Mr. Reyes has a tax liability of ₱100, 000. In order to evade the payment of the tax liability, he executed a deed of sale of his only parcel of land valued for ₱100, 000.00 in favor of his brother, Pablo. The deed of sale stated a purchase price of ₱20, 000.00 but the BIR has evidence that said price had never been paid.

Question

Quizplus · Accepted Answer

The BIR can levy upon the land without needing to annul the sale first, as the Tax Code provides the authority to collect taxes due by levying the taxpayer's property, regardless of any attempts to evade payment through transactions like the one described.

Mr Reyes Has a Tax Liability of ₱100, 000