Practice question
The BIR asserts that a micro taxpayer's interest-rate concession automatically cancels half of the assessed principal. Classification and eligibility for the concession are established. The taxpayer agrees and pays only half the principal. Which analysis is correct?
- The concession reduces the interest rate, not the principal tax merely by operation of Section 45(c).
- The taxpayer's interpretation is necessarily correct.
- Every small taxpayer owes no principal tax.
- A rate reduction converts all tax into a voluntary contribution.
- The concession applies only when the principal is doubled first.
Legal references
- NIRC Section249(A)–(B), as amended by RA10963 Section75; https://lawphil.net/statutes/repacts/ra2017/ra_10963_2017.html
- RA11976 Section45(c), micro and small taxpayer concession; https://lawphil.net/statutes/repacts/ra2024/ra_11976_2024.html
Answer this question in flashcards to review your response and continue practicing.