Practice question
A taxpayer proves a previously deducted CWT amount remains legally available and was declared in the return reporting its corresponding income. All other applicable credit conditions are satisfied. The collector rejects it solely because withholding occurred in an earlier fiscal year. Which provision must be considered?
- The previous-period credit provision in amended58(E).
- A universal rule that all CWT becomes final tax after one year.
- A rule that every prior tax return must be ignored.
- A private agreement replacing the Code.
- A prohibition on reporting gross income.
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
- CIR v. Smart Communications, G.R.Nos.179045-46, August25,2010, main decision: https://lawphil.net/judjuris/juri2010/aug2010/gr_179045-46_2010.html
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