Taxation, 2013 Bar — Question MC-V

MULTIPLE CHOICE

Mr. Alvarez is in the retail business. He received a deficiency tax assessment from the BIR containing only the computation of the deficiency tax and the penalties, without any explanation of the factual and legal bases for the assessment. Is the assessment valid? (1%) (A) The assessment is valid; all that Mr. Alvarez has to know is the amount of the tax. (B) The assessment is invalid; the law requires a statement of the facts and the law upon which the assessment is based (Section 228, NIRC, as amended). (C) The assessment is valid but Mr. Alvarez can still contest it. (D) The assessment is invalid because Mr. Alvarez has no way to determine if the computation is erroneous.

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