging.
- Communication Barriers: Ineffective communication can lead to misunderstandings and operational errors.
Would you like to discuss any other specific challenges or need further information?
Which competencies should be strengthened through formal training at your rank?
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As a Chief of Police, strengthening the following competencies through formal training is essential:
- Leadership and Management: Enhance skills in leading and managing the police force effectively.
- Crisis Management: Improve handling of emergencies and public safety situations.
- Ethical Decision-Making: Develop a strong sense of integrity and ethical standards.
- Community Engagement: Foster better communication and collaboration with the community.
- Legal Knowledge: Deepen understanding of criminal law and procedures.
Feel free to ask if you need more details on any of these areas!
What do you expect to gain from this Operations Course?
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As a Chief of Police, attending an Operations Course could help you gain:
- Enhanced leadership and management skills.
- Strategies for effective crisis management.
- Improved communication techniques with the community.
- Advanced understanding of operational protocols.
- Insight into modern technological tools for policing.
Is there anything else specific you would like to know about the course or its benefits?
What topics are you expecting to learn from this Operations Course?
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From the Operations Course, you might expect to learn:
- Modern policing strategies and tactics.
- Efficient resource management.
- Crisis response and emergency planning.
- Advanced communication skills with stakeholders.
- Integration of technology in law enforcement operations.
If you have specific topics you're interested in, feel free to share!
What specific challenges do you currently face in your role as an Operations Officer that you hope this course will help address?
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As an Operations Officer, you might face challenges such as:
- Streamlining operational processes.
- Managing logistics and resource allocation.
- Ensuring effective communication within teams.
- Adapting to technological advancements.
- Addressing training and development needs.
Do you have any specific challenges you're hoping to address in the course?
Is there anything specific topic or subject you would like the course to focus on?
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It seems you're interested in an Operations Course, perhaps related to policing or legal operations. Could you specify if there are particular topics or subjects within these fields that you'd like the course to focus on? This will help tailor the course content to your needs.
*. This pertains to the Annual Fiesta Celebration wherein Guihulngan City celebrates its town fiesta, which is also known as the Carabel Festival. The festival is often associated with a story about a bell that saved the lives of the town's residents from Moro pirates. The Fiesta celebration activities commenced on May *, * until May *, *. *. In connection with the above reference, may I respectfully request from your good office for an augmentation of Two (*) teams to be augmented at Guihulngan City Police Station for additional force to be deployed on May * and *, * to ensure the safety and security of the people enjoying the festivities. CHECK GRAMMAR AND IMPROVE SOME IDEAS
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Here's an improved version of the request:
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Subject: Request for Police Augmentation during Carabel Festival
Dear [Recipient's Name or Title],
I am writing to request the deployment of two additional police teams at Guihulngan City Police Station during the Annual Fiesta Celebration, known as the Carabel Festival, from May *-*, *. This festival, which celebrates the historical tale of a bell saving our town from Moro pirates, attracts numerous visitors. To ensure the safety and security of all participants, we seek your assistance in reinforcing our local police force during these critical days.
Thank you for your attention and support.
Sincerely,
[Your Name or Position]
No, can you provide a Memorandum type
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Certainly! Here's a memorandum format for your request:
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MEMORANDUM
To: [Recipient's Name or Title]
From: [Your Name or Position]
Date: [Today's Date]
Subject: Request for Police Augmentation during Carabel Festival
Introduction:
This memorandum serves to request additional police support during Guihulngan City's Annual Fiesta Celebration, specifically known as the Carabel Festival.
Background:
The Carabel Festival, celebrated from May * to May *, *, commemorates the historic event where a bell saved the town's residents from Moro pirates. The festival attracts a significant number of visitors, increasing the need for heightened security measures.
Request for Augmentation:
To ensure the safety and order during the festival, we respectfully request the deployment of two additional police teams to Guihulngan City Police Station on May * and *, *.
Conclusion:
Your assistance in reinforcing our police force during this period is crucial for the successful and secure execution of the festival activities. We appreciate your prompt attention to this matter.
Sincerely,
[Your Name or Position]
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Feel free to adjust any specific details as needed!
The Rules of Evidence do not strictly apply to election cases, land registration and cadastral cases, naturalization proceedings, and insolvency proceedings primarily because these are considered special proceedings with their own specific rules and objectives that often necessitate a more flexible approach to fact-finding than the strict adversarial framework of ordinary civil or criminal actions. SIMPLIFY
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Simplified Explanation: Special proceedings like election cases, land registration, naturalization, and insolvency have unique rules. They don't strictly follow standard evidence rules because they aim for flexibility in finding facts, unlike typical civil or criminal cases which follow strict procedures.
Illustrate
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Special proceedings, such as election cases, land registration, naturalization, and insolvency, operate with unique rules that allow for flexibility in fact-finding. They differ from ordinary civil or criminal cases, which strictly adhere to standard evidence rules.
Lifeblood Doctrine (also known as the Necessity Theory): The Lifeblood Doctrine asserts that taxes are the lifeblood of the government and their prompt and certain availability is an imperious need. Without revenue raised from taxation, the government cannot effectively perform its functions of serving and protecting its citizens. This doctrine underscores the importance and indispensability of taxation to the very existence and functioning of the State.* SIMPLIFY
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Simplified Explanation: The Lifeblood Doctrine emphasizes that taxes are essential for government operations. Without tax revenue, the government can't serve and protect its citizens. Taxes are crucial for the state's existence and functioning.
This doctrine underscores the importance and indispensability of taxation to the very existence and functioning of the State. SIMPLIFY
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Simplified Explanation: Taxation is vital for a government to operate and support its citizens. Without taxes, the state can't function or exist effectively.
*. Imprescriptibility of Taxes: Generally, the right of the government to assess and collect taxes does not prescribe (unless explicitly provided by law).* This is because the State's need for revenue is continuous and essential for its survival. Allowing tax obligations to be extinguished by mere lapse of time would cripple the government's ability to fund public services. SIMPLIFY
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Simplified Explanation: Taxes don't expire over time unless a law says so. This is because the government always needs money to function. If tax debts could disappear over time, the government wouldn't be able to provide public services.
*. Imprescriptibility of Taxes: Generally, taxes (Assessment and Collection) do not prescribe, unless expressly provided by law. Allowing tax obligations to be extinguished by mere lapse of time, the government would not be able to deliver essential public services. WHAT ARE EXCEPTION ON THIS?
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Exceptions to the imprescriptibility of taxes generally involve specific laws that set time limits on tax assessment and collection. In the Philippines, examples include:
- Tax Code Provisions: Certain periods for assessment and collection are set under the National Internal Revenue Code.
- Prescription Periods: If a law specifies a time limit for action, taxes can prescribe after this period.

This ensures a balance between state power and taxpayer rights.
CAN YOU PROVIDE DETAILS OF THIS PRESCROPTION PERIOD
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In the Philippines, the prescriptive periods for tax assessment and collection are detailed in the National Internal Revenue Code (NIRC):
- Assessment: Generally, the Bureau of Internal Revenue (BIR) has three years from the last day prescribed by law for the filing of the return, or from the day the return was filed if filed later, to assess taxes.

- Collection: The BIR has five years from the date of assessment to collect the assessed taxes.
These periods can vary based on specific circumstances, such as fraud or failure to file a return.