Practice question
A VAT-registered corporation changes only its corporate name while the same entity retains its assets and continues the same business. Does that name change alone create a deemed sale of all inventory under the status regulation?
- Yes, every new name is a new owner
- Yes, all inventory must be sold for cash
- Only if customers dislike the name
- Only the printer decides
- No; the regulation distinguishes a corporate-name change from a taxable disposal
Legal references
- BIR RR 16-2005, Sections 4.106-7 and 4.106-8, read with RR 4-2007 and later statutes: https://bir-cdn.bir.gov.ph/BIR/pdf/26116rr16-2005.pdf
- BIR RR 4-2007, amendments to deemed-sale and VAT-status rules: https://bir-cdn.bir.gov.ph/BIR/pdf/33868rr%20no.%204-2007.pdf
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