Practice question
All substantive requirements of an amended Section 40(C)(2) exchange are proved. A collector denies nonrecognition solely because no prior BIR confirmation or ruling was obtained. What does the amendment provide?
- A ruling is always indispensable
- Only informal approval from any bank suffices
- The parties may ignore every substantive condition
- A ruling automatically cures a sham exchange
- Prior BIR confirmation or a tax ruling is not required for the stated qualifying exchanges
Legal references
- RA 11534, Section 10, amended NIRC Section 40(C)(2) and (6): https://lawphil.net/statutes/repacts/ra2021/ra_11534_2021.html
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