Practice question
Why is a proposed compromise penalty different from a civil surcharge imposed by law?
- Both arise solely from a private invoice
- A compromise penalty rests on a valid compromise agreement in lieu of prosecution
- A surcharge requires the taxpayer’s personal offer
- Neither has any legal basis
- A compromise penalty is a court acquittal
Legal references
- BIR RMC3-2022, official full text, separate compromise-penalty notice: https://bir-cdn.bir.gov.ph/BIR/pdf/RMC%20No.%203-2022%20FT.pdf
- NIRC Sections 204, 228 and 253, read with EOPT amendments: https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
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