Practice question
A business deliberately omits taxable sales from its books and return to pay less than it knows is due. Which conclusion is best?
- Calling it planning makes it lawful
- Payment of some tax necessarily cures the concealment
- A private memorandum can authorize the omission
- All understatements are necessarily innocent
- The intentional unlawful omission supports tax evasion rather than lawful avoidance
Legal references
- CIR v. Estate of Toda, G.R. 147188, September 14, 2004: https://lawphil.net/judjuris/juri2004/sep2004/gr_147188_2004.html
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