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Philippine Bar review · Question

Practice question: Compromise and Tax Amnesty

Multiple Choice Hard

Practice question

A taxpayer is prosecuted in court for a criminal tax violation involving fraud. It tenders a proposed compromise payment and argues that the CIR's general compromise power automatically terminates the prosecution. Which conclusion is correct?
  1. The prosecution automatically ends upon tender.
  2. The argument fails because Section 204 excludes both court-filed criminal violations and those involving fraud.
  3. The taxpayer may compel dismissal by choosing a payment rate.
  4. Only the amount of the alleged deficiency matters.
  5. The exclusion disappears if the taxpayer calls its offer an amnesty.

Legal references

  • NIRC, Section 204(A); https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html

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