Practice question
A government agency argues that its exemption from taxes on its election-equipment procurement necessarily eliminates withholding on income paid to a taxable private supplier. What principle from CIR v COMELEC answers that argument?
- The agency’s own exemption is distinct from its collection duty on taxable income paid to the supplier
- Every exempt buyer makes its suppliers exempt
- A procurement exemption changes private suppliers into government instrumentalities
- Government agencies can never be withholding agents
- Any withholding would necessarily tax the exempt agency’s own income
Legal references
- CIR v COMELEC, G.R. Nos.244155 and247508, May11,2021 MAIN: https://lawphil.net/judjuris/juri2021/may2021/gr_244155_2021.html MAIN discussion of COMELEC’s exemption and taxable Smartmatic/Avante income.
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