Practice question
A VAT-registered business is shown to have understated correct taxable quarterly sales by twenty percent. No other Section 115 violation or special ground exists. Does that fact alone meet Section 115(a)(3)’s threshold?
- Yes, because every understatement meets the same threshold
- Yes, because VAT registration removes the percentage requirement
- No; twenty percent is below the specified thirty-percent-or-more threshold
- No tax can ever be assessed on the discrepancy
- The business is permanently exempt
Legal references
- NIRC Section 115(a)(3): https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
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