Practice question
A business deliberately buys fabricated expense invoices, records nonexistent purchases and knowingly claims deductions to pay less tax than legally due. It calls the paperwork tax planning. Which is strongest under Toda?
- Any signed invoice is conclusive lawful avoidance
- The known tax reduction, deliberate state of mind and unlawful false-invoice course fit the evasion formulation
- A nonexistent purchase is automatically deductible
- Only transaction timing can matter
- Naming the activity planning eliminates illegality
Legal references
- CIR v. Estate of Benigno P. Toda, Jr., G.R. No. 147188, September 14, 2004, main decision: https://lawphil.net/judjuris/juri2004/sep2004/gr_147188_2004.html
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