Chanon, Inc. is a supplier of office equipments to the government. The company has recently delivered P2,000,000 worth of equipments but remains unpaid as of date. Yesterday, the company received a Final Assessment Notice from the Bureau of Internal Revenue for deficiency taxes and penalties amounting to P2,000,000. Can Chanon opt not to pay BIR? Yes, as the claim against the government arose first. Yes, as the receivable and the tax liability can be set-off as the other party is also the government. No, as Chanon can still avail of its judicial remedies. No, as Chanon's claim is a debt and the government's claim is taxes. These cannot be set-off.
Chanon, Inc. is a supplier of office equipments to the government. The company has recently delivered P2,000,000 worth of equipments but remains unpaid as of date. Yesterday, the company received a Final Assessment Notice from the Bureau of Internal Revenue for deficiency taxes and penalties amounting to P2,000,000. Can Chanon opt not to pay BIR? Yes, as the claim against the government arose first. Yes, as the receivable and the tax liability can be set-off as the other party is also the government. No, as Chanon can still avail of its judicial remedies. No, as Chanon's claim is a debt and the government's claim is taxes. These cannot be set-off.
Chapter26: Tax Practice And Ethics
Section: Chapter Questions
Problem 29P
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Chanon, Inc. is a supplier of office equipments to the government. The company has recently delivered P2,000,000 worth of equipments but remains unpaid as of date. Yesterday, the company received a Final Assessment Notice from the Bureau of Internal Revenue for deficiency taxes and penalties amounting to P2,000,000. Can Chanon opt not to pay BIR?
Yes, as the claim against the government arose first.
Yes, as the receivable and the tax liability can be set-off as the other party is also the government.
No, as Chanon can still avail of its judicial remedies.
No, as Chanon's claim is a debt and the government's claim is taxes. These cannot be set-off.
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