Practice question
A company has a lawful tax liability and a separate contested claim against the government. It announces that fairness allows it to withhold taxes until that litigation ends. Which is correct?
- Any lawsuit suspends all tax duties
- The dispute does not itself permit unilateral withholding; the taxpayer must use applicable legal remedies
- Only private preference determines payment
- The claim automatically becomes a tax credit
- All government claims disappear when sued
Legal references
- https://lawphil.net/judjuris/juri1988/feb1988/gr_l-28896_1988.html — CIR v. Algue, Inc., G.R. No. L-28896, February 17, 1988, main opinion
- https://lawphil.net/judjuris/juri1998/aug1998/gr_125704_1998.html — Philex Mining v. CIR, G.R. No. 125704, August 28, 1998, main opinion
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