Practice question
The CTA considers security for principal deficiency of PHP2million, of which PHP500,000 is established already paid; separate additions total PHP700,000. Applying only Pacquiao’s base adjustments and assuming security remains required, what principal amount remains before any permitted multiplier?
- PHP1.5million
- PHP2.7million
- PHP2million regardless of payment
- PHP3.2million
- Zero because any partial payment cancels all tax
Legal references
- Spouses Pacquiao v CTA GR213394 April6,2016 MAIN: https://lawphil.net/judjuris/juri2016/apr2016/gr_213394_2016.html MAIN preliminary inquiry and security computation.
- RA9282 amending RA1125: https://lawphil.net/statutes/repacts/ra2004/ra_9282_2004.html Section11 as amended.
- NIRC: https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html Section218 national collection restriction.
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