Practice question
A final demand gives only a lump-sum deficiency and penalty total. No accompanying schedule or later written explanation supplies the taxable transactions, computation or applicable legal basis, and the taxpayer cannot intelligently protest. The BIR relies solely on an earlier oral conversation with an employee. Which is correct?
- The oral conversation necessarily replaces all written requirements
- The total alone conclusively proves a valid assessment
- The taxpayer must invent the BIR’s legal theory
- The assessment is defective for failure to supply the mandatory written factual and legal bases
- The defect automatically becomes an RPT valuation appeal
Legal references
- https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html — NIRC, section 228
- https://lawphil.net/judjuris/juri2016/nov2016/gr_215957_2016.html — CIR v. Fitness By Design, Inc., G.R. No. 215957, November 9, 2016
- https://lawphil.net/judjuris/juri2018/oct2018/gr_201398-99_2018.html — CIR v. Avon Products Manufacturing, Inc., G.R. Nos. 201398-99 and 201418-19, October 3, 2018
- https://bir-cdn.bir.gov.ph/BIR/pdf/RMO%20No.%201-2026.pdf — RMO 1-2026, section IX(C), page 12
Answer this question in flashcards to review your response and continue practicing.