Practice question
A taxpayer relied in good faith on a BIR ruling while it operated. The BIR later reverses it and seeks prejudicial retroactive application. Facts are unchanged, no deliberate material misstatement or omission exists, and bad faith is absent. What is the Section246 starting rule?
- The adverse change is not given retroactive application on those stipulated facts
- Every reversal is automatically retroactive despite the statute
- Good faith itself creates the bad-faith exception
- The original ruling permanently overrides all future laws
- Every taxpayer may choose any ruling ever issued without regard to facts
Legal references
- NIRC under RA8424, relevant unchanged provisions: https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html Section246.
- CIR v. G&W Architects, GR246026, April21 2026, Dimaampao MAIN: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/70567 MAIN Section246(b) materially-different-facts exception, before the main dispositive portion.
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