Practice question
A business hires an accountant to prepare withholding records but leaves required statements and annual reporting undone. It says the private bookkeeping arrangement by itself removes its statutory agent duties. Which is best?
- Outsourcing preparation does not itself eliminate the obligations imposed on the withholding agent.
- Every private accounting contract automatically substitutes a new statutory taxpayer.
- The recipient must now remit the business's entire withholding fund.
- Record preparation is prohibited unless the owner does it personally.
- The agent becomes exempt because its accountant is licensed.
Legal references
- NIRC Sections57-58,105-106 and110: https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
- RA11976, Sections9-10, current NIRC58(E) credit/refund conditions and trust-fund rule: https://lawphil.net/statutes/repacts/ra2024/ra_11976_2024.html
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