Practice question
A withholding agent brings a proper claim concerning erroneously paid final withholding. The authority objects solely that agent and foreign payee are unrelated entities. Which point from Smart is relevant?
- Only a wholly owned subsidiary can ever be a withholding agent.
- The absence of a parent-subsidiary relationship alone did not defeat the withholding agent's standing to claim.
- Unrelated parties automatically make every final tax refundable.
- The agent may retain every refund without regard to the payee's rights.
- A final-tax refund claim eliminates all procedural requirements.
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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