Practice question
A purchaser merely reimburses a seller’s indirect-tax cost in the price. It invokes Smart to call itself a withholding agent, although no withholding obligation or agency of the relevant kind exists and no special refund right applies. Which distinction controls?
- Every reimbursement creates withholding agency
- Smart concerns a legally responsible withholding agent; a purchaser bearing an indirect-tax cost does not acquire that status by relabeling
- All purchases are tax-free
- A private label amends the NIRC
- The purchaser becomes the government’s tax assessor
Legal references
- CIR v. Smart Communication, G.R. 179045-46, August 25, 2010: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/54268
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