Practice question
A corporation makes payments covered by a valid withholding requirement. It decides to pay recipients the entire gross amount and tells them to pay their own taxes, arguing that private payment instructions can replace the withholding system's collection safeguards. Assume no statutory exception or compliance fact alters the duty. Is its rationale sufficient?
- No; the recipients' separate tax obligations do not by themselves displace the corporation's legally imposed withholding duty
- Yes, every private agreement overrides withholding law
- Yes, the duty exists only when recipients consent
- Yes, withholding is merely an optional accounting preference
- No, because the corporation automatically owns all recipients' income
Legal references
- NIRC Sections57–58, as amended by RA11976: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/96948
- PSE v. Secretary of Finance, GR213860, July5 2022, main decision: https://lawphil.net/judjuris/juri2022/jul2022/gr_213860_2022.html
- CIR v. COMELEC, GR244155 and247508, May11 2021, main decision: https://lawphil.net/judjuris/juri2021/may2021/gr_244155_2021.html
- CIR v. G&W Architects, GR246026, April21 2026, main decision: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/70567
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