Practice question
The CIR seeks relevant ordinary business invoices from a third party under Section5 to verify a taxpayer's return. The third party says the information power can never concern anyone other than the taxpayer. No bank-secrecy issue is involved. Which is best?
- Section5 includes obtaining relevant information from persons other than the taxpayer, subject to its governing conditions.
- Only the taxpayer's self-selected documents may ever be obtained.
- All third-party information is categorically excluded by the Code.
- The CIR must enact a new tax before asking for invoices.
- A third party automatically determines the amount of tax by refusing.
Legal references
- NIRC, Sections 5-7,22-23 and32, as enacted in RA8424 and subject to the cited later amendments: https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
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