Practice question
A VAT-registered taxpayer's correct taxable quarterly sales are PHP1 million, but it declares PHP700,000. For 115(a)(3)'s numerical closure ground, what understatement percentage results?
- 3%.
- 70% understatement merely because 70% was reported.
- Zero.
- 30% of correct taxable quarterly sales.
- The taxpayer's annual headcount percentage.
Legal references
- NIRC Sections208-210,215-219: https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
- RA12023 Section9, amended NIRC115: https://lawphil.net/statutes/repacts/ra2024/ra_12023_2024.html
- CIR v. Elric Auxiliary Services Corporation, G.R.226945, February19,2026, MAIN decision: https://lawphil.net/judjuris/juri2026/feb2026/gr_226945_2026.html
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