Practice question
A professional says that requiring a designated client to withhold makes no administrative sense because the professional will eventually file an income-tax return. Which answer best explains the rationale?
- Withholding ensures the client never remits anything
- Withholding proves the professional is exempt
- Withholding permits arbitrary rates
- Collection at source helps secure payment and provides a convenient advance means of meeting probable liability
- Every professional payment must be a final tax
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
Answer this question in flashcards to review your response and continue practicing.