A designated payor argues that withholding is… - MCQ

Multiple Choice Medium Jurisprudence

Practice question

A designated payor argues that withholding is pointless because the income economically belongs to the recipient. What is the best answer?

The payor must own the income before withholding can apply
The recipient ceases to be the income taxpayer
The payor may keep withheld amounts as profit
Only voluntary payments may be withheld
The recipient's income-tax status is compatible with a separate statutory collection duty imposed on the payor

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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