Practice question
The BIR annualizes sales from a short operating period, but reliable undisputed records show the business was closed for most of the year. It refuses to consider the closure. Which is correct?
- The extrapolation is irrebuttable
- The closure evidence must be assessed because the annualization still must be reasonable
- Closure records are always irrelevant
- A short sample proves continuous operations conclusively
- The taxpayer must manufacture sales during closure
Legal references
- CIR v. Elric Auxiliary Services Corporation, G.R. No. 226945, February 19, 2026, main decision: https://lawphil.net/judjuris/juri2026/feb2026/gr_226945_2026.html
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