Practice question
Company A holds a valid tax credit certificate and proposes applying it to unrelated Company B’s tax solely because their owners are friends. No lawful transfer or special authority exists. Does Section 204(C)’s direct-liability condition support that proposal?
- Yes, friendship is enough
- Yes, every certificate pays any person’s tax
- Yes, all corporations are interchangeable
- No; the stated liability is not A’s direct tax liability
- No certificate may ever be used
Legal references
- RA 11976, Section 31, amended NIRC Section 204(C): https://lawphil.net/statutes/repacts/ra2024/ra_11976_2024.html
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