Practice question
An agent keeps withheld tax in a separate account and says this alone permits indefinite nonremittance and omission of all returns and statements. Which answer applies the combined duties?
- A separate account creates permanent immunity from every remittance duty.
- Separate holding protects the trust fund but does not replace timely remittance, returns and required recipient statements.
- Withheld funds become the agent's property after being segregated.
- Only mixing the money with inventory funds would trigger reporting.
- The recipient's statement must always be destroyed before filing.
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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