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Philippine Bar review · Question

Practice question: Tax Avoidance and Tax Evasion

Multiple Choice Easy

Practice question

Which statement best reflects Toda’s treatment of changing a transaction’s structure to reduce tax?
  1. Every restructuring is criminal
  2. No restructuring may ever be reviewed
  3. Only a same-day transaction can save tax
  4. It is not unlawful merely because it lowers tax if done legally
  5. The taxpayer may falsify any supporting fact

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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