Practice question
The BIR concedes that its income estimate has no reliable factual support but invokes the presumption of correctness as its entire defense. What is correct?
- The presumption creates missing transactions
- Every estimate is necessarily void
- The taxpayer must disprove every imaginary receipt
- The assessment becomes valid if typed on official paper
- The presumption cannot cure an assessment utterly without foundation
Legal references
- NIRC Sections5–6,13 and228: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/3896
- CIR v. Hantex Trading, GR136975, March31 2005, main decision: https://lawphil.net/judjuris/juri2005/mar2005/gr_136975_2005.html
- CIR v. Spouses Magaan, GR232663, May3 2021, main decision: https://lawphil.net/judjuris/juri2021/may2021/gr_232663_2021.html
- CIR v. Elric Auxiliary Services, GR226945, February19 2026, main decision: https://lawphil.net/judjuris/juri2026/feb2026/gr_226945_2026.html
Answer this question in flashcards to review your response and continue practicing.