Practice question
A revenue officer finds a genuine unresolved ambiguity in a tax-imposing provision and argues that the strict-against-exemption rule necessarily creates the tax. Which is correct?
- Every ambiguity must create more tax
- Exemption and imposition are identical questions
- The officer may ignore the imposing statute
- All taxpayers are automatically exempt
- The existence of the imposition must be resolved first; the exemption rule does not supply missing clear taxing language
Legal references
- https://lawphil.net/judjuris/juri1998/jul1998/gr_117359_1998.html — Davao Gulf Lumber v. CIR, G.R. No. 117359, July 23, 1998, main opinion
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