Practice question
A shareholder personally holds a disputed procurement claim against the national government. Her corporation separately owes internal revenue tax. She directs the corporation to stop payment because she owns all its shares. Which is sound?
- Her ownership neither establishes a liquidated corporate government credit nor authorizes unilateral tax compensation
- Sole ownership merges every personal and corporate claim
- Any government contract claim automatically pays corporate taxes
- The shareholder may set aside all tax deadlines
- A disputed claim is always equivalent to a valid certificate
Legal references
- Philex Mining Corporation v. CIR, G.R. No. 125704, August 28, 1998, main decision: https://lawphil.net/judjuris/juri1998/aug1998/gr_125704_1998.html
- Francia v. Intermediate Appellate Court, G.R. No. L-67649, June 28, 1988, main decision: https://lawphil.net/judjuris/juri1988/jun1988/gr_l-67649_1988.html
- RA 11976, Section 31, amended NIRC Section 204(C): https://lawphil.net/statutes/repacts/ra2024/ra_11976_2024.html
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