Taxation, 2013 Bar — Question MC-VIII

MULTIPLE CHOICE

XYZ Corporation manufactures glass panels and is almost at the point of insolvency. It has no more cash and all it has are unsold glass panels. It received an assessment from the BIR for deficiency income taxes. It wants to pay but due to lack of cash, it seeks permission to pay in kind with glass panels. Should the BIR grant the requested permission? (1%) (A) It should grant permission to make payment convenient to taxpayers. (B) It should not grant permission because a tax is generally a pecuniary burden. (C) It should grant permission; otherwise, XYZ Corporation would not be able to pay (D) It should not grant permission because the government does not have the storage facilities for glass panels.

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