Practice question
A return claims PHP140,000 deductions when actual allowable deductions are PHP100,000. For 248(B)'s stated deduction-overstatement test, which is correct?
- The excess is 4% of actual deductions.
- There is no excess.
- Only the taxpayer's age supplies the denominator.
- Every deduction claim conclusively proves fraud.
- The PHP40,000 excess is 40% of actual deductions and exceeds 30%.
Legal references
- NIRC Sections204,206-208,222-223 and248-249, as applicable and amended: https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
- RA11976 Sections41 and45, EOPT surcharge and specified concessions: https://lawphil.net/statutes/repacts/ra2024/ra_11976_2024.html
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