Practice question
A taxpayer offers 40% of a P2 million basic assessed tax in a doubtful-validity compromise. It argues that meeting the ordinary minimum removes the need for Evaluation Board approval. Is it correct?
- Yes, because the rate always overrides the amount threshold.
- Yes, because only offers below 10% need approval.
- Yes, because doubtful validity eliminates all approval requirements.
- No. The basic tax exceeds P1 million, independently triggering Board approval.
- No, because compromise is never legally possible.
Legal references
- NIRC, Section 204(A); https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
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