Practice question
A Notice of Discrepancy identifies audit discrepancies and invites the taxpayer to explain with supporting documents. The taxpayer calls it already a final court judgment establishing delinquency. Which response best fits its role?
- It is a final judgment from the Supreme Court
- It automatically approves every proposed adjustment
- It is a preliminary discrepancy-stage notice affording an opportunity to explain, rather than itself a final judicial determination
- It permanently exempts the taxpayer from audit
- It is a private contract
Legal references
- RMC102-2020, Notice of Discrepancy pursuant to RR22-2020: https://bir-cdn.bir.gov.ph/local/pdf/RMC%20No.%20102-2020%20%281%29.pdf
- RMO1-2026, assessment guidelines: https://bir-cdn.bir.gov.ph/BIR/pdf/RMO%20No.%201-2026.pdf
Answer this question in flashcards to review your response and continue practicing.