Practice question
The BIR includes a suggested compromise penalty in a demand. The taxpayer expressly refuses it, and no agreement exists. Does inclusion alone make that compromise amount compulsory?
- Yes, any printed amount is automatically binding
- Yes, refusal proves acceptance
- Yes, the schedule replaces consent
- No; the suggested compromise cannot be unilaterally exacted absent the required agreement
- No, because the underlying tax must therefore also be cancelled
Legal references
- RA11976, Section45: https://lawphil.net/statutes/repacts/ra2024/ra_11976_2024.html
- BIR RR6-2024, reduced penalties for micro and small taxpayers: https://bir-cdn.bir.gov.ph/BIR/pdf/RR%206-2024%20(final).pdf
- BIR RMO7-2015, compromise penalty schedule and voluntary settlement rule: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/10/69577
- La Flor Dela Isabela v. CIR, GR202105, April28 2021, main decision: https://lawphil.net/judjuris/juri2021/apr2021/gr_202105_2021.html
Answer this question in flashcards to review your response and continue practicing.