Practice question
A taxpayer validly applies a P500,000 certificate against an eligible P800,000 tax liability under applicable rules. No other credit exists. Does authorized use of the certificate extinguish the remaining P300,000?
- Yes, any certificate erases all taxes
- Yes, partial credit always means full payment
- Only the taxpayer’s preference matters
- The refund application alone decides
- No; only P500,000 was covered, leaving P300,000 to be settled
Legal references
- RA 11976, Section 31, amended NIRC Section 204(C): https://lawphil.net/statutes/repacts/ra2024/ra_11976_2024.html
- Philex Mining Corporation v. CIR, G.R. No. 125704, August 28, 1998, main decision: https://lawphil.net/judjuris/juri1998/aug1998/gr_125704_1998.html
Answer this question in flashcards to review your response and continue practicing.