Practice question
A taxpayer makes a genuine qualifying investment, discloses the facts accurately and satisfies an expressly available tax incentive. Its purpose includes saving tax. Which conclusion best follows Toda’s distinction?
- The tax-saving purpose alone does not convert the lawful arrangement into evasion
- Every incentive election is fraudulent
- All investments are tax free regardless of conditions
- Disclosure makes every illegal scheme lawful
- Tax savings alone require criminal conviction
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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