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Philippine Bar review · Question

Practice question: Distraint (Actual and Constructive) and Levy

Multiple Choice Easy

Practice question

What is constructive distraint’s principal protective effect under Section 206?
  1. Automatic transfer of ownership to the government
  2. Immediate auction without further procedure
  3. Automatic forgiveness of tax
  4. Preservation of the covered property intact and restriction on disposal without the required authority
  5. An unrestricted right to sell the property privately

Legal references

  • NIRC Section 206: https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html

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