Practice question
An exempt purchaser acquired covered machinery and later sold it to a nonexempt buyer. The authority relies on Section228(e) to omit the PAN, but supplies a final demand with no written law or facts. The taxpayer says these are separate issues. Which is correct?
- The article-transfer exception may dispense with the PAN, while the written-bases requirement still must be met
- A valid exception necessarily validates every final-demand defect
- An exempt seller’s transfer can never fall within228(e)
- The buyer’s nonexempt status eliminates every right to written explanation
- Only the document’s title matters
Legal references
- NIRC RA8424, Sections203,222–223 and228: https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html Section228(c)–(e), specific PAN exceptions.
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