Practice question
A taxpayer offers 5% of a P600,000 basic assessed tax on an established financial-incapacity ground. Which statement is correct regarding the offer's rate?
- It must be accepted because inability to pay is alleged.
- It needs no Board approval because the tax is below P1 million.
- Five percent is the statutory ordinary minimum.
- A below-minimum offer can never be considered under Section 204.
- The below-minimum offer requires Evaluation Board approval; it is not automatically an approved settlement.
Legal references
- NIRC, Section 204(A); https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
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